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2020-12-31-accounts

Company Number: 03068044 Charity Number: 1048167 Scottish Charity Number: SC039804

Coeliac UK (Limited by Guarantee)

Financial statements For the year ended 31 December 2020

Coeliac UK (Limited by Guarantee)

Contents

Page
Legal and administrative information 1 - 2
Report of the board of governors 3 - 18
Independent auditors’ report 19 - 23
Statement of financial activities 24
Balance sheet 25 - 26
Consolidated statement of cash flows 27
Notes to the financial statements 28 - 50

Coeliac UK (Limited by Guarantee)

Legal and administrative information

The organisation is a charitable company limited by guarantee, incorporated on 14 June 1995 and registered as a UK charity on 20 July 1995. Coeliac UK is the successor body to The Coeliac Society which was established in 1968.

The Charity was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. The Articles provide for the Board to consist of up to nine elected Governors, two co-opted Governors and one Governor nominated by the Health Advisory Council. One third of the elected Governors resign at each Annual General Meeting and can stand for re-election for one further term.

Board of Governors Claire Andrews
John Bremner (Resigned 20 June 2020)
Maureen Burnside
James Chappell - Chair
Fiona Fowler (Appointed 22 September 2020)
Angeli Hemnani (Appointed 22 September 2020)
Margaret Morgan
Kenneth O’Dea
Dr Anita Patel (co-opted)
Professor Alan Perkins
Professor David Sanders
Reshma Shah
Robert Trice (Resigned 20 June 2020)
Nicola Valmas (Appointed 22 September 2020)
Company secretary Julia Malthouse
Chief executive Hilary Croft
Reference and administrative
details company number 03068044
Charity number 1048167
Scottish Charity number SC039804
Registered office and Third Floor
operation address Apollo Centre
Desborough Road
High Wycombe
Buckinghamshire
HP11 2QW

Page 1

Coeliac UK (Limited by Guarantee)

Legal and administrative information (continued)

Auditors Saffery Champness LLP
St John’s Court
Easton Street
High Wycombe
Buckinghamshire
HP11 1JX
Bankers HSBC Bank plc
Oxford Circus Branch
196 Oxford Street
London
W1D 1NT
Lloyds Bank
21-31 White Hart Street
High Wycombe
Buckinghamshire
HP11 2HL
Solicitors Blaser Mills
Park House
40 Oxford Road
High Wycombe
Buckinghamshire
HP11 2EE

Page 2

Coeliac UK (Limited by Guarantee)

Report of the board of governors for the year ended 31 December 2020 (continued)

The Board of Governors who are the charity trustees, and directors of Coeliac UK (‘the charitable company’/’the Charity’), have pleasure in presenting their report, which incorporates the report of the directors for the purposes of company law, and the accounts for the year ended 31 December 2020.

1 Introduction

We began 2020 as a year with great hope, having a new five year strategy to deliver and stretching targets across the board. It was clear within the first two months of the year that things would not turn out as expected.

Like many other charities, we saw an enormous surge in the need for information from our community. Calls to our Helpline doubled, social media and website visits quadrupled, at a time when our offices were closed and our normal working practises were shut down, and our financial stability was threatened.

Staff, volunteers and governors all stepped up to meet this explosion in demand. Existing contingency plans proved their worth as we moved into digital delivery with most staff working from home. Our team brought ingenuity and creative ideas to meet the new challenges establishing appropriate systems and processes.

Our community also pulled together, highlighting the benefits of many years of consistent relationship development. Together with our community, we developed a Coronavirus Hub, ensuring that the latest information could be readily shared with those who needed it.

Expert opinions from leading health professionals through our Health Advisory Council and Health Advisory Network, enabled us to provide crucial health guidance at a very uncertain time. We worked closely with food manufacturers and retailers to ensure that specialist foods could be more accessible, and our support staff and volunteer groups remained available to provide reassurance and practical help where needed.

The financial impacts of the last year should not be underestimated, as our leadership worked hard to review and rework income and expenditure expectations as the effects of the pandemic were felt. A prudent approach, including a temporary salary reduction for staff, ensured that we were able to continue to provide core services throughout the year without the need for any redundancies. We recognise the support given by the UK Government through the furlough job retention scheme.

Income from fundraising was predicted to be down for the year, but excluding a reduction in legacy income, which is inherently unpredictable, and a hold on grant applications for future projects, our income from all our fundraising activities has seen an increase. Our thanks goes out to everyone who has supported us over the past 12 months.

Page 3

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

We are emerging from this situation in many ways a stronger organisation, due in great part to strong governance, with a strong sense of both purpose and future direction. Our staff have shown the benefit of a truly committed, professional and knowledgeable team, and whilst it is likely that 2021 will be a tough year as we look to reset ourselves to the new strategy, we have been encouraged by the response from our community. Here are some of the comments we received last year.

"I was diagnosed as Coeliac in the first week of 'lockdown' so your website & pack have been a lifesaver." Paul Mapstone

"Coeliac UK is such an important source of information for people diagnosed as coeliac. The profile raising work is just as important, so that coeliacs can eat safely." Sonal Shah

"I found your online 'covid-19' Q&As helpful and reassuring - thank you!" JG Cook

"Working in the NHS I have seen the impact Coronavirus is having at many levels. Working in research I also recognize the challenges we will face going forward with reduced funding due to the impact on charities. Coeliac UK has been a godsend to our family since our daughter was diagnosed aged 7." Linda Tinkler

"I contacted you by email for some clarification on covid 19. Your response was prompt and reassuring. A big thank you to all your team." Sue Dobson

"I have been a member for some years and the help I received in the early days and now has been invaluable." Phil Cornford

"I have been a Coeliac for 65 years since diagnosis in late 1954. Coeliac UK is vital for those newly diagnosed in particular." Wendy Temple

"Thank you for all for being a lifeline." Miss Moys

"Thank you for all the work you do to make us feel part of a community. Since being diagnosed a year and a half ago, I've turned to you countless times, not only to ease my worries, but to find all sorts of inspiration for making the most of life gluten-free!" Lara Squire .

