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2021-12-31-accounts

The Registered Company Number is:- 03059425

The Registered Charity Number is England & Wales 1046854 Scotland SC037596

Roy Castle Lung Cancer Foundation

Report and Accounts

31 December 2021

Roy Castle Lung Cancer Foundation

Report and accounts

Contents

Page
Trustees' Annual Report 2-31
Statement of Trustees' responsibilities 31-33
Independent Auditor’s report 34-37
Consolidated Statement of Financial Activities 38
Charity only Statement of Financial Activities 39
Consolidated Balance sheet 40
Charity only Balance Sheet 41
Consolidated Cash flow statement 42-43
Charity only Cash flow statement 44-45
Notes to the accounts 46-76

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Roy Castle Lung Cancer Foundation Trustees' Consolidated Annual Report for the year ended 31 December 2021

Reference and administrative details

Charity numbers: England & Wales 1046854 Scotland SC037596 Company number: 03059425 Registered Principal Office: Cotton Exchange Building Old Hall Street, Liverpool, L3 9LQ

Directors and Trustees

The directors of the charitable company (the Charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

The trustees serving during the year and since the year end were as follows:

Chairman: Max Steinberg CBE Founder and President: Professor Raymund J Donnelly MBE FRCS Treasurer and Vice Chair: Euan Imrie James E Couton David Gilligan Anthony Coombs Andrew Grange Alison Lobb Alyson Chadwick Mandee Lucas Alastair Machray

Company secretary Paula Chadwick

Senior Management Team

Chief Executive: Paula Chadwick Deputy Chief Executive/Finance Director & Director of Retail and Fundraising: Michael Grundy Medical Director: Dr Jesme Fox Prevention, Information & Support: Lorraine Dallas Marketing & Communications: Rachel Avery

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Roy Castle Lung Cancer Foundation Trustees' Consolidated Annual Report for the year ended 31 December 2021

Professional Advisers

Auditor: RSM UK Audit LLP 14th Floor 20 Chapel Street Liverpool L3 9AG Bankers: Barclays Bank plc Liverpool City Business Centre, Lord Street Liverpool L2 1TD

Investment: Rathbones Port of Liverpool Buildings Pier Head Liverpool L3 1NW Solicitors: Brabners Chaffe Street Horton House Exchange Flags Liverpool L2 3YL Jackson Lees 44/45 Hamilton Square Birkenhead CH41 5AR

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Roy Castle Lung Cancer Foundation

Trustee’s Consolidated Annual Report for the year ended 31 December 2021

Foreword by the Chief Executive of Roy Castle Lung Cancer Foundation

Welcome to our Annual Trustees’ Report on our activities throughout 2021.

Our charity works for the benefit of lung cancer patients, their families, friends and carers, and everyone affected by lung cancer. Following the impact of Covid19 2021 has been a year full of challenges, especially following the particularly difficult years of 2020 and 2019, not only for those we help but in common with many charities for the Charity itself.

With both lung cancer and Covid19 being respiratory diseases many of our key researchers and medical colleagues reverted to front line duties relating to Covid19. The social limitations implemented to control Covid19 both severely constricted our ability to raise funds with our retail operation closed for parts of the year and many of our key fundraising activities impaired; and curtailed the rollout of the lung cancer screening project.

Ours is the only UK charity wholly dedicated to defeating all types of lung cancer. We take this responsibility very seriously because Lung cancer is the UK’s biggest cancer killer in both men and women. Each year it kills almost 36,000 people, [1] which is more than the number killed by breast, pancreatic and prostate cancers combined!

To address this, our charity has a dual function: saving lives and supporting people living with lung cancer.

This is why we focus on the certain key areas of activity that we do:

Saving lives through:

Supporting people living with lung cancer by means of

These activities are not separate and unrelated but intrinsically linked. However, as we move into 2022 the promotion of the screening programmes has taken on a new significance with the hope that success here can demonstrate the impact and benefits that a national screening programme could deliver.

Our research activities add to the store of information helping patients and their families to better understand the disease and its implications for their lives.

Our research into early detection links to our crucial work on screening. Our Information Centre staff create and update high-quality data-led and patient-reviewed collateral such as leaflets and online content, aided by input from research and prevention projects.

Our support services include a nurse-led helpline and online forum, as well as patient grants; feedback from these informs and refreshes our information collateral.

While the overall economic climate and social environment continued to set challenges for the charity throughout 2021, the situation both financially and operationally, in terms of our ability to deliver some of our charitable objectives has been severely affected by the impact of Covid19. However, despite these hindrances, we delivered a relatively strong and successful year during which we generated an income of £4,686,703 and spent £4,618,982 to support our vital activities, of which over £1,700,660 was spent still directly on the charitable activities mentioned.

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Highlights of our year include:

Maintaining financial stability through this extremely worrying period and thus ensuring that we are a sustainable charity and here to support the lung cancer community in the future has to have been our first priority in 2021, and financially we have performed well generating a surplus of £195,263, some of our other highlights include:

We are particularly grateful to the patients and their families who gave so freely of themselves to make our campaigns such a success. We continue to find fresh ways to ensure that lung cancer remains high on the public agenda.

Your donations continue to be the key to our success. By investing in our work, you help people whose needs have too often been overlooked. By supporting those living with lung cancer and helping our young people in their efforts to avoid smoking, you are improving the nation’s health; both now and for years to come.

I would like to place on record my gratitude to all who help us in our work. In particular. I’d like to thank all those that have volunteered and supported us through the very uncertain times of Covid19, who raise funds for us, those who help at our various events and activities throughout the year, and also those who offer their services to work alongside our professional staff in our retail shops; without their efforts, we could not deliver our objectives.

From people who run marathons, real and virtual, or tackle daunting challenge activities, to those who volunteer their time in our shops, or those who campaign tirelessly to improve the outcome for lung cancer patients and their families – these efforts help us fund world class research projects.

The projects these efforts fund could help us detect lung cancer at the earliest stage when it is possible to treat and cure, which would mean countless lives are saved. There are more details of this work later in this Report.

So, we thank everyone involved, all of these people for their selfless generosity. Thank you for every cake, every run, every walk, every rhumba and every collection bucket filled with coins and notes.

Thank you for giving your time, for giving every month, for giving your hearts and for giving hope.

To deliver on our mission, we must grow!

Whilst these are worrying times for everyone they are also exciting times. We have plans for further projects to help detect lung cancer earlier. We are seeing the emergence of new therapies to treat more patients. Above all, we are seeing lung cancer and lung cancer patients achieving a much higher public profile. The mainstream UK media are taking notice of the disease in a positive and measured way. This is helping us challenge the stigma that clings to lung cancer and so often adds to the burden for patients and their loved ones.

As their advocates, their voice, we are proud to represent patients in the decision-making processes of both

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the National Institute for Health and Care Excellence (NICE) and the Scottish Medicines Consortium (SMC), the bodies responsible for recommending the use of new medicines and treatments within the NHS. The overall picture for lung cancer is improving and we concentrate in ensuring that the advances being made are not diminished because of Covid19. The charity is proud to be at the heart of these improvements and we have to thank each and every one of you for helping us to help make it happen.

I hope that, like me, you will be inspired by our plans to help people affected by lung cancer to lead longer, better and happier lives.

We cannot - we will not – despite Covid19 or any of the other challenges the world currently faces, pause in our commitment to furthering those improvements because we firmly believe that everyone affected by lung cancer should be able to EXPECT BETTER.

Paula Chadwick

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Who We Are

The Roy Castle Lung Cancer Foundation Company Number 03059425 (the Foundation) is a company limited by guarantee governed by its Memorandum and Articles of Association last amended 31st January 2011. The company is registered as a charity with the Charity Commission in England and Wales (1046854), the Office of the Scottish Charity Regulator (SC037596) and the Index of Charites on the Isle of Man (1277).

We exist for the benefit of lung cancer patients and all affected by the disease. By securing donations, legacies and sponsorship, the charity can make a real difference for patients, their families and those who look after them.

By engaging with thousands of people each year, we have established the charity as the first-call information and support resource for those diagnosed with lung cancer, their families and carers. Our aim to is to be the properly representative ‘voice’ of lung cancer patients in dealing with all areas of health care policy and provision, as well as providing reliable, first-class information and support services.

We would like you to support us in our crucial work so please read on and let us tell you more about ourselves, what we do, what we have achieved and how we go about spending the money so kindly given to us.

Our mission

As mentioned by our chief executive in her introduction, the charity has a dual focus: saving lives and supporting people living with lung cancer.

To do this, we promote and fund research into the causes, prevention and treatment of lung cancer, we develop and support health promotion programmes designed to prevent the onset of lung cancer, and we provide amenities to improve the quality of life of patients and their relatives.

During 2021 increased emphasis has been placed on making The Targeted Lung Health Checks (TLHC) programme a success. This is a new and ground-breaking flagship programme of work in England which will contribute to the ambition of the NHS Long Term Plan to improve early diagnosis and survival for those diagnosed with cancer. The Charity has been at the heart of this initiative and is heavily involved in promoting its uptake.

In raising new money and by careful management of our existing funds, the charity provides a public benefit by addressing unmet needs. We do this by making grants to serve lung cancer patients and their families receiving services, by funding research, and by our associated information, support and prevention services.

The trustees confirm that they have paid due regard to the public benefit guidance published by the Charity Commission and Office of the Scottish Charity Regulator. The Foundation refers to the public benefit guidance when reviewing and setting its aims and objectives and in future planning.

When considering where to focus our attention, our corporate trustees’ board and particularly the members of the charity’s research funding committee have regard to the Charity Commission’s guidance on public benefit and what this means for our charity.

What We Do

Early Detection and Lung Cancer Research

Following the big news story in Lung Cancer of 2019, the roll out of ‘Lung Health Check’ in England, 2019 saw the first stages of implementation of the roll out to the 10 sites in 14 Clinical Commissioning Group (CCG) areas with around £70m [5] had been earmarked for this work with the Roy Castle Lung Cancer Foundation very much at the heart of many of the recommendations and our Comms, Information and Support teams supporting community engagement. Since then though the whole health arena including Lung cancer has

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been severely affected by the impact of Covid19 and 2021 was again a year dominated by the COVID pandemic. Ours and the research community’s work on Lung cancer has been seriously negatively impacted.

The impact of COVID-19 on lung cancer patients

Impact of COVID-19 on early detection of lung cancer

The impact of COVID on Lung Cancer is highlighted in the National Lung Cancer Audit Report (published January 2022). [3]

The Report analysed data on lung cancer patients diagnosed in 2019 and 2020. Data has been obtained from the Rapid Registration Dataset (England), allowing for much speedier data availability than previously. Having data (England) from this one source, has allowed for direct comparison of the two years, providing a picture of the devastating impact of COVID-19. Conventional NLCA data is also available for Wales (2019 – ie, preCOVID) [3].

Key findings from the report show –

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RCLCF funded Research

As a result of the impact of the COVID-19 pandemic on clinical research in general, we suspended our formal Research Grants program in 2020, although in 2021 funding was awarded for work looking in CT for first testing for symptomatic patients.

For those ongoing RCLCF research grants and those due to start in 2020, delays and changes to design were discussed and agreed. With normality returning, we plan to open for a new 2022 grants round, with submissions opening at the beginning of 2022, with a view to research projects commencing in 2023.

However, during 2021 the funding for clinical research fellowship has continued.

Nottingham University RCLCF Clinical Research Fellow

Dr Helen Morgan (HM) is the third CRF funded by RCLCF. During 2021 she has focused on:-

RCLCF Policy Work in 2021

In responding to the realities of the COVID-19 pandemic, key policy areas in 2021 have been to work with clinicians, patients, health policy, regulatory and others to ensure -

In so doing, we have –

Continued as secretariat for the Lung Cancer Clinical Expert Group (CEG).

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expert advice on clinical issues in thoracic malignancies, in particular in areas of health policy and strategy. It continues to provide advice and complete tasks when required, both on lung cancer and mesothelioma. Roy Castle Lung Cancer Foundation provides secretariat function for the Group.

In short, these submissions highlight the scale of ‘missing’ lung cancer patients and the ongoing issue of late diagnosis. In terms of recovery, focus is needed on early detection (lung cancer screening and raising public awareness of symptoms), data in real time (including monitoring of the impact of changes made during the pandemic) and the importance of implementation of the National Optimal Lung Cancer Pathway.

Continued to work as a consultee to NICE (England) and other bodies to ensure promising new lung cancer therapies are available in the NHS. In 2021, the following were recommended –

Supporting the work of the National Lung Cancer Audit

The NLCA began in 2004 and the Royal College of Physicians London has held the contract since 2014. 2021 marks the end of the contract and from early 2022, it will change and be with the Royal College of Surgeons. During 2021, RCLCF has continued to support the work of the NLCA in membership of the NLCA Board and Clinical Advisory function.

Lung cancer and early detection

The Charity has continued during 2021 to campaign for the implementation of a national Lung Cancer Screening Program, through media and interaction with policy makers. We are particularly grateful to James Brokenshire MP for his support of this cause. Sadly, James died from lung cancer in October 2021 and our sincere condolences go to his wife, Cathy, and family, who continue to work with us, to reach this aim.

During 2021, the National Screening Committee has continued to review the clinical and cost effectiveness of lung cancer screening, a process the charity has been heavily involved in. Having a positive decision from the NSC will be crucial in ensuring the future for Screening across the four nations of the UK. We are hopeful that the NSC will announce a decision in 2022. We have continued to provide input to The NHSE Early Detection

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Task and Finish Group, which provides oversight of the TLHC program and The NHSE Advisory Group on Lung Cancer Screening.

The charity also continued to work with the wider healthcare community, ensuring the lung cancer voice. Including, membership of the Respiratory Taskforce, Cancer Early Detection Charity Coalition and the UK Lung Cancer Coalition. Of particular note is the UKLCC’s Report, ‘The Route Back to 25 by 25’, published in November 2021, providing a plan for lung cancer to recover post-COVID and a return to focusing on the target of a 25% five year survival for lung cancer by 2025.

Policy on Research Grant Making

Our grants policy allows for an extremely robust application process to ensure we only fund the very best science. Applications are offered via an open grants application programme, independently peer reviewed by our own grants committee and then externally peer reviewed by leading experts in the relevant field before being recommended for funding.

The charity now has a long history of funding external research projects together with the close links it still has with the University of Liverpool and the Liverpool Lung Project.

Historical Research Funded to date

Current ongoing Research:

Further details of our research can be found at the charity’s website [5]

Global Lung Cancer Coalition

The Roy Castle Lung Cancer Foundation remains at the heart of the GLCC project and provide it’s secretariat. Formed in 2001 the GLCC project has become a truly global organisation and now includes 42 organisations from 30 countries which the Roy Castle Lung Cancer Foundation is proud to be involved in and drive forward.

The GLCC is committed to improving disease outcomes for all lung cancer patients. The coalition seeks to ensure that policy makers, medical professionals, the media, and the general public recognize the serious nature of lung cancer and the need for immediate action to meet patients’ needs. Key to GLCC’s success is its ability to network and support members, which are new and less well established lung cancer organisations. This is achieved through Newsletters, through email discussion and during our Annual Meeting (in 2021, this was not possible and was replaced by a virtual meeting).

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The Global Impact of COVID-19

In many parts of the world, lung cancer services have been devastated and referrals for diagnosis drastically reduced. At the same time, charitable and not for profit organisations have been struggling to raise funds. At the start of the pandemic in 2020, we undertook a GLCC Member Survey on the Impact of COVID-19. We repeated this survey in April 2021, to understand how our member organisations were coping.

