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2023-12-31-accounts

The Registered Company Number is: 03059425

The Registered Charity Number is England & Wales 1046854 Scotland SC037596 Isle of Man 006171F

Roy Castle Lung Cancer Foundation

Report and Accounts

31 December 2023

Roy Castle Lung Cancer Foundation

Report and accounts

Contents

Page
Trustees' Annual Report 2-23
Independent Auditor’s report 24-27
Consolidated Statement of Financial Activities 28
Charity only Statement of Financial Activities 29
Consolidated Balance sheet 30
Charity only Balance Sheet 31
Consolidated Cash flow statement 32
Charity only Cash flow statement 33
Notes to the accounts 34-65

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

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 (resigned 27 February 2024) Anthony Coombs Martin Grange (resigned 28 August 2024) Alison Lobb Alyson Chadwick Mandee Lucas Alastair Machray Cathy Brokenshire Emma O’Dowd (appointed 27 February 2024) Jane Mullin (appointed 28 August 2024) Donna Brenchley (appointed 28 August 2024)

Company secretary Paula Chadwick

Senior Management Team

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

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

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 bankers 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 Trustees' Annual Report for the year ended 31 December 2023

Foreword by the Chief Executive of Roy Castle Lung Cancer Foundation

Welcome to our Annual Trustees’ Report on our activities during 2023.

Ours is the only UK charity entirely dedicated to helping anyone and everyone affected by all forms of lung cancer. It has two core functions: to save lives and support those living with the disease. Each year, lung cancer kills almost 35,000 people in the UK, which is more than the number of lives claimed by breast, pancreatic and prostate cancers combined. This is why our work is so vital.

We seek to save lives by funding research, promoting ways to prevent people from developing lung cancer, primarily by offering support for people seeking to stop using tobacco products, and developing high-quality information resources.

Our research projects add to the store of information on the development of lung cancer and help patients and their families better understand the disease and its implications for their lives.

Our Information Centre creates and updates high-quality collateral such as leaflets and online content, reviewed by patients and supported by input from our research and prevention projects.

We offer emotional and practical support through our nurse-led helpline and online forum, and financial support through our patient grants.

We represent lung cancer patients in the decision-making processes of both 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.

Evidence from major clinical trials proves that screening with low-dose CT scans saves lives. We support NHS England’s targeted lung health check programme, and throughout 2023 we were highly active in promoting and supporting this initiative. The evidence is crystal-clear – scanning for lung cancer saves lives and improves outcomes.

Yet screening is not a panacea; it cannot diagnose all cases of lung cancer early nor is it applicable to everyone. As we always say, if you have lungs, you can get lung cancer. So now we must do all we can to find and implement better ways to identify lung cancer at its earliest stages of development in people for whom CT screening is not appropriate. This is our vision for the future.

None of this would be possible without the tireless and selfless efforts of our supporters and we thank them for all they do.

The past three years have presented us with unprecedented challenges, both in terms of day-to-day operations and in raising funds to support our work. Yet there are also strong reasons for optimism. We have witnessed significant advances in lung cancer care and provision in the last decade, and, if anything, the rate of these advances seems to be increasing.

We are absolutely dedicated to achieving further improvements as we firmly believe that everyone affected by lung cancer should be able to EXPECT BETTER.

Paula Chadwick Chief Executive

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Objectives and activities

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 material improvements for patients, their families and those who look after them.

We have established the charity as the UK’s primary support resource for all diagnosed with lung cancer, and their families and carers. We aim to be the representative ‘voice’ of lung cancer patients in all areas of health care policy and provision and offer first-class information and support services.

Our mission

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 health promotion programmes aimed at preventing the onset of lung cancer, and we offer practical support to improve the quality of life of patients and their relatives.

During 2023 continued emphasis was placed on contributing to the successful implementation and promotion of the NHS England Targeted Lung Health Check (TLHC) programme. This has contributed significantly to the formation of the national lung cancer screening programme ambition of the NHS Long Term Plan to improve early diagnosis and survival for people with cancer.

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.

Achievements and Performance

RCLCF-funded Research

Policy on Research Grant Making

The charity operates a robust application process to ensure we only fund the very best science.

Applications are received via an open grant application programme, independently peer-reviewed by our own grants committee then externally peer-reviewed by leading experts in the relevant field prior to funding being recommended.

Due to the impact of the COVID-19 pandemic we suspended our formal Research Grants program in 2020. We resumed accepting submissions in 2022 with a view to research projects commencing in 2023. However, having received few applications, we awarded only one new Research Grant, to Dr Catherine Henshall of Oxford Brookes University.

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

The project, now underway, aims to look at the barriers to lung cancer patients taking part in clinical trials and the opportunities for encouraging participation.

As the research climate remains uncertain, we have concentrated funding to expand our Clinical Research Fellowships, including the introduction of the James Brokenshire Clinical Research Fellowship. The first new Research Fellows will start in January 2025.

Nottingham University RCLCF Clinical Research Fellowship

Dr Helen Morgan is the third CRF funded by RCLCF at Nottingham. During 2023 her work included:

As well as the DECLINE study, her completed research projects from this period of study include:

Further details of all our research can be found on the charity’s website: roycastle.org/research.

RCLCF Policy Work in 2023

Key policy areas have been to work with clinicians, patients, health policy, regulatory and others to ensure -

The charity provides the secretariat for the Lung Cancer Clinical Expert Group (CEG). This is an independent group of multidisciplinary experts from across lung cancer specialities, patients, charities and professional societies/bodies with an interest in lung cancer. It provides expert advice on clinical issues in thoracic malignancies, particularly in areas of health policy and strategy. All four devolved nations of the UK are represented.

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

During 2023, CEG work included the updating of the National Optimal Lung Cancer Pathway and associated Commissioning Guidance. The CEG also made submission to the Health Select Committee’s Future Cancer inquiry.

The charity has continued to work as a consultee to NICE (England) and other bodies to ensure promising new lung cancer therapies are available in the NHS.

The National Lung Cancer Audit (NCLA) began in 2004, and since 2022 the contract for its production has been held by the Royal College of Surgeons. The charity continued to support the work of the NLCA during 2023 and maintained both its membership of the NLCA Board and its Clinical Advisory function. We also provided input to the Get Data Out (GDO) Lung Cancer initiative and the Lung cancer e-Atlas initiative; both in England.

The charity retains its focus on the earlier detection of lung cancer. Work in this field during 2023 included supporting the Lung Cancer Screening and Targeted Lung Health Check Program (England). In 2019 NHS England embarked on the Targeted Lung Health Check Program (TLHC). Roll out of this continues. We assist this work in an advisory role, providing expertise in Communications and supporting local community engagement.

In March 2022, RCLCF convened an expert meeting on lung cancer screening in Leeds. 40 experts attended. A meeting report is available on the RCLCF website. Output of the meeting resulted in a publication during 2023: O’Dowd, E. L., Lee, R. W., al. (2023). ‘’ Defining the road map to a UK national lung cancer screening program.’’

We have continued to provide input to the NHSE Early Detection Task and Finish Group, which provides oversight of the TLHC program and to the NHSE Advisory Group on Lung Cancer Screening.

Screening is key to improving early detection of lung cancer, by making the diagnosis before symptoms appear. However, the majority of cases will still be diagnosed when symptoms are apparent. In March 2023, we convened a meeting of experts to discuss this topic. The purpose of the meeting was to explore barriers and issues around late diagnosis in symptomatic lung cancer. A report, including recommendations, is available on the RCLCF website. A paper is being prepared for submission to journal publication.

Throughout 2023, the charity continued to work with the wider healthcare community, ensuring the lung cancer ‘voice’. Work included membership of the Taskforce for Lung Health; Less Survivable Cancers Taskforce; ‘One Cancer Voice’ group, and the UK Lung Cancer Coalition. Their Impact Report, ‘Driving Improvements in UK Lung Cancer Care – The Power of Working Together’ was published in November 2023.

Global Lung Cancer Coalition (GLCC)

The GLCC numbers 41 organisations from 29 nations worldwide. RCLCF provides its Secretariat. Members network online at the Annual Meeting prior to the International Association for the Study of Lung Cancer (IASLC) World Congress on Lung Cancer. Since 2003, the GLCC has hosted symposia, at the invitation of the IASLC. In 2023 GLCC personnel shared details of research via symposia, spoken or poster presentations. Other key GLCC projects carried out in 2023:

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Key partnerships include the Lung Ambition Alliance and the Global Cancer Coalitions Network.

Lung Cancer Information & Support Services

Our services are designed to promote early detection of lung cancer and provide relevant information and support to those affected by lung cancer.

Information

During the course of the year, we received 820 requests for information materials. We distributed 10,735 ‘Answering your questions’ packs, 21,214 treatment leaflets and 8,557 publications on awareness, living with lung cancer, and the diagnostic process.

Financial assistance

We provided grants to 597 individuals with a lung cancer diagnosis. A total of £71,893 of charity funds were distributed via the grant service.

Support services

An average of 38 people (those with a lung cancer diagnosis or caring for someone with lung cancer) received support via our Keep in Touch service each month. Support was delivered by three members of staff and equated to 221 hours of contact.

Our Ask the Nurse service responded to 1199 new enquiries via phone, email and online requests. A further 160 repeat enquiries were also received. 14% of enquiries came from people concerned about symptoms, 46% from patients, 29% from carers, 5% from health care professionals and 6% from other contacts.

Communications and Marketing

Resources were divided between providing support to other departments and delivering the charity’s core objectives. Chief among these has been our focus on early detection of lung cancer, specifically, the NHS England Targeted Lung Health Check (TLHC) programme.

Targeted Lung Health Check Programme / National Lung Cancer Screening Programme for England

We continued to support both the national NHSE team and Cancer Alliances (CAs) to drive uptake of this programme. To this end, in March, we launched the first phase of our TLHC awareness campaign, commissioned by NHSE after feedback suggested many people did not attend lung health checks because they felt well and had no symptoms.

Our primary aim was to highlight the often-asymptomatic nature of early stage lung cancer and to encourage people to attend even if they felt well. We produced a series of marketing assets for programmes to utilise, as well as a campaign toolkit, Facebook ad set and reporting guides and a suggested activity delivery schedule.

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

A press release issued by NHSE highlighted the charity’s collaboration with the campaign and included a quote from Chief Executive Paula Chadwick. This was picked up by a number of media outlets, including the Guardian.

In June, the UK government announced the implementation of a national lung cancer screening programme for England. The charity was asked by the Department of Health and Social Care to provide a comment for inclusion in a press release about the announcement, to accompany quotes from (then) Prime Minister Rishi Sunak, (then) Secretary of State for Health, Steve Barclay, and Chief Executive of NHS England (NHSE) Amanda Pritchard. Several publications, including The Guardian and The Daily Mirror, published this. The charity was also interviewed on BBC News and Channel 5 News.