Page 4

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

2 Objectives and activities for 2020

Under our new 2020 – 2025 strategy we have five new themes and the key initiatives we planned for 2020, before the outbreak of covid-19 included:-

Reach

Experience

Partnerships

Research

Global Leadership

Looking at each in more detail:

2.1 Reach

Page 5

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

2.2 Experience

Page 6

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

2.3 Partnerships

Page 7

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

2.4 Research

2.5 Global leadership

Page 8

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

2.6 Measuring Our Success

3 2021 Initiatives

Reach

Page 9

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

Experience

Partnerships

Research

Global Leadership

Page 10

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

4 How we are managed – structure, governance and management

4.1 The Charity

Coeliac UK is a charitable company limited by guarantee, incorporated on 14 June 1995 and registered as a charity on 20 July 1995 with the Charity Commission. It was also registered with the Office of the Scottish Charity Regulator in 2008.

The charity’s objectives are set out in its Memorandum of Association:

4.2 Public benefit

The Governors in exercising their powers and duties have complied with their duty in Section 17 of the Charity Act 2011 to have due regard to the public benefit guidance published by the Charity Commission. In preparing the report and accounts the Governors have complied with the requirements set out in that guidance to report on the significant activities and achievements of the charity in 2020. They have reported in a way that both sets out the aims and strategies of the Charity and demonstrates how the aims and activities of the charity were carried out for the public benefit.

4.3 The Board of Governors

The Board of Governors lead the charity in setting its strategic direction and agreeing objectives and plans to deliver the charity’s aims. The Board monitors and evaluates the progress of the charity to ensure it achieves those objectives and plans.

The expertise within the Board is substantial and wide ranging. Trustees include senior directors with finance, banking, and food industry experience, lawyers and experienced senior healthcare professionals. All Governors are volunteers committing many days, evenings and weekends of the year working for the charity.

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Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

4.4 The Board’s Committees

The Board delegates some of its responsibilities to committees to provide a particular focus on some issues. The Audit Committee ensures the robustness of the Board’s overall financial and risk monitoring. The Human Resources (HR) Committee (see 4.7) oversees the charity’s HR policies ensuring they are legally compliant and fit for purpose.

The Executive Action Committee allows the Board to retain control in crisis situations when the full Board may not be able to be convened. The Committee would only be called upon in emergencies and was not invoked in 2020.

Health Advisory Council and Health Associates

The Health Advisory Council provides the charity with expert insight into health issues related to coeliac disease, associated research and advice on related policies and activities. The Council draws upon a wide range of expertise to reflect all aspects of healthcare.

Food Standards Committee

The Food Standards Committee provides the charity with additional technical expertise and independent appraisal of the standards applied to its licensing and accreditation activities. It also engages with other industry and regulatory bodies to ensure exchange of ideas and state of the art information.

The Gluten Analysis and Toxicity Working Group was created as a sub-committee to support guidance and secure further research in the area of gluten analysis, particularly of fermented and hydrolysed foods.

Fundraising Committee

The Fundraising Committee provides the charity with expert insight and fulfils the governance requirements for the detailed scrutiny and oversight of the fundraising undertaken for the charity including for the Research Fund. This Committee reports to the Board of Governors.

Research Strategy Board

The Research Strategy Board (RSB) provides the charity with expert insight and fulfils governance requirements for the review and development of its research strategy which underpins the charity’s Research Fund. The Board reports to the Board of Governors.

Research Awards Panel

The Panel manages the awards process for grants under the Research Fund. It provides the charity with expert insight and fulfils governance requirements for the review, funding and management of the charity’s research awards in line with the charity’s Research Strategy. The Panel reports to the Board of Governors.

Page 12

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

The Board and its committees continue to use a combination of face to face meetings, video calls and teleconferences during the year to review the plans and activities of the charity and ensure the cost effectiveness of their operations.

4.5 Recruiting and supporting Governors

Prior to any recruitment round the Board of Governors will undertake a skills audit to identify current and future skills gaps. Roles are advertised widely both in the charity’s communications to members and on recruitment websites open to all. The selection process comprises shortlisting on the basis of CVs and supporting statements, followed by an interview panel for shortlisted candidates. Following appointment, new Governors are provided with induction packs and sessions spent with key staff.

Following the resignation of two of our Governors, John Bremner and Robert Trice, in 2020 we recruited three new Governors. Fiona Fowler, appointed as our new Treasurer, Angeli Hemnani with a background in financial analysis and Nicola Valmas with a background in HR.

4.6 Company Secretary

The charity’s Company Secretary is Julia Malthouse.

4.7 Management and staff

The Board of Governors delegates the day to day management of the charity to the Chief Executive who leads a team of 46 full time equivalent staff. Their work is supplemented at times of peak workload by a limited number of temporary staff. The staff work within the Delegation of Authority agreed by the Board. The staff agree a work plan with the Board at the beginning of the year and report progress at Board meetings throughout the year through quarterly reporting.

The Board of Governors appoints an HR Committee to oversee the setting of pay and remuneration for senior management and the entire organisation. Their remit is to regularly review and agree performance review arrangements; agree remuneration policies including terms, conditions and benefits; consider recommendations for individual pay on the basis of individual appraisals and to consider the Charity’s human resource strategy. The committee is comprised of the Chair of the Board of Governors and at least two other governors.

The organisation is comprised of Coeliac UK, a registered charity, and its subsidiary The Coeliac Trading Company Ltd. The principal activity of the trading subsidiary is to raise funds on a commercial basis for the charity to support its charitable activities. The subsidiary is governed by two directors appointed from the senior management team of the charity, one governor from the Board of the charity and one non-executive independent director.

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Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

4.8 Our approach to fundraising

Coeliac UK operates a small team of in-house staff to lead and develop its fundraising. As a charity regulated by the Fundraising Regulator we strive to achieve the highest standards in all our fundraising activities and communications and will continue to do this, referring to all the relevant professional and statutory bodies as guidance and regulation develops. Developing positive long-term relationships with all our members, donors and supporters underpins all our actions in this area.

We use the services of a number of carefully selected external companies who are able to provide significant specialist skills to help us deliver specific activities. With each of these companies, we have signed agreements, committing them all to adhere both to the letter and spirit of the regulations.

4.9

Managing risk

A risk register is used by the Board and staff to monitor the major risks to which the charity is exposed. Actions are identified on the register to mitigate risks and the register is routinely monitored at Audit Committee meetings. All major project work undertaken by staff have risks and mitigation measures identified at the beginning and these are monitored throughout the project lifetime.

