Financial Statements. The National Association for the Relief of Paget's Disease. For the Year Ended 31 December 2014 CHAMPION ACCOUNTANTS LLP

Transcription

1 Financial Statements For the Year Ended 31 December 2014 Charity Number CHAMPION ACCOUNTANTS LLP 1 Worsley Court High Street Worsley Manchester M28 3NJ

2 Financial Statements CONTENTS PAGE Members of the Board and professional advisers 1 Trustees Annual Report 2-7 Independent Examiner's Report to the Members 8 Statement of Financial Activities (Incorporating the income and expenditure account) 9 Balance Sheet 10 Notes to the Financial Statements 11-17

3 Members of the Board and Professional Advisers Registered Charity Name The National Association for the Relief of Paget's Charity Number Registered Office Suite 5, Moorfield House, Moorside Road, Swinton, Manchester, M27 0EW. Patrons Honorary Patrons Trustees The Lord Stamp MD FRCP Lt. Col. Sir Julian Paget Bt CVO Mr Henry Paget Mr Recardo Patrick Mr Ron Taft Mrs Joyce Cupitt Professor Graham Russell - Honorary President Professor Roger Francis - Chairman Dr. Stephen Tuck Vice-Chairman Mr Nigel Copeland Professor William Fraser Mrs Janet Strang Dr. Michael Stone Mr Michael Missett Dr. Lynne Hocking Mr Peter Jones Mrs Ingrid Pryor Independent Examiner Bankers M Turner FCA 1 Worsley Court High Street Worsley Manchester M28 3NJ Barclays Bank Plc 1 Bolton Road Walkden Branch Worsley Manchester M28 6NJ - 1 -

4 Trustees Annual Report The Trustees, who are also directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December REFERENCE AND ADMINISTRATIVE DETAILS Reference and administrative details are shown in the schedule of members of the board and professional advisers on pages 1 to 2 of the financial statements. THE TRUSTEES The Trustees who served the charity during the period were as follows: Professor Graham Russell - Honorary President Professor Roger Francis Chairman Dr. Stephen Tuck - Vice Chairman Dr David Hosking Mrs Joyce Cupitt Mr Nigel Copeland Professor William Fraser Mrs Janet Strang Dr. Michael Stone Mr Michael Missett Dr. Lynne Hocking Mr Peter Jones Mrs Ingrid Pryor. Dr David Hosking retired as a trustee on 25 th September 2014 Mrs Joyce Cupitt retired as a trustee on 25 th September 2014 Mrs Ingrid Pryor was appointed as a trustee on 25 th September

5 Trustees Annual Report (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT The National Association for the Relief of Paget's was founded in It is an unincorporated association governed by a Constitution and registered with the Charity Commission. During 2009, the charity adopted the working name of The Paget's Association and that is the name to be used in this report. The Paget's Association is controlled by the Board of Trustees which sets strategies and policies. The main Board has three sub-committees, the Finance sub-committee chaired by Professor Francis, the Technology sub-committee chaired by Dr Hocking and the Research sub-committee chaired by Professor Fraser. The sub-committees enable the effective delivery of organisational objectives and give strategic advice to the Board. The sub-committees report to the main Trustee Board. The leadership and delivery of the Association's objectives is undertaken by the staff currently based at the charity's registered office in Swinton, under the guidance of the Chairman. The organisational structure of the charity is shown below: - 3 -

6 Trustees Annual Report (continued) OBJECTIVES AND ACTIVITIES The Paget's Association was founded in 1973 and is the only national charity whose remit is solely concerned with people with this condition. The specific aims of the Association are to: Provide information and support for people with Paget's disease and their families; Raise awareness about the condition both within the medical and allied health professions and amongst the general public Support and fund research projects in the field of Paget's disease of bone. In the financial year ended 31 December 2014 the Association has managed to meet those aims as described below. ACHIEVEMENTS AND PERFORMANCE Support and Raising Awareness The Specialist Paget s Nurse, previously designated the Healthcare & Education Officer, offers high quality support to those with Paget s disease, their carers, health professionals and the public. During 2014, the Association has continued to offer support in various ways, which include our quarterly newsletter, Helpline, local support groups, evidence based written information and via our website. We have expanded support through our online presence, social media and member network. A new fully responsive website incorporating a content management system was commissioned during the latter part of the year. The quarterly newsletter has been updated to make it more user friendly, with positive feedback from members. During 2014, the Association held three Paget s Information days in Bristol, Middlesbrough and Sheffield. Supported by experts in Paget s disease, these days provided information and advice to local people with the condition. The Specialist Paget s Nurse has also provided education to health professionals at meetings and national conferences. Over the year, we developed a new leaflet on support available for people with Paget s disease, updated a booklet on investigations and circulated existing literature on various aspects of the condition. Research The Association has a long history of funding high quality research projects that advance understanding of the causes of Paget's disease and/or provide new insights into management of the disease and the prevention of complications. In considering applications for research support, the Trustees take the advice of the Research sub-committee as to quality and feasibility of the proposed research and its relevance to Paget's disease. In providing such advice the Research subcommittee seek the comments of appropriate external advisers and applicants are provided with feedback where possible. An important part of this process is the role of lay-people in the decision making regarding the relevance of the applications to the Association's objectives. Although the funding of new research projects has been temporarily suspended because of financial constraints, funding continued during 2014 on the following project which was completed during the year: Project: Autophagy as a therapeutic target in Paget s disease of the bone. Research Centre: University of East Anglia Amount paid in 2014: 13,202 The viability of resuming the research programme will be reviewed regularly in the light of the financial situation. In the longer term, the Trustees hope to encourage the submission of applications that address the negative impact that Paget s disease has on quality of life and the strategies that might be used to improve this