The survey revealed that two-thirds of organisations had closed face to face services and were offering digital and online services instead. The following 2021 survey showed that these services were still in place however, two-thirds of organisations had reopened some face-to-face services. This reflects the global situation with the pandemic in the early summer of 2021, when the survey was undertaken the desire for organisations to return to full services.

GLCC Achievements during 2021.

Despite the pandemic, the GLCC has been able to undertake the following planned work for this year.

Patient Experience Survey

Understanding and improving patient experience is a priority for GLCC members. As such, we undertook our second Patient Experience survey of lung cancer patients in different countries. It was a combination of repeat questions from our first survey and new questions, designed to understand how COVID was impacting on patient experience. The survey was distributed through GLCC members, via email, websites and on social media, between February and April 2021. 1287 responses were received from 18 countries. Key findings were as follows:

We have created four Thematic Briefings and these Reports are available for download from the Surveys Section of the GLCC website – reports available for Australia, Brazil, Canada, Denmark, Ireland, Italy, Mexico, Netherlands, Portugal, South Africa, Spain, Taiwan, UK and USA.

This survey work was presented at the World Lung Cancer Conference in September 2021. It will provide a

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base for a third Patient Experience Survey in 2022 and for a new GLCC project, ‘Coping with Lung Cancer’.[6]

The Study

GLCC members have since been using this data to campaign for more research in their individual countries.

In 2019, the GLCC commissioned a second phase to this project. Encouragingly, it shows the volume of lung cancer papers published between 2004 and 2018 has increased. The proportion of overall global cancer research dedicated to lung cancer has also increased, though it still lags behind that dedicated to breast cancer. Every country in the top 24 has increased their research output. Some countries – notably China, South Korea, India and Brazil – have risen up the country rankings.

This work was published in 2021 and the Report, the Global State of Lung Cancer Research (2004 to 2019 ) is available on the GLCC website. [7]

The COVID-19 pandemic has rapidly altered the research landscape, with governments and industry focussing on diagnostics, vaccines and treatments for coronavirus. Research charities and not-for-profit organisations have seen funding decrease. This Report, therefore, provides an important benchmark for preCOVID-19 lung cancer research output, from which we will be able to judge impact in the coming years. Towards the end of 2021, we have now commissioned an update of this work, assessing how COVID-19 has changed the research environment for lung cancer, in terms of bibliometrics, funding organisations and clinical trials. We anticipate the results will be available in 2022 and we will make maximal use of the data, creating country by country briefings and continuing to advocate for more research in lung cancer.

Factsheets. We currently have a series of Factsheets available in 16 languages, including :-

Global Lung Cancer Screening Project

Because Lung Cancer Screening with low-dose computed tomography works and lives are saved by detecting the disease at an early stage. There is a need to ensure the implementation of lung cancer screening programs globally, to identify and screen asymptomatic high-risk individuals with low dose computed tomography. The GLCC has created a screening section as part of the website This online resource brings together, in one place, key publications, case studies, documentation, protocols, interviews with experts and

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guidance around lung cancer screening. GLCC members are keen to see Lung Cancer Screening programs implemented globally. During 2021, we have updated resources, as new research and documents have become available.

Global Lung Cancer Screening Project – Making the Business Case.

In 2021, the GLCC created a template business case, making the case for the implementation of lung cancer screening. It is available for download on the GLCC website. Two documents have been created. The first is a summary document, designed to support those who are starting the conversation with health policy makers. The second is a much more comprehensive document designed in such a way as to make it easy for users to customize.

Lung Cancer e-Atlas.

GLCC engagement with Lung Cancer Professionals.

The GLCC has established partnerships to maximise global understanding of the burden of lung cancer and the right of patients to effective early detection, better treatment and supportive care. In so doing, since 2003, the GLCC has hosted symposia, at the invitation of the IASLC, during its World Congresses in Lung Cancer (WCLC) in Barcelona (2019), Toronto (2018), Yokohama (2017), Vienna (2016), Denver (2015), Sydney (2013), Amsterdam (2011), San Francisco (2009), Seoul (2007), Barcelona (2005) and in Vancouver (2003). During 2020 and 2021, WCLC was a virtual conference and as such, we were unable to meet. We are hopeful of a face-to-face meeting again in 2022 and again hosting vital symposia.

Supporting Patients, their families and their carers

2021 remained a challenging year for us with Covid19 continuing to impact many of the ways the charity supports patients, their families and their carers. 2021 saw the continuing impact of covid-19 on our patient community in terms of:

The roll out of the vaccination programme and lifting of shielding addressed some, but not all, of these impacts on the wellbeing of those we support. The charity’s information and support services responded to the

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circumstances offering virtual support where our face-to-face support groups and Information Days remained paused.

One to One Support

We offered 1-1 support via our Ask the Nurse service, in 2021 the service responded to 1,215 enquiries. The average contact time per enquirer was 47 minutes.

Method of service contact

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Ask the Nurse contact type 2021
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Phone phone email enquiriesemail enquries enquiries
enquiries from enquries from from new from existing generated
new contacts existing contacts contacts from health
contacts unlocked
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Profile of service user

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ATN Contact types 2021
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contacts contacts contacts contacts HCP'sother contacts
symptoms/ patients carers
pre-diagnosis
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In 2020 the charity also introduced our Keep in Touch phone support service. This was designed as a method of alleviating isolation following guidance on shielding which applied to much of the lung cancer community. The service continued in 2021 as the feedback from participants was there was an ongoing need for support due to the combined psycho-social impact of covid-19 and lung cancer diagnosis.

There were an average of 50 people supported per month. We had 40 people stop using the service as no longer required, with an additional 10 deaths of people using KIT and 51 new service users. Over the course of the year more than 700 calls were made, with more than 330 hours of direct contact between charity staff and people affected by lung cancer.

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Group support

Our face to face support was largely paused for most of the year, though the Orpington and Portsmouth groups did meet during quarter 3- 4.

We had 440 new members join our lung cancer community on health unlocked, taking our membership to 4,760. [8]

The focus of our group support was on our Lung Cancer Connect digital services. We commenced running the programme in April and have run 48 sessions with 95 attendees. Recruitment has been slower than we hoped given the difficulties communicating with Nurse Specialists, who are key to sign posting. However direct marketing undertaken October – December had a positive impact and we expect expansion of the service in 2022.

Patient Grants

We restarted our patient grant funding in 2020, following pausing for a year due to financial constraints. It took time to build awareness and create an online process in response to covid-19. In 2020 we distributed 106 grants valued at £15,050. In 2021 we distributed 286 grants valued at £40,450.

Literature and Printed Information

Orders for literature was quieter than pre-covid 2019 but busier than 2020, with slight variation in the balance of materials ordered. We distributed 9,562 Answering your Questions packs; 13,286 treatment related leaflets, 1,365 leaflets supporting people with psychological and practical issues, 2727 treatment factsheets and 1,233 Awareness leaflets. We also had bulk 544 orders for information and distributed our Lung Cancer Awareness Month literature during November.

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Information Distributed by topic
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2019 2020 2021
AYQ packs Treatment leaflets Psychological support
Factsheets Awareness materials
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External Engagement

We continued to work with a range of stakeholders to build engagement and awareness of the priorities for people affected by lung cancer. We engaged with the Scottish Cross Party Group on Cancer and Scottish Cancer Coalition. Through these groups we have engaged in work on prehabilitation and recovery of cancer

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referrals and services. We have participated in the UK Lung Cancer Coalition and been part of the work to update the 25% by 2025 policy paper reflecting the impact of covid-19 on lung cancer survival rates.

We have worked with pharmaceutical partners on a number of advisory groups and collaborative projects. Of note in 2022 we participated in advisory boards for Janssen, Novartis and Takeda. We participated in some education sessions run by AstraZeneca. We were part of a global steering group on developing peer navigation run by Novartis.

During 2022 work continued to prepare for the implementation of lung health checks in Scotland with the steering group resulting in a paper on the implementation and ongoing influencing work.

A Scottish sub-group of the Less Survivable Cancer Task Force was established. As part of this group (and Scottish Cancer Task Force) we have participated in meetings with the Cabinet Secretary for Health.

An event planned for December 2021 sponsored by MSD and in collaboration with Lung Cancer Nurses UK on the “Nurses Matter” campaign was postponed to 2022.

The charity also fed into the Scottish Medicines Consortium as part of the vital approval process for new treatments such as Osimertinib; nivolumab + ipilimumab ; selpercatinib and atezolizumab.

Campaigning Communications and Marketing

Covid-19 continued to have a severe impact on lung cancer throughout 2021 and we started to understand to true devastation of the pandemic on patients. The significant decline in referral rates saw a drop in lung cancer surgery and an increase in emergency presentation, all pointing to later incurable diagnoses.

The primary aim of our communications team for the year therefore were to support those affected, encourage earlier presentation to primary care and challenge the myths and confusion caused by symptom overlap, whilst providing support to the fundraising team to maximise income generation.

Targeted Lung Health Checks

After having paused for the majority of 2020, the 23 targeted lung health checks across England resumed in 2021 and we re-established our support of a number of programmes. This included:

The Charity is also working directly with the National Targeted Lung Health Check team and presented at two virtual conferences on maximising uptake of the programme, which remains below expected levels.

Throughout the year, the charity also devised marketing and community engagement proposals for existing and upcoming TLHC programmes, with activity commencing in early 2022.

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Raising Awareness of Lung Cancer

Whilst all cancers were impacted by the pandemic, lung cancer was especially affected due to the crossover in symptoms. This led to many people, including primary care, presuming symptoms – such as a persistent cough or breathlessness – were Covid-related rather than lung cancer and therefore caused significant delays to diagnosis.

In 2021, the charity ran two series of awareness activity – in June-August and November (lung cancer awareness month). In both instances, our campaign, Spot the Difference, focused on highlighting the subtly of early symptoms as so often these are dismissed as something less sinister or ignored entirely. The campaigns aimed to help people recognise any subtle changes in their health that are unusual for them and encourage to take action – even during the pandemic.

Originally, we had intended for the first phase of campaign to launch in late spring however NHS England launched its lung cancer awareness campaign in March-May. We therefore decided to delay ours launching in June and allowing us to build on and elongate the NHS campaign.

Unlike the NHS campaign which focused predominately on a persistent cough for symptom awareness, we felt it was important to raise awareness of a multitude of potential symptoms. We therefore created a series of short videos utilising the spot the difference theme to demonstrate the subtly and potential change people may experience

The videos reached over 1.7 million people and were viewed over 2.3 million times, with 17.5% (409k) watching to completion. In addition, there were over 31,000 clicks to the relevant symptom page on our website, with people actively seeking further information about symptoms.

In addition to the symptom-focused videos, the campaigns featured further resources including:

The primary call to action of the campaign was to direct people with symptoms to primary care. This was met with a high level of dialogue, highlighting the ongoing difficulties in accessing primary care. This prompted us to produce an additional video for the campaign with practical advice on how to navigate the system.

Janette Rawlinson, NHSW West Midlands Cancer Alliance

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Lung Cancer Awareness Month

As part of our Lung Cancer Awareness Month activity in November, we held a radio day securing:

The interviews were featured across the UK including on Radio News Hub, who reach 116 member stations, including Jazz FM and Sky News Radio. Radio News Hub broadcast the entire interview during their drive time news feature to their combined reach of 8,086,000 listeners, while Sky News Radio broadcast an 8- minute interview on their early evening news feature. [9]

“It was a pleasure to speak with Richard, Ruthra and Rachel – great conversation, and powerful advice on the signs and symptoms of lung cancer. Thank you.” Steve Savill, Mid-Morning Presenter, Forest FM

Additional coverage included:

In addition to our own awareness campaigns, we also worked supported NHS England and PH England on its national lung cancer awareness campaign.

In October 2021, there was a lot of media attention following the death of James Brokenshire MP, with journalists coming directly to the Charity for comment, further demonstrating that the charity is again recognised as the authority on lung cancer.

We were contacted by BBC Breakfast and arranged for trustee and advocate, Mandee Lucas, to appear on the breakfast sofa. As a result, we saw an uplift in calls to our helpline and traffic to and enquiries through our website.

The homepage saw a 44% increase in traffic during the week following the coverage, with a 53% increase to the About Lung Cancer section and 150% increase in our lung cancer information webpage. There were also many direct enquiries through the website from people like Lynne:

Hi Mandee

I watched you on the breakfast programme this morning. I also had a nodule detected by the radiographer when I was being x-rayed for something else in January this year. I had scans in February and then another CT scan 3 months later. The nodule had not grown and so I am having another CT scan in December. I just wondered if your nodule showed any growth when you were getting scanned during your 18 month wait. I would like to have a biopsy and have the

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nodule removed if it is cancerous. I’m not sure the surgeon will agree to a biopsy unless the nodule has grown.

Thank you Lynne

The charity was also included in coverage on ITV, BBC News and The Guardian.

In 2021, we also improved awareness of and communication around our research projects.

Working with our researchers, we have provided updates on these projects and the potential impact they can have as part of our marketing retention strategy, highlighting where donors’ money has gone and encouraging further support.

2021 also saw the production of our Inspire magazine which highlights what the charity is currently undertaking and personal accounts of those we are helping. This edition was distributed to patients and supporters (approx. 15,500 copies) as well as multiple copies to lung cancer specialist nurses and cancer information centres (526).

In addition to Inspire, we also produced our 2019-2020 Impact Report in video, online and print format, outlining of work across the previous two years and the contrast caused by the pandemic.

Supporting Patient Information and Support

As well as symptom awareness, 2021 saw us focus more on brand awareness to ensure those diagnosed could access our multitude of support services. Throughout the year, we ran social media and Google ads, prompting a significant week on week uplift in web traffic following our ads:

We also ran a series of targeted ads to promote our new online support service – Lung Cancer Connect. Analysing keywords and search terms, identifying UK-based Facebook groups and appropriate social audiences, we developed a series of ads promoting the service.

We have already seen a significant increase in interest. I’ve had more online enquiry forms this week than I did for the whole of last month. Brilliant! There is clearly a direct correlation between this activity and enquiries.

Jessica Crowe, Support Services Officer

Supporting Income Generation

Further lockdowns and restrictions continued to place a significant burden on income generation. However, building on the successes and lessons learnt from 2020, we continued to support the fundraising team with its virtual events and then the welcome return of live events.

2021 was another difficult year. However, as this report indicates, we have seen some real successes across all departments despite these testing circumstances and will continue with the same determination throughout 2022 as the world begins to return to normal.

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– Income generation Government, Pharmaceutical Sponsorship, Retail and Fundraising

All the money raised by the Roy Castle lung Cancer foundation is vital in the charity’s pursuit of its vital goals. A wide variety of means are utilised to raise these funds in order to minimise the risk vulnerability of any one income stream. Every penny raised is used in the best possible way. Every penny matters to the Charity and we value every donation no matter how it is given to us. Great care is taken of our donors and supporters, to build relationships which in turn helps to maintain income for future years.

Government funding during Covid

Because of the direct impact of the pandemic itself and as a consequence of restrictions introduced by the government to tackle the pandemic, the government introduced several support schemes for business across the county. The Charity has utilised as much of this support as possible including:

Retail

Roy Castle Retail had a disjointed year, disrupted by periods of enforced government lockdowns at which time the shops had to remain closed, and periods during which they were open but throughout which public confidence was low and there was the continual threat for further restrictions and limitations.