The key risks identified in 2020 related to the impact of the pandemic on the income streams and activities of the charity. A third of staff were place on furlough to reduce our cost base while we developed information and services to keep our members and supporters informed on the potential impact of covid19 on their health, their access to diagnosis, gluten free food and any medical implications of vaccinations on those with coeliac disease.

5 Financial review

5.1 Overview

The charity has three main sources of funding: membership fees, commercial trading and fundraising from donations, raffle, lottery and grant income. These funds enable us to provide services and information to support those diagnosed or caring for someone with coeliac disease in living a gluten free life and also in providing guidance and advice to those seeking diagnosis. We are actively engaged in campaigning with the health and food sectors to educate and raise awareness to increase understanding of the condition and the treatment required. In the longer term, these income streams enable the charity to fund research to improve management of the condition, the development of treatments and ultimately a cure.

As anticipated, the pandemic impacted the financial results of the charity in 2020, though not perhaps to the extent initially feared.

Page 14

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

The charity’s total income in 2020 was £3.6 million, slightly below the income for 2019 of £3.8 million. The decrease was driven by legacy income falling by £199,000, with the furlough grant income from the government contributing £143,000. Our members and supporters responded generously to our emergency appeals, raffles, online challenges and Christmas card activities enabling us to report a far better income figure that anticipated.

We balanced the income shortfall with reductions in unrestricted expenditure where we could without overly compromising the quality of our services. Of those staff not furloughed, the majority of full time staff agreed to a reduction in hours/salary to further reduce our expenditure. Total expenditure was £3.4 million – resulting in a small surplus of £53,000.

In 2021 we will continue to focus on building sustainable income streams to ensure that we are in a strong position to deliver our new five year strategy.

5.2 Investment performance

The decision was made in March to withdraw our reserves from the stock market as the situation was worsening daily, this resulted in a realised loss of £172,000. This was to stabilise our cash position and protect our restricted reserves.

5.3 Investing in research

Overall research expenditure during the year decreased from £555,000 to £270,000, 7.5% of income. The decline was due to no new grants being awarded in 2020, with only the last years of existing grants being recognised in the financials.

5.4 Investment policy

The charity’s investments had moved at the start of 2019 to be managed by Cazenove Capital, to provide a reasonable and growing income over the long term, commensurate with a moderate but not excessive degree of risk. The charity will not invest in high risk instruments, such as derivatives, hedge funds, covered warrants or spread betting.

The intention will be to reinvest some of the charity’s reserves once the global economy has stabilised and the risk has reduced .

5.5 Reserves policy

The Board recognises the need to hold charitable funds as free reserves in order to safeguard the continuity of provision of basic services, to fund periods of expenditure in excess of revenue and to fund unexpected expenditure.

The Board of Governors used Charity Commission guidelines to update the reserves policy in April 2019.

Page 15

Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

The Board has agreed a policy that sufficient reserves will be held to ensure the charity can operate for up to 6 months when income has been significantly impacted by an external event, in order to assess the future options for the charity.

As and when reserves are above 6 months, and subject to financial performance, the Audit Committee should look to see whether these potential excess reserves can be utilised by the charity to, for example:

Excess reserves will be designated for a specific activity when an appropriate and timely use of the funds has been identified and agreed by the Board.

In the event there are no extra reserves, the Board may utilise the operational reserves to meet any of the above needs should they arise, subject to a cost benefit analysis. Alternative sources of funding will be assessed in the first instance, with the drawdown of reserves being the last resort, particularly if materially depleting the free reserves.

The free reserves at the end of 2020 were £1,377,139 at 8.4 months of budgeted annual general unrestricted expenditure. This is above the range set out in our policy. However, the current economic uncertainty around the pandemic may lead to a deferment of the allocation of any excess reserves in 2021 until the longer term impact on the charity’s financial position is clear.

Of our current restricted reserves, we have £231,000 held for our Research Fund. We raise funds for research in order to build a sufficient sum to launch a research call and our intention is to make a call in 2021 and award a large proportion of these funds to any project that meets our rigorous requirements including our research priorities and other ethical considerations.

Of our designated reserves, £46,000 is held for research for the Innovate Projects and has been allocated for the final instalment of a grant in 2021. There is £82,000 of funds for our local voluntary support groups as each group manages their local income and expense actively each year to provide support in their local area.

6 Responsibilities of the Board of Governors

The Board of Governors (who are also directors of Coeliac UK for the purposes of company law) is responsible for preparing the Report of Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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Coeliac UK (Limited by Guarantee) Report of the board of governors for the year ended 31 December 2020 (continued)

Company law requires the Board of Governors 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the Governors are required to:

The Board of Governors are responsible for keeping adequate accounting records which are sufficient to show and explain the charitable company’s transactions and which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the Charitable Company’s constitution. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as the Board of Governors are aware:

The Board of Governors is responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Auditor

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Coeliac UK (Limited by Guarantee)

Report of the board of governors for the year ended 31 December 2020 (continued)

This report has been prepared in accordance with the Special Provisions of Part 15 of the Companies Act 2006 relating to Small Companies.

This report was approved and authorised for issue by the Board of Governors on 30 March 2021 and signed on th eir behalf by

James Chappell Chair

Page 18

Coeliac UK (Limited by Guarantee)

Independent auditors’ report to the members and governors of Coeliac UK (Limited by Guarantee) (continued)

Opinion

We have audited the financial statements of Coeliac UK (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise a statement of financial activities, balance sheet and statement of cash flows 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 Financial Reporting Standard 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 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 Governors’ 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 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 Governors with respect to going concern are described in the relevant sections of this report.

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Coeliac UK (Limited by Guarantee)

Independent auditors’ report to the members and governors of Coeliac UK (Limited by Guarantee) (continued)

Other information

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

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

Other matters 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 Report of the Board of Governors.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

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Coeliac UK (Limited by Guarantee)

Independent auditors’ report to the members and governors of Coeliac UK (Limited by Guarantee) (continued)

Responsibilities of governors

As explained more fully in the Statement of Responsibilities of the Board of Governors set out on pages 15 and 16, the governors (who are also the directors of the parent 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 governors determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the governors are responsible for assessing the 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 governors either intend to liquidate the 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

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under those Acts.