On 1st August (World Lung Cancer Day), we co-signed an open letter addressed to the Welsh Assembly Minister for Health and Social Services, Eluned Morgan MS, calling for lung cancer screening in Wales; this was covered by Wales Online.

Throughout the year, we continued our support for the following TLHC programmes, providing marketing and/or community engagement support in eleven locations nationwide.

In Liverpool, Birmingham, South Sefton and St Helens, we ran social media ads which, collectively generated a 10.5% click through rate and secured local media coverage.

Lung Cancer Awareness Campaign: Be Unforgettable

In November, we launched our Be Unforgettable campaign. It aimed to challenge three primary misconceptions around lung cancer – nihilistic perceptions, patient stereotypes, and symptom confusion/crossover - which can delay diagnosis. The campaign was multifaceted and included the following activity:

The Let’s Talk Lung Cancer Roadshow , in partnership with NHSE: 10 events in Hull, Middlesbrough, Warrington, Leicester, London, Bournemouth, Rochdale, Morecambe, Leeds and Sheffield.

BBC One Morning Live ran a 4-minute segment on lung cancer, name-checked the charity and displayed an image of the MegaLungs and campaign banner from the Hull event.

Targeted social media ad campaign

We ran two targeted ad campaigns on Facebook, targeting a higher risk audience (based on age, links to smoking and selected occupations) and a lower risk audience (based on age).

Other activity:

Radio Day: Segment picked up by 163 stations, resulting in over 20 hours of airtime to a listenership of 51 million ( see LCAM 2023 - Media Report [RCLCF] )

Partnership with South East Cancer Alliance: Out of Home advertising on bus stops, tube and train stations and gyms, plus online content.

Awareness packs: Distribution of approx. 400 campaign packs to Lung Cancer Nurse Specialists, CICs and supporters.

Transatlantic panel: Go2 Foundation for Lung Cancer living room session, discussing lung cancer stigma around the world.

Westminster event: Co-hosting a parliamentary event with MSD, where CEO Paula Chadwick addressed MPs on the next steps for lung cancer.

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Let’s Talk About Lung Cancer Podcast

After the success of the Lung Cancer Awareness Month podcast specials, we officially launched the Let’s Talk About Lung Cancer podcast at the beginning of 2023. We produced 23 episodes which generated 7512 plays and accrued 178 subscribers / followers.

Inspire Magazine

The annual Inspire magazine, with latest lung cancer information and charity updates, was produced in-house and distributed to all mailable warm supporters (9311). In addition to this, over 3000 copies were dispatched to lung cancer nurses and cancer information centres.

Impact Report

During 2023, our latest Impact Report, outlining our impact achievements and activity during in 2021 and 2022 was published.

World Cancer Day

On 4[th] February, we ran our World Cancer Day campaign, focusing on the progress that has been made within lung cancer.

Patient Information

Fundraising

Retail

WEBSITE

Web traffic grew considerably year-on-year in 2023:

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Part of the reason behind this leap will be due to increased paid activity (retail and fundraising). However, the increase in page views within Help and Support and About Lung Cancer will be more organic, demonstrating the charity’s ongoing reputation and brand recognition.

– Income generation Government, Pharmaceutical Sponsorship, Retail and Fundraising

All the money raised by the Roy Castle Lung Cancer Foundation is vital to the charity’s pursuit of its goals. We utilised a wide variety of means to raise these funds 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, help maintain income for future years.

Retail

Roy Castle Retail had a disappointing year financially, although it did return to profit making a small surplus £80,538 (2022: £14,995 deficit), in terms of impact and achievements it continued to exceed many of its targets and, operationally, performed well.

Following the long-term effects of Covid 19, the already uncertain situation was worsened by high levels of inflation and the cost-of-living crisis following the start of the war in the Ukraine. These factors appeared to have supressed public spending during the core of the year, while those same pressures that the public faced pushed the cost structure of the operation up, thus reducing returns.

Total income for the year was £2,404,763 excluding VAT (2022: £2,328,432). Many stores continued to perform strongly throughout the year despite the economic pressures, with the larger furniture stores doing well and our most recent shop, in Sale, proving a great success. Sadly, we did have to permanently close our Liscard shop during the year.

Our thanks not only to our dedicated managers and staff, but to the army of volunteers that help make our shops such a success. Hopefully, 2024 will bring a more settled environment.

Fundraising

During 2023 the charity was able to continue most of our headline fundraising events and integrated them with innovative activities that the Fundraising team, and particularly the Community and Sports teams, have introduced since the disruption to public events caused by the pandemic.

Events

We successfully implemented our physical ‘Ultimate Running Series’ which consisted of four runs across four counties:

Each race attracted between 250 – 500 runners and public feedback was highly positive.

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Both ‘Spooky Welly Walks’ grew in 2023. The Liverpool event drew 9,000 participants, its biggest crowd ever, while attendance at our Birmingham walk grew healthily, up to 2,500.

Community

Fundraising in the community continues strongly as we see an increase in activity such as Garden parties and family fun days arranged on our behalf by our wonderful supporters.

We have also secured strong support from schools nationwide. One school in Wirral has chosen to support us following the loss of its headteacher to lung cancer.

We continue to use the Give Panel portal which enables us to create Facebook Challenges to engage with supporters on a national level. In 2023 we ran the following Facebook Challenges; ‘Space to Breathe’, ‘Swim the Sites’, ‘100 Miles in March’ and ‘Swimming the Distance’.

Our subscription to Give Panel also gives us access to the ‘Digital Academy’ which is aiding our understanding of how to create successful Facebook Challenges and how to market them effectively.

Sporting

Runners across the country continue to don their RCLCF vests proudly to take on races for us.

Our two most profitable races continue to be the London Marathon and Great North Run. We have already recruited one of our biggest teams to date going into the 2024 events. For London, we will have around 95 runners taking part, while 75 places for the Great North Run sold out in just a week. This means we have a full squad of runners with 12 months to complete their fundraising efforts.

Supporters are also taking on organised treks through us, with many people still electing to do their own weird and wonderful challenges to raise funds for the charity.

Individual Giving and In Memory

Both income streams were steady throughout the year. The most successful Tribute Fund continues to be that set up in memory of the Rt Hon James Brokenshire MP which his wife Cathy continues to support. At the time of writing, this has raised over £164,000 in donations towards the charity’s work.

- Joint working Areas of collaboration, shared interest and funding

We work as part of several umbrella groups to campaign for improvements in lung cancer diagnosis and treatment. These include: the United Kingdom Lung Cancer Coalition, the Less Survivable Cancers Taskforce, and the Lung Ambition Alliance.

Some of these groups include 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.

The charity also sits on the All-Party Parliamentary Committee for Cancer, which provides a cross-party forum for MPs to work together with other interested parties in the cancer field.

Drug development and availability

We are a stakeholder consulted by National Institute for Clinical Excellence (NICE) and Scottish Medicines Consortium (SMC) 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

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

trials and input from clinical advisors. Information may be gathered from a range of sources and include some evidence from 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 to cover expenses incurred.

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 this relationship, and in a year in which our traditional sources of income were reduced, it is appropriate to comment on this specifically.

During 2023, the charity received £478,132 (2022 £405,293) from pharmaceutical firms. This income was derived from 19 different firms averaging about £25k (2022 £28k) each, with the highest individual amount of support being £50k.

Our 2023 funding from the pharmaceutical industry:

Amgen 30,000
Astra Zeneca 50,584
Boehringer 30,480
Bristol Myers Squibb 31,026
Daiichi Sankyo 30,000
Elli Lilly 30,000
Gilead 30,000
Hoff - La Roche 30,000
Merck 34,060
Novartis 28,002
Novocure 30,000
Pfizer 30,000
Regeneron 28,266
Sanofi 30,000
Sandoz 3,389
Takeda 30,260
Minor gifts under £1k 2,065

The above represents 9.6% of our total income for 2023 (2022: 7.6%) with the largest single pharmaceutical contribution being just 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 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.

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

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. While 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.

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 reimburse 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.

Volunteers

Sadly, during 2023, the effects of Covid19 still adversely affected the opportunities available for volunteers, following the reopening of the shops and the reintroduction of some of our events we have been able to recruit vital volunteers with 155 active volunteers in 2023 (2022: 186) providing vital support for the charity. Of these, 140 regular volunteers supported our retail operation across the Merseyside and Cheshire area on a regular weekly basis, whilst the remainder provided support for our popular events program.

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

In total, we estimate that our volunteers contributed about 24,500 hours of their time during 2023 (2022: 24,000 hours), which is worth over £270,000 (2022: £225,000).

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

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 2019)".

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 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 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.

Organisation

The board of trustees administers the Foundation and comprises of twelve 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.

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Sub Committees

The Finance and Audit Committee aid the Chief Executive and the Finance Director in the financial management of the charity acting as a support, critical friend and crucial internal check and support preparations for the annual financial statements and 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 dayto-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.

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 application process recommenced during 2023 and the grants committee reviewed and discussed applications utilising virtual meetings before passing applications for external peer review.

Grant making policy

The charity’s 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.

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).

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Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

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 profit of £80,538 (2022 £14,995 loss) before gift aid. There were no gift aid payments to the charity relating to 2023 (2022: £nil).

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 profit of £141,868 (2022: £122,287 profit) before a gift aid payment to the Charity of £141,868 (2022: £122,287).

Cut Films Ltd was established on 13 July 2010, originally as a trading subsidiary of Cut Films Project Ltd. Ownership transferred to the Roy Castle Lung Cancer Foundation in November 2018. The company result for the year was a loss of £1,191 (2022: £1,826 loss). There were no gift aid payments to the charity relating to 2023 (2022: £nil).

Financial Review

The charity, as a group, made a deficit during 2023 of £644,451 (2022: £80,345 deficit). This was a disappointing result driven by the economic environment resulting from the war in Ukraine and its impact on the cost of living, following so closely on from the impact of Covid19 and pressure on staffing costs.

Income and funding

Total income for the charity decreased to £4,971,709 for the year (2022: £5,306,066) following the pressure on our retail operation and some of our fundraising activities.

Legacy income significantly decreased in 2023 falling to a more usual level £351,369 (2022: £902,102) following a spectacular year in 2022, however it appears to have rebounded back up again in 2024 based on latest figures.

Trust income also fell slightly to £113,000 (2022: £146,359).

Other voluntary donations rose to £423,394 in 2023 (2022: £393,687). However, In Memoriam donations fell slightly to £180,770 (2022: £230,141). However, this type of personal, individual support remains a key income stream for the charity and is a testament to the pride it takes in great donor care and a personal touch.

Sponsorship income increased slightly in 2023 to £503,539, (2022: £487,511).

Trade was tough for Retail during all of 2023 and it was undoubtably affected by the post-Covid 19 environment and the situation was further impacted by the cost-of-living crisis following the start of the war in Ukraine. Retail increased its sales and generated a gross profit of £ 2,233,145 (2022: £2,165,562), and the net result for the year was a profit of £80,538, which was an improvement on the previous year (2022: £14,995 loss).