7 Trustees Annual Report (continued) Grant making policy The Association's grant making policy has been established for a number of years. The Association invites applications for funding of projects through advertisements on the Association's website. Each application is reviewed and graded against the specific criteria and research objectives set out by the Research sub-committee. Each application is assessed internally and also externally peer reviewed by independent experts before a decision is taken regarding funding. Each grantee is required to provide regular reports on the progress of the project for the Research sub-committee and also for the Association s members via the quarterly Newsletter. Restructuring of the Association In recent years the Association's expenditure has greatly exceeded income. The Trustees concluded in 2013 that unless substantial measures were taken, this would threaten the future financial viability of the Association. They therefore reduced expenditure on salaries by making two posts redundant. The previous office in Walkden was also sold in May 2014 and alternative serviced office accommodation rented in Swinton. Part of the proceeds of the sale of the Walkden property have been invested, to help to ensure the long term viability of the charity. Risk Assessment The Trustees have examined the major strategic, business and operational risks that the Association faces and confirm that policies have been established to ensure regular monitoring and reporting. This will allow for timely intervention when necessary to lessen these risks. One outcome of this assessment procedure was the key decision taken by the Trustees to reduce expenditure on staff salaries and diversify the income base of the Association, which in the long term will leave it less vulnerable to sudden drops in income. Investment Policy and Performance Tilney Bestinvest in Liverpool manages the long term investments on behalf of the Trustees. Investment policy involves a balanced portfolio incorporating a medium to low level of risk. The Trustees have an ethical policy not to invest in certain types of companies in view of the nature of the Charity's activities. Reserves Policy In determining a prudent level of reserves, the Board has taken into account the wide variation in annual income, ranging from 81,563 in 2014 to 347,344 in 2011, which reflects the marked disparity in legacy income. Expenditure has also varied widely in recent years, ranging from in 2014 to 347,631 in The Board has agreed that reserves should cover at least twelve months expenditure, which is likely to be between 170,000 and 200,000. Our investments were valued at 371,611 at the 31 st December 2014, which should cover at least twelve months expenditure. The balance of funds held will be invested to generate income for future research grants, to cover operating costs and to mitigate the uncertainties of reliance on voluntary income and legacies

8 Trustees Annual Report (continued) STATEMENT OF PUBLIC BENEFIT The Paget's Association is an inclusive organisation which promotes the well-being of all people diagnosed with Paget's disease of bone, their families and carers. We provide information to people affected by the condition and also provide information and advice to healthcare professionals responsible for delivering their care. There is no charge for this service. We work to end the isolation of people with Paget's disease and encourage them to take control of their condition and treatment. We offer educational and social opportunities via our Paget s Information Meetings which are free of charge and open to anyone with an interest in Paget's disease. Information is provided free of charge to enquirers. After consulting members at the annual AGM in September 2013, a decision was taken to increase UK membership of the Association to 15 per annum and overseas membership to 20 per annum. A free electronic membership is available via the Association's website which has the majority of the Association's literature available without charge. The majority of the Association's activities e.g. Information Meetings are free of charge to encourage maximum participation. The Trustees confirm that they comply with their duty to have regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. FINANCIAL REVIEW The financial period which ended on 31 December 2014 was challenging for the Association. Total income was 81,563, a decrease of 65,717 compared with the previous financial year, mainly reflecting reduced legacy income. The Association's total expenditure for 2014 was 163,926 which was 70,249 less than in The imbalance between income and expenditure left us with a deficit of 82,363 for the year. Nevertheless, our investments were valued at 371,611 at the end of 2014, compared with 320,986 a year earlier, due in part to investment of part of the proceeds of the sale of the Walkden property. The Trustees are able to confirm that there are adequate assets to meet the Association's future expenditure plans. All ongoing and proposed expenditure can be met from existing assets although it is the Trustees' intention to seek additional funding to preserve these assets as far as possible to generate future investment income. PLANS FOR FUTURE PERIODS During the next financial year, the Association will continue to try to widen its income base and to control expenditure through judicious monitoring of outgoings and carefully prepared budgets. Priorities for the next financial year include: 1. Seeking new sources of funding, as all services are reliant on maintaining and increasing income. 2. Maintaining the level of support and service we currently provide for Paget's disease sufferers. 3. Improving and updating the content and quality of the Association s newsletter, information booklets and website. 4. Continuing to raise awareness of Paget's disease amongst both the public and medical profession. 5. Awarding student bursaries, using funds ring-fenced to support research. 6. Reviewing the research grant programme with a view to re-launching and developing it as finances allow. 7. Holding two Paget s Information Meetings in Derby and Peterborough, open to anyone interested in Paget's disease. 8. Launching a Centres of Excellence Scheme, to recognise UK institutions with expertise in the management of Paget s disease and/or research into the condition