Our objectives are to obtain reasonable assurance about whether the group and parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by

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Coeliac UK (Limited by Guarantee)

Independent auditors’ report to the members and governors of Coeliac UK (Limited by Guarantee) (continued)

discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

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Coeliac UK (Limited by Guarantee)

Independent auditors’ report to the members and governors of Coeliac UK (Limited by Guarantee) (continued)

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Karen Bartlett (Senior Statutory Auditor) For and on behalf of Saffery Champness LLP

Saffery Champness LLP Chartered Accountants St John’s Court Easton Street High Wycombe Buckinghamshire HP11 1JX

Statutory Auditors

Date: 9 April 2021

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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Coeliac UK (Limited by Guarantee)

Consolidated statement of financial activities (including consolidated income and expenditure account) For the year ended 31 December 2020

Unrestricted
Restricted
Notes
funds
funds
£
£
Income
Donations and legacies
2
910,345
56,732
Income from charitable
activities
2
1,753,351
157,234
Income from trading activities
2
665,148
38,198
Investment income
2
20,907
4,737
Total income
3,349,751
256,901
Expenditure
Expenditure on raising funds
Donations and legacies
278,622
9,172
Trading activities
550,244
30,907
Expenditure on charitable
activities
3
2,352,369
160,103
Total expenditure
3,181,235
200,182
Net (losses)/gains on
investments
11
(171,844)
-
Net income/(expenditure)
for the year
7
(3,328)
56,719
Balances brought forward
1,633,605
200,058
Total funds carried forward
1,630,277
256,777		 2020
Total
£
967,077
1,910,585
703,346
25,644
3,606,652
287,794
581,151
2,512,472
3,381,417
(171,844)
53,391
1,833,663
1,887,054		 2019
Total
£
1,115,109
1,891,366
798,970
35,520
3,840,965
305,635
687,384
3,040,031
4,033,050
71,452
(120,633)
1,954,296
1,833,663

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 28 to 50 form part of these financial statements.

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Coeliac UK (Limited by Guarantee)

Consolidated balance sheet As at 31 December 2020

Notes
Fixed assets
Tangible assets
10
Investments
11
Current assets
Investments & deposits
11
Debtors
12
Cash at bank and in hand
Current liabilities
Creditors: amounts falling
due within one year
13
Net current assets
Total assets less
current liabilities
Provisions for liabilities
and charges
14
Net assets
The funds of the
charity
Unrestricted funds
Designated
15
General
Restricted funds
16
Total charity funds
17		 Group

2020
2019
£
£
114,802
185,203
-
1,058,928
114,802
1,244,131
953,754
505,691
694,150
704,692
1,751,001
793,787
3,398,905
2,004,170
(1,586,655)
(1,379,638)
1,812,249
624,532
1,927,051
1,868,663
(40,000)
(35,000)
1,887,051
1,833,663
138,332
270,834
1,491,940
1,362,771
1,630,278
1,633,605
256,779
200,058
1,887,051
1,833,663		 Charity
2020
2019
£
£
114,802
185,203
2
1,058,930
114,804
1,244,133
953,754
505,691
996,508
945,588
1,401,881
433,996
3,352,143
1,885,275
(1,539,893)
(1,260,745)
1,812,250
624,530
1,927,054
1,868,663
(40,000)
(35,000)
1,887,054
1,833,663
138,332
270,834
1,491,942
1,362,771
1,630,274
1,633,605
256,780
200,058
1,887,054
1,833,663		 Charity
2020
2019
£
£
114,802
185,203
2
1,058,930
114,804
1,244,133
953,754
505,691
996,508
945,588
1,401,881
433,996
3,352,143
1,885,275
(1,539,893)
(1,260,745)
1,812,250
624,530
1,927,054
1,868,663
(40,000)
(35,000)
1,887,054
1,833,663
138,332
270,834
1,491,942
1,362,771
1,630,274
1,633,605
256,780
200,058
1,887,054
1,833,663
1,244,133
505,691
945,588
433,996
1,885,275
(1,260,745)
624,530
1,868,663
(35,000)
1,833,663
270,834
1,362,771
1,633,605
200,058
1,833,663

The governors have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Page 25

Coeliac UK (Limited by Guarantee)

Consolidated balance sheet (continued) As at 31 December 2020

As permitted by s408 Companies Act 2006, the company has not presented its own Statement of Financial Activity and related notes. The Company’s profit for the year was £28,855 (2019: £150,254 loss).

t hese financial statements are sig ned on their behalf by:

James Chappell – Chair

Company number: 03068044

The notes on pages 28 to 50 form part of these financial statements.

Page 26

Coeliac UK (Limited by Guarantee)

Consolidated statement of cash flows For the year ended 31 December 2020

Notes
Cash flows from operating activities:
Net cash provided by operating activities
22
Cash flows from investing activities:
Dividends and interest from investments
Purchase of tangible fixed assets
Purchase of investments
Sale of investments
Net cash used in investing activities
Increase in cash and cash equivalents in the
year
Cash and cash equivalents at the beginning of the year
22
Total cash and cash equivalents at the end of the year
22
2020
£
516,085
25,644
(23,536)
-
887,084
889,192
1,405,277
1,299,478
2,704,755		 2019
£
(221,530)
35,520
(130,194)
(1,031,066)
1,036,172
(89,568)
(311,098)
1,610,576
1,299,478

Page 27

Coeliac UK (Limited by Guarantee)

Notes to the financial statements For the year ended 31 December 2020

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK (FRS102) and (Charities SORP (FRS 102) and the Companies Act 2006.

Coeliac UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

There are no material uncertainties about the charity’s ability to continue as a going concern. The charity’s planned activities, together with its financial position; management of risk and approaches to investments, cashflow and reserves are described in the Report of the Board of Governors. As a consequence, the governors believe that the charity is well placed to manage its risks successfully despite the current uncertain economic outlook. The governors have a reasonable expectation that the charity and the group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

1.2 Local groups and accounting policy

The local groups record their income and expenditure on a receipt basis. At the end of the financial year, each group submits a return of its income and expenditure which is included in the Statement of Financial Activities and the Balance Sheet.