The major headline event of Retail’s year was the opening of a new large furniture store in Sale, Manchester. Whilst investment in the high street has generally been subdued and the charity has certainly reduced its ambition during the pandemic, this store has proved a tremendous success bring in record levels of sales.

Trade towards the end of the year picked up for the whole of our Retail operation which ended up performing above expectations in the circumstances.

Total income (including the government covid19 support) for the year was £1,589,903 (2020: £1,025,701), in excess of £2m inc vat and several stores continued to perform well despite the impact of Covid19. The support received during 2021 for furloughed retail staff included above was £165,142 (2020: £350,032) and the retail grant support amounted to £257,858 (2020: £322,668). Despite the impact of Covid19 retail made a slight loss in 2021 of £32,424 prior to any gift aid payments to be made to the parent charity (2020: £101,384 loss) so well on the road to recovery.

Great thanks go out to not only our dedicated managers and staff but the army of volunteers that help to make our shops such a great success, we can’t wait to get back to trading a full year properly in 2022!

Fundraising

Due the impact of the Covid19 pandemic and the effects of the government’s restrictions introduced to help tackle it, much of the traditional fundraising avenues were closed to the charity in the first half of 2021. However, the Fundraising Team, and particularly the Community team, proved itself very adept at creating new and innovative ways of fundraising, especially utilising the various social media platforms to create a series of “virtual” events for our supporters to participate in. All the Fundraising teams then proved very capable of transitioning back into a physical reality as the government restrictions eased and we were able, later in the year, to re-establish some of our headline fundraising events as real physical events again.

Legacies and Trusts

Trusts

The trusts team had very solid year although grants did return to a more pre covid19 level with 2021 generating income of £120k (2020: £246k), during the pandemic we had been fortunate to receive a certain

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amount of emergency trust funding, and a special thank has to go to those organisations that did support the charity through that very difficult time.

Legacies

Legacies had a much better year in 2021, catching up on many of the delays in legal processing that had been adversely affected by the pandemic in 2020. Income in 2021 was £721k (2020: £168k). The future also looks optimistic as we have secured significant legacy pledges both directly and via our Free Will scheme which has strengthened our legacy pipeline. This not only provided a good income source but also good source of cashflow.

Community

Virtual runs

The fantastic concepts created around our Easter Run and Retro Running Series in 2020 continued throughout 2021 with the creation of a series of Music Genre runs to further motivate runners, rock, Dance, Pop, Jazz the list goes on with over a 1000 sign ups. We’ve continued to build an online community of like minded people who support and encourage each other whilst championing our cause. Roy’s Runners has grown to over 3,400 runners which gives great opportunity to push places in physical running events in 2022 as well as raising over £100,000 in the year.

Overall, all our running events raised over £326k in 2021, a fabulous achievement (2020: £290k) and other challenges a further £75k (2020: £41k).

Tapathon

With physical events beginning to re-establish themselves 2021’s virtual tapathon didn’t generate as much as our special Anniversary event in 2020, however it still had 440 participants and raised over £28k which was a tremendous achievement and most importantly it was really enjoyed by everyone who took part.

Individual Giving

In memoriam fundraising

In memoriam donations continued to grow, with donations in 2021 over £238k (2020: 170k) this was in part building on the success we had had relaunching our Tribute Funds during the pandemic, giving people some way, with the restrictions in place, to still express their love and thanks for those close to them they had lost. And in part due to the individual significant impact of the death of the Rt Hon James Brokenshire MP, whose tribute page alone raised £65,000 by the end of the year and is currently at £86,000.

Other general individual giving donations raised £250k in 2021 down on the previous year (2020: £376k).

Events

Spooky Welly Walk

Following the easing of restrictions on live events and the reintroduction of real live physical events our headline fundraiser Spooky Wellie Walk returned, only in one location in 2021, Liverpool. After nearly two years of disruption we were proud to be able to put on what we consider to be the best Spooky yet and the public seem to agree with 7000 participants and raising over an amazing £60,000.

We are planning a new spring/easter event in 2022 to rival spooky, Adventures in Wonderland which promises to be an absolutely fantastic kids event, and of course Spooky will also be back in 2022 in two cities.

Celebrate a Life

Following the sad cancellation of 2020’s annual Christmas Celebrate a Life service which was a huge blow for supporters, especially so for those recently bereaved, it was great to be able to reintroduce this event again in 2021 in the iconic St Georges Hall in Liverpool. The venue doubled as the location for our Sing a Long with Santa children’s event in the morning and together both events generated over £20,000.

Star Awards

Sadly again this event, a tribute to those patients, carers, medical staff and supporters wasn’t able to happen

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because of the covid19 restrictions. This was a great shame as we owe such a debt of gratitude to everyone for their continued support to improve the situation for those affected by Lung Cancer.

Isle of Man

As with everywhere else activity on the Isle of Man was adversely affected in 2021 and income was just below £24,000. However, we have begun to establish good links with the IOM DHSS and it is hoped that in 2022 the charity can really start to provide a unique counselling service on the island for lung cancer patients that in turn will help generate the income to support the growth of our charitable activities on the island.

Corporate Fundraising

It would be unfair to ignore how badly the corporate sector itself has been impacted by Covid19, especially at the start of the year, and the practical opportunities in this field have been limited and the decision was taken to continue to take advantage of the furlough support where possible. However, towards the end of 2021 the sector started to open up again and several events were able to be put on and new connections developed.

Strictly Come Dancing

Our headline Strictly Come Dancing was able to be hosted and provide a real glitz and glamour event for those escaping the lockdown blues, in the process raising over £35,000.

The David May Charity Golf Day

David May, the ex Manchester United Footballer, held a Charity Golf day on our behalf, supported by our corporate team, and it proved a fabulous day & evening event. The event is planned again for 2022.

Our Funding from the pharmaceutical industry

As a charity we aim to be transparent about our funding sources; including income generated from our relationship with the pharmaceutical industry. Significant income is provided through our relationship with the pharmaceutical industry, and in a year in which our traditional sources of income have reduced it is appropriate to comment on this specifically.

During 2021 the Charity received £401,325 (2020: £496,000) from a variety of pharmaceutical firms, the income was spread across 13 different firms averaging less than £32k each with the highest individual amount of support being £42k.

• AMGEN LTD £37,500
• ASTRAZENECA £30,975
• BAYER £249
• BOEHRINGHER £30,000
• E.R. SQUIBB £31,330
• ELI LILLY £30,000
• JANSSEN £40,960
• MERCK SHARP £30,413
• NOVARTIS £38,239
• PFIZER £30,000
• REGENERON £28,735
• ROCHE £30,000
• TAKEDA £42,925

The above represents in total 8.8% of our total income for 2021 with the largest single pharmaceutical contribution being less than 1% of our total income, given the spread and average size of the contributions there is no impact on our independence or integrity.

The pharmaceutical industry is an important partner with the NHS, the academic research community and organisations such as our charity which are sometimes described as “patient organisations”. The

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pharmaceutical industry is governed by legal and compliance codes. In the UK the Association of British Pharmaceutical Industry (ABPI) is a body which overseas companies operating in the UK and ensures they follow the code of conduct in their relationship with medics, charities and patient advocates.

We believe our integrity comes from having the voices of people affected by lung cancer at the heart of what we do, driving our strategic priorities. Whilst we recognise the benefit of our relationship with pharmaceutical companies, we maintain our independence. Our strategic priorities and our view on lung cancer treatments are shaped by clinical research, consulting with patients and carers, and understanding the best option with input from our medical advisors. This is overseen by our Board of Trustees.

Areas of collaboration, shared interest and funding:

Advisory Boards

Pharmaceutical companies frequently run Advisory Boards as a way of gathering knowledge about a health condition, how it impacts on those affected and how the diagnosis and treatment services operate. As a charity we are asked to attend (virtually or face to face) such events and share our understanding. We are also on occasion asked to identify patients and carers who would be willing to participate in such meetings or respond to questionnaires to inform these meetings.

Companies will generally offer an “honorarium” or payment for time spent for attendance and participation in Advisory Boards. They will also the cost of any travel and overnight accommodation required depending on the location and length of the meeting. We consider this to be good practice acknowledging the time and resources charities and patients need to contribute to such meetings.

Sponsorship and Grant funding

Pharmaceutical companies offer charities and health agencies funding for specific purposes. This will depend on the company’s strategy and its approach to Corporate Social Responsibility. This term is used to describe any organisation’s policies on giving back to the community and society through funding, voluntary activities, and awareness campaigns.

As a charity we are dependent on public donations, our retail stores, events income, and trust funding to support our activities. We also seek funding from corporate partners, including pharmaceutical companies active in the UK who have an interest in lung cancer, as a way of covering the costs of our services, research and administration costs. We accept and request sponsorship for specific purposes to maintain our services and research.

Joint working

We work as part of a number of umbrella groups to campaign for improvements in lung cancer diagnosis and treatment. These groups include: the United Kingdom Lung Cancer Coalition, the Less Survivable Cancers Taskforce and the Lung Ambition initiative. Some of these groups contain industry (pharmaceutical) partners. We will work on specific projects, including on awareness raising, in collaboration with these groups and partners where it is the most effective way of achieving shared goals.

Drug development and availability

We are a stakeholder consulted by National Institute for Clinical Excellence and Scottish Medicines Consortium about licensing and use of medicines and other treatments for lung cancer in the UK. We make submissions on new treatments based on feedback from the patient community, evidence from trials and input from clinical advisors. Information may be gathered from a range of sources and include some evidence from

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pharmaceutical company trials.

Our input to medicines approval is independent of pharmaceutical influence. We will receive information from the approving body and relevant information from the pharmaceutical company submission. This is not part of any sponsored or funded activity. We may on occasion receive expenses or honorarium from the commissioning body for participating in meetings.

Volunteers

Despite the effects of Covid19 the Charity has significant support from volunteers, sadly the opportunities available for volunteers during 2021 to be as involved following the introduction of the government’s Covid19 regulations and various lockdowns has been greatly diminished. I am pleased to say that over the pandemic we maintained links many of our volunteers and that, following the easing of restrictions were able to benefit from their support again. We retain a pool of over 150 ‘active’ volunteers (pre covid 500) who regularly support our shops, administration and fundraising activities and of these, more than 128 volunteers support our shop managers across the Merseyside and Cheshire area.

We have developed and maintained partnerships with several external organisations, raising the profile of the charity as well as developing new potential volunteers and developing links with several corporate partners.

We hope to offer our volunteers the opportunity to achieve free qualifications in customer service, retail and leadership through Derby College again following the resolution of the Covid19 situation.

In total, we estimate that our volunteers contributed about eighteen thousand hours of their time during 2021 (2020: 50,000 hours), which is worth over £170,000 (2020 £100,000).

Structure Governance and Management Governing document

The Financial Statements have been prepared in accordance with the accounting policies set out in note 1 and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice Applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1st January 2015)".

The Accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for Charities applying to FRS102 rather than the version of Statement of Recommended Practice which is referred to in the Regulations, but which has since been withdrawn.

Appointment of trustees

Roy Castle Lung Cancer Foundation (RCLCF) recognises that an effective board of trustees is essential if the charity is to succeed in achieving its objectives. The board must seek to be representative of the people with whom the charity works and must have available to it all of the knowledge and skills required to run the charity. Individual trustees must have sufficient knowledge, both of trusteeship in general and of the Foundation’s activities, to enable them to carry out their role and to represent the charity at meetings and other events.

Using a balance of skills and geography, trustee vacancies should be advertised; however, existing trustees and employees are encouraged to put forward names for consideration. The potential trustee will complete a skill matrix and have an induction period of three months before formal appointment by members by ordinary resolution.

Trustees will serve for a three-year period before being eligible for re-election. Unless there are specific and

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special circumstances no trustee shall serve for more than two consecutive periods. The Chair and deputy Chair shall stand for re-election at each annual meeting. A trustee will be appointed to liaise with the Finance Director to discuss financial issues and be responsible for advising the Board of Trustees on financial matters. The charity has an indemnity provision in place for directors.

Key management personnel include the senior management team. Remuneration in relation to key management is benchmarked against comparable roles and organisations and then authorised by the board of trustees.

Trustee induction and training

All potential trustees receive an introductory pack about the Foundation and the duties and responsibilities of a trustee. They will also have an induction program which will include visiting Foundation sites and meeting staff in all the core areas of work and the appointment of an existing trustee as a mentor. Ongoing training has been provided on the roles and responsibilities of Trustees with a charity, this was provided before the pandemic by external providers free of charge. Post covid, provisions will be reintroduced.

Sub Committees

The Finance and Audit Committee supports the Chief Executive and the Finance Director in preparing for the annual financial statements audit.

The Retail Board supports the Retail Director and is made up of suitable members with specific retail experience.

The Chief Executive is appointed by the trustees to be responsible for the executive management and its day to day direction in line with the strategic plan.

The Employment Committee is responsible for approval of pay and conditions of staff and Chief Executive and resolution on health and safety issues.

The Nominations Committee is responsible for the recruitment and training of new trustees; this is convened ad hoc rather than as a formal committee.

Organisation

The board of trustees administers the Foundation and comprises of eleven members that meets bi-monthly. The board has established four formally constituted committees, each with specific terms of reference and functions; Audit, Employment, Grants and Nominations and Roy Castle Retail as a trading retail subsidiary has a separate board of suitably experienced members with a direct link via common membership to the main charity board. The final decision on all matters remains with the board.

During the Covid19 period the Board of Trustees has continued to hold regular board of Trustee Meetings utilising virtual meeting software to ensure meeting could continue and remain Covid19 safe.

In addition to the main board meetings a steering group of key Trustees including members of the Audit and Retail boards met on a weekly basis together with the CEO and Deputy CEO to monitor the situation help navigate the charity through the difficult covid19 restricted period. This group continues to meet on a biweekly basis into 2021 to date and will continue until the end of the covid19 emergency.

During non-Covid19 times the above sub committees meet on a regular basis, however the above provisions having taken precedence during 2021.

However full Board of Trustees meetings have the recommenced during 2021 utilising zoom and some limited physical attendance and it is intended that meetings will be back to normal in 2022.

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The Grants Committee

The Scientific Grants Committee is responsible for considering all applications for grants and making recommendations to the Board. The committee also monitors the performance of all external research activities and reports to the Board.

The Grants Committee has not meet during 2021 and the grants application process did not run, again the direct effects of the pandemic together with the overlap of Covid19 and the lung cancer medical communities meant that this would have been a fruitless exercise. We do anticipate that the grant awarding process will recommence during 2022.

Grant making policy

The Foundation’s mission is to beat lung cancer by funding innovative world-class research. Our aim through research into Early Detection and Patient Experience is to make a significant impact on lung cancer for the benefit of patients. Scientific excellence and relevance to lung cancer are the key principles which will guide the foundation’s research.

The Foundation’s key research objectives are:

Awards are provided for pilot grants and project grants in universities, medical schools/teaching hospitals and research institutes within the UK and Ireland.

Grants will be made in support of the research project including salaries, minor equipment and consumables costs. The Foundation will not directly employ staff on grants awarded for research projects.

The Foundation will only undertake the funding of research that has been peer reviewed through its Grants Committee process. Details of how to apply for grants and scholarships, together with the relevant forms, are available by contacting our registered principal office.

Financial appraisal and review

Related parties

The charity has three wholly owned subsidiaries: Roy Castle Retail Ltd (03604677), Roy Castle Trading Ltd (03909935) and Cut Films Ltd (07313137).