Gift aid on donations for 2023 rose to £247,671 (2022: £228,477).

Expenditure

Overall expenditure for the year was £5,636,216 (2022: £5,305,459), reflecting both increased activity but also significant pressures on costs following the rapid increase in inflation and the wages bill.

Total charitable expenditure for 2023 was £2,103,024 (2022: £1,937,586), and research expenditure was £1,436,874 in 2023 (2022 £1,196,723).

Investments

The Charity holds £669,783 (2022: £873,364) in listed investments. The charity’s Investments generated an income of £23,271 in the year (2022: £28,352). The investments generated a small amount of growth during 2023 and ended the year with a £20,056 net gain on investments (2022: £80,952 loss). The main reason for the reduction in the value of the portfolio during 2023 has been the need to supplement working capital whilst cash from protracted legacy settlements were realised, these have since begun to come through in 2024.

17

Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

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 monitors 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 liquid and readily converted immediately into cash to spend, these have 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

The charity’s required reserves are £457,040 (2022: £518,250), the charity did not hold at the yearend sufficient free reserves to meet the required level calculated. This was in part due to several, large, long standing outstanding legacy payments depressing the cash position and in part due to the overall poor financial performance in 2023. However the charity’ structure and stated purposes does mean that the charity’s restricted funds effectively meet many of the obligations and costs of the charity noted above.

The Charity’s position since the year end has dramatically improved both in terms of the cash position with receipt of several of the additional and outstanding legacies and its overall financial performance which to October 2024 created a surplus of £112k. The level of Free reserves as at 31 October 2024 would be £251,566 much closer to the required level of £457,040.

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 (This is purely an internal measure).

To hold sufficient funds to cover

On the above basis, the resources required are calculated as £1,025,058 (2022: £899,274) and the charity currently held £709,640 in cash and investments at the end of 2023 (2022: £1,084,714), the overall balance sheet value less the value of fixed assets was £507,652 (2022: £1,139,766).

Again this measure has dramatically improved since yearend and currently the values of the overall balance (October) sheet value less the value of fixed assets is currently £648k closer to the required figure.

A key priority for the charity is to rebuild the level of reserves to meet its potential obligations and the Trustees are convinced, especially following the start to 2024 that this is achievable.

18

Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Going Concern Position

Like all the Charity sector, and indeed the broader overall economy, Roy Castle Lung Cancer Foundation was adversely affected by the effects of the Covid19 pandemic, and the necessary actions taken by HM government from March 2020 and through 2022 to tackle the issue.

The impact of this was worsened following the cost-of-living crisis, the economic pressures that have arisen since the start of the war in the Ukraine, and the resultant rapid rise in inflation largely fuelled by rises in utility, power and food prices, raises in the basic living wage, all of which affect our charity, our staff and our supporters. All these factors have combined to create a difficult trading background which has further deteriorated following the unease in the middle east.

Over this period the charity has taken prudent actions to protect itself and minimise these negative impacts by reducing costs where possible, with the planned closure of some central infrastructures and the reduction of other central activities together with a significant reduction in staffing number.

As well as the above adjustments to the charity’s cost structure, the charity has created both innovative social media events and virtual fundraising activities to support our traditional income sources and events, and, during 2023, reintroduced some of our headline physical fundraising events. During 2024 work will continue to expand these events and rebuild our physical events both as income generators and also as profile builders for the charity.

As well as the above adjustments to the charity’s cost structure, the charity has made a conscious decision in 2024 to maintain its level of charitable activity and as a result, after reducing unnecessary costs and the successful implementation of new fundraising streams during 2023, and flowing these through to 2024, the charity is now budgeted to generate an estimated surplus of circa £110k in 2024 because of this managed increase in activity.

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 £700K in cash and investments, and with sufficient liquid assets to endure that any cashflow pressures can be managed within the charities current total funds of £608,722 (2022 £1,253,173).

Whilst within the reserves, the level of unrestricted reserves stands at £85k (2022: £508k as restated) and restricted reserves are £523k (2022: £746k as restated) the balance is significantly weighted towards the restricted reserves. 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 whilst this is seen as an issue it is not seen as unsurmountable and again the position has significantly improved during 2024.

The Trustees have therefore concluded that the charity and group have sufficient funds to be able to continue in existence for the foreseeable future and thus continue to adopt 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:

The trustees have identified the four principal risks to the charity as

19

Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

The Charity believes that these business risks could be effectively managed by restructuring existing resources and maintaining appropriate accessible cash reserves. A tiered management structure is being developed to allow internal staff progression and a clear pathway to promotion which together with investment in training and appropriate remuneration is designed to improve staff retention and recruitment.

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 to date at the time of the trustees’ report in successfully managing the situation and ensuring the future of the charity and the reflected in subsequent risk registers.

Plans for the Future.

Screening

The Targeted Lung Health Check programme in England post pandemic is making a significant impact on lung cancer with 3965 diagnosis since its introduction (Oct 22) to March 2024 and a significant switch to earlier stage diagnose with the obvious benefits in prognosis.

We continue to investigate how we can also support Lung Health pilots in Scotland, Wales and Northern Ireland, the potential impact of the TLHC programme is perhaps the single most important step forward for the lung cancer community at the present time and the charity is determined to make it a success.

We will put whatever resources we can behind it and achieving the successful implementation of the national screening programme as announced during 2023 and expected to be in place by 2029

20

Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Research

During 2022, we re-established our lung cancer research programme. However, the response to the call for applications was low and we received a similar response in 2023. Clearly, post-covid, the research community is still being adversely affected. As a result the charity is targeting increased funding for further Doctorial Research Fellows in addition to our post in Nottingham and the Post Doctorial post we support at the University of Liverpool.

Patient support

Further development of our various distance support operations, help lines and information and support services. It is hoped that where appropriate and safe to do so the charity can continue the reintroduction of face-to-face support meetings and the reintroduction of physical support groups.

Sadly, due to budgetary constraints we have suspended our patient grant scheme for the time being.

Funding the above

There was a realisation that to fund the level of work undertaken in 2023 the charity needed to utilise some of its historical reserves in the short term (12 months), in 2024 having done this we have to concentrate on replenishing some of those reserves whilst continuing to provide a valuable charitable service. The charity will also need to both increase its level of funding and therefore increase its income over both the short term (12-18 months) and in the longer term whilst at the same time managing its costs to levels within it means.

Therefore in view of the charity’s financial performance in 2023 we have also looked to significantly reduce costs and this situation is also likely to remain during the remainder of 2024, this has resulted in a significant reduction in staff numbers and hours in 2024.

As such, the fundraising, retail, and support functions will remain similar (albeit with smaller teams) with similar targets and look for organic growth and where possible cost savings and efficiencies rather than dramatic changes.

In supporting the roll out of the TLHC programme the charity believes this may open additional routes to income in the short term, but the prime purpose of any activity here has to be improved uptake and the success of the programme leading to a national screening programme, rather than income generation.

Further development of online income streams, combining these with re-emerging physical events, will be brought forward although a tougher criteria on return and payback period will have to be implemented, the charity cannot afford at present to support new events through several years of development until they become profit making.

Our online retail offer will be redeveloped, and our logistics operation will be streamlined.

21

Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

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 website (http://www.roycastle.org). 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.

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.

22

Roy Castle Lung Cancer Foundation Trustees' Annual Report for the year ended 31 December 2023

Exemptions from disclosure

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

Euan Imrie

Euan Imrie Treasurer and Vice Chair

Date: 13 December 2024

23

Roy Castle Lung Cancer Foundation INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND 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 2023 which comprise the consolidated and Parent Charitable Company Statement of Financial Activities (including Income and Expenditure Account), the consolidated and Parent Charitable Company Balance Sheets, the consolidated 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

24

Roy Castle Lung Cancer Foundation INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF ROY CASTLE LUNG CANCER FOUNDATION

misstatements, we are required to determine whether this gives rise to a material misstatement in the financial 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 page 22 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.

25

Roy Castle Lung Cancer Foundation INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND 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 and 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 laws 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. Income testing included agreeing a sample of individual income transactions in the year back to source documentation and bank receipt, ensuring recognised in the appropriate category and fund, testing cut off two weeks either side of the year end to ensure a sample of transactions were recorded in the appropriate period, sample checking controls around trading (shops / retail) reconciliations and

26

Roy Castle Lung Cancer Foundation INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF ROY CASTLE LUNG CANCER FOUNDATION

system postings and an overall reconciliation of cash received in the bank to income recognised for the trading element.

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.

Laura Inglesby

Laura Inglesby FCA (Senior statutory auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 14[th] Floor 20 Chapel Street Liverpool L3 9AG

Date: 13/12/24

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

27

Roy Castle Lung Cancer Foundation

Consolidated Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2023


ended 31 December 2023
Unrestricted
Restricted
Total		 Total
Notes Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
Income from:
Donations & legacies 10 1,313,542 581,566 1,895,108 2,457,150
Charitable activities 11 14,900 - 14,900 7,814
Other trading activities 12 3,038,280 - 3,038,280 2,770,813
Investments 13 23,271 - 23,271 28,352
Other 14 150 - 150 41,937
–––––––––– –––––––––– –––––––––– ––––––––––
Total income 4,390,143 581,566 4,971,709 5,306,066
–––––––––– –––––––––– –––––––––– ––––––––––
Expenditure on:
Raising funds 15 3,505,206 27,986 3,533,192 3,367,873
Charitable activities 16 1,335,143 767,881 2,103,024 1,937,586
–––––––––– –––––––––– ––––––––––– ––––––––––
Total expenditure 4,840,349 795,867 5,636,216 5,305,459
–––––––––– –––––––––– –––––––––– ––––––––––
Net gain/(loss) on investments 27 20,056 - 20,056 (80,952)
–––––––––– –––––––––– –––––––––– ––––––––––
Net expenditure 5 (430,150) (214,301) (644,451) (80,345)
–––––––––– –––––––––– –––––––––– ––––––––––
Net movement in funds (430,150) (214,301) (644,451) (80,345)
Reconciliation of funds:-
Total funds brought forward – as 507,641 745,532 1,253,173 1,333,518
restated
Transfer between funds 8,003 (8,003) - -
–––––––––– –––––––––– –––––––––– ––––––––––
Total funds carried forward 85,494 523,228 608,722 1,253,173
========== ========== ========== ==========

All activities derive from continuing operations.

The notes on pages 34 to 65 form an integral part of these financial statements.