1.3 Income

Income from web advertising, sponsorship and licensing, and accreditation is deferred on a proportionate basis over the life of the contract. All other income is recognised when the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

1.4 Cost allocation

Shared costs have been allocated on the following basis:

Cost allocation
Shared costs have been allocated		 on the following basis:
Description Method of apportionment
Depreciation Head count
Information technology Head count
Support staff costs Head count
Office costs Head count

Page 28

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

1 Accounting policies

(continued)

1.5 Grants

Grants payable are payments made to third parties in furtherance of the charitable objectives.

Grants which are free from specific conditions are recognised in full as soon as there is a legal or constructive obligation committing the charity.

Multiyear grants are conditional on an annual review of progress which will determine if future funding is provided. Due to this condition only one year’s funding commitment is recognised.

1.6 Restricted funds

Restricted funds are to be used for specific purposes as specified by the donor. Expenditure which meets these criteria is charged to the fund.

1.7 Depreciation of fixed assets

Provision is made for depreciation on all tangible assets at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:

Furniture and fittings 20% p.a. straight line Computer equipment 33.3% p.a. straight line

1.8 Investments

Investments held as fixed assets are revalued at mid-market value at the balance sheet date.

1.9 Leasing

Rental payable under operating leases are charged against income on a straightline basis over the lease term.

1.10 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of obligation can be measured reliably. Costs are analysed between expenditure on charitable activities and costs of raising funds of the charity.

Any direct costs are allocated between restricted and unrestricted funds as incurred.

1.11 Designated funds

Designated funds are unrestricted funds earmarked by the board of governors for particular purpose.

Page 29

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

1 Accounting policies

(continued)

1.12 Pension

The charitable company operates a group personal money purchase pension scheme. The pension cost charged in the financial statements represents contributions payable by the charity during the financial year.

1.13 Basis of consolidation

The group accounts consolidate the accounts of Coeliac UK and its subsidiary undertaking on a line by line basis. The accounts are made up to 31 December 2020. No separate statement of financial activities or income and expenditure has been presented for the charity alone as permitted by section 408 of the Companies Act 2006.

1.14 Financial instruments

The charity only has financial assets and 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.

Page 30

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

2 Income

Unrestricted
£
Income from donations and legacies
Donations and gifts
695,478
Legacies
214,867
910,345
Income from charitable activities
Membership
1,232,630
Raising Awareness
480,855
Research
-
Groups
39,866
1,753,351
Income from trading activities
Raffle and lottery
327,443
Other commercial activities
337,706
665,149
Investment income
Investments – dividends
18,952
Bank interest
1,955
20,907		 Restricted
£
36,732
20,000
56,732
31,650
109,400
11,775
4,409
157,234
18,636
19,562
38,198
2,143
2,594
4,737		 2020
Total
£
732,210
234,867
967,077
1,264,280
590,255
11,775
44,275
1,910,585
346,079
357,268
703,347
21,096
4,548
25,644

Included within the restricted income recognised in the year is £143,064 of Government furlough grant income allocated based on headcount for the employees the grant was claimed for. All included as restricted income.

Page 31

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

2
Income
Unrestricted
£
Income from donations and legacies
Donations and gifts
628,283
Legacies
433,970
1,062,253
Income from charitable activities
Membership
1,277,880
Raising Awareness
477,866
Research
-
Groups
55,620
1,811,366
Income from trading activities
Raffle and lottery
341,830
Other commercial activities
371,668
713,498
Investment income
Investments – dividends
29,650
Bank interest
1,659
31,309
Restricted
£
52,856
-
52,856
-
45,000
35,000
-
80,000
85,172
300
85,472
3,267
944
4,211		 (continued)
2019
Total
£
681,139
433,970
1,115,109
1,277,880
522,866
35,000
55,620
1,891,366
427,002
371,968
798,970
32,917
2,603
35,520

Page 32

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

3
Expenditure
Unrestricted
Restricted
£
£
Charitable activities
Membership
1,127,785
31,699
Raising Awareness
825,676
103,220
Research
254,774
15,775
Groups
144,134
9,409
2,352,369
160,103
Breakdown of costs of charitable activities
Grants
Support
Direct
made
costs
costs
(note 6) (note 4+5)
£
£
£
Membership
861,707
-
297,777
Raising Awareness
590,622
-
338,275
Research
81,865
137,824
50,859
Groups
106,808
-
46,735
1,641,002
137,824
733,646
Research support cost breakdown
Total
Direct
Support Costs
costs
£
£
Research costs
-
81,685
Support costs
50,859
6,824		 2020
Total
£
1,159,484
928,896
270,549
153,543
2,512,472
2020
Total
£
1,159,484
928,897
270,548
153,543
2,512,472
Grants
made
£
137,824
44,035

All support costs are allocated on a headcount basis.

Page 33

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

3 Expenditure (continued)
2019
Unrestricted Restricted Total
£
£		 £
Charitable activities
Membership 1,139,149
15		 1,139,164
Raising Awareness 1,048,124
49,744		 1,097,868
Research 222,388
333,017		 555,405
Groups 245,109
2,485		 247,594
2,654,770
385,261		 3,040,031
Breakdown of costs of charitable activities
Grants
Support
Direct made
costs		 2019
costs (note 6) (note 4+5) Total
£ £
£		 £
Membership 852,460
-
286,704
1,139,164
Raising Awareness 663,804
-
434,064
1,097,868
Research 107,427
387,887
60,091
555,405
Groups 170,843
-
76,751
247,594
1,794,534
387,887
857,610
3,040,031
Research support cost breakdown
Total
Direct		 Grants
Support Costs
costs		 made
£
£		 £
Research costs -
107,427
387,887
Support costs 60,091
7,072
53,019

All support costs are allocated on a headcount basis.