Roy Castle Retail Ltd was established on 27 July 1998 to operate as a trading retail company to raise funds for charitable purposes. The company result for the year was a loss of £32,424 (2020 £101,384 loss), there were no gift aid payments to the charity relating to 2021 (2020: £nil). [10]

Roy Castle Trading Ltd was established on 19 January 2000 to operate as a trading promotional company to raise funds for charitable purposes. The company result for the year was a £118,757 profit (2020: £26,433 profit) before a gift aid payment to the Charity of £118,757 (2020: £3,233). [11]

Cut Films Ltd was established on 13th July 2010 originally as a trading subsidiary of Cut Films Project Ltd

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ownership transferred to the Roy Castle Lung Cancer Foundation in November 2018. The company result for the year was a loss of £2,539 (2020: £54,185 profit) there were no gift aid payments to the charity relating to 2021 (2020: £nil).[12]

Financial Review Summary

The Charity, as a group, made a surplus during 2021 of £195,263 (2020: £58,104 deficit). This was a tremendous result given the economic environment during the Covid19 pandemic and is due to innovative income generation, cost management, and utilising what government covid19 financial support packages were available to us whilst attempting to maintain our determination to deliver on our charitable objectives under these difficult circumstances. Thus, we have grown and reshaped our non-research charitable spend while progressing towards our longer-term gains and objectives. Sadly our spend on research has remained low because of the effect of Covid19 on the lung cancer research community. [2]

Income and funding

Total income for the group increased to £4,686,703 for the year (2020: £3,970,586) following the easing of Covid19 restrictions and the re-establishment of some of our retail and fundraising activities.

Legacy income significantly increased in 2021 as the impact of Covid19 on the legal profession reduced, rising to £720,979 (2020: £168,315). Trusts income fell to £119,403 (2020: £246,308) following the emergency support offered in 2020.

Whilst other voluntary donations fell to £351,364 (2020: £490,353), In Memoriam donations rose to £237,906 (2020: £169,265), and this type of personal, individual support remained a key income stream and is a testament to our great donor care and personal touch.

Sponsorship income reduced slightly in 2021 to £451,265, 2020 had benefited because of increased pharma support during the pandemic (2020: £486,050).

Whilst Retail was closed for part of 2021 (however it did trade long than 2020) during the period it was open the stores performed well as did our online shops. Retail benefited from several forms of government support including both furlough support towards the staff salaries and retail grants however because of the forced closures it generated a gross profit £1,487,528 (2020: £943,458), and an overall result for the year was a profit of £32,424 (2020: £101,384 loss).

Gift aid on donations for 2021 rose to £145,621 (2020: £84,676) due to a reduction in the impact of Covid19 in comparison with our 2020 retail operation.

Expenditure

Overall expenditure for the year was £4,618,982 (2020: £4,046,298) increasing as activity began again following the restrictions of Covid19 easing.

Total charitable expenditure for 2021 was £1,700,660 (2020: £1,414,280), suppressed again due to the impact of covid mainly on the research sector.

Research expenditure was £1,067,924 in 2021 (2020 £568,258), with direct charitable research grants reduced to £105,757 (2020: £78,584).

Funding for many or our research projects was delayed as the research was suspended, however some of our research was able to continue such as the GLCC Bibliometric Project being undertaken by Kings College, our support for the Clinical Research Fellowship at the University of Nottingham during the pandemic also continued and we awarded funding for research into CT as a first test for an extended population of symptomatic patients at high risk of lung cancer.

Investments

The Charity holds £1,091,892 (2020: £1,049,672) in listed investments. The charity’s Investments generated an income of £32,322 in the year (2020: £28,195). The markets were very volatile during the pandemic however over

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the year as a whole they created significant growth and ended the year with a £127,542 gain (2020: £17,608 gain).

Rathbones, an independent stockbroker, manages the investments within defined areas. The stockbrokers have been instructed not to invest in tobacco-related companies and other socially unacceptable companies. The current investment policy of the trustees is to hold a large proportion of surplus assets of the Foundation in cash and near cash to ensure a stable platform for the organisation’s continued activities.

Reserves

The trustees have adopted a reserves policy which they consider appropriate to ensure the continued ability of the Foundation to meet its objectives and the specific nature of its obligations in relation to long term research in the form of grants.

The charity monitor’s its reserves policy based on the obligations noted above compared to free reserves and overall liquid assets.

a) Free reserves

The level of Free Reserves, as defined by the Charity Commission, are the unrestricted funds available for spending and are therefore traditionally calculated by taking the total unrestricted funds of the charity and deducting any balances not available for spending. As all investments held by the charity are in reality liquid and readily converted immediately into cash to spend these have there been included in the calculation for the Charities Reserves’ policy. The Charity’s free reserves are therefore unrestricted reserves less tangible fixed assets.

To hold sufficient funds to cover

On the above basis the charity’s required reserves are £626,283 (2020: £533,167), however the trustees are comfortable that they hold sufficient reserves to meet their immediate obligations because of the structure and stated purpose of their restricted funds are in effect to meet many of the obligations noted above.

In 2022 the charity is planned to run at controlled deficit, in order to both rebuild its charitable activity post Covid without further reducing its reserves. Following the easing of the effects of Covid on society, the Charity will plan to increase income levels again whilst managing costs in order to rebuild the level of reserves to a more acceptable level.

b) Liquid assets and cash

To reflect the true purpose of the Charity’s restricted reserves and as a second control the trustees also monitor the level of cash and investments held against a longer term view of the charity’s potential commitments, and the value of the company.

To hold sufficient funds to cover

Required on the above basis, the resources required are calculated as £1,113,670 (2020: £1,128,693) and the charity currently holds £1,334,755 in cash and investments (2020: £1,718,258) and the overall balance sheet net assets less the value of fixed assets is currently £1,181,181 (2020: £974,377).

Going Concern Position

Like all of the Charity sector and indeed the broader overall economy, the Roy Castle Lung Cancer Foundation has been adversely affected by the effects of the Covid19 pandemic and the actions that have had to be

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implemented by the government since March 2020 and through 2021 to tackle the issue.

Over the last 2 years key fundraising events have had to be cancelled or scaled down, the value of investments have fluctuated, shops have been closed and opened and closed again, general donations through normal channels have been depressed. The country as a whole (as well as the charity) is bracing itself for upwards pressure on the cost of living and energy prices and the population in generally is facing uncertainly with the war in the Ukraine.

Over this period of time the charity has taken prudent actions to protect itself in this period of uncertainly and minimize the negative impact of the Covid19 pandemic. The Charity has created both innovative and new social media events and virtual fundraising activities to compensate for the drop in income from traditional sources and events and over 2022 will start to integrate these with the reintroduction of physical events.

The charity, has taken advantage of every form of government support available to it and will continue do so :-

As well as the above adjustments to the charity’s cost structure, over 2021 the charity continued to successfully generate new and innovative income streams to replace some of the more traditional methods of raising donations. During 2022 work will continue to expand these events and integrate these into our non-virtual events.

As a result, after taking advantage of the government support, reducing costs and the successful implementation of new fundraising streams during 2020, and flowing these through to 2021, the charity is budgeted to generate a deficit of circa £128,000 in 2022.

Whilst the latest forecast indicates a larger deficit £168,000 than budgeted for 2022 following the significant increase in costs experienced by the whole country, the actual results for 2021 were better than budgeted due to the steps taken throughout the year to reduce costs and increased income compared to plan providing confidence that the budgeting process is robust and current forecasts can be bettered. Forecasts have been prepared to cover until December 2023.

The Trustees have reviewed this position and as such the trustees have decided that this is sustainable in the circumstances given that the charity has a strong long term investment policy, holding over £1m in investments together with further cash held on account and no indicated cashflow issues.

Within the reserves, the level of unrestricted reserves stands at £507k (2020: £341k) whilst restricted reserves are £826k (2020: £797k). However, as much of the charities long term obligations in respect of research, patient support, GLCC projects and other charitable activities, which form part of the core of the charity’s activities, are within the remit of much of the restricted funds held and the balance of reserves held has moved towards the unrestricted reserves during 2021 (2021: 38%, 2020: 29%), the current weighting towards restricted funds is not seen as a significant issue.

The Trustees have therefore concluded that the accounts can be prepared on the going concern basis of accounting in preparing the financial statements.

Risk management

The trustees have a risk management strategy to assess business risks and to mitigate those risks. The strategy comprises:

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The trustees have identified the principal risks to the charity are a significant decrease in income through reduced legacies, public fundraising a change in retail trends and the cancellation of contracts with PCTs. We believe that these business risks would be effectively managed by restructuring existing resources and maintaining appropriate accessible cash reserves.

Events on the scale of the Covid19 pandemic or the Russian Ukraine war had not been envisaged prior to 2020 but the above actions have proved adequate at the time of the trustees report (September 2022) in successfully managing the situation and ensuring the future of the charity and the reflected in subsequent risk register Plans for the Future

Screening

Research

Patient support

Funding the above

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Statement of trustees’ responsibilities

The trustees (who are also directors of The Roy Castle Lung Cancer Foundation for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and group and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Home - Roy Castle Lung Cancer Foundation website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to auditors

The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors.

Auditors

The auditors, RSM UK Audit LLP, have indicated their willingness to continue in office.

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Trustee’s Consolidated Annual Report for the year ended 31 December 2021

Staff

We would like to pay tribute to the staff of the Foundation who continue to show considerable enthusiasm and commitment.

Partners and supporters

We would like to record a sincere thanks to all our partners and supporters who have helped the Charity in any way this year.

Small Company Provisions

This report has been prepared in accordance with the provisions applicable for companies entitled to the small companies exemption.

By order of the trustees

Max Steinberg CBE Chairman

Date: 14th September 2022

Notes

33

Roy Castle Lung Cancer Foundation

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ROY CASTLE LUNG CANCER FOUNDATION

Opinion

We have audited the financial statements of Roy Castle Lung Cancer Foundation the ‘parent charitable company’ and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the Group and Parent Charitable Company Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group and Parent Charitable Company Cash Flow Statements and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, section 151 of the Charities Act 2011 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial

34

Roy Castle Lung Cancer Foundation

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ROY CASTLE LUNG CANCER FOUNDATION

statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report, included within the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 , the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on pages 31-32 the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

35

Roy Castle Lung Cancer Foundation

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ROY CASTLE LUNG CANCER FOUNDATION

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and the parent charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to employment law (including pensions). We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The group audit engagement team identified the risk of management override of controls and income from donations and legacies, charitable activities, other trading and other income as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and completing testing of controls and test of detail (substantive) over income.

36

Roy Castle Lung Cancer Foundation

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ROY CASTLE LUNG CANCER FOUNDATION

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made exclusively to the members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011. Our audit work has been undertaken so that we might state to the members and the charitable company’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 charitable company, its members as a body, and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Anna Spencer-Gray

Anna Spencer-Gray (Senior statutory auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 20 Chapel Street Liverpool L3 9AG

Date: 20 September 2022

RSM UK AUDIT LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

37

Roy Castle Lung Cancer Foundation

Statement of Financial Activities for the year ended 31 December 2021

Consolidated
Unrestricted
Restricted
Total		 Total
Notes Funds Funds Funds Funds
2021 2021 2021 2020
£ £ £ £
Income & Endowments from:
Donations & Legacies 10 1,589,338 502,906 2,092,244 1,705,864
Charitable activities 11 1,250 - 1,250 36,512
Other trading activities 12 2,033,298 - 2,033,298 1,323,553
Investments 13 34,820 - 34,820 32,237
Other 14 525,091 - 525,091 872,420
–––––––––– –––––––––– –––––––––– ––––––––––
Total income 4,183,797 502,906 4,686,703 3,970,586
–––––––––– –––––––––– –––––––––– ––––––––––
Expenditure on:
Raising funds 15 2,849,692 68,630 2,918,322 2,632,018
Charitable activities 16 1,295,694 404,966 1,700,660 1,414,280
–––––––––– –––––––––– ––––––––––– ––––––––––
Total expenditure 4,145,386 473,596 4,618,982 4,046,298
–––––––––– –––––––––– –––––––––– ––––––––––
Net gains on investments 27 127,542 - 127,542 17,608
–––––––––– –––––––––– –––––––––– ––––––––––
Net income/(expenditure) 165,953 29,310 195,263 (58,104)
–––––––––– –––––––––– –––––––––– ––––––––––
Net movement in funds 165,953 29,310 195,263 (58,104)
Reconciliation of funds:-
Total funds brought forward 341,228 797,027 1,138,255 1,196,359
–––––––––– –––––––––– –––––––––– ––––––––––
Total funds carried forward 507,181 826,337 1,333,518 1,138,255
========== ========== ========== ==========

All gains and losses recognised in the year are included above.

All activities derive from continuing operations.

The notes on pages 46 to 76 form an integral part of these financial statements.

38

Roy Castle Lung Cancer Foundation

Statement of Financial Activities for the year ended 31 December 2021

Charity Only

Charity Only
Unrestricted
Restricted		 Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
Notes £ £ £ £
Donations & Legacies 18 1,643,620 502,906 2,146,526 1,651,929
Charitable activities 19 1,250 - 1,250 36,512
Other trading activities 20 299,381 - 299,381 275,877
Investments 21 35,731 - 35,731 33,072
Other 22 102,090 - 102,090 199,720
–––––––––– –––––––––– –––––––––– ––––––––––
Total income 2,082,072 502,906 2,584,978 2,197,110
–––––––––– –––––––––– –––––––––– ––––––––––
Expenditure on:
Raising funds 23 759,887 68,630 828,517 797,353
Charitable activities 24 1,248,815 404,966 1,653,781 1,488,296
–––––––––– –––––––––– –––––––––– ––––––––––
Total expenditure 2,008,702 473,596 2,482,298 2,285,649
–––––––––– –––––––––– –––––––––– ––––––––––
Net gains on investments 27 127,542 - 127,542 17,608
–––––––––– –––––––––– –––––––––– ––––––––––
Net income/(expenditure) 200,912 29,310 230,222 (70,931)
–––––––––– –––––––––– –––––––––– ––––––––––
Net movement in funds 200,912 29,310 230,222 (70,931)
Reconciliation of funds:-
Total funds brought forward 426,490 756,821 1,183,311 1,254,242
–––––––––– –––––––––– –––––––––– ––––––––––
Total funds carried forward 627,402 786,131 1,413,533 1,183,311
========== ========== ========== ==========

All activities derive from continuing operations.

All gains and losses recognised in the year are included above.

The notes on pages 46 to 76 form an integral part of these financial statements.

39

Roy Castle Lung Cancer Foundation

Company number: 03059425

Consolidated Balance Sheet as at 31 December 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 28 152,337 145,665
Investments held as fixed assets 29 1,091,892 1,049,672
–––––––––– ––––––––––
Total fixed assets 1,244,229 1,195,337
Current assets
Stocks 31 73,931 82,906
Debtors 32 1,034,231 409,493
Cash at bank and in hand 242,863 668,586
–––––––––– ––––––––––
Total current assets 1,351,025 1,160,985
Creditors: amounts falling due
within one year 33 (952,182) (1,028,067)
–––––––––– ––––––––––
Net current assets 398,843 132,918
–––––––––– ––––––––––
Total assets less current liabilities 1,643,072 1,328,255
Creditors: amounts falling due
over one year 34 (153,333) (190,000)
–––––––––– (153,333) –––––––––– (190,000)
Provisions for liabilities
 36 (156,221) -
–––––––––– ––––––––––
The total net assets of the group 1,333,518 1,138,255
========== ==========
The total net assets of the group are funded by the funds of the charity, as follows:-
Restricted funds
Restricted Revenue Funds 41 826,337 797,027
Unrestricted Funds
Unrestricted Revenue Funds 41 507,181 341,228
–––––––––– ––––––––––
Total group funds 1,333,518 1,138,255
========== ==========

The Trustees have prepared the group accounts in accordance with section 398 of the Companies Act 2006 and section 44 of the Charities and Trustees Investment (Scotland) Act 2005.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

Approved by the board of trustees on 14th September 2022 and signed on their behalf by:

Max Steinberg CBE

Trustee

The notes on pages 46 to 75 form an integral part of these financial statements.