28

Roy Castle Lung Cancer Foundation

Charity Only Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2023


ended 31 December 2023
Unrestricted
Restricted		 Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
Income from: Notes £ £ £ £
Donations & legacies 18 1,329,758 581,566 1,911,324 2,424,539
Charitable activities 19 14,900 - 14,900 7,814
Other trading activities 20 344,992 - 344,992 294,803
Investments 21 23,866 - 23,866 29,263
Other 22 - - - 41,937
–––––––––– –––––––––– –––––––––– ––––––––––
Total income 1,713,516 581,566 2,295,082 2,798,356
–––––––––– –––––––––– –––––––––– ––––––––––
Expenditure on:
Raising funds 23 905,115 27,986 933,101 887,685
Charitable activities 24 1,319,682 767,881 2,087,563 1,892,735
–––––––––– –––––––––– –––––––––– ––––––––––
Total expenditure 2,224,797 795,867 3,020,664 2,780,420
–––––––––– –––––––––– –––––––––– ––––––––––
Net gain/(loss) on investments 27 20,056 - 20,056 (80,952)
–––––––––– –––––––––– –––––––––– ––––––––––
Net expenditure 5 (491,225) (214,301) (705,526) (63,016)
–––––––––– –––––––––– –––––––––– ––––––––––
Net movement in funds (491,225) (214,301) (705,526) (63,016)
Reconciliation of funds:-
Total funds brought forward – as 645,191 705,326 1,350,517 1,413,533
restated
Transfer between funds 8,003 (8,003) - -
–––––––––– –––––––––– –––––––––– ––––––––––
Total funds carried forward 161,969 483,022 644,991 1,350,517
========== ========== ========== ==========

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

The notes on pages 34 to 65 form an integral part of these financial statements.

29

Company number: 03059425

Roy Castle Lung Cancer Foundation

Consolidated Balance Sheet as at 31 December 2023

2023 2022
as restated
Notes £ £ £ £
Fixed assets
Tangible assets 28 101,070 113,407
Investments 29 669,783 873,367
–––––––––– ––––––––––
Total fixed assets 770,853 986,774
Current assets
Stocks 31 106,614 86,998
Debtors 32 846,329 1,151,957
Cash at bank and in hand 39,857 211,347
–––––––––– ––––––––––
Total current assets 992,800 1,450,302
Creditors: amounts falling due
within one year 33 (963,176) (895,583)
–––––––––– ––––––––––
Net current assets 29,624 554,719
–––––––––– ––––––––––
Total assets less current liabilities 800,477 1,541,493
Creditors: amounts falling due
after more than one year 34 (73,333) (113,333)
–––––––––– ––––––––––
(73,333) (113,333)
Provisions for liabilities 36 (118,422) (174,987)
The total net assets of the group
608,722		 1,253,173
========== =========
The total net assets of the group are funded by
the funds of the charity, as follows:
Restricted funds
Restricted Revenue Funds 41 523,228 745,532
Unrestricted Funds
Unrestricted Revenue Funds 41 85,494 507,641
–––––––––– ––––––––––
Total group funds 608,722 1,253,173
========== ==========

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 and authorised for issue by the board of trustees on 13 December 2024 and signed on their behalf by:

Euan Imrie

Euan Imrie

Trustee

The notes on pages 34 to 65 form an integral part of these financial statements.

30

Company number: 03059425

Roy Castle Lung Cancer Foundation

Charity Only Balance Sheet as at 31 December 2023

2023 2022
as restated
Notes £ £ £ £
Fixed assets
Tangible assets 28 9,345 12,109
Investments 29 799,378 873,367
–––––––––– ––––––––––
Total fixed assets 808,723 885,476
Current assets
Stocks 31 27,852 16,575
Debtors due within one year 32 643,273 1,060,778
Debtors due over one year 32 - 129,592
Cash at bank and in hand 27,053 121,679
–––––––––– ––––––––––
Total current assets 698,178 1,328,624
Creditors: amounts falling due
within one year 33 (763,784) (733,316)
–––––––––– ––––––––––
Net current (liabilities)/assets (65,606) 595,308
–––––––––– ––––––––––
Total assets less current liabilities 743,117 1,480,784
Creditors: amounts falling due
after more than one year 34 (73,333) (113,333)
–––––––––– (73,333) –––––––––– (113,333)
Provisions for liabilities
 36 (24,793) (16,934)
–––––––– ––––––––
The total net assets of the charity 644,991 1,350,517
========== ==========
The total net assets of the charity are funded by
the funds of the charity, as follows:-
Restricted funds
Restricted Revenue Funds 41 483,022 705,326
Unrestricted Funds
Unrestricted Revenue Funds 41 161,969 645,191
–––––––––– ––––––––––
Total charity funds 644,991 1,350,517
========== ==========

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 and authorised for issue by the board of trustees on 13 December 2024 and signed on their behalf by:

Euan Imrie

Euan Imrie

Trustee

The notes on pages 34 to 65 form an integral part of these financial statements.

31

Roy Castle Lung Cancer Foundation

Consolidated Statement of Cash Flows for the year ended 31 December 2023

2023 2022
(as restated)
£ £
Cash flows from operating activities
Net cash used in operating activities as shown
below (303,657) (90,776)
–––––––––– –––––––––
Cash flows from investing activities
Interest received 826 170
Dividends received 22,445 28,182
Purchase of property, plant and equipment (27,596) (18,108)
Receipts from sale of tangible fixed assets - 782
Proceeds from sales of investments 202,772 127,410
Purchase of investments (33,504) (105,551)
Increase in cash held for investment 7,224 66,375
–––––––––– –––––––––
Net cash provided by investing activities 172,167 99,260
Cash flows from financing activities
Repayments of borrowings (40,000) (40,000)
–––––––––– –––––––––
Net cash used in financing activities (40,000) (40,000)
–––––––––– –––––––––
Net decrease in cash and cash equivalents 37
(171,490)		 (31,516)
–––––––––– –––––––––
Cash and cash equivalents at the beginning of the year 211,347 242,863
–––––––––– –––––––––
Cash and cash equivalents at the end of the year 37
39,857		 211,347
–––––––––– –––––––––
Reconciliation of net expenditure to net cash flow from operating activities
Net expenditure shown in the Statement of Financial Activities (644,451) (80,345)
Adjustments for :-
Depreciation charges 39,935 56,257
Net (gain)/loss on investment assets (20,056) 80,952
Dividends, interest and rents from investment (23,271) (28,352)
Realised gain on investments 47,145 49,343
Increase in stocks (19,616) (13,067)
Decrease/(Increase) in debtors 305,628 (117,728)
Increase/(Decrease) in creditors 67,594 (56,602)
(Decrease)/Increase in provisions (56,565) 18,766
–––––––––– –––––––––
Net cash used in operating activities (303,657) (90,776)
========== ========
Analysis of cash and cash equivalents
Cash at bank and in hand 39,857 211,347
–––––––––– –––––––––
Total cash and cash equivalents 39,857 211,347
========== ==========

The statement of cashflows has been restated due to a classification error last year. The realised gains on investments has been moved from cash flows from investing activities to cash flows from operating activities.

32

Roy Castle Lung Cancer Foundation

Charity only Statement of Cash Flows for the year ended 31 December 2023

2023 2022
(as restated)
Cash flows used in operating activities £ £
Net cash used in operating activities as shown
below (251,042) (75,112)
–––––––––– –––––––––
Cash flows from investing activities
Interest received 1,421 1,082
Dividends received 22,445 28,182
Purchase of property, plant and equipment (3,942) (5,347)
Proceeds from sales of investments 202,772 127,410
Purchase of investments (33,504) (105,551)
Increase in cash held for investment 7,224 66,375
–––––––––– –––––––––
Net cash provided by investing activities 196,416 112,151
–––––––––– –––––––––
Cash flows from financing activities
Repayment of borrowings (40,000) (40,000)
–––––––––– –––––––––
Net cash used in financing activities (40,000) (40,000)
–––––––––– –––––––––
Net decrease in cash and cash equivalents
 37 (94,626) (2,961)
–––––––––– –––––––––
Cash and cash equivalents at the beginning of the year 121,679 124,644
–––––––––– –––––––––
Cash and cash equivalents at the end of the year 37 27,053 121,679
–––––––––– –––––––––
Reconciliation of net expenditure to net cash flow from operating activities
Net expenditure shown in the Statement of Financial Activities (705,526) (63,016)
Adjustments for:-
Depreciation charges
 6,707 17,601
Net (gain)/loss on investment assets (20,056) 80,952
Dividends, interest and rents from investments (23,866) (29,263)
Realised gain on investments 47,145 49,343
(Increase) in stocks (11,277) (4,109)
Increase/(decrease) in debtors 417,505 (43,004)
Decrease/(increase) in creditors 30,467 (85,050)
Increase in provisions 7,859
 1,434
–––––––––– –––––––––
Net debt used by operating activities (251,042) (75,112)
========== =========
Analysis of cash and cash equivalents
Cash at bank and in hand 27,053 121,679
–––––––––– –––––––––
Total cash and cash equivalents 27,053 121,679
========== =========

The statement of cashflows has been restated due to a classification error last year. The realised gains on investments has been moved from cash flows from investing activities to cash flows from operating activities.

33

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

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 except for listed investments which are stated at market value, 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), the Companies Act 2006 and Charities Act 2011.

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

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

Roy Castle Lung Cancer Foundation ('the charity') is a company limited by guarantee (Companies House No. 03059425) and a registered charity (Registered Charity No. 1046854 (England and Wales), SCO37596 (Scotland) and 006171F (Isle of Man)). It is governed by Memorandum and Articles of Association dated 31 January 2011. 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

Over the period since Covid19 the charity has taken prudent actions to protect itself and minimise the negative impact of the subsequent economic downturn by reducing costs, looking for alternative sources of funding and taking advantage of whatever government aid has been made available.

Many of the medical and research staff working on our vital lung cancer research were recalled onto the medical front line during Covid19 and over the last 2 years so sadly the research community has still to fully recover with the result that there has been less demand for research funding. The charity has therefore made a conscious decision to diversify the types of research it will fund to increase future research activity and spend.

The charity applied for and received in October 2020 a CBIL loan backed by the Government, the balance of this outstanding at the yearend was £73,333 (2022: £153,333).

34

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

1 Accounting policies (continued)

As a result of the above points, and as a result of the cost cuts implemented, the latest forecast for 2024 indicates a surplus of £110k. Sadly, these cuts have included a reduction in roles, mainly through positions not being recruited to but there have also been several redundancies. Further steps will be taken throughout 2025 to further reduce costs and generate new income streams that the current forecast surplus can be improved upon. Forecasts have been prepared to cover until December 2025 which show an improving position year on year.

The charity has had a strong long term investment policy for many years, traditionally holding nearly £1m of fixed assets of which over £800k are in readily convertible investments that can be liquidated at short notice without significant risk of crystalising losses. The level of cash and investments has dropped following the losses in 2023 to £700k. However, this is still perceived as a secure foundation for the Charity to operate from.

During 2024, the level of cash and reserves has both risen and fallen again as the charity received some significant outstanding legacies, nevertheless, currently over £700k in outstanding legacies is due to the charity and thus the current cash and investment balance stands at £450k in October 2024.

Within the reserves, the level of unrestricted reserves stands at £85k (2022: £508k as restated) and restricted reserves are £523k (2022: £746k as restated). Whilst the significance of the balance of funds held as restricted is recognised as a concern, the fact that as much of the charity’s obligations in respect of research, patient support, GLCC projects and other charitable activities, all of which form part of the core of the charity’s activities and thus costs, are within the remit of much of these restricted funds mitigates the risk.