Page 34

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

4 Total support cost breakdown by activity

Cost of raising funds (note 5)
Donations and legacies
Trading activities
Charitable activities (note 3)
Cost of raising funds (note 5)
Donations and legacies
Trading activities
Charitable activities (note 3)		 Staff
costs
£
48,680
20,244
260,703
329,627
Staff
costs
£
31,762
22,797
276,639
331,198


Other
costs
£
52,823
36,724
472,943
562,490
Other
costs
£
66,703
47,878
580,971
695,552		 Total
2020
£
101,503
56,968
733,646
892,117
Total
2019
£
98,465
70,675
857,610
1,026,750

Page 35

2020 £ 101,504 56,969 297,777 338,275 50,859 46,735 892,119 2019 £ 98,465 70,765 286,704 434,064 60,091 76,751 1,026,750
Office costs £ 22,259 15,475 80,889 91,890 13,816 12,695 237,024 Office costs £ 34,353 24,657 100,026 151,437 20,965 26,777 358,215
IT costs £ 15,398 10,705 55,956 63,566 9,557 8,782 163,964 IT costs £ 15,093 10,834 43,947 66,535 9,211 11,765 157,385
HR costs £ 6,110 4,248 22,203 25,223 3,792 3,485 65,061 HR costs £ 8,501 6,102 24,754 37,476 5,188 6,627 88,648
Support cost apportionment Support staff Depreciation Governance £
£
£		 Expenditure on raising funds Donations and legacies
48,680
7,797
1,260		 Trading activities
20,244
5,421
876		 Charitable activities Membership
105,816
28,334
4,579		 Raising Awareness
120,207
32,187
5,202		 Research
18,073
4,839
782		 Groups
16,607
4,447
719		 Total
329,627
83,025
13,418		 Support staff Depreciation Governance £
£
£		 Expenditure on raising funds Donations and legacies
31,762
6,749
2,007		 Trading activities
22,797
4,844
1,441		 Charitable activities Membership
92,482
19,650
5,845		 Raising Awareness
140,016
29,750
8,850		 Research
19,383
4,119
1,225		 Groups
24,757
5,260
1,565		 Total
331,197
70,372
20,933
5

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

6 Grants payable

rants payable
Grants to institutions
2020 2019
£ £
Nottingham University, Bains - -
Leiden University Medical Centre, Koning - -
Nottingham University, Epidemiology - 67,765
Contemporary
epidemiology		 of
coeliac
disease		 and
dermatitis herpetiformis in the United Kingdom (Dr Laila
Tata, University of Nottingham)
INNOVATE
Development and validation of a minimally invasive
-		 87,775
comprehensive diagnostic coeliac disease test (Dr Michael
Parks, Nonacus Ltd)
INNOVATE
Using software to improve the long term management of
16,208		 97,248
people affected by coeliac disease (Dr Chris Kennelly,
Cievert Ltd)
INNOVATE
Protein ingredients from UK crops as source of gluten like
30,116		 90,349
functionality (Dr Lydia Campbell, Nandi Proteins Ltd)
INNOVATE
Development of an AI solution for diagnosis and
87,500
43,750
assessment of severity of pathology in small intestinal
biopsies in suspected or known coeliac disease (Dr
Elizabeth Soilleux, Lyzeum Ltd)
Dissertations Awarded 4,000 1,000
137,824 387,887

In accordance with the accounting policy outlined in note 1.5, only the first year of funding commitment is recognised on the accounts for multiyear grants which are conditional on an annual review of progress which determines if future funding is provided.

Page 37

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

7 Net incoming/(outgoing) resources for the year

This is stated after charging:

his is stated after charging:
2020 2019
£ £
Depreciation 93,936 79,038
Operating lease rentals 77,367 75,936
Governors liability insurance 1,100 1,100
Audit services 10,315 10,150
Non-audit services provided by the auditor
General advice 125 -
Tax compliance 550 550

Travel costs amounting to £178 (2019 – £2,248) were reimbursed to 2 (2019 – 8) members of the Board of Governors.

8 Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2020
£
1,368,528
135,714
74,214
1,578,456		 2019
£
1,298,445
127,951
69,414
1,495,810

The number of employees whose emoluments amounted to over £60,000 during:


uring:
2020 2019
Number Number
£80,000 - £90,000 1 -

The key management personnel of the group (and charity) comprise the governors, the chief executive and senior management team. The total employee benefits of the key management personnel of the group were £417,544 (2019: £376,462). None of the governors have been paid any remuneration or received any benefits for performing their role as governor of the charity.

Termination payments for payments in lieu of notice (PILON) totalling £4,098 were paid in the year.

Page 38

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

8 Staff costs and numbers

(continued)

The average monthly number of employees during the year, calculated on the basis of average headcount was as follows:

2020
Number
Advice and information
38
Administration and support
8
46		 2019
Number
34
8
42

9 Taxation

The charitable company’s activities are exempt from corporation tax in its charitable activities under Sections 466 to 493 of the Corporation Tax Act 2010.

10 Fixed assets – Group and charity

Furniture & Computer
fittings equipment
£ £
Cost
At 1 January 2020
151,202
683,904
Additions
1,390
22,146
Completion of WIP
At 31 December 2020
152,592
706,050
Depreciation
At 1 January 2020
143,976
505,927
Charge for the year
7,321
86,615
At 31 December 2020
151,297
592,542
Net book values
At 31 December 2020
1,295
113,508
At 31 December 2019
7,226
177,977
Total
£
835,106
23,536
858,642
649,903
93,936
743,839
114,803
185,203

Page 39

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

11 Fixed assets investments – Group and Charity

(Charity only)
Investments in
Unit
subsidiaries
trusts
£
£
Market value at 1 January 2020
2
1,058,928
Additions
-
Disposals
-
(887,027)
Realised investment gains/(losses)
-
(171,901)
Unrealised investment (losses)/
gains
-
-
Market value at 31 December 2020 2
-
Historical cost at 31 December
2020
2
-
Market
2020
value
cost
£
£
Cazenove Responsible Multi
Asset Fund
-

M&G Charifund (income units)
-

M&G Charibond (income units)
-

-
 (Charity only)
Investments in
Unit
subsidiaries
trusts
£
£
Market value at 1 January 2020
2
1,058,928
Additions
-
Disposals
-
(887,027)
Realised investment gains/(losses)
-
(171,901)
Unrealised investment (losses)/
gains
-
-
Market value at 31 December 2020 2
-
Historical cost at 31 December
2020
2
-
Market
2020
value
cost
£
£
Cazenove Responsible Multi
Asset Fund
-

M&G Charifund (income units)
-

M&G Charibond (income units)
-

-
 2020
Total
£
1,058,930
(887,027)
(171,901)
-
2
2

Market

value

£
-
1,058,928
-
-
-
-
-
1,058,928		 2019
Total
£
992,584
1,031,066
(1,036,172)
43,591
27,861
1,058,930
1,031,068



-
-
-
-
2019
cost
£
1,031,066
-
-
1,031,066

Holdings of more than 20%

The charitable company holds more than 20% of the share capital in the following company:

Country of Shares held
Company incorporation Class %
The Coeliac Trading Company Limited England & Wales Ordinary 100

The principal activity of The Coeliac Trading Company Limited (Company number 02856981) is to raise funds on a commercial basis for Coeliac UK (Limited by Guarantee), a registered charity. The address of the registered office is Third Floor, Apollo Centre, Desborough Road, High Wycombe, Buckinghamshire, HP11 2QW.