40

Roy Castle Lung Cancer Foundation

Company number: 03059425

Charity Only Balance Sheet as at 31 December 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 28 24,363 39,883
Investments held as fixed assets 29 1,221,487 1,179,267
–––––––––– ––––––––––
Total fixed assets 1,245,850 1,219,150
Current assets
Stocks 31 12,467 13,769
Debtors 32 1,017,771 475,601
Cash at bank and in hand 124,644 528,062
–––––––––– ––––––––––
Total current assets 1,154,882 1,017,432
Creditors: amounts falling due
within one year 33 (818,366) (863,271)
–––––––––– ––––––––––
Net current assets 336,516 154,161
–––––––––– ––––––––––
Total assets less current liabilities 1,582,366 1,373,311
Creditors: amounts falling due
over one year 34 (153,333) (190,000)
–––––––––– (153,333) –––––––––– (190,000)
Provisions for liabilities
 36 (15,500) -
–––––––––– ––––––––
The total net assets of the charity 1,413,533 1,183,311
========== ==========
The total net assets of the charity are funded by the funds of the charity, as follows:-
Restricted funds
Restricted Revenue Funds 41 786,131 756,821
Unrestricted Funds
Unrestricted Revenue Funds 41 627,402 426,490
–––––––––– ––––––––––
Total charity funds 1,413,533 1,183,311
========== ==========

The Trustees have prepared the group accounts in accordance with section 398 of the Companies Act 2006 and section 44 of the Charities and Trustees Investment (Scotland) Act 2005.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

Approved by the board of trustees on 14th September 2022 and signed on their behalf by:

Max Steinberg CBE

Trustee

The notes on pages 46 to 75 form an integral part of these financial statements.

41

Roy Castle Lung Cancer Foundation

Consolidated Cash Flow Statement for the year ended 31 December 2021

2021 2020
£ £
Cash flows from operating activities
Net cash used in operating activities as shown
below (485,135) (70,686)
–––––––––– –––––––––
Cash flows from investing activities
Interest received 98 442
Dividends received 32,322 28,195
Other investment income, including rents from investments 2,400 3,600
Purchase of property, plant and equipment (54,440) (15,107)
Receipts from sale of tangible fixed assets 376 -
Proceeds from sales of investments 213,111 178,387
Purchase of investments (119,577) (85,020)
(Decrease)/ Increase in cash held for investment (8,211) 41,081
–––––––––– –––––––––
Net cash used in investing activities 66,079 151,578
Cash flows from financing activities
Proceeds of new borrowings - 200,000
Repayments of borrowings (6,667) -
–––––––––– –––––––––
Net cash used in financing activities (6,667) 200,000
–––––––––– –––––––––
Net (decrease)/increase in cash and cash equivalents (425,723) 280,892
–––––––––– –––––––––
Reconciliation of net cash flow to movement in net funds
Net cash at 1 January 2021 468,586 387,694
(Decrease)/Increase in cash in the period (425,723) 280,892
Cash outflow/(inflow) from debt financing 6,667 (200,000)
–––––––––– –––––––––
Net cash at 31 December 2021 49,530 468,586
–––––––––– –––––––––
2021 2020
£ £
Reconciliation of net income to net cash flow from operating activities
Net income/(expenditure) shown in the Statement of Financial Activities 195,263 (58,104)
Adjustments for :-
Depreciation charges 47,392 58,323
Net change on investment assets (127,542) (17,608)
Dividends, interest and rents from investments (34,821) (32,237)
Decrease in stocks 8,975 9,387
(Increase)/decrease in debtors (624,738) 61,551
(decrease)/increase in creditors (93,845) (91,998)
Increase/(decrease) in provisions 144,181 -
–––––––––– –––––––––
Net cash used in operating activities (485,135) (70,686)
========== =========
42

Roy Castle Lung Cancer Foundation

Consolidated Cash Flow Statement for the year ended 31 December 2021

2021 2020
£ £
Analysis of cash and cash equivalents
Cash in hand at for the year ended 31 December 2021 242,863 668,586
Loans for the year ended 31 December 2021 (193,333) (200,000)
–––––––––– –––––––––
Total cash and cash equivalents 49,530 468,586
========== ==========

43

Roy Castle Lung Cancer Foundation

Charity only Cash Flow Statement for the year ended 31 December 2021

Charity Only
2021 2020
Cash flows used in operating activities £ £
Net cash used in operating activities as shown
below (514,488) (81,227)
–––––––––– –––––––––
Cash flows used in investing activities
Interest received 1,009 1,277
Dividends received 32,322 28,195
Other investment income, including rents from investments 2,400 3,600
Purchase of property, plant and equipment (3,319) (2,820)
Proceeds from sales of investments 127,545 219,468
Purchase of investments (42,220) (85,020)
–––––––––– –––––––––
Net cash used in investing activities 117,737 164,700
–––––––––– –––––––––
Cash flows from financing activities
Proceeds of new borrowings - 200,000
Repayment of borrowings (6,667) -
–––––––––– –––––––––
Net cash used in financing activities (6,667) 200,000
–––––––––– –––––––––
Net (Decrease)/increase in cash and cash equivalents (403,418) 283,473
–––––––––– –––––––––
Reconciliation of net cash flow to movement in net funds
Net cash at 1 January 2021 328,062 244,589
(Decrease)/increase in cash in the period (403,418) 283,473
Cash outflow/(inflow) from debt financing 6,667 (200,000)
–––––––––– –––––––––
Net cash at 31 December 2021 (68,689) 328,062
–––––––––– –––––––––
2021 2020
£ £
Reconciliation of net income to net cash flow from operating activities
Net income/(expenditure) shown in the Statement of Financial Activities
230,222		 (70,931)
Adjustments for:-
Depreciation charges 18,839 23,500
Net change on investment assets (127,542) (17,608)
Dividends, interest and rents from investments (35,732) (33,072)
Decrease/(Increase) in stocks 1,300 (1,047)
(Increase)/Decrease in debtors (542,170) 152,164
(Decrease)/Increase in creditors and provisions (59,405) (134,233)
–––––––––– –––––––––
Net cash used by operating activities (514,488) (81,227)
========== =========

44

Roy Castle Lung Cancer Foundation

Charity only Cash Flow Statement for the year ended 31 December 2021

2021 2020
£ £
Analysis of cash and cash equivalents
Cash in hand at for the year ended 31 December 2021 124,644 528,062
Loans for the year ended 31 December 2021 (193,333) (200,000)
–––––––––– –––––––––
Total cash and cash equivalents (68,689) 328,062
========== =========

45

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

1 Accounting policies

Policies relating to the production of the accounts.

Basis of preparation and accounting convention

These consolidated accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) and the Companies Act 2006.

Roy Castle Lung Cancer Foundation meets the definition of a public benefit entity under FRS102.

The registered office and principal place of business is Cotton Exchange, Old Hall Street, Liverpool, England, L3 9LQ.

The Statement of Financial Activities (SOFA) and balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results, assets and liabilities of the subsidiaries are consolidated on a line by line basis.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

Control of members of the group and transfer of funds

The parent charity has concluded that control exists over its subsidiaries for the following reasons: - They are either a wholly owned subsidiary with directors appointed by the Roy Castle Lung Cancer Foundation or a charity and company limited by guarantee and controlled by trustees appointed by the Roy Castle Lung Cancer Foundation.

Legal Status

The Charity is a company limited by guarantee, has no share capital and is governed by its Memorandum and Articles of Association. The liability of each member in the event of winding up is £10. The company is registered as a charity with both the Charity Commission and the Office of the Scottish Charity Regulator.

Going Concern

Like all of the Charity sector and indeed the broader overall economy, the Roy Castle Lung Cancer Foundation has been adversely affected by the effects of the Covid19 pandemic and the actions that have had to be implemented by the government since March 2020 and through 2021 to tackle the issue.

Over the last 2 years key fundraising events have had to be cancelled or scaled down, the value of investments have fluctuated, shops have been closed and opened and closed again, general donations through normal channels have been depressed. The country as a whole (as well as the charity) is bracing itself for upwards pressure on the cost of living and energy prices and the population in generally is facing uncertainly with the war in the Ukraine.

Over this period of time the charity has taken prudent actions to protect itself in this period of uncertainly and minimize the negative impact of the Covid19 pandemic. The Charity has created both innovative and new social media events and virtual fundraising activities to compensate for the drop in income from traditional sources and events and over 2022 will start to integrate these with the reintroduction of physical events.

The charity, has taken advantage of every form of government support available to it and will continue do so :-

46

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

1 Accounting policies (continued)

As well as the above adjustments to the charity’s cost structure, over 2021 the charity continued to successfully generating new and innovative income streams to replace some of the more traditional methods of raising donations. During 2022 work will continue to expand these events and integrate these into our nonvirtual events.

As a result, after taking advantage of the government support, reducing costs and the successful implementation of new fundraising streams during 2020, and flowing these through to 2021, the charity is budgeted to generate a deficit of circa £128,000 in 2022.

Whilst the latest forecast indicates a larger deficit £168,000 than budgeted for 2022 following the significant increase in costs experienced by the whole country, the actual results for 2021 were better than budgeted due to the steps taken throughout the year to reduce costs and increased income compared to plan providing confidence that the budgeting process is robust and current forecasts can be bettered. Forecasts have been prepared to cover until December 2023.

The Trustees have reviewed this position and as such the trustees have decided that this is sustainable in the circumstances given that the charity has a strong long term investment policy, holding over £1m in investments together with further cash held on account and no indicated cashflow issues.

Within the reserves, the level of unrestricted reserves stands at £507k (2020: £341k) whilst restricted reserves are £826k (2020: £797k). However, as much of the charities long term obligations in respect of research, patient support, GLCC projects and other charitable activities, which form part of the core of the charity’s activities, are within the remit of much of the restricted funds held and the balance of reserves held has moved towards the unrestricted reserves during 2021 (2021: 38%, 2020: 29%), the current weighting towards restricted funds is not seen as a significant issue.

The Trustees have therefore concluded that the accounts can be prepared on the going concern basis of accounting in preparing the financial statements.

Policies relating to categories of income and income recognition.

a) Accounting for deferred income and income received in advance

Where terms and conditions relating to income have not been met or uncertainty exists as to whether the charity can meet any terms or conditions otherwise within its control, income is not recognised but is deferred as a liability until it is probable that the terms or conditions imposed can be met.

Any grant that is subject to performance-related conditions received in advance of delivering the goods and services required by that condition or is subject to unmet conditions wholly outside the control of the recipient charity, is accounted for as a liability and shown on the balance sheet as deferred income.

Deferred income is released to income in the reporting period in which the performance-related or other conditions that limit recognition are met.

When income from a grant or donation has not been recognised due to the conditions applying to the gift not being wholly within the control of the recipient charity, it is disclosed as a contingent asset if receipt of the grant or donation is probable once those conditions are met.

47

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

1 Accounting policies (continued)

Where time related conditions are imposed or implied by a funder, then the income is apportioned to the time periods concerned and, where applicable, is accounted for as a liability and shown on the balance sheet as deferred income. When grants are received in advance of the expenditure on the activity funded by them, but there are no specific time related conditions, then the income is not deferred.

Any condition that allows for the recovery by the donor of any unexpended part of a grant does not prevent recognition of the income concerned, but a liability to any repayment is recognised when repayment becomes probable.

b) Income from legacies

Income from legacies is recognised when the charity has sufficient evidence that a gift has been left to them, that where required, probate has been granted, the executor is satisfied that the property in question will not be required to satisfy claims in the estate, that it is probable that the amount will be received by the charity, and the amount to be received can be estimated with sufficient accuracy, and that any conditions attached to the legacy are either within the control of the charity or have been met.

Where a payment is received from an estate or is notified as receivable by the executors after the reporting date and before the accounts are authorised for issue but it is clear that the payment had been agreed by the executors prior to the end of the reporting period, then the amount concerned is treated as an adjusting event and accrued as income in the accounting period if receipt is probable.

Where the charity has established entitlement to a legacy but there is uncertainty as to the amount of the payment, details of the legacy are disclosed as a contingent asset until the criteria for income recognition are met. Where a legacy is subject to the interest of a life tenant, the legacy is not recognised as income until the death of the life tenant.

Where there is any doubt that full settlement of a legacy debtor will be received, then an adjustment is made to reduce the amount of the legacy debtor and legacy income rather than charging the adjustment as expenditure in the Statement of Financial Activities.

c) Donated goods, facilities and services

Donated fixed assets are recognised at the current fair value. All such donations are recognised as donation income and debited to fixed assets.

Donated goods that are not fixed assets are accounted for at a fair value, unless it is impractical to reliably measure the value of the donated items.

It is deemed impracticable to measure the fair value of goods donated for resale and that costs of valuation outweigh the benefits, as a consequence the value of donated goods are recognised as income when sold.

Donated services and facilities (including seconded staff and use of property) are included in the accounts on the basis of the value of the gift to the charity.

All donated services and facilities are recognised as donation income when received (provided the value of the gift can be measured reliably) and recognised as an expense with an equivalent value.

Policies relating to expenditure on goods and services provided to the charity.

a) Recognition of liabilities and expenditure

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.

48

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

1 Accounting policies (continued)

Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities and is decreased by the utilisation of any

provision within the period and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.

b) Allocating costs to activities

Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities.

The basis for apportionment, which is consistently applied, and proportionate to the circumstances, is:-

c) Direct Staff Cost - Directly allocated on the basis of time spent in connection with any particular activity.

d) Indirect Staffing - on a per capita basis, based on the number of people employed within any particular activity. Indirect staff costs are allocated as follows:

e) Premises related costs - on a per capita basis, based on the number of people employed within any particular activity.

f) Non-specific support costs - on a per capita basis, based on the number of people employed within any particular activity.

g) Estimation techniques used in apportioning costs are based on FTE time spent on activities.

h) Volunteers

In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income or expenditure of the charity.

However, the trustees value the significant contribution made to the activities of the charity by unpaid volunteers and this is described more fully in Note 7 and the strategic report.

Policies relating to assets, liabilities and provisions and other matters.

a) Fixed Asset Investments

Fixed asset investments in quoted shares, traded bonds, investment properties and similar investments are shown initially at cost upon acquisition and at their market value at the balance sheet date at the end of the financial period.

Fixed asset investments in unlisted equities are shown at the balance sheet date at cost and subsequently measured at cost less any accumulated impairment losses, a review is undertaken at each year end as to whether the asset should be written down.

All gains on fixed asset investments, whether realised or unrealised, are included in the Statement of Financial Activities.

49

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

1 Accounting policies (continued)

b) Tangible fixed assets

Fixed assets costing more than £500 are capitalised and valued at historic cost except for items individually below threshold but included in a project whose overall cost is greater than £500.

Tangible fixed assets are measured at their original cost value. Cost value includes all costs expended in bringing the asset into its intended working condition.

Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives.

Leasehold premises over the length of the lease Fixtures and Fittings over the length of the lease Research, office and computer equipment between 10% and 25%

c) Stocks and work in progress

Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Donated items sourced from both individuals and organisations are not included in the financial statements until they are sold.

d) Debtors

Debtors are measured at their recoverable amounts at the balance sheet date.

e) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their transaction amount.

f) Financial instruments including cash and bank balances

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Cash held by the charity is included at the amount actually held and counted at the year end. Bank balances, whether in credit or overdrawn, are shown at the amounts properly reconciled to the bank statements.

All financial assets and liabilities are measured at cost.

g) Leasing

Rentals paid under operating leases are charged to income on a straight-line basis over the lease term.

h) Pensions - defined contribution schemes

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. The assets of the scheme are held separately from those of the company.

50

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

1 Accounting policies (continued)

i) Charitable commitments

Commitments that are legally binding on the trustees are accounted for as a resource expended in the SOFA. Where the intention of financial support is not binding on the trustees, such intentions are not accrued for but are disclosed separately in a note to the accounts.

j) Branch Offices

The Charity carries out some activities through offices that use the same name as the Charity, raise funds for the Charity and receive support from the Charity through advice and publicity materials. All transactions are accounted for gross in the accounts and all assets and liabilities are included in the Charity's balance sheet.

k) Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

l) Consolidation

Roy Castle Retail Ltd (Company number 03604677), Roy Castle Trading Ltd (Company number 03909935), and Cut Films Limited (Company number 07313137) are controlled by the Roy Castle Lung Cancer Foundation and are consolidated in these accounts on a line by line basis.

m) Government Grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2 Critical accounting estimates and judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Estimate of Dilapidation provision:

Dilapidations are provided for on the basis of external estimates of the cost of repair for each property held at the end of its lease, discounted to current day values at a rate of 10% to reflect current inflation expectations. These assumptions are reviewed on an annual basis. No provision was released in 2021 (2020: £Nil) with a provision of £144k as at 31 December 2021 (2020: £68k was included within accruals). This £144k provision is made up of £15k in relation to head office and £129k in relation to the shops.

51

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

Recoverability of group Debts:

Group debt is reviewed annually and any amounts deemed irrecoverable are provided for in the Charity only accounts. At 31 December 2021, intercompany debtors due to the charity from Cut Films Limited have been written down to £nil on the basis of the subsidiary’s unlikely ability to repay these amounts.

Estimate of Stock Loss Accrual:

Stock Losses are estimated and accrued for on basis the of the historic level of stock losses and markdowns experienced in the business. The provision is accrued for on a straight line basis over the year and actual losses set off against the provision following physical stock checks. Physical stock checks are performed in cyclic pattern over the course of a year. There was a stock provision of £9.2k at December 2021 (2020: £9.2k).

3 Liability to taxation

As a registered charity, the organisation is exempt from income and corporation tax to the extent that its income and gains are applied towards the charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity and is therefore included in the relevant costs in the Statement of Financial Activities.

Value Added Tax is recoverable by Roy Castle Retail Ltd and Cut Films Ltd, it is therefore not reported or included in the costs or income figures of these companies or consolidated into the group accounts.

4 Winding up or dissolution of the charity

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.

5 Net income/(expenditure) before tax in the financial year for the group

2021 2020
£ £
The net income/(expenditure) before tax in the financial year is
stated after charging:-
Depreciation of fixed assets 47,392 58,323
Operating leases 515,800 596,558
========= =========
Fees payable to the group's auditor: 2021 2020
£ £
For audit services
Audit of the financial statements of the group and charity 30,450 28,875
–––––––– –––––––––
30,450 28,875
========= =========
Taxation compliance services 4,275 2,750
All other non-audit services 12,130 11,550
–––––––– –––––––––
16,405 14,300
========= =========

52

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

----- Start of picture text -----
||||| |---|---|---|---| |6|Interest payable|2021|2020| |£|£| |Bank interest payable|-|807| |––––––––|–––––––––| |-|807|

----- End of picture text -----

7 The contribution of volunteers

The Charity has significant support from volunteers in all our activities, currently we have 157 registered with us (2020: 526) and they regularly support us in the Foundation’s shops, community engagement work, administration and Fundraising. In total the hours able to be contributed were 18,664 (2020: 8,262) which is the equivalent of 10.7 people (2020: 4.7).

The charity does not recognise in financial terms in the accounts the valuable contribution of our volunteers.

8 Staff costs and emoluments

----- Start of picture text -----
|||||| |---|---|---|---|---| |Group|Group|Charity|Charity| |2021|2020|2021|2020| |£|£|£|£| |Gross salaries|2,086,760 1,955,953 1,201,479 1,097,639| |Employer's National Insurance|146,489|130,122|103,876|92,203| |Employer’s Pension|50,185|45,462|36,376|32,470| |–––––––––– ––––––––– ––––––––– –––––––––| |2,283,434 2,131,537 1,341,731 1,222,312| |========= ========= ========= =========|

----- End of picture text -----

The average number of staff deployed in different activities in the group in the year was:-

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Engaged on charitable activities|21|25| |Engaged on fundraising activities|22|16| |Engaged on management and administration|12|10| |Engaged on retail activities|78|86| |–––––––––|–––––––––| |133|138|

----- End of picture text -----

The average number of staff in charity only in the year was 56 (2020: 50).

The number of employees whose emoluments including taxable benefits but excluding employer's pension contributions fall into the following bands were :-

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |£60,001 to £70,000|1|1| |£70,001 to £80,000|-|-| |(Group and charity)|–––––––––|–––––––––| |1|1| |=========|=========|

----- End of picture text -----

53

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

8 Staff costs and emoluments (continued)

Staff costs and emoluments (continued)
2021 2020
Chief Executive Officer/ Highest paid employee £ £
The remuneration in the year was 68,802 70,725
Pension contributions paid by the employer 4,662 4,390
––––––––– –––––––––
Total remuneration package included in total salaries above 73,464 75,115
========= =========

9 Remuneration and payments to Trustees and persons connected with them

No trustees or persons connected with them received any remuneration from the charity, or any related entity.

Trustees were reimbursed expenses incurred which amounted to £30 (2020: £507) in relation to travel expenses.

54

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

----- Start of picture text -----
|||||| |---|---|---|---|---| |10|Donations and Legacies - Consolidated|Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Donations and gifts from individuals| |Donations|7,078|-|7,078|9,491| |Individual Giving|249,790|337|250,127|375,736| |Payroll Giving|94,159|-|94,159|105,126| |–––––––– –––––––– –––––––– ––––––––| |351,027|337|351,364|490,353| |–––––––– –––––––– –––––––– ––––––––| |Legacies receivable| |Legacies receivable|720,979|-|720,979|168,315| |–––––––– –––––––– –––––––– ––––––––| |1,072,006|337 1,072,343|658,668| |–––––––– –––––––– –––––––– ––––––––| |Revenue grants and donations from non-public bodies| |Corporate Grants|60,146|-|60,146|59,604| |Trusts|19,686|99,717|119,403|246,308| |–––––––– –––––––– –––––––– ––––––––| |79,832|99,717|179,549|305,912| |–––––––– –––––––– –––––––– ––––––––| |Sponsorship| |Pause for Hope|-|5,559|5,559|1,293| |Sponsorship|53,992|397,273|451,265|486,050| |–––––––– –––––––– –––––––– ––––––––| |53,992|402,832|456,824|487,343| |–––––––– –––––––– –––––––– ––––––––| |In Memoriam| |In Memoriam|237,886|20|237,906|169,265| |–––––––– –––––––– –––––––– ––––––––| |237,886|20|237,906|169,265| |–––––––– –––––––– –––––––– ––––––––| |Gift Aid on Donations| |Gift Aid on Donations|145,622|-|145,621|84,676| |–––––––– –––––––– –––––––– ––––––––| |145,622|-|145,621|84,676| |–––––––– –––––––– –––––––– ––––––––| |–––––––– –––––––– –––––––– ––––––––| |Total Donations and Legacies – Consolidated|1,589,338|502,906 2,092,244 1,705,864| |========= ========= ========= =========|

----- End of picture text -----

Of the 2020 income, £1,021,123 was unrestricted and £687,741 was restricted.

55

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

11 Income from charitable activities - Consolidated

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Charitable income from funders| |Community engagement|1,250|-|1,250|36,512| |––––––––|––––––––|––––––––|––––––––| |1,250|-|1,250|36,512| |––––––––|––––––––|––––––––|––––––––| |Total income from charitable activities|1,250|-|1,250|36,512| |=========|=========|=========|=========|

----- End of picture text -----

Total income from charitable activities of £1,250 split by activity is split by £Nil (2020: £8,209) research and £1,250 (2020: £36,512) prevention. Of the 2020 income, £1,512 was unrestricted and £35,000 was restricted.

12 Income from other, trading activities - Consolidated

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Trading activities to raise funds|24,868|-|24,868|8,528| |Income from fundraising events|470,104|-|470,104|322,698| |Income from the sale of donated and brought in goods 1,529,254|- 1,529,254|983,668| |Sponsorships and social lotteries which cannot be| |considered pure donations|9,072|-|9,072|8,659| |–––––––––– ––––––––– ––––––––– –––––––––| |2,033,298|- 2,033,298 1,323,553| |========== ========= ========== ==========|

----- End of picture text -----

Total income from other, trading activities split by activity is split by £504,044 (2020: £339,885) fundraising and £1,529,254 (2020: £983,668) sales of donated and related goods. All of the 2020 income was unrestricted.

13 Investment income - Consolidated

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |-| |Property Rental Income|2,400|2,400|3,600| |Dividend Income|32,322|-|32,322|28,195| |Bank Interest Receivable|98|-|98|422| |–––––––––– ––––––––– ––––––––– –––––––––| |-| |34,820|34,820|32,237| |========= ========= ========= =========|

----- End of picture text -----

All of 2020 income was unrestricted.

56

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

----- Start of picture text -----
|||||| |---|---|---|---|---| |14|Other - Consolidated| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Consultancy and advice|-|-|-|25,698| |Coronavirus grant income|525,091|-|525,091|834,285| |Other income|-|-|-|12,437| |–––––––––– ––––––––– ––––––––– –––––––––| |525,091|-|525,091|872,420| |========= ========= ========= =========|

----- End of picture text -----

Of the 2020 income, £871,118 was unrestricted and £1,302 was restricted.

Government grants in relation to the Coronavirus Job Retention Scheme amounting to £262,085 (2020: £510,059) were receivable in the year in relation to employees who were put on furlough. Other government grants of £5,147 (2020: £1,558) relating to the interest free benefit incurred on a Coronavirus Business Interruption Loan and £257,858 (2020: £322.668) relating to Covid19 Local Restrictions Support Grants from Local Authorities were received by the Group in the year.

15 Expenditure on raising funds and costs of investment management - Consolidated

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Cost of fundraising activities|83,198|9,350|92,548|49,639| |Marketing & advertising of fundraising|64,083|37,343|101,426|81,644| |Costs of seeking donations, grants and legacies|772|-|772|144| |Cost of operating social lotteries|1,508|-|1,508|1,508| |Costs of staging fundraising events|80,650|-|80,650|116,931| |Costs of charity shop selling goods|2,057,231|- 2,057,231 1,799,763| |Gross wages and salaries - fundraising activities|406,020|-|406,020|399,171| |Other Direct Costs - fundraising Activities|151,386|21,937|173,323|178,845| |Staff Training & Welfare - fundraising Activities|1,975|-|1,975|2,324| |Travel and Subsistence - fundraising Activities|2,869|-|2,869|2,050| |–––––––––– ––––––––– ––––––––– –––––––––| |2,849,692|68,630 2,918,322 2,632,018| |========= ========= ========= =========|

----- End of picture text -----

Of the 2020 expenditure, £2,559,637 was unrestricted and £72,381 was restricted.

57

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

16 Expenditure on charitable activities - Consolidated

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Staff|Total|Total| |Costs|Other|Funds|Funds| |Note|2021|2021|2021|2020| |£|£|£|£| |Direct spending| |Restricted|45,081|294,572|339,653|201,123| |Unrestricted|238,118|108,163|346,281|287,252| |–––––––––– ––––––––– ––––––––– –––––––––| |283,199|402,735|685,934|488,375| |–––––––––– ––––––––– ––––––––– –––––––––| |Grant funding| |Organisation grants|26|-|73,794|73,794|78,584| |Staff costs|31,962|-|31,962|29,800| |–––––––––– ––––––––– ––––––––– –––––––––| |31,962|73,794|105,756|108,384| |–––––––––– ––––––––– ––––––––– –––––––––| |Support costs| |Staff costs|606,556|-|606,556|569,823| |Premises costs|-|68,212|68,212|82,273| |Legal and professional costs|-|13,991|13,991|13,164| |Financial|-|59,692|59,692|45,882| |Other|-|103,529|103,529|32,050| |–––––––––– ––––––––– ––––––––– –––––––––| |606,556|245,424|851,980|743,192| |––––––––– ––––––––– ––––––––– –––––––––| |Governance costs:| |Audit fees|30,450|-|30,450|42,495| |Accountancy fees|26,540|-|26,540|31,834| |––––––––– ––––––––– ––––––––– –––––––––| |978,707|721,953 1,700,660 1,414,280| |========= ========= ========= =========|

----- End of picture text -----

Of the £1,700,660 (2020: £1,414,280) expenditure £404,966 (2020: £325,287) related to restricted funds and was all categorised as other expenditure.

Included within financial costs of £59,692 (2020: £45,882) is a £Nil (2020: £15,068) amount payable to HMRC in relation to corporation tax in Roy Castle Retail Limited.

17 Summary of charitable costs by activity - Consolidated

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Grant| |Direct|Support|funding Governance Total Total| |costs|costs|of activities|2021 2020| |Research|222|357,832|685,934|23,936 1,067,924|568,258| |-| |Support|105,534|187,436|12,538|305,508|534,004| |Prevention|- 306,712 - 20,516|327,228|312,018| |–––––––– –––––––– –––––––– –––––––– –––––––– ––––––––| |105,756|851,980 685,934 56,990|1,700,660 1,414,280| |========= ========= ========= ======== ========= =========|

----- End of picture text -----

58

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

18 Donations and Legacies - Charity only
Unrestricted
Restricted		 Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
£ £ £ £
Donations and gifts from individuals
Donations - - - 2,000
Individual Giving 249,790 337 250,127 375,735
Payroll Giving 94,158 - 94,158 105,126
–––––––– –––––––– –––––––– ––––––––
343,948 337 344,285 482,861
–––––––– –––––––– –––––––– ––––––––
Legacies receivable
Legacies receivable 720,979 - 720,979 168,315
–––––––– –––––––– –––––––– ––––––––
720,979 - 720,979 168,315
–––––––– –––––––– –––––––– ––––––––
Revenue grants and donations from non-public bodies
Corporate Grants 60,146 - 60,146 59,604
Trusts 19,686 99,717 119,403 246,308
–––––––– –––––––– –––––––– ––––––––
79,832 99,717 179,549 305,912
–––––––– –––––––– –––––––– ––––––––
Sponsorship
Pause for Hope - 5,559 5,559 1,293
Sponsorships 53,993 397,273 451,266 482,550
–––––––– –––––––– –––––––– ––––––––
53,993 402,832 456,825 483,843
–––––––– –––––––– –––––––– ––––––––
In Memoriam
In Memoriam 235,955 20 235,975 166,977
–––––––– –––––––– –––––––– ––––––––
235,955 20 235,975 166,977
–––––––– –––––––– –––––––– ––––––––
Gift Aid on Donations
Gift Aid on Donations 90,156 - 90,156 86,362
Gift aid from subsidiary 118,757 - 118,757 3,223
Gift aid from subsidiary – prior year - - - (45,564)
–––––––– –––––––– –––––––– ––––––––
208,913 - 208,913 44,021
–––––––– –––––––– –––––––– ––––––––
–––––––– –––––––– –––––––– ––––––––
Total Donations and Legacies - Charity 1,643,620 502,906 2,146,526 1,651,929
========= ========= ========= =========

Of the 2020 income, £967,187 was unrestricted and £684,742 was restricted.