The Trustees have therefore concluded that charity and group have sufficient funds to be able to continue in existence for the foreseeable future and thus continue to adopt 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.

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.

35

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

1 Accounting policies (continued)

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.

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.

36

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

1 Accounting policies (continued)

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:-

Direct staff costs - Directly allocated on the basis of time spent in connection with any particular activity.

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:

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

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

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

c) 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 front end of the accounts.

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 fair value through profit and loss.

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.

37

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

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

Creditors 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 are normally recognised at their transaction amount.

f) Provisions

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. Provisions are normally recognised at their transaction amount and discounted to their present day value at the time of the accounts.

g) 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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

All financial assets and liabilities are measured at cost with the exception of listed investments which are stated at market value.

38

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

1 Accounting policies (continued)

h) Leasing

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

i) Pensions - defined contribution schemes

The company operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities 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.

j) Charitable commitments

Commitments that are legally binding on the trustees are accounted for as expenditure in the Statement of Financial Activities. 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.

k) 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.

l) 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.

m) Consolidation

Roy Castle Retail Limited (Company number 03604677), Roy Castle Trading Limited (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.

n) 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.

o) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific artistic projects being undertaken by the Trust.

39

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

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 time value of money. These assumptions are reviewed on an annual basis. £55k of the provision was released in 2023 (2022: £nil) with an additional provision of £nil made as at 31 December 2023 (2022: £20k) due to a review of likely property and lease termination dates. This £109k provision includes £25k in relation to head office and £84k in relation to the shops held by retail.

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 2023, 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.

Classification of intercompany loan:

Intercompany debtor loans are classified based on the timing of their expected realisation. At 31 December 2023, an intercompany loan of £130k has been classified as a fixed asset investment as the intention is that the balance will not be realised through normal trading operations in the near future.

3 Liability to taxation

As a registered charity, the organisation is exempt from Corporation Tax under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 366 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent that surpluses are applied to its charitable purposes. 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 Limited and Cut Films Limited, 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 expenditure in the financial year

Group 2023 2022
£ £
The net expenditure in the financial year for the group is
stated after charging:-
Depreciation of fixed assets 39,935 56,257
Operating leases 537,094 570,104
========= =========

40

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

5 Net expenditure in the financial year (continued)
Charity 2023 2022
£ £
The net expenditure in the financial year for the charity is
stated after charging:-
Depreciation of fixed assets 6,707 17,601
Operating leases 71,544 72,878
========= =========
Fees payable to the group's auditor: 2023 2022
£ £
For audit services
Audit of the financial statements of the group and charity 42,125 35,100
–––––––– –––––––––
42,125 35,100
========= =========
Taxation compliance services 3,600 3,450
All other non-audit services 15,630 14,750
–––––––– –––––––––
19,230 18,200
========= =========
6 Interest payable 2023 2022
£ £
Group and charity
Bank interest payable 380 678
–––––––– –––––––––
380 678
========= ========

7 The contribution of volunteers

The Charity has significant support from volunteers in all our activities, currently we have 155 registered with us (2022: 186) 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 24,546 (2022: 20,528) which is the equivalent of 12.61 people (2022: 10.67).

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

8 Staff costs and emoluments

taff costs and emoluments
Group
Group
Charity		 Charity
2023 2022 2023 2022
£ £ £ £
Gross salaries 2,809,786 2,518,934 1,537,196 1,376,487
Employer's National Insurance 221,597
196,278
146,406
131,718
Employer’s Pension 69,033
64,255
46,242
45,613
–––––––––– ––––––––– ––––––––– –––––––––
3,100,416 2,779,467 1,729,844 1,553,818
=========== ========= ========= =========

41

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

8 Staff costs and emoluments (continued)

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

2023 2022
No. No.
Engaged on charitable activities 40 36
Engaged on fundraising activities 17 16
Engaged on management and administration 14 14
Engaged on retail activities 87 88
––––––––– –––––––––
158 154
========= =========

The average number of staff in charity only in the year was 64 (2022: 66).

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


contributions fall into the following bands were :-
2023 2022
No. No.
£60,001 to £70,000 1 1
£70,001 to £80,000 2 1
(Group and charity) ––––––––– –––––––––
3 2
========= =========
3 (2022: 2) of the above employees are accruing benefits under defined contribution pension schemes.
2023 2022
Chief Executive Officer/ Highest paid employee £ £
The remuneration in the year was 79,649 74,438
Pension contributions paid by the employer 5,303 5,043
––––––––– –––––––––
Total remuneration package included in total salaries above 84,952 79,481
========= =========

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.

11 trustees were reimbursed expenses incurred which amounted to £1,308 (2022: £40 to 11 trustees) in relation to travel and subsistence and postage expenses.

42

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

----- Start of picture text -----
|||||| |---|---|---|---|---| |10 Donations and Legacies - Consolidated Unrestricted Restricted Total Total| |Funds Funds Funds Funds| |2023|2022|2023|2022| |£|£|£|£| |Donations and gifts from individuals| |Donations|12,003|-|12,003|11,054| |Individual Giving|341,426|-|341,426|304,204| |Payroll Giving|69,965|-|69,965|78,429| |–––––––– –––––––– –––––––– ––––––––| |423,394|-|423,394|393,687| |–––––––– –––––––– –––––––– ––––––––| |Legacies receivable| |Legacies receivable|351,369|-|351,369|902,102| |–––––––– –––––––– –––––––– ––––––––| |774,763|-|774,763 1,295,789| |–––––––– –––––––– –––––––– ––––––––| |Revenue grants and donations from non-public bodies| |Corporate Grants|73,650|-|73,650|67,317| |Trusts|25,850|87,150|113,000|146,359| |–––––––– –––––––– –––––––– ––––––––| |99,500|87,150|186,650|213,676| |–––––––– –––––––– –––––––– ––––––––| |Sponsorship| |Pause for Hope|-|1,715|1,715|1,556| |Sponsorship|10,838|492,701|503,539|487,511| |–––––––– –––––––– –––––––– ––––––––| |10,838|494,416|505,254|489,067| |–––––––– –––––––– –––––––– ––––––––| |In Memoriam| |In Memoriam|180,770|-|180,770|230,141| |–––––––– –––––––– –––––––– ––––––––| |180,770|-|180,770|230,141| |–––––––– –––––––– –––––––– ––––––––| |Gift Aid on Donations| |Gift Aid on Donations|247,671|-|247,671|228,477| |–––––––– –––––––– –––––––– ––––––––| |247,671|-|247,671|228,477| |–––––––– –––––––– –––––––– ––––––––| |–––––––– –––––––– –––––––– ––––––––| |Total Donations and Legacies – Consolidated|1,313,542|581,566 1,895,108 2,457,150| |========= ========= ========= =========|

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

Of the 2022 income, £1,933,281 was unrestricted and £523,869 was restricted.

43

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

11 Income from charitable activities - Consolidated

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2023|2023|2023|2022| |£|£|£|£| |Charitable income from funders| |Community engagement|14,900|-|14,900|7,814| |––––––––|––––––––|––––––––|–––––––| |Total income from charitable activities|14,900|-|14,900|7,814|

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

Total income from charitable activities all related to prevention. Of the 2022 income, £nil was unrestricted and £7,814 was restricted.

12 Income from other trading activities - Consolidated

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2023|2023|2023|2022| |£|£|£|£| |Trading activities to raise funds|6,877|-|6,877|9,471| |Income from fundraising events|789,133|-|789,133|583,550| |Income from the sale of donated and brought in goods 2,226,848|- 2,226,848 2,165,754| |Other income|15,422|-|15,422|12,038| |–––––––––– ––––––––– ––––––––– –––––––––| |3,038,280|- 3,038,280 2,770,813| |========== ========= ========== ==========|

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

Total income from other trading activities split by activity is split by £811,432 (2022: £605,059) fundraising and £2,226,848 (2022: £2,165,754) sales of donated and related goods. All of the 2022 income was unrestricted.

44

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

----- Start of picture text -----
|||||| |---|---|---|---|---| |13|Investment income - Consolidated| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2023|2023|2023|2022| |£|£|£|£| |Dividend Income|22,445|-|22,445|28,182| |Bank Interest Receivable|826|-|826|170| |–––––––––– ––––––––– ––––––––– –––––––––| |23,271|-|23,271|28,352| |========= ========= ========= =========| |All of 2022 income was unrestricted.| |14|Other - Consolidated| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2023|2023|2023|2022| |£|£|£|£| |Coronavirus grant income|-|-|-|225| |Other income|150|-|150|41,712| |–––––––––– ––––––––– ––––––––– –––––––––| |150|-|150|41,937| |========= ========= ========= =========|

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

Of the 2022 income, £41,531 was unrestricted and £406 was restricted.

Other government grants of £nil (2022: £225) relating to the interest free benefit incurred on a Coronavirus Business Interruption Loan 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| |2023|2023|2023|2022| |£|£|£|£| |Cost of fundraising activities|121,927|15,800|137,727|89,417| |Marketing & advertising of fundraising|41,764|4,807|46,571|73,461| |Costs of seeking donations, grants and legacies|269|-|269|556| |Cost of operating social lotteries|2,091|-|2,091|2,135| |Costs of staging fundraising events|105,189|-|105,189|65,748| |Costs of charity shop selling goods|2,453,227|- 2,453,227 2,345,095| |Gross wages and salaries - fundraising activities|569,512|120|569,632|503,363| |Other Direct Costs - fundraising activities|205,940|7,259|213,199|282,520| |Staff Training & Welfare - fundraising activities|40|-|40|289| |Travel and Subsistence - fundraising activities|5,247|-|5,247|5,289| |–––––––––– ––––––––– ––––––––– –––––––––| |3,505,206|27,986 3,533,192 3,367,873| |=========== ========= ========= =========|

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

Of the 2022 expenditure, £3,360,830 was unrestricted and £7,043 was restricted.

45

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |16|Expenditure on charitable activities - Consolidated| |Staff|Total|Total| |Costs|Other|Funds|Funds| |Note|2023|2023|2023|2022| |£|£|£|£| |Direct spending| |Restricted|213,925|420,070|633,995|250,946| |Unrestricted|133,584|148,436|282,020|487,840| |–––––––––– ––––––––– ––––––––– –––––––––| |347,509|568,506|916,015|738,786| |–––––––––– ––––––––– ––––––––– –––––––––| |Grant funding| |Organisation grants|26|-|12,946|12,946|139,984| |Staff costs|42,254|-|42,254|38,451| |–––––––––– ––––––––– ––––––––– –––––––––| |42,254|12,946|55,200|178,435| |–––––––––– ––––––––– ––––––––– –––––––––| |Support costs| |Staff costs|788,104|-|788,104|510,784| |Premises costs|-|97,317|97,317|66,503| |Legal and professional costs|-|107,339|107,339|15,294| |Financial|-|12,465|12,465|56,447| |Other|-|41,848|41,848|305,895| |–––––––––– ––––––––– ––––––––– –––––––––| |788,104|258,969 1,047,073|954,923| |––––––––– ––––––––– ––––––––– –––––––––| |Governance costs| |Audit fees|-|37,750|37,750|35,100| |Accountancy fees|-|28,711|28,711|30,342| |Taxation|-|18,275|18,275|-| |––––––––– ––––––––– ––––––––– –––––––––| |1,177,867|925,157 2,103,024 1,937,586| |========= ========= ========= =========|

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

Of the £2,103,024 (2022: £1,937,586) expenditure, £767,881 (2022: £348,288) related to restricted funds and £1,335,143 (2022: £1,589,298) related to unrestricted funds.