Page 40

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

11 Fixed assets investments – Group and Charity

(continued)

The aggregate amount of capital and reserves and the results of this undertaking for the year ended 31 December 2020 were:


r the year ended 31 December 2020 were:
Profits to
reserves
Capital for the year
£ £
The Coeliac Trading Company Limited 2 -

During 2020 The Coeliac Trading Company Limited donated its entire profits under gift aid of £24,536 (2019: £29,621) to Coeliac UK (Limited by Guarantee). The profits are net of income and expenditure totalling £308,375 (2019: £369,954) and £283,839 (2019: £340,333) respectively.

Current asset investments and deposits held relate exclusively to cash deposit accounts amounted to £953,754 (2019: £505,691) as shown on the balance sheet.

12 Debtors

Trade debtors
Income tax and VAT recoverable
Amounts owed by group
undertakings
Prepayments and accrued income		 Group
2020
2019
£
£
305,375
226,873
-
-
-
-
388,776
477,819
694,151
704,692		 Charity
2020
2019
£
£
237,887
130,146
-
-
369,846
339,138
388,776
476,304
996,509
945,588		 Charity
2020
2019
£
£
237,887
130,146
-
-
369,846
339,138
388,776
476,304
996,509
945,588
945,588

Page 41

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

13 Creditors: amounts falling due within one year

Group Group Charity Charity
2020 2019 2020 2019
£ £ £ £
Grants payable 485,613
570,381
485,613		 570,382
Trade creditors 197,935
105,450
195,043		 100,272
Other tax and social security 129,284
61,278
119,996		 40,189
Accruals 178,608
112,156
176,689		 107,960
Deferred income (see below) 595,215
530,373
562,553		 441,942
1,586,655
1,379,638
1,539,893		 1,260,745
Deferred income – Charity
2020 2019
£ £
At 1 January 2020 441,942 462,226
Released during the year (427,126) (453,252)
Deferred income related to membership, licensing
and sponsorship 547,737 432,968
At 31 December 2020 562,553 441,942
14 Provision for liabilities and charges – Group and Charity
£
At 1 January 2020 35,000
Charge for the year 5,000
At 31 December 2020 40,000

The provision relates to dilapidations costs that may become payable at the end of a current tenancy. The current tenancy has 8 years remaining.

Page 42

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

15 Designated funds – Group and Charity

Designated funds are funds earmarked by the board of governors for particular purposes. At the year end the unspent designated funds were:

Balance at Balance at
1 January 31 December
2020 Incoming Outgoing 2020
£ £ £ £
Research (Innovate) 179,888
-		 (133,824)
46,064
Research Fund 9,716
475		 - 10,191
Local voluntary support groups
81,230
39,866		 (39,019)
82,077
270,834
40,341		 (172,843)
138,332
Balance at Balance at
1 January 31 December
2019 Incoming Outgoing 2019
£ £ £ £
Research 234,757
-		 (54,869)
179,888
Research Fund 1,281
8,435		 - 9,716
Local voluntary support groups
97,444
55,620		 (71,834)
81,230
333,482
64,055		 (126,703)
270,834

Research

Income to be used for funding medical research into coeliac disease and dermatitis herpetiformis, designated by the Board from unrestricted funds. The current balance represents the matched funding for the Innovate Grant, these funds have now all been awarded in the research call at the end of 2020 and will be released as the project progresses.

Local voluntary support groups

The collective funds held and administered by Volunteer Groups, representing their working funds.

Page 43

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

16 Restricted funds – Group and Charity

Balance at Balance at Investment Investment Balance at
1 January income 31 December
2020 Incoming Outgoing & gains 2020
£ £ £ £ £
Research (Innovate) -
Research Fund 188,344
47,723		 (10,246)
4,714		 230,535
Daily newspaper advert
for Awareness Week 1,464 - - - 13 1,477
Care System campaigns 17
-		 - - - 17
Membership Helpline -
49		 (49) - -
Diagnosis TV Advert 2,926
-		 - - 2,926
Diagnosis Life Channel
NHS 2,000 - - - 2,000
Pharmacy Packs 1,057
-		 - 10 1,067
Diagnosis campaign -
48,000		 (41,820) - 6,180
Events and Support in
West Sussex - 5,000 (5,000) - -
Events for children with
CD and families - 5,000 - - 5,000
Government Furlough
grant - 143,064 (143,064) - -
Gluten Ataxia 4,250 3,328 - - 7,578
200,058
252,163		 (200,179)
4,737		 256,779
Balance at Investment Balance at
1 January income 31 December
2019 Incoming Outgoing & gains 2019
£ £ £ £ £
Research (Innovate) 249,009
-		 (249,009) - -
Research Fund 106,478
169,063		 (96,921)
9,724		 188,344
Local Support 2,485
-		 (2,485) - -
Daily newspaper advert
for Awareness Week 1,419 - - 45 1,464
Care System campaigns 495
-		 (478) - 17
Freed from Research 15,242
-		 (15,242) - -
Membership Helpline -
15		 (15) - -
Diagnosis TV Advert 2,278
45,000		 (44,352) - 2,926
Diagnosis Life Channel
NHS 2,000 - - - 2,000
Pharmacy Packs 1,024
-		 - 33 1,057
Big Lottery Fund –
(Awards for All Scotland) 4,915 - (4,915) - -
Gluten Ataxia - 4,250 - - 4,250
385,345
218,328		 (413,419)
9,802		 200,058

Page 44

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

16 Restricted funds – Group and Charity

(continued)

The principal purposes for the above restricted funds were as follows:

Research

Income received to be used solely for funding medical research into coeliac disease and dermatitis herperiformis (DH).