9 Trustees Annual Report (continued) INDEPENDENT EXAMINER M Turner FCA has been re-appointed as independent examiner for the ensuing year. Registered office: 323 Manchester Road Walkden Worsley Manchester M28 3HH Signed on behalf of the trustees Professor Roger Francis Chairman 8 th April

10 Independent Examiner's Report to the Members of Paget's Association I report on the accounts of the charity for the year ended 31 December 2014 which are set out on pages 9-17 RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER The trustees (who are also the directors of Paget's Association for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: examine the accounts under section 145 of the 2011 Act; to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and to state whether particular matters have come to my attention. BASIS OF INDEPENDENT EXAMINER'S REPORT My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below. INDEPENDENT EXAMINER'S STATEMENT In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements: to keep accounting records in accordance with section 386 of the Companies Act 2006; and to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. M Turner FCA Independent examiner 1 Worsley Court High Street Worsley Manchester M28 3NJ... 8 th April

11 Statement of Financial Activities (Incorporating the Income and Expenditure Account) Note Incoming Resources Incoming resources from generating funds: Voluntary income 2 64, ,388 Investment income 3 11,744 10,162 Other incoming resources 4 5,510 4, Total Incoming Resources 81, , Resources Expended Costs of generating funds: Fundraising trading: cost of goods sold and other costs 5 (7,048) (26,527) Charitable activities 6/7 (97,144) (120,915) Governance costs 8 (59,734) (86,733) Total Resources Expended (163,926) (234,175) Net Outgoing Resources for the Year 10 (82,363) (86,895) Realised gains on disposal of investment assets 17,568 36,400 Profit on disposal of tangible fixed assets for charity's own use 43, Net Expenditure for the Year (21,554) (50,495) Other Recognised Gains and Losses Losses on revaluation of investment assets (12,309) (14,949) Net Movement in Funds (33,863) (65,444) Reconciliation of Funds Total funds brought forward 527, ,882 Carried Forward 493, ,438 The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities

12 Balance Sheet 31 December Note Fixed Assets Tangible assets 12 2, ,943 Investments , , , ,929 Current Assets Debtors 14 3,646 16,633 Cash at bank and in hand 149, , , ,911 Creditors: Amounts Falling due Within One Year 15 (32,975) (82,402) Net Current Assets 119,680 96,509 Total Assets Less Current Liabilities 493, ,438 Net Assets 493, ,438 Funds Restricted income funds , ,891 Unrestricted income funds , , , ,438 These financial statements were approved by the members of the committee and authorised for issue on the 8 th April 2015 and are signed on their behalf by: Professor Roger Francis Chairman

13 Notes to the Financial Statements 1. ACCOUNTING POLICIES Basis of accounting The financial statements have been prepared under the historical cost convention, except for investments which are included at market value, and in accordance with applicable United Kingdom accounting standards and the requirements of the Statement of Recommended Practice 'Accounting and Reporting by Charities' issued in March 2005 (SORP 2005). Cash flow statement The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash flow statement in the financial statements on the grounds that the charity is small. Investment assets and income 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 and any investment income. Fixed assets All fixed assets are initially recorded at cost. Depreciation Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Fixtures & Equipment - 15% reducing balance No depreciation is provided on freehold land and buildings, as they are maintained to a high standard and all repairs are charged in the profit and loss account. Operating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. Income Voluntary donations, and all other sundry income are accounted for when received by the charity. Expenditure Expenditure is accounted for when incurred. All costs are directly attributable to specific activities