17 Summary of charitable costs by activity - Consolidated

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Grant| |Direct|Support|funding Governance Total Total| |Costs costs|of activities|2023 2022| |£ £ £ £ £ £| |Research 916,015|437,867|55,200|27,792 1,436,874 1,196,722| |Support|-|247,490|-|15,709|263,199 419,637| |Prevention|- 361,716 - 41,235 402,951 321,227| |–––––––– –––––––– –––––––– –––––––– –––––––– ––––––––| |916,015 1,047,073 55,200 84,736 2,103,024 1,937,586| |========= ========= ========= ======== ========= =========|

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

46

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

18 Donations and Legacies - Charity only
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
Donations and gifts from individuals
Individual Giving 341,426 - 341,426 304,204
Payroll Giving 69,965 - 69,965 78,429
–––––––– –––––––– –––––––– ––––––––
411,391 - 411,391 382,633
–––––––– –––––––– –––––––– ––––––––
Legacies receivable
Legacies receivable 351,369 - 351,369 902,102
–––––––– –––––––– –––––––– ––––––––
351,369 - 351,369 902,102
–––––––– –––––––– –––––––– ––––––––
Revenue grants and donations from non-public bodies
Corporate Grants 73,650 - 73,650 67,317
Trusts 25,850 87,150 113,000 146,359
–––––––– –––––––– –––––––– ––––––––
99,500 87,150 186,650 213,676
–––––––– –––––––– –––––––– ––––––––
Sponsorship
Pause for Hope - 1,715 1,715 1,556
Sponsorships 10,838 492,701 503,539 487,511
–––––––– –––––––– –––––––– ––––––––
10,838 494,416 505,254 489,067
–––––––– –––––––– –––––––– ––––––––
In Memoriam
In Memoriam 179,059 - 179,059 228,137
–––––––– –––––––– –––––––– ––––––––
179,059 - 179,059 228,137
–––––––– –––––––– –––––––– ––––––––
Gift Aid on Donations
Gift Aid on Donations 135,732 - 135,732 86,638
Gift aid from subsidiary 141,869 - 141,869 122,286
–––––––– –––––––– –––––––– ––––––––
277,601 - 277,601 208,924
–––––––– –––––––– –––––––– ––––––––
–––––––– –––––––– –––––––– ––––––––
Total Donations and Legacies - Charity 1,329,758 581,566 1,911,324 2,424,539
========= ========= ========= =========

Of the 2022 income, £1,900,670 was unrestricted and £523,869 was restricted.

47

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

19 Income from charitable activities - Charity only

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
Charitable income from funders
Community engagement 14,900 - 14,900 7,814
–––––––– –––––––– –––––––– ––––––––
Total income from charitable activities 14,900 - 14,900 7,814
========= ========= ========= ========

Total income from charitable activities all related to prevention. Of the 2022 income, £nil was unrestricted and £7,814 was restricted.

20 Income from other trading activities - Charity only

Unrestricted Restricted Unrestricted Restricted
Total		 Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
Income from fundraising events 330,318 - 330,318 283,589
Other income 14,674 - 14,674 11,214
–––––––– –––––––– –––––––– ––––––––
344,992 - 344,992 294,803
========= ========= ========= =========

Total income from other trading activities split by activity all related to fundraising activities. All of the 2022 income was unrestricted.

21 Investment income - Charity Only

Investment income - Charity Only
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
Dividend Income 22,445 - 22,445
28,182
Bank Interest Receivable 1,421 - 1,421
1,081
–––––––––– ––––––––– ––––––––– –––––––––
23,866 - 23,866
29,263

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

All of 2022 income was unrestricted.

48

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

----- Start of picture text -----
|||||| |---|---|---|---|---| |22|Other - Charity| |Unrestricted Restricted|Total|Total| |Funds|Funds|Funds|Funds| |2023|2023|2023|2022| |£|£|£|£| |Coronavirus grant income|-|-|-|225| |Other income|-|-|-|41,712| |–––––––––– ––––––––– ––––––––– –––––––––| |-|-|-|41,937| |========= ========= ========= =========|

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

Of the £41,937 of 2022 income, £41,531 was unrestricted and £406 was restricted.

Other government grants of £nil (2022: £225) relating to the interest free benefit incurred on a Coronavirus Business Interruption Loan were received by the charity 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| |2023|2023|2023|2022| |£|£|£|£| |Cost of fundraising activities|71,319|15,800|87,119|29,417| |Marketing & advertising of fundraising|41,764|4,807|46,571|33,461| |Costs of seeking donations, grants and legacies|269|-|269|556| |Cost of operating social lotteries|2,091|-|2,091|2,135| |Costs of staging fundraising events|80,813|-|80,813|45,748| |Gross wages and salaries - fundraising activities|569,512|120|569,632|694,985| |Other Direct Costs - Fundraising activities|134,061|7,259|141,320|77,427| |Staff Training & Welfare - Fundraising activities|40|-|40|289| |Travel and Subsistence - Fundraising activities|5,246|-|5,246|3,667| |–––––––––– ––––––––– ––––––––– –––––––––| |905,115|27,986|933,101|887,685| |========= ========= ========= =========|

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

Of the £887,685 of 2022 expenditure, £880,642 was unrestricted and £7,043 was restricted.

49

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

24 Expenditure on charitable activities - Charity

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Staff|Total|Total| |costs|Other|Funds|Funds| |Note|2023|2023|2023|2022| |£|£|£|£| |Direct spending| |Restricted|213,925|420,070|633,995|250,946| |Unrestricted|133,584|147,435|281,019|487,840| |–––––––––– ––––––––– ––––––––– –––––––––| |347,509|567,505|915,014|738,786| |–––––––––– ––––––––– ––––––––– –––––––––| |Grant funding| |Organisation grants|26|-|12,946|12,946|139,984| |Staff costs|42,254|-|42,254|38,451| |–––––––––– ––––––––– ––––––––– –––––––––| |42,254|12,946|55,200|178,435| |–––––––––– ––––––––– ––––––––– –––––––––| |Support costs| |Staff costs|788,104|-|788,104|510,784| |Premises costs|-|97,317|97,317|66,497| |Legal and professional costs|-|107,339|107,339|15,294| |Depreciation/interest|-|57,421|57,421|17,601| |Other - admin|-|6,706|6,706|305,896| |–––––––––– ––––––––– ––––––––– –––––––––| |788,104|268,783 1,056,887|916,072| |––––––––– ––––––––– ––––––––– –––––––––| |Governance costs:| |Audit fees|-|37,750|37,750|35,100| |Accountancy fees|-|22,712|22,712|24,342| |––––––––– ––––––––– ––––––––– –––––––––| |1,177,867|909,696 2,087,563 1,892,735| |========= ========= ========= =========|

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

Of the £2,087,563 (2022: £1,892,735) expenditure £761,881 (2022: £348,288) related to restricted funds and was categorised as other expenditure. £1,319,682 (2022: £1,544,447) related to unrestricted funds.

25 Summary of charitable costs by activity – Charity only

----- Start of picture text -----
||||| |---|---|---|---| |Grant| |Direct|Support|funding Governance Total Total| |Costs costs of activities|2023 2022| |£ £ £ £ £ £| |Research|915,014 441,971|55,200|25,284 1,437,469 1,175,336| |Support|- 249,810 -|14,291 264,101 407,607| |Prevention|- 365,106 -|20,887 385,993 309,792| |–––––––– –––––––– –––––––– –––––––– –––––––– ––––––––| |915,014 1,056,887|55,200|60,462|2,087,563 1,892,735| |========= ========= ========= ========= ========= =========|

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

50

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

26 Breakdown of Grants to organisations

Unrestricted Restricted Unrestricted Restricted
Total		 Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
University of Liverpool 9,532 - 9,532 -
Oxford Brooks University 73,511 - 73,511 -
University College London - - - (26,723)
Community Engagement Research Programme - - - (6,249)
University of Nottingham (70,079) - (70,079)
166,496
University of Leeds (18) - (18)
(10,000)
University of Sheffield - - - (19,178)
University of Manchester - - - 35,638
––––––––– ––––––––– ––––––––– –––––––––
12,946 - 12,946 139,984
========= ========= ========= =========
The credit figures included above relate to grants previously accrued which have been released in the
year.
27 Investment gains/(losses)
Unrestricted Restricted
Total		 Total
Funds
Funds
Funds		 Funds
Group and Charity 2023
2023
2023		 2022
£
£
£		 £
Listed investments – Realised gains 47,145 -
47,145		 49,345
Listed investments – Unrealised losses (27,089) -
(27,089)
(130,297)
––––––––– ––––––––– ––––––––– –––––––––
Total realised and unrealised gains/(losses)
20,056		 -
20,056		 (80,952)
========= ========= ========= =========
All the gains/(losses) on investments in 2022 were unrestricted.
28 Tangible fixed assets Research
Leasehold Fixtures office and
Group land and and computer Group
buildings fittings equipment total
£ £ £ £
Cost
At 1 January 2023 519,844 359,560 481,170 1,360,574
Additions 9,154 18,442 - 27,596
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2023 528,998 378,002 481,170 1,388,170
––––––––– ––––––––– ––––––––– ––––––––––
Depreciation
At 1 January 2023 500,639 281,794 464,734 1,247,167
Charge for the year 7,094 24,325 8,516 39,935
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2023 507,733 306,119 473,250 1,287,102
––––––––– ––––––––– ––––––––– ––––––––––
Net book value
At 31 December 2023 21,267 71,883 7,920 101,070
========= ========= ========= =========
At 31 December 2022 19,205 77,766 16,436 113,407
========= ========= ========= =========

51

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

28 Tangible fixed assets (continued)

Research
Leasehold Fixtures office and
Charity Only land and and computer
buildings fittings equipment Total
£ £ £ £
Cost
At 1 January 2023 6,783 46,039 350,685 403,507
Additions - 3,943 - 3,942
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2023 6,783 49,982 350,685 407,449
––––––––– ––––––––– ––––––––– ––––––––––
Depreciation
At 1 January 2023 5,879 44,500 341,019 391,398
Charge for the year 658 586 5,463 6,707
––––––––– ––––––––– ––––––––– ––––––––––
At 31 December 2023 6,537 45,086 346,482 398,105
––––––––– ––––––––– ––––––––– ––––––––––
Net book value
At 31 December 2023 246 4,896 4,203 9,345
========= ========= ========= =========
At 31 December 2022 904 1,539 9,666 12,109
========= ========= ========= =========

29 Investments held as fixed assets by the Charity

Carrying value of investments
At 1 January 2023
Additions
Cash movement
Disposals
Revaluation
Reallocation
At 31 December 2023		 Investments
in subsidiary
undertakings
Loans to
subsidiary
undertakings
Other
investments
Total
£
£
£
£
3
-
873,364
873,367
-
-
33,504
33,504
-
-
(7,224)
(7,224)
-
-
(202,772)
(202,772)
-
-
(27,089)
(27,089)
-
129,592
-
129,592
3
129,592
669,783
799,378

During the year, £129,592 was reallocated from long term debtors to investments to better reflect substance in that, whilst it is a long term loan, it is better reflected as fixed asset investment in a subsidiary, as the intention is that the balance will not be realised through normal trading operations in the near future. The loan is due to be paid on 31 December 2099 or earlier if mutually agreed. Interest is payable at the Bank of England base rate. It is not considered material to restate the comparatives.