Local support

The collective funds held and administered by Volunteer Groups.

Daily newspaper advert for Awareness Week

Donations towards an advertisement to be placed in a major national newspaper during Awareness Week to raise the profile of coeliac disease.

Care System campaign

Campaign to improve awareness in the care system.

Freed from Research

Campaign to raise funds for research.

Membership Helpline

Funding for ongoing costs of providing the Coeliac UK Helpline.

Diagnosis TV Advert

TV advertising campaign to improve diagnosis rates for coeliac disease.

Diagnosis Life Channel NHS

Advertising campaign for patients via Life Channel in GP surgeries to raise awareness of coeliac disease.

Pharmacy packs

Donations towards production of pharmacy information packs.

Big Lottery Fund (Awards for all Scotland)

Grant to fund awareness raising in the community in Scotland.

Awards For All Budget Meal Planner

To produce a range of weekly meal planners, to assist people on low incomes to manage their gluten free diet on a budget whilst maintaining a health balanced diet. The meal planners will be downloadable as pdf files from our website, available in hard copy for people without internet access and included in our packs for newly-diagnosed patients, as well as promoted to our network of Healthcare Professionals.

Gluten Ataxia

Income to fund a project to achieve an earlier diagnosis for those with Gluten Ataxia.

Page 45

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

16 Restricted funds – Group and Charity

(continued)

Events and Support in West Sussex

Funds to be used for an all ages party with gluten free buffet at any venue in West Sussex and for the benefit the West Sussex Coeliac UK local group.

Events for children with CD and families

Funds to be used by Coeliac UK for events to benefit coeliac children and their families.

Diagnosis Campaign

Funds have been granted to pay for the development of campaign materials to promote diagnosis of coeliac disease in children for a campaign in 2021 in support of ongoing activities regarding awareness and education on coeliac disease.

17 Analysis of net assets between funds – Group

Unrestricted Designated Restricted
funds
funds
funds
2020
2020
2020
£
£
£
Tangible assets
114,803
-
-
Investments
-
-
-
Net current assets less provisions
for liabilities and charges
1,377,139
138,332
256,780
1,491,942
138,332
256,780
Unrestricted Designated Restricted
funds
funds
funds
2019
2019
2019
£
£
£
Tangible assets
185,203
-
-
Investments
885,376
84,653
88,899
Net current assets less provisions
for liabilities and charges
292,192
186,181
111,159
1,362,771
270,834
200,058		 Total
2020
£
114,803
-
1,772,251
1,887,054
Total
2019
£
185,203
1,058,928
589,532
1,833,663

Page 46

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

18 Lease commitments – Group

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:


follows:

Within one year
Between two and five years		 Land and buildings
2020
2019
£
£
87,193
93,212
179,781
278,205
266,974
371,417		 Office equipment
2020
2019
£
£
6,429
6,546
13,396
13,366
19,825
19,912
19,912

19 Voluntary help

The charity had extra support from 688 volunteers in 2020 (2019: 1,045). The benefit of their contribution is not reflected in the financial statements.

20 Related party transactions

The charity received a management fee of £237,748 (2019: £250,302) from its subsidiary The Coeliac Trading Company Limited.

At 31 December 2020 a balance of £369,845 (2019: £339,138) was due from The Coeliac Trading Company Limited.

There were no other related party transactions in the reporting period that require disclosure.

Page 47

Coeliac UK (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 December 2020

21 Pension commitments

The estimated pension deficit as at 30 September 2019 is £50,637 (30 September 2018: £47,367). This is in accordance with the most recent independent valuation performed on 21 July 2020. Under the new recovery plan, from 1 April 2019 the deficit contributions that are required from Coeliac UK are £1,915.28 a year, payable in monthly instalments of £159.61. These payments increase by 3% per annum from 1 April 2020 and on each 1 April thereafter, as they do under the current recovery plan.

The deficit contributions agreed between the company and scheme at the year end date are as follows:

Year Amount (£)
1 2,015
2 2,076
3 2,138
4 2,202
5 185

The present value of the future provision for Coeliac UK is calculated as follows:

resent value of the future provision for Coeliac UK is calculated
Provision at the start of the period 10,275
Discount factor interest expense 104
Deficit contribution paid (1,957)
Impact of change in assumptions 147
Provision at end of period 31 December 2020 8,569

The current deficit of £50,637 is being paid at an immaterial amount to the charity on an annual basis, this deficit would only fall due in its entirety should the charity decides to withdraw from the scheme, the Board of Governors currently have no plans short or long term to withdraw from this scheme.

Page 48

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

22 Reconciliation of net income/(expenditure) for the reporting period (as per the SOFA)

2020 2019
£ £
Net income/(expenditure) for the reporting period
(as per the SOFA) 53,391 (120,633)
Adjustments for:
Depreciation charges 93,936 79,038
Losses/(gains)/losses on investments 171,844 (71,452)
Dividends from investments (21,096)
(32,917)
Bank interest (4,547)
(2,603)
(Increase)/decrease in debtors 10,541 (229,729)
Decrease/(increase) in creditors 207,016 156,766
Net cash provided by operating activities 516,085 (221,530)
22 Reconciliation of net income/(expenditure) for the reporting period
(as per the SOFA) (continued)
2020 2019
£ £
Analysis of cash and cash equivalents
Cash in hand 455
822
Notice deposits (less than 3 months) 2,704,300
1,298,656
Total cash and cash equivalents 2,704,755
1,299,478

Analysis of changes in net debt

Balance at Balance at
1 January
31		 December
2020 Cash flows 2020
£ £ £
Cash 822
(367)
455
Cash equivalents 1,298,656
1,405,644
2,704,300
1,299,478
1,405,277
2,704,755

Page 49

Coeliac UK (Limited by Guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

23 Post balance sheet event

The Coronavirus global pandemic continues to provide significantly impact and uncertainty in the global markets and economy. The duration and ongoing severity of this impact is unknown at this time. During the year, The Charity mitigated their exposure to such risk by selling the investments held therefore no impact of the uncertainties faced will be evident to the Charity.

The liability on the defined benefit pension scheme may also increase due to market downturn but an estimate on the increase, and its materiality, cannot be made at this time as the fund has not been revalued. The liability would only be realised on withdrawal from the scheme.

Page 50