59

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

19 Income from charitable activities - Charity only

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |Charitable income from funders| |Community engagement|1,250|-|1,250|36,512| |––––––––|––––––––|––––––––|––––––––| |1,250|-|1,250|36,512| |––––––––|––––––––|––––––––|––––––––| |Total income from charitable activities|1,250|-|1,250|36,512|

----- End of picture text -----

Total income from charitable activities all related to prevention. Of the 2020 income, £1,512 was unrestricted and £36,512 was restricted.

20 Income from other, trading activities - Charity only

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Income from fundraising events|290,601|-|290,601|267,293| |Sponsorships and social lotteries which cannot| |be considered pure donations|8,780|-|8,780|8,584| |–––––––– –––––––– –––––––– ––––––––| |299,381|-|299,381|275,877|

----- End of picture text -----

========= ========= ========= =========

Total income from other, trading activity split by activity all related to fundraising activities. All of the 2020 income was unrestricted.

21 Investment income - Charity Only

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Property Rental Income|2,400|-|2,400|3,600| |Dividend Income|32,322|-|32,322|28,195| |Bank Interest Receivable|1,009|-|1,009|1,277| |–––––––––– ––––––––– ––––––––– –––––––––| |35,731|-|35,731|33,072| |========= ========= ========= =========|

----- End of picture text -----

All of 2020 income was unrestricted.

60

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

22 Other - Charity

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Consultancy and advice|-|-|-|25,698| |Coronavirus grant income|102,090|-|102,090|161,585| |Other income|-|-|-|12,437| |–––––––––– ––––––––– ––––––––– –––––––––| |102,090|-|102,090|199,720| |========= ========= ========= =========|

----- End of picture text -----

Of the £199,720 of 2020 income, £1,302 was restricted and £198,418 was unrestricted.

Government grants in relation to the Coronavirus Job Retention Scheme amounting to £96,942 (2020: £160,027) were receivable in the year in relation to employees who were put on furlough. Other government grants of £5,147 (2020: £1,558) relating to the interest free benefit incurred on a Coronavirus Business Interruption Loan were received by the Group in the year.

23 Expenditure on raising funds and costs of investment management - Charity only

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |Cost of fundraising activities|70,769|9,350|80,119|31,026| |Marketing & advertising of fundraising|64,083|37,343|101,426|81,643| |Costs of seeking donations, grants and legacies|772|-|772|144| |Cost of operating social lotteries|1,508|-|1,508|1,508| |Costs of staging fundraising events|67,287|-|67,287|106,304| |Gross wages and salaries - fundraising activities|406,020|-|406,020|399,170| |Other Direct Costs - Fundraising Activities|144,605|21,937|166,542|173,184| |Staff Training & Welfare - Fundraising Activities|1,975|-|1,975|2,324| |Travel and Subsistence - Fundraising Activities|2,868|-|2,868|2,050| |–––––––––– ––––––––– ––––––––– –––––––––| |759,887|68,630|828,517|797,353| |========= ========= ========= =========|

----- End of picture text -----

Of the £797,353 of 2020 expenditure, £72,381 was restricted and £724,972 was unrestricted.

61

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

24 Expenditure on charitable activities - Charity

Staff Total Total
costs Other
Funds		 Funds
Note 2021 2021 2021 2020
£ £ £ £
Direct spending
Restricted 45,081
294,571
339,652
201,123
Unrestricted 238,118
108,136
346,254
285,892
–––––––––– ––––––––– ––––––––– –––––––––
283,199
402,707
685,906
487,015
–––––––––– ––––––––– ––––––––– –––––––––
Grant funding
Organisation grants 26 -
73,794
73,794
78,584
Staff costs 31,962
-
31,962
29,800
–––––––––– ––––––––– ––––––––– –––––––––
31,962
73,794
105,756
108,384
–––––––––– ––––––––– ––––––––– –––––––––
Support costs
Staff costs 606,556
-
606,556
569,823
Premises costs -
68,213
68,213
82,273
Legal and professional costs -
13,992
13,992
13,164
Depreciation/interest -
18,839
18,839
25,880
Other - admin -
103,529
103,529
136,731
–––––––––– ––––––––– ––––––––– –––––––––
606,556 204,573 811,129
827,871
––––––––– ––––––––– ––––––––– –––––––––
Governance costs:
Audit fees 30,450
-
30,450
42,495
Accountancy fees 20,540
-
20,540
22,531
––––––––– ––––––––– ––––––––– –––––––––
972,707
681,074		 1,653,781 1,488,296
========= ========= ========= =========

Of the £1,653,781 (2020: £1,488,296) expenditure £404,966 (2020: £325,287) related to restricted funds and was categorised as other expenditure.

25 Summary of charitable costs by activity – Charity only

Grant
Direct Support funding Governance Total Total
costs costs of activities 2021 2020
Research 222
340,674		 685,905 21,416 1,048,217 595,394
Support 105,535 178,449 - 11,218 295,202 553,601
Prevention - 292,006 -
 18,356 310,362 339,301
–––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
105,757 811,129 685,905 50,990 1,653,781 1,488,296
========= ========= ========= ========= ========= =========

62

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

26 Breakdown of Grants to organisations

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2021|2021|2021|2020| |£|£|£|£| |University of Liverpool|(2,500)|-|(2,500)|2,500| |University College London|(2,920)|-|(2,920)|-| |Community Engagement Research Programme|-|-|-|6,249| |University of Nottingham|62,970|23,108|86,078|14,044| |Leeds|18,968|6,032|25,000|-| |Manchester Cancer Research Centre|-|-|-|9,791| |University of Sterling|(454)|-|(454)|-| |Bibliometric Research|-|(40,629)|(40,629)|26,000| |Social Media Research|-|(20,324)|(20,324) 50,765| |University of Sheffield|(3,354)|-|(3,354)|-| |University of Manchester|24,959|7,938|32,897|-| |––––––––– ––––––––– ––––––––– –––––––––| |97,669|(23,875)|73,794|78,584| |========= ========= ========= =========| |In 2020 £23,644 was unrestricted and £59,940 was restricted.| |27|Investment gains| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |Group|2021|2021|2021|2020| |£|£|£|£| |Listed investments – Realised gains|63,378|-|63,378|34,523| |Listed investments – Unrealised gains/ (losses)|64,164|-|64,164|(16,915)| |––––––––– ––––––––– ––––––––– –––––––––| |Total realised and unrealised gains|127,542|-|127,542|17,608| |========= ========= ========= =========| |All the gains on investments in 2020 were unrestricted.| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |Charity Only|2021|2021|2021|2020| |£|£|£|£| |Listed investments – Realised gains|63,378|-|63,378|34,523| |Listed investments – Unrealised gains/ (losses)|64,164|-|64,164|(16,915)| |––––––––– ––––––––– ––––––––– –––––––––| |Total realised and unrealised gains|127,542|-|127,542|17,608| |========= ========= ========= =========|

----- End of picture text -----

All the gains on investments in 2020 were unrestricted.

63

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

28 Tangible fixed assets Research
Leasehold Fixtures office and
Group land and and computer
Group
buildings fittings equipment
total
£ £ £ £
Cost
At 1 January 2021 590,373 320,160 473,442 1,383,975
Additions 1,412 43,257 9,771 54,440
Disposals (61,715) (6,601) - (68,316)
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2021 530,070 356,816 483,213 1,370,099
––––––––– ––––––––– ––––––––– ––––––––––
Depreciation
At 1 January 2021 563,304 237,201 437,805 1,238,310
Charge for the year 6,192 23,320 17,880 47,392
Eliminated on disposal (61,715) (6,225)
-		 (67,940)
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2021 507,781 254,296 455,685 1,217,762
––––––––– ––––––––– ––––––––– ––––––––––
Net book value
At 31 December 2021 22,289 102,520 27,528 152,337
========= ========= ========= =========
At 31 December 2020 27,069 82,959 35,637 145,665
========= ========= ========= =========
Research
Leasehold Fixtures office and
Charity Only land and and computer
buildings fittings equipment
Total
£ £ £ £
Cost
At 1 January 2021 6,783 43,844 344,214 394,841
Additions - 852 2,467 3,319
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2021 6,783 44,696 346,681 398,160
––––––––– ––––––––– ––––––––– ––––––––––
Depreciation
At 1 January 2021 4,307 32,158 318,493 354,958
Charge for the year 786 6,233 11,820 18,839
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2021 5,093 38,391 330,313 373,797
––––––––– ––––––––– ––––––––– ––––––––––
Net book value
At 31 December 2021 1,690 6,305 16,368 24,363
========= ========= ========= =========
At 31 December 2020 2,476 11,686 25,721 39,883
========= ========= ========= =========

64

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

29 Investments held as fixed assets by the Parent Company

Investments in
Listed
Subsidiary investments
undertakings Total
£ £ £
Carrying values of investments
At 1 January 2021 129,595 1,049,672 1,179,267
Additions - 119,577 119,577
Cash movement - 8,211 8,211
Disposals - (149,785) (149,785)
Revaluation at 31 December 2021 - 64,217 64,217
––––––––– ––––––––– –––––––––
At 31 December 2021 129,595 1,091,892 1,221,487
========= ========= =========
Analysis between historical cost and revaluation based on market value
Investments as above historical cost 129,595 765,411 895,006
========= ========= =========
Analysis of types of investments:
2021 2020
Cash 91,086 82,822
Listed investments 1,000,806 966,850
–––––––– ––––––––
1,091,892 1,049,672
========== ==========

Analysis of investments in subsidiary undertakings by the Parent Company, The Roy Castle Lung Cancer Foundation


Cancer Foundation
Included at
Historical
cost, less
write down
£
Loans to group undertakings 129,592
Equity investment in group undertakings 3
–––––––––
129,595
–––––––––
Analysis of equity investments:
Investments cost 3
––––––––
3
=========

The company holds 20% or more of the share capital of the following companies:

Company Shares held Direct
Class %
Cut Films Limited Ordinary
100
Roy Castle Retail Limited Ordinary 100
Roy Castle Trading Limited Ordinary 100

65

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

30 Subsidiary companies

The Charity has three wholly owned subsidiaries:

Three trading Subsidiaries

Three trading Subsidiaries Principle Activities Roy Castle Retail Ltd - Company number: 03604677 Retail Charity Shops Roy Castle Trading Ltd - Company number: 03909935 Charity and Charitable Events Cut Films Ltd – Company number 07313137 Provision of Charity Youth Projects

Where liability is limited by shareholding the amount of the holding company's investment in each subsidiary is £2, which represents 100% of the issued ordinary share capital of each subsidiary. In all cases the subsidiary is controlled by the holding company by virtue of the power to appoint directors to the board of the subsidiary.

All companies are incorporated in England and Wales and are exempt from audit.

The subsidiary's activities relate to those of the holding company in that the subsidiary is a trading enterprise engaging in trades similar to the charitable activities of the holding company and donates its entire taxable trading profit to the holding company by way of gift aid.

As required, the company guarantees all outstanding liabilities to which the subsidiary companies, listed above, are subject to at the end of the financial period, until they are satisfied in full and the guarantee is enforceable against the parent undertaking by any person to whom the subsidiary companies listed above is liable in respect of those liabilities.

A summary of the financial statements of the subsidiaries is:-

2021 2020
£ £
Assets and Funds
Aggregate amount of assets 561,407 584,930
Aggregate amounts of liabilities (921,571) (910,231)
–––––––––– ––––––––––
Aggregate amount of funds (360,164) (325,201)
========== ==========
Profit and Loss
Turnover net of VAT 1,769,106 1,084,576
Expenses net of VAT (1,672,361) (1,119,575)
–––––––––– ––––––––––
Net profit for the year before tax 96,745 (34,999)
Interest Paid (911) (835)
Gift Aid Payments made to holding company (118,757) (3,223)
–––––––––– ––––––––––
Net loss for the year after tax and gift aid (22,923) (39,057)
========== ==========

The £22,923 net loss above (2020: £39,057) is split as follows; Cut Films Limited made a net loss of £2,538 (2020: £54,185 net profit). Roy Castle Retail Limited made a net loss of £32,424 (2020: £101,384).Roy Castle Trading Limited made a net profit of £118,757 (2020: £26,433) of which was gift aided.

66

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

30 Subsidiary companies (continued)

Note 2021 2020
£ £
Restricted funds retained within charitable subsidiaries 40 40,208 40,208
========== ==========
31 Stock Group Charity Only
2021
2020
2021		 2020
£
£
£		 £
Stocks 73,931
82,906
12,466		 13,769
–––––––––
–––––––––
–––––––––		 ––––––––––
73,931
82,906
12,466		 13,769
=========
=========
=========		 =========

Costs of stock included in the statement of financial activities amounted to £87,370 (2020: £74,200). Stock includes an impairment provision of £7,521 (2020: £9,223).

Analysis of the value of stock by activity
Group Charity Only
2021
2020		 2021 2020
£
£		 £ £
Activity
Fundraising activities 12,467
13,769		 12,466 13,769
Stocks for Sales of donated and related Goods
61,464
69,137		 - -
–––––––––
–––––––––		 ––––––––– ––––––––––
73,931
82,906		 12,466 13,769
=========
=========		 ========= =========
32 Debtors Group Charity Only
2021
2020		 2021 2020
£
£		 £ £
Trade debtors 161,788
93,423		 118,597 44,162
Amounts owed by group undertakings and
undertakings in which the company has a
participating interest -
-		 174,911 273,868
Prepayments and accrued income 821,092
254,283		 714,405 134,243
Other debtors 51,351
61,787		 9,858 23,328
–––––––––
–––––––––		 ––––––––– ––––––––––
1,034,231
409,493		 1,017,771 475,601
=========
=========		 ========= =========

The intercompany balances of £nil (2020: £73,514) have been impaired in Charity only.

A provision for bad debts of £2,256 (2020: £3,305) was included against trade debtors.

67

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

33 Creditors: amounts falling due within one year

Group Charity Only Charity Only
Note 2021
2020		 2021 2020
£
£		 £ £
Trade creditors 306,916
113,148		 252,982 80,509
Accruals and deferred income 35 296,049
384,965		 216,171 267,882
PAYE, NIC VAT and other taxes 47,645
41,319		 47,645 41,319
Bank loan 40,000
10,000		 40,000 10,000
Other creditors 261,572
478,635		 261,568 463,561
––––––––
–––––––––		 –––––––– –––––––––
952,182
1,028,067		 818,366 863,271
=========
=========		 ========= =========

The is a debenture in place dated 11 April 2001 in Roy Castle Retail Limited over leasehold property of the company by Barclays Bank plc.

There is a cross guarantee between Roy Castle Retail Limited and Roy Castle Lung Foundation that relates to a loan of £129k.

The amount of bank loans repayable included in creditors due within one year relates to a Coronavirus Business Interruption Loan received in the prior year.