14 Notes to the Financial Statements 2. VOLUNTARY INCOME Unrestricted Funds Donations Donations - unrestricted 24,551 24,551 23,417 Legacies Legacies 9,087 9,087 93,054 Grants receivable Fundraising events - unrestricted 30,666 30,666 15,917 Other income Bank interest receivable - unrestricted ,309 64, ,388 = 3. INVESTMENT INCOME Unrestricted Funds Income from UK investments 11,744 11,744 10,162 = 4. OTHER INCOMING RESOURCES Unrestricted Funds Subscriptions 5,510 5,510 4,730 = 5. FUNDRAISING TRADING: COST OF GOODS SOLD AND OTHER COSTS Unrestricted Funds Fundraising trading 7,048 7,048 26,527 =

15 Notes to the Financial Statements 6. COSTS OF CHARITABLE ACTIVITIES BY FUND TYPE Unrestricted Funds Charitable aims 35,114 35,114 35,470 Support costs 62,030 62,030 85, ,144 97, ,915 = 7. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE Activities undertaken Grant funding directly activities Support costs Charitable aims 21,911 13,203 62,030 97, ,915 = 8. GOVERNANCE COSTS Unrestricted Funds Salaries and wages 22,464 22,464 41,690 Employer's NIC 1,418 1,418 3,672 Premises costs 7,134 7,134 8,225 Printing, postage, stationary and advertising 1,264 1,264 2,157 Computer costs 2,095 2,095 5,804 Legal fees 5,282 5,282 6,777 Interest payable Depreciation 1,260 1,260 2,331 Sundry expenses 14,145 14,145 9,647 Travel expenses ,352 Accountancy fees 3,780 3,780 3, ,734 59,734 86,733 = 9. TRUSTEE REMUNERATION During the year the charity paid Nil ( Nil) by way of remuneration to the trustees

16 Notes to the Financial Statements 10. NET OUTGOING RESOURCES FOR THE YEAR This is stated after charging: Staff pension contributions 3,311 6,318 Depreciation 1,260 2, STAFF COSTS AND EMOLUMENTS Total staff costs were as follows: Wages and salaries 65, ,657 Social security costs 4,488 11,936 Other pension costs 3,311 6, , ,911 Particulars of employees: The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows: No No Number of administrative staff 2 4 No employee received remuneration of more than 60,000 during the year ( Nil)

17 Notes to the Financial Statements 12. TANGIBLE FIXED ASSETS Freehold property Equipment Total Cost At 1 January ,483 41, ,016 Additions 2,610 2,610 Disposals (97,483) (41,533) (139,016) At 31 December ,610 2,610 = Depreciation At 1 January ,073 29,073 Charge for the year 1,260 1,260 On disposals (30,007) (30,007) At 31 December = Net Book Value At 31 December ,284 2,284 = At 31 December ,483 12, ,943 = 13. INVESTMENTS Movement in market value Market value at 1 January , ,024 Acquisitions at cost 182,399 56,462 Disposals at opening book value (119,789) (151,358) Net gains on revaluations in the year ended 31 December 2014 (12,309) (14,949) Amounts written off in the year ended 31 December (193) Market value at 31 December , ,986 Historical cost at 31 December , ,159 Analysis of investments at 31 December 2014 between funds Other investments Market value brought forward 362, ,696 UK Cash held as part of Portfolio 8,614 8, , ,

18 Notes to the Financial Statements 13. INVESTMENTS Included within the total portfolio of investments are individual investments which exceed 5% of the total as follows: Findlay Park Fund 14,691 26,217 Invesco Fund 21,186 21,330 Franklin Templeton Gbl Bond 19,738 19,296 M & G Investment man property 19, DEBTORS Prepayments 3,646 16, CREDITORS: Amounts falling due within one year Accruals 32,975 82, COMMITMENTS UNDER OPERATING LEASES At 31 December 2014 the charity had annual commitments under non-cancellable operating leases as set out below. Land and buildings Operating leases which expire: Within 2 to 5 years 11,

19 Notes to the Financial Statements 17. RESTRICTED INCOME FUNDS Balance at 1 Jan 2014 and at 31 Dec 2014 Restricted Fund 145,891 = There have been no movements on restricted funds during the year ended 31 December UNRESTRICTED INCOME FUNDS Balance at 1 Jan 2014 Incoming resources Balance at 31 Dec 2014 General Funds 381,547 (33,863) 347,684 = 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible fixed assets Investments Net current assets Total Restricted Income Funds: Restricted Fund 39,270 39,270 Unrestricted Income Funds 2, ,615 80, , , , , ,