The Other investments above are held by both the Charity and the Group. Group investments are therefore £669,783 (£873,364).

Analysis of other investments:

Analysis of other investments:
2023 2022
£ £
Cash 17,483 24,716
Listed investments 652,300 848,648
–––––––– ––––––––
669,783 873,364
========== ==========

52

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

29 Investments held as fixed assets by the Charity (continued)

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

Company Address Shares held Direct
Class %
Cut Films Limited 1 Ordinary
100
Roy Castle Retail Limited 1 Ordinary 100
Roy Castle Trading Limited 1 Ordinary 100
  1. Registered office address: Cotton Exchange, Old Hall Street, Liverpool, England, L3 9LQ

30 Subsidiary companies

Three trading Subsidiaries Principle Activities Roy Castle Retail Limited - Company number: 03604677 Retail Charity Shops Roy Castle Trading Limited - Company number: 03909935 Charity and Charitable Events Cut Films Limited – 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 £1, 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 subsidiaries activities relate to those of the holding company in that the subsidiaries are trading enterprises engaging in trades similar to the charitable activities of the holding company which 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.

53

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

30 Subsidiary companies (Continued)

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

Group Roy Roy Castle Roy Castle Cut Films 2023 Total
Castle Retail Limited
Trading
£’000 £’000 £’000 £’000
Assets and funds
Aggregate amount of assets 88,447 398,410 3,480 490,337
Aggregate amount of liabilities (26,717) (484,948) (294,583) (806,248)
Aggregate amount of funds 61,730 (86,538) (291,103) (315,911)
Profit and loss
Turnover 354,226 2,404,763 - 2,758,989
Expenses (212,358) (2,368,409) (1,191) (2,581,958)
Net profit for the year before tax 141,868 36,354 (1,191) 177,031
Interest paid - (1,088) - (1,088)
Interest received - 316 - 316
Other operating income - 44,956 - 44,956
Gift aid payments made to holding company (141,868) - - (141,868)
Taxation - (18,275) - (18,275)
Net profit/(loss) for the year after tax and
gift aid		 - 62,263 (1,191) 61,072
2023 2022
£ £
Restricted funds retained within charitable subsidiaries 40,208 40,208
========== ==========
31
Stock		 Group Charity Only
2023
2022
2023		 2022
£
£
£		 £
Stocks 106,614
86,998
27,852		 16,575
–––––––––
–––––––––
–––––––––		 ––––––––––
106,614 86,998
27,852		 16,575
=========
=========
=========		 =========

Costs of stock included in the statement of financial activities amounted to £159,177 (2022: £152,220).

Stock includes an impairment provision of £6,000 (2022: £5,447).

54

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

31 Stock (Continued)

Analysis of the value of stock by activity Analysis of the value of stock by activity
Group Charity Only
2023 2022 2023 2022
£ £ £ £
Activity
Fundraising activities 27,852 16,575 27,852 16,575
Stocks for Sales of purchased and related Goods 78,762 70,423 - -
––––––––– ––––––––– ––––––––– ––––––––––
106,614 86,998 27,852 16,575
========= ========= ========= =========
32 Debtors Group Charity Only
2023 2022 2023 2022
£ £ £ £
Amounts falling due within one year:
Trade debtors 85,102 109,494 36,285 43,784
Amounts owed by group undertakings - -
-		 145,321
Prepayments and accrued income 746,807 961,899 592,636 839,709
Other debtors 14,420 80,564 14,352 31,964
––––––––– ––––––––– ––––––––– ––––––––––
846,329 1,151,957 643,273
1,060,778
========= ========= ========= =========
A provision for bad debts of £nil (2022: £4,834) was included against trade debtors.
The amounts owed by group undertakings are interest free and repayable on demand.
Group Charity Only
2023 2022 2023 2022
£ £ £ £
Amounts falling due after more than one year:
Intercompany loan debtor - - - 129,592
––––––––– ––––––––– ––––––––– ––––––––––
- - - 129,592
========= ========= ========= =========
Total debtors 846,328 1,151,957 473,744 1,190,370
========= ========= ========= =========

During the year, £129,592 was reallocated from long term debtors to investments to better reflect substance in that, whilst it is a long term loan, it is better reflected as fixed asset investment in a subsidiary, as the intention is that the balance will not be realised through normal trading operations in the near future. The loan is due to be paid on 31 December 2099 or earlier if mutually agreed. Interest is payable at the Bank of England base rate. It is not considered material to restate the comparatives.

55

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

33 Creditors: amounts falling due within one year

Group Charity Only Charity Only
Note 2023
2022		 2023 2022
£
£		 £ £
Trade creditors 477,390
140,410		 318,195 68,704
Amounts owed to group undertakings -
-		 27,660 -
Accruals and deferred income 35 240,284
351,130		 173,825 260,576
PAYE, NIC VAT and other taxes 64,154
62,046		 64,154 62,046
Bank loan 40,000
40,000		 40,000 40,000
Corporation tax creditor 19,901
-		 - -
Other creditors 121,447
301,997		 139,950 301,990
––––––––
–––––––––		 –––––––– –––––––––
963,176 895,583 763,784 733,316
=========
=========		 ========= =========

There is a debenture in place dated 13 September 2020 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 included within note 29.

The amount of bank loans repayable included in creditors due within one year relates to a Coronavirus Business Interruption Loan received in 2020.

The amounts owed to group undertakings are interest free and repayable on demand.

34 Creditors: amounts falling due after

more than one year Group Charity Only Charity Only
2023
2022		 2023 2022
£
£		 £ £
Bank loan 73,333
113,333		 73,333 113,333
––––––––
–––––––––		 –––––––– –––––––––
73,333
113,333		 73,333 113,333
=========
=========		 ========= =========

The amount of bank loans repayable included in creditors after more than one year relates to a Coronavirus Business Interruption Loan received in 2020. 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 is repaid in monthly instalments with a final repayment date of October 2026. The amount due after five years is £nil (2022: £nil).

35 Deferred income
Group Charity Only
2023 2022 2023 2022
£ £ £ £
Brought Forward 94,886 88,299 94,886 88,299
Deferred in the year 94,152 94,886 88,267 94,886
Amounts released in the year (94,886)
(88,299)		 (94,886) (88,299)
–––––––– ––––––––– –––––––– –––––––––
94,152 94,886 88,267 94,886
========= ========= ========= =========

Deferred income of £5,885 (2022: £8,000) relates to income received for the Charity’s community engagement project. £88,267 (2022: £86,886) of the income deferred in the year relates to income for GLCC.

56

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

36 Provisions for liabilities Group Charity Only Charity Only
2023 2022 2023 2022
£ £ £ £
Dilapidation’s provision 108,992 163,931 24,793 16,934
Deferred tax liabilities 9,430 11,056 - -
–––––––– ––––––––– –––––––– –––––––––
118,422 174,987 24,793 16,934
========= ========= ========= =========

The deferred tax liability above relates to short term timing differences and is expected to reverse within the foreseeable future.

Movement on provisions and deferred tax:

Dilapidations provision
Group Charity Only
2023 2022 2023 2022
£ £ £ £
At 1 January 202 163,931 144,181 16,934 15,500
Additional provisions in the year - 19,750 - 1,434
(Released)/utilised provision (54,939) - 7,859 -
–––––––– ––––––––– –––––––– –––––––––
108,992 163,931 24,793 16,934
========= ========= ========= =========

Deferred tax

Group Charity Only Charity Only
2023 2022 2023 2022
£ £ £ £
At 1 January 2023 11,056 12,040 - -
Credit in the year (1,626) (984) - -
–––––––– ––––––––– –––––––– –––––––––
9,430 11,056 - -
========= ========= ========= =========

Dilapidation’s provision

The group and charity have a present obligation to make good leasehold properties it occupies at the end of each respective property lease. Therefore, a dilapidation provision is required based upon the expected discounted cost to make good the properties. £55k of the provision was released in 2023 (2022: £nil) with an additional provision of £nil made as at 31 December 2023 (2022: £20k) due to a review of likely property and lease termination dates. This £109k provision includes £25k in relation to head office and £84k in relation to the shops held by retail.

57

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

37 Analysis of changes in net funds/(debt)

Group
01/01/2023 Cash flows Non-cash 31/12/2023
flows
£ £ £ £
Net Cash
Cash at bank and in hand 211,347 (171,490) - 39,857
–––––––– ––––––––– ––––––––– ––––––––
211,347 (171,490) - 39,857
–––––––– ––––––––– ––––––––– ––––––––
Debt
Debts falling due within one year (40,000) 40,000 (40,000) (40,000)
Debts falling due after one year (113,333) - 40,000 (73,333)
–––––––– ––––––––– ––––––––– ––––––––
(153,333) 40,000 - (113,333)
–––––––– ––––––––– ––––––––– ––––––––
–––––––– ––––––––– ––––––––– ––––––––
Net funds/(debt) 58,014 (131,490) -
(73,476)
========= ========= ========= =========
Charity
01/01/2023 Cash flows Non-cash 31/12/2023
flows
£ £ £ £
Net Cash
Cash at bank and in hand 121,679 (94,626) - 27,053
–––––––– ––––––––– ––––––––– ––––––––
121,679 (94,626) - 27,053
–––––––– ––––––––– ––––––––– ––––––––
Debt
Debts falling due within one year (40,000) 40,000 (40,000) (40,000)
Debts falling due after one year (113,333) - 40,000 (73,333)
–––––––– ––––––––– ––––––––– ––––––––
(153,333) 40,000 - (113,333)
–––––––– ––––––––– ––––––––– ––––––––
–––––––– ––––––––– ––––––––– ––––––––
Net debt (31,654) (54,626) - (86,280)
========= ========= ========= =========

58

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

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 £nil (2022: £nil) 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 2023 2022
non-cancellable operating leases as set out below: £ £
Operating leases which expire:
within one year 432,893 402,867
within two to five years 1,484,159 946,363
in over five years 641,059 217,500
–––––––––– ––––––––––
2,558,111 1,566,730
========== ==========
At the year end, the charity had total outstanding commitments under
2023		 2022
non-cancellable operating leases as set out below: £ £
Operating leases which expire:
within one year 57,701 20,680
within two to five years 173,705 -
in over five years - -
–––––––––– ––––––––––
231,406 20,680
========== ==========

39 Related party transactions

The remuneration paid to key management personnel as identified in the Trustees’ Annual Report amounted to £365,452 (2022: £329,567).