34 Creditors: amounts falling due within
more than one year Group Charity Only
2021
2020		 2021 2020
£
£		 £ £
Bank loan 153,333
190,000		 153,333 190,000
––––––––
–––––––––		 –––––––– –––––––––
153,333
190,000		 153,333 190,000
=========
=========		 ========= =========

The amount of bank loans repayable included in creditors due more than one year relates to a Coronavirus Business Interruption Loan received in the year. Interest is charged at 2.99% over Bank of England base rate and the loan is secured with a fixed and floating debenture over all assets of the Charity. The amount due after five years is £nil (2020: £30,000).

68

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

35 Deferred income
Group Charity
2021 2020 2021 2020
£ £ £ £
Brought Forward 96,031 31,960 96,031 31,960
Deferred in the year 88,299 96,031 88,299 96,031
Amounts released in the year (96,031) (31,960) (96,031) (31,960)
–––––––– ––––––––– –––––––– –––––––––
88,299 96,031 88,299 96,031
========= ========= ========= =========

Deferred income of £28,299 (2020: £66,031) relates income received for the Charity’s LCam Project but relates to 2022 and 2023. £60,000 (2020: £30,000) of the income deferred in the prior year relates to income for GLCC that was received from Amgen relating to 2022 sponsorship.

36 Provisions for liabilities Group Charity Only Charity Only
2021 2020 2021 2020
£ £ £ £
Dilapidation’s provision 144,181 - 15,500 -
Deferred tax liabilities 12,040 - - -
–––––––– ––––––––– –––––––– –––––––––
156,221 - 15,500 -
========= ========= ========= =========

Movement on provisions apart from deferred tax liabilities:

Group Charity Only Charity Only
2021 2020 2021 2020
£ £ £ £
At 1 January 2021 - - - -
Additional provisions in the year 144,181 - 15,500 -
Reversal of provision - - - -
Utilisation of provision - - - -
–––––––– ––––––––– –––––––– –––––––––
144,181 - 15,500 -
========= ========= ========= =========

Dilapidation’s provision

The company has a present obligation to make good lease properties it occupies at the end of each respective property lease. Therefore, a dilapidations provision is required based upon the expected discounted cost to make good the properties. This was included as an accrual in previous years.

69

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

37 Analysis of changes in net cash
Group Market value
01/01/2021 Cash flows movements
31/12/2021
£ £ £ £
Net Cash
Cash at bank and in hand 668,586 (425,723) - 242,863
–––––––– ––––––––– –––––––– –––––––––
668,586 (425,723) - 242,863
–––––––– ––––––––– –––––––– –––––––––
Debt
Debts falling due within one year (10,000) (30,000) - (40,000)
Debts falling due after one year (190,000) 36,667 - (153,333)
–––––––– ––––––––– –––––––– –––––––––
(200,000) 6,667 - (193,333)
–––––––– ––––––––– –––––––– –––––––––
–––––––– ––––––––– –––––––– –––––––––
Net debt 468,586 (419,054) - 49,532
========= ========= ========= =========
Charity Market value
01/01/2021 Cash flows movements
31/12/2021
£ £ £ £
Net Cash
Cash at bank and in hand 528,062 (403,418) - 124,644
–––––––– ––––––––– –––––––– –––––––––
528,062 (403,418) - 124,644
–––––––– ––––––––– –––––––– –––––––––
Debt
Debts falling due within one year (10,000) (30,000) - (40,000)
Debts falling due after one year (190,000) 36,667 - (153,333)
–––––––– ––––––––– –––––––– –––––––––
(200,000) 6,667 - (193,333)
–––––––– ––––––––– –––––––– –––––––––
–––––––– ––––––––– –––––––– –––––––––
Net debt 328,062 (396,751) - (68,689)
========= ========= ========= =========

70

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

38 Charitable commitments not recognised as provisions or commitments in the accounts

The charity operates an open grants process for Research Grants, some grant applications extend beyond one year, however the charity has an annual review policy for grants that extend beyond one year, with the ability to terminate the grant should it not meet its objectives. Grant costs are accrued in the accounts up to the review date of each grant as this forms the contractual obligation.

There is £161,135 (2020: £257,841) of awards that are contingent on the grants meeting their criteria that would then fall across the next two subsequent years accounts.

At the year end the group had total outstanding commitments under 2021 2020
non-cancellable operating leases as set out below: £ £
Operating leases which expire:
within one year 505,178 580,058
within two to five years 1,116,266 1,352,594
in over five years 224,000 324,000
–––––––––– ––––––––––
1,845,444 2,256,652
========== ==========
At the year end the charity had total outstanding commitments under
2021		 2020
non-cancellable operating leases as set out below: £ £
Operating leases which expire:
within one year 72,878 75,508
within two to five years 146,816 159,694
–––––––––– ––––––––––
219,694 235,202
========== ==========

39 Related party transactions

The remuneration paid to key management personnel as identified in the Trustees Annual Report amounted to £313,430 (2020: £294,912).

Balances held with subsidiary companies of Roy Castle Lung Cancer Foundation in the year were as follows:


follows:
2021 2020
£ £
Included in debtors: 174,911 273,868
Interest charged on balances: 911 835
======== ========

The movement in the amount due to the charity relates to amounts advanced in the year of £1,370,329 (2020: £1,291,278), amounts credited in the year of £1,469,285 (2020: £1,369,132) and amounts written off of £nil (2020: £73,514).

40 Related party transactions with Trustees

Transactions of £13,456 (2020: £12,127) occurred in the year with a close family member (Mr Robert Chadwick) of one of the trustees, Paula Chadwick (Chief Executive of the Charity), these transactions were in respect of work carried out in the shops £13,456 (2020: £11,767). No balance was outstanding at the year end (2020: £Nil). Mr Robert Chadwick also provides the estimated dilapidation costs valuation used in the calculation of the dilapidation provision.

71

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

41 Particulars of how particular funds are represented by assets and liabilities

Group
Unrestricted Restricted Total
At 31 December 2021 funds funds funds
£ £ £
Tangible Fixed Assets 152,337 - 152,337
Fixed asset investments 1,091,892 - 1,091,892
Current Assets 524,688 826,337 1,351,025
Current Liabilities (952,182) - (952,182)
Non-current Liabilities (153,333) - (153,333)
Provisions for liabilities (156,221) - (156,221)
–––––––––– –––––––––– –––––––––––
507,181 826,337 1,333,518
=========== =========== ===========
Charity Unrestricted Restricted Total
At 31 December 2021 funds funds funds
£ £ £
Tangible Fixed Assets 24,363 - 24,363
Fixed asset investments 1,221,487 - 1,221,487
Current Assets 368,751 786,131 1,154,882
Current Liabilities (818,366) - (818,366)
Non-current Liabilities (153,333) - (153,333)
Provisions for liabilities (15,500) - (15,500)
–––––––––– –––––––––– –––––––––––
627,402 786,131 1,413,533
=========== =========== ===========
Group
Unrestricted Restricted Total
At 31 December 2020 funds funds funds
£ £ £
Tangible Fixed Assets 145,665 - 145,665
Fixed asset investments 1,049,672 - 1,049,672
Current Assets 363,958 797,027 1,160,985
Current Liabilities (1,028,067) - (1,028,067)
Non-current Liabilities (190,000) - (190,000)
–––––––––– –––––––––– –––––––––––
341,228 797,027 1,138,255
=========== =========== ===========
Charity Unrestricted Restricted Total
At 31 December 2020 funds funds funds
£ £ £
Tangible Fixed Assets 39,883 - 39,883
Fixed asset investments 1,179,267 - 1,179,267
Current Assets 260,611 756,821 1,017,432
Current Liabilities (863,271) - (863,271)
Non-current Liabilities (190,000) - (190,000)
–––––––––– –––––––––– –––––––––––
426,490 756,821 1,183,311
============ ========== ===========
72

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

42 Change in total funds over the year as shown in Note 40, analysed by individual funds

Group Funds Funds
brought carried
forward Income Expenditure
forward
2021 2021
£ £ £ £
Unrestricted and designated funds:-
Group Unrestricted Funds 341,228 4,183,797 (4,017,844) 507,181
–––––––––– –––––––––– –––––––––– ––––––––––
Total unrestricted and designated funds 341,228 4,183,797 (4,017,844) 507,181
–––––––––– –––––––––– –––––––––– ––––––––––
Charity Restricted Funds
Sundry RCF Restricted Reserves 331,542 167,044 (164,997) 333,589
GLCC 425,823 335,862 (308,599) 453,086
Boehringer Ingleheim Awareness Project (546)
-		 - (546)
Subsidiary
Restricted Funds
Cut Films Restricted Reserves 40,208 - - 40,208
–––––––––– –––––––––– –––––––––– ––––––––––
Total restricted funds 797,027 502,906 (473,596) 826,337
–––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– ––––––––––
Total Group Funds 1,138,255 4,686,703 (4,491,440) 1,333,518
========== ========== ========== ==========

Included in the expenditure above are gains on investments of £127,542 in unrestricted funds.

Restricted Funds Boehringer Ingleheim Awareness Project To fund lung cancer awareness for individuals Cut Films Restricted Reserves To stimulate discussion amongst young people about the issue of smoking. Sundry RCF Restricted Reserves To fund lung cancer research for individuals GLCC To fund lung cancer research for individuals Charity only Funds Funds

Charity only Funds Funds
brought carried
forward Income Expenditure
forward
2021 2021
Unrestricted and designated funds:- £ £ £ £
Unrestricted revenue funds 426,490 2,082,072 (1,881,160) 627,401
–––––––––– –––––––––– –––––––––– ––––––––––
Total unrestricted and designated funds 426,490 2,082,072 (1,881,160) 627,401
========== ========== ========== ==========
RCF Restricted funds:-
Research - GLCC 425,823 335,862 (308,599) 453,086
Research - others 330,998 167,044 (164,997) 333,045
–––––––––– –––––––––– –––––––––– ––––––––––
Total restricted funds 756,821 502,906 (473,596) 786,131
–––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– ––––––––––
Total Charity Funds 1,183,311 2,584,978 (2,354,756) 1,413,533
========== ========== ========== ==========

Included in the expenditure above are gains on investments of £127,542 in unrestricted funds.

73

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

42 Change in total funds over the year as shown in Note 39, analysed by individual funds (continued)

Group Funds Funds
brought carried
forward Income Expenditure
forward
2020 2020
£ £ £ £
Unrestricted and designated funds:-
Group Unrestricted Funds 722,707 3,249,543 (3,631,022) 341,228
–––––––––– –––––––––– –––––––––– ––––––––––
Total unrestricted and designated funds 722,707 3,249,543 (3,631,022) 341,228
–––––––––– –––––––––– –––––––––– ––––––––––
Charity Restricted Funds
Sundry RCF Restricted Reserves 186,992 328,278 (183,728) 331,542
GLCC 246,998 392,765 (213,940) 425,823
Boehringer Ingleheim Awareness Project (546)
-		 - (546)
Subsidiary
Restricted Funds
Cut Films Restricted Reserves 40,208 - - 40,208
–––––––––– –––––––––– –––––––––– ––––––––––
Total restricted funds 473,652 721,043 (397,668) 797,027
–––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– ––––––––––
Total Group Funds 1,196,359 3,970,586 (4,028,690) 1,138,255
========== ========== ========== ==========

Included in the expenditure above are gains on investments of £17,608 in unrestricted funds.

Restricted Funds
Boehringer Ingleheim Awareness Project To fund lung cancer awareness for individuals
Cut Films Restricted Reserves To stimulate discussion amongst young people about
the issue of smoking.
Sundry RCF Restricted Reserves To fund lung cancer research for individuals
GLCC To fund lung cancer research for individuals
Charity only Funds Funds
brought carried
forward Income Expenditure
forward
2020 2020
Unrestricted and designated funds:- £ £ £ £
Unrestricted revenue funds 820,796 1,476,067 (1,870,373) 426,490
–––––––––– –––––––––– –––––––––– ––––––––––
Total unrestricted and designated funds 820,796 1,476,067 (1,870,373) 426,490
========== ========== ========== ==========
RCF Restricted funds:-
Research - GLCC 246,998 392,765 (213,940) 425,823
Research - others 186,448 328,278 (183,728) 330,998
–––––––––– –––––––––– –––––––––– ––––––––––
Total restricted funds 433,446 721,043 (397,668) 756,821
–––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– ––––––––––
Total Charity Funds 1,254,242 2,197,110 (2,268,041) 1,183,311
========== ========== ========== ==========

Included in the expenditure above are gains on investments of £17,608 in unrestricted funds.

74

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

43 Change in total funds over the year
Gains & Movement
Income Expenditure Losses in funds
Group 2021 2021 2021 2021
£ £ £ £
Unrestricted and designated funds:-
Unrestricted revenue funds 4,183,797 (4,145,386) 127,542 165,953
Restricted funds:-
Restricted Reserves 502,906 (473,596) - 29,310
–––––––––––––––––––––––––––––––––––––––
4,686,703 (4,618,982) 127,542 195,263
========== ========== ========== ==========
Change in total funds over the year
Gains & Movement
Income Expenditure Losses in funds
Charity only 2021 2021 2021 2021
£ £ £ £
Unrestricted and designated funds:-
Unrestricted revenue funds 2,082,072 (2,008,702) 127,542 200,912
Restricted funds:-
Restricted Reserves 502,906 (473,596) - 29,310
––––––––– –––––––––– –––––––––– ––––––––––
2,584,978 (2,482,298) 127,542 230,222
========== ========== ========== ==========
Gains & Movement
Income Expenditure Losses in funds
Group 2020 2020 2020 2020
£ £ £ £
Unrestricted and designated funds:-
Unrestricted revenue funds 3,249,543 (3,648,630) 17,608 (381,479)
Restricted funds:-
Restricted Reserves 721,043 (397,668) - 323,375
––––––––– –––––––––– –––––––––– ––––––––––
3,970,586 (4,046,298) 17,608 (58,104)
========== ========== ========== ========
Gains & Movement
Income Expenditure Losses in funds
Charity only 2020 2020 2020 2020
£ £ £ £
Unrestricted and designated funds:-
Unrestricted revenue funds 1,476,067 (1,887,981) 17,608 (394,306)
Restricted funds:-
Restricted Reserves 721,043 (397,668) - 323,375
––––––––– –––––––––– –––––––––– ––––––––––
2,197,110 (2,285,649) 17,608 (70,931)
========== ========== ========== ==========

75

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2021

44 The purposes for which the funds as detailed in note 40 are held by the charity are:-

Unrestricted and designated funds:-

Unrestricted revenue funds These funds are held for the meeting the general objectives of the charity, and to provide reserves for future activities, and subject to charity legislation, are free from all restrictions on their use. Restricted funds:-

Sundry RCF Restricted Reserves These funds are held for meeting specific objectives of the charity as specified by the donor, and to provide reserves for future suitable activities subject to charity legislation and subject to the restrictions placed on them by individual donors.

GLCC These funds are held for meeting specific objectives of the charity as specified by the donor, and to provide reserves for future suitable activities subject to charity legislation and subject to the restrictions placed on them by individual donors.

Group Charity
45 Financial instruments 2021 2020 2021 2020
£ £ £ £
Carrying amount of financial assets
Financial instruments measured at fair value 1,091,892 1,049,672 1,221,487 1,179,267
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46 Ultimate controlling party

The Roy Castle Lung Cancer Foundation is the ultimate controlling party and is under the control of its legal members.

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