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

2023 2022
£ £
Included in short term debtors: - 145,321
Included in long term debtors: - 129,592
Included in investments: 129,592 -
Included in short term creditors: (27,660) -
Interest charged on balances: 911 911
======== ========

The movement in the amount due to the charity included in short term debtors relates to amounts advanced in the year of £2,244,377 (2022: £1,866,775), amounts credited in the year of £2,423,767 (2022: £1,766,733) and amounts written off of £nil (2022: £nil). The movement in amounts due to the charity in long term debtors relates to amounts reallocated to investments in the year.

40 Related party transactions with trustees

During the year, an amount of £882 (2022: £9,952) was paid to a trustee in relation to building works during the year.

59

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

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

Group
Unrestricted Restricted Total
At 31 December 2023 funds funds funds
£ £ £
Tangible Fixed Assets 101,070 - 101,070
Fixed asset investments 669,783 - 669,783
Current Assets 469,572 523,228 992,800
Current Liabilities (963,176) - (963,176)
Non-current Liabilities (73,333) - (73,333)
Provisions for liabilities (118,422) - (118,422)
–––––––––– –––––––––– –––––––––––
85,494 523,228 608,722
=========== =========== ===========
Charity Unrestricted Restricted Total
At 31 December 2023 funds funds funds
£ £ £
Tangible Fixed Assets 9,345 - 9,345
Fixed asset investments 799,378 - 799,378
Current Assets 215,156 483,022 698,178
Current Liabilities (763,784) - (763,784)
Non-current Liabilities (73,333) - (73,333)
Provisions for liabilities
(24,793)		 - (24,793)
–––––––––– –––––––––– –––––––––––
161,969 483,022 644,991
=========== =========== ===========
Group
Unrestricted Restricted Total
At 31 December 2022 funds funds funds
as restated as restated
£ £ £
Tangible Fixed Assets 113,407 - 113,407
Fixed asset investments 873,367 - 873,367
Current Assets 704,770 745,532 1,450,302
Current Liabilities (895,583) - (895,583)
Non-current Liabilities (113,333) - (113,333)
Provisions for liabilities (174,987) - (174,987)
–––––––––– –––––––––– –––––––––––
507,641 745,532 1,253,173
=========== =========== ===========

60

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

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

Charity Unrestricted Restricted Total
At 31 December 2022 funds funds funds
as restated as restated
£ £ £
Tangible Fixed Assets 12,109 - 12,109
Fixed asset investments 873,367 - 873,367
Current Assets 493,706 705,326 1,199,032
Non-current Assets 129,592 - 129,592
Current Liabilities (733,316) - (733,316)
Non-current Liabilities (113,333)
-		 (113,333)
Provisions for liabilities (16,934) - (16,934)
–––––––––– –––––––––– –––––––––––
645,191 705,326 1,350,517
============ ========== ===========

42 Change in total funds over the year, analysed by individual funds

Group Funds
Transfer Funds
brought Investment between carried
forward Income Expenditure gains funds forward
2023
2023
as
restated
£ £
£
£ £ £
Unrestricted funds:-
Group Unrestricted Funds 507,641 4,390,143 (4,840,349) 20,056 8,003 85,494
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
Total unrestricted funds 507,641 4,390,143 (4,840,349) 20,056 8,003 85,494
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
Charity Restricted Funds
Sundry RCF Restricted
Reserves 395,462 117,925 (300,535) - (10,503) 202,349
GLCC 310,408 463,641 (495,332) - 2,500 281,217
Boehringer Ingleheim
Awareness Project (546) - - - - (546)
Subsidiary
Restricted Funds
Cut Films Restricted
Reserves 40,208 - - - - 40,208
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
Total restricted funds 745,532 581,566 (795,867) - (8,003) 523,228
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
Total Group Funds 1,253,173 4,971,709 (5,636,216) 20,056 - 608,722
======== ============================================

Transfers between funds relates to under charged current and historic staff costs relating to projects treated as restricted reserves .

61

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

42 Change in total funds over the year, analysed by individual funds (Continued)

Charity only
Funds Transfer Funds
brought Investment between carried
forward Income Expenditure gains funds forward
2023 2023
as
restated
Unrestricted funds:- £ £ £ £ £ £
Unrestricted revenue funds 645,191 1,713,516 (2,224,797) 20,056 8,003 161,969
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
Total unrestricted funds 645,191 1,713,516 (2,224,797) 20,056 8,003 161,969
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
RCF Restricted funds:-
Research – GLCC 310,408 463,641 (495,332) - 2,500 281,217
Research – others 394,918 117,925 (300,535) - (10,503) 201,805
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
Total restricted funds 705,326 581,566 (795,867) - (8,003) 483,022

––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
––––––– –––––––– –––––––– –––––––– –––––––– ––––––––
Total Charity Funds 1,350,517 2,295,082 (3,020,664) 20,056 - 644,991
======== ======== ========= ========= ========= ========
Group
Funds
 Funds
brought
Investment carried
forward Income Expenditure (losses) forward
2022 as restated 2022
as
 as
restated restated
£ £
£
£		 £
Unrestricted funds:-
Group Unrestricted Funds 669,719 4,773,977 (4,855,103) (80,952) 507,641
––––––– –––––––– –––––––– –––––––– ––––––––
Total unrestricted funds 669,719 4,773,977 (4,855,103) (80,952) 507,641
––––––– –––––––– –––––––– –––––––– ––––––––
Charity Restricted Funds
Sundry RCF Restricted Reserves 333,589 171,529 (109,656) - 395,462
GLCC 290,548 360,560 (340,700) - 310,408
Boehringer Ingleheim Awareness Project (546) - - - (546)
Subsidiary
Restricted Funds
Cut Films Restricted Reserves 40,208 - - - 40,208
––––––– –––––––– –––––––– –––––––– ––––––––
Total restricted funds 663,799 532,089 (450,356) - 745,532
––––––– –––––––– –––––––– –––––––– ––––––––
––––––– –––––––– –––––––– –––––––– ––––––––
Total Group Funds 1,333,518 5,306,066 (5,305,459) (80,952) 1,253,173
======== ======== ======== ======== ========

62

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

42 Change in total funds over the year, analysed by individual funds (Continued)

Charity only
Funds
 Funds
brought
 Investment carried
forward Income Expenditure (losses) forward
2022 as restated 2022
as as
restated restated
£ £
£		 £
£
Unrestricted funds:-
Unrestricted revenue funds 789,940 2,266,267 (2,330,064) (80,952) 645,191
––––––– –––––––– –––––––– –––––––– ––––––––
Total unrestricted funds 789,940 2,266,267 (2,330,064) (80,952) 645,191
======== ======== ======== ======== ========
RCF Restricted funds:-
Research – GLCC 290,548 360,560 (340,700) - 310,408
Research – others 333,045 171,529 (109,656) - 394,918
––––––– –––––––– –––––––– –––––––– ––––––––
Total restricted funds 623,593 532,089(450,356) -705,326

––––––– –––––––– –––––––– –––––––– ––––––––
––––––– –––––––– –––––––– –––––––– ––––––––
Total Charity Funds 1,413,533 2,798,356 (2,780,420) (80,952) 1,350,517
======== ================ ================

43 The purposes for which the funds as detailed in note 42 are held by the charity are:-

Unrestricted 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, in particular to fund lung cancer research for individuals.

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, in particular to fund lung cancer research for individuals.

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.

63

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

Group Charity
44 Financial instruments 2023 2022 2023
2022
£ £ £
£
Carrying amount of financial assets
measured at fair value through income
and expenditure
Listed investments 669,783 873,367 669,783
873,367
========== ========== ==========
==========

45 Ultimate controlling party

The Roy Castle Lung Cancer Foundation is the ultimate controlling party and is under the control of its legal members. There is no one individual controlling party. It is the smallest and largest entity for which consolidated accounts are prepared. A copy of the consolidated financial statements can be found at the registered office address: Cotton Exchange, Old Hall Street, Liverpool, England, L3 9LQ.

46 Prior period adjustment

During the year, management identified that there was a classification error between restricted funds and unrestricted funds. GLCC Expenditure had been allocated to unrestricted reserves, when the costs actually related to GLCC activities in accordance with the terms of the fund which were classed as restricted. This has now been rectified. The result of this change is a decrease in restricted funds of £257,563 and an increase in unrestricted funds of £257,563 at 31 December 2022 in both the consolidated and charity only accounts. There is no impact on total funds at 31 December 2022 or 31 December 2021.

Changes to the consolidated balance sheet

Funds
Restricted revenue funds
Unrestricted revenue funds
Total funds		 As
previously
reported
at 31
December
2022
£
1,003,095
250,078
1,253,173		 Adjustment
at 31
December
2021
£
(162,538)
162,538
-		 Adjustment
at 31
December
2022
£
(95,025)
95,025
-		 As
restated at
31
December
2022
£
745,532
507,641
1,253,173

64

Roy Castle Lung Cancer Foundation

Notes to the Consolidated Accounts for the year ended 31 December 2023

46 Prior period adjustment (Continued)

Changes to the consolidated statement of financial activities

Year ended 31 August 2022
Total funds brought forward - restricted
Total funds brought forward - unrestricted
Total funds carried forward - restricted
Total funds carried forward - unrestricted
hanges to the charity only balance sheet
Funds
Restricted revenue funds
Unrestricted revenue funds
Total funds		 As
previously
reported
at 31
December
2022
£
962,889
387,628
1,350,517		 As
previously
reported
£
826,337
507,181
1,003,095
250,078
Adjustment
at 31
December
2021
£
(162,538)
162,538
-		 Adjustment
£
(162,538)
162,538
(257,563)
257,563
Adjustment
at 31
December
2022
£
(95,025)
95,025
-		 As
restated
£
663,799
669,719
745,532
507,641
As
restated at
31
December
2022
£
705,326
645,191
1,350,517

Changes to the charity only balance sheet

Changes to the charity only statement of financial activities

As
previously As
reported Adjustment restated
Year ended 31 August 2022 £ £ £
Total funds brought forward - restricted 786,131 (162,538) 623,593
Total funds brought forward - unrestricted 627,402 162,538 789,940
Total funds carried forward - restricted 962,889 (257,563) 705,326
Total funds carried forward - unrestricted 387,628 257,563 645,191

65