2022-12-31-accounts - The Novo Nordisk UK Research Foundation

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Charity Registration No. 1056410 (England and Wales)

THE NOVO NORDISK UK RESEARCH FOUNDATION

REPORT AND

UNAUDITED FINANCIAL STATEMENTS

for the year ended 31 December 2022

The Novo Nordisk UK Research Foundation

LEGAL AND ADMINSTRATIVE INFORMATION

Trustees serving during the year	Professor David Russell-Jones (appointed as Chairman
and up to date of approval	on 24 March 2022)
	Professor John Petrie (retired as Chairman
	on 24 March 2022)
	Dr Gillian Hood (retired 17 January 2022)
	Dr Avideh Nazeri
	Professor John Gregory
	Professor Kamlesh Khunti (retired 31 May 2022)
	Professor Dan Cuthbertson
	Professor Simon Griffin
	Professor Shareen Forbes
	Mr Alex Todd
	Dr Rita Forde (appointed 24 March 2022)
Secretary	Dr Paul Chester
Charity number	1056410
Principal address	Novo Nordisk UK Research Foundation
	3 City Place
	Beehive Ring Road
	Gatwick
	West Sussex
	RH6 0PA
Independent examiner	RSM Tax and Accounting Limited
	Chartered Accountants
	3rdFloor, Portland
	25 High Street
	Crawley, West Sussex
	RH10 1BG
Bankers	Barclays Bank Plc
	Corporate Banking
	PO Box 3, 1 North End
	Croydon, Surrey CR9 1UF

The Novo Nordisk UK Research Foundation

TRUSTEES’ RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS for the year ended 31 December 2022

The trustees present their annual report and financial statements for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 (FRS 102) effective 1 January 2019.

CONSTITUTION

The Novo Nordisk UK Research Foundation was established by a Trust Deed dated 20 June 1996, amended 28 September 2006.

OBJECTS

The formal objects are as detailed in the original Trust Deed dated 20 June 1996 and the amended Trust Deed of 28 September 2006. These state the objectives as being the relief of sickness in the United Kingdom and in particular, but not so as to limit the generality, of the foregoing:

Promoting research into the causes and treatment of diabetes mellitus and publishing the useful results thereof.
The preservation and protection of the health of the public by educating them and conducting research into the causes and prevention of diabetes.
The advancement and promotion of education in the treatment of diabetes by members of the medical profession.

ORGANISATION

The trustees who served during the year and up to the date of the approval of the accounts are set out on page 1. Under the Trust Deed there shall be at least five trustees, with a maximum of eleven, and shall include the Medical Director of Novo Nordisk Limited, or such other employee of Novo Nordisk Limited as it may select. They meet twice yearly and are assisted by two advisory committees which assess award applications.

GRANT MAKING POLICY

The charity invites applications for funding of projects through advertising in social media. Applicants are invited to submit a summary of their proposals in a specific format. The applications are reviewed against specific criteria and research objectives that are set by the trustees. Progress reports are required for one off funding, and for ongoing project reports to ensure that adequate supervision is being provided and the project quality is maintained.

Who can apply?

Healthcare professionals allied to diabetes.

Grant Awards 2022

OO (£12,000)

To determine whether cell-surface markers are unique to developing beta-cells, then use them to purify cells being converted to beta-cells from stem cell populations.

The Novo Nordisk UK Research Foundation

TRUSTEES’ RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS for the year ended 31 December 2022

LM (£9,223)

Exploring the role of c-peptide in the development of vascular complications in youth with type 1 diabetes.

Fellowship Awards 2022

The following fellowships (total £1,053,572) were supported:

2018 - AA

Exploring the effect of very low-calorie diet with and without adjuvant exercise training on vascular function and metabolic health in overweight individuals.

2019 - CM

A qualitative study exploring the barriers and facilitators to healthy lifestyle choices in women with a history of gestational diabetes (GD).

2020 - YT

Bile acid therapy for diabetes and obesity.

2021 - ET

The impact of total diet replacement for remission of type 2 diabetes on disordered eating, for better or for worse?

2022 - RS

Redesigning the pathway to diagnosis in childhood type 1 diabetes (T1D).

PUBLIC BENEFIT

Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties and believe that this is demonstrated by the grants and financial support offered as detailed above and below.

REVIEW OF THE YEAR

The charity’s aim is to fund clinical research and support researchers early in their career in the field of Diabetes in the UK, and its activities to this end continue to develop satisfactorily.

In 2022, £260,000 was received from the charity’s sole donor, Novo Nordisk Limited (2021: £255,000).

During the year, £308,865 was expended in fellowship and grant payments (2021: £211,993), and a further £13,205 in direct support costs (2021: £5,734). Due to the donations exceeding income in the year, the charity’s funds are in deficit at the year end. The trustees have secured an undertaking from Novo Nordisk Limited to cover future committed expenditure on research fellowships awarded by the charity.

Per an agreement dated 6 October 2021 Novo Nordisk Limited agreed to offer non-financial support to the charity by way of administrative support. This agreement states that the Administrator and a Secretary of Novo Nordisk Limited are to assist with the day to day running of the charity for no more than 50% of their working time. The Novo Nordisk Limited personnel will hold the positions of Administrator and Secretary. The Administrator will dedicate a maximum of 17 working hours per week to this position.

TRUSTEES’ RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS for the year ended 31 December 2022

The Novo Nordisk UK Research Foundation

As Novo Nordisk Limited does not run a timesheet system there is no efficient way to accurately quantify the value of this support. Therefore, as the charity does not feel this can be measured reliably, no value has been included within these accounts.

During the year, the Administrator reduced her working hours, resulting in the charity needing additional administration support. Novo Nordisk Limited agreed to engage with an external firm who would provide these services to the charity and Novo Nordisk Limited would cover the costs associated with this work. This work commenced on 28 July 2022. Based on this, we are able to measure reliably the cost of this service and therefore have included the cost within these accounts as donated services. There has been no change to the services provided by the Secretary.

RESERVES POLICY AND INVESTMENT POLICY

Total reserves at 31 December 2022 were in deficit amounting to £31,591 (2021: surplus of funds £23,219). It is the policy of the charity to maintain a sufficient cash balance to cover expenditure for a year. The trustees have secured an undertaking from Novo Nordisk Limited to cover future committed expenditure on research fellowships awarded by the charity.

KEY MANAGEMENT PERSONNEL

The trustees consider the Board of Trustees as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a dayto-day basis supported by two part time administrative persons. Details of trustees’ expenses are disclosed in note 4 to the accounts.

Trustees are required to disclose all relevant interests and register them with the secretary and in accordance with the charity’s policy withdraw from decisions where a conflict of interest arises. All such interests have been disclosed. The 2016 Fellowship award to Dr Rachel Livingstone is part supervised by Professor John Petrie, Chair of Trustees. This conflict has been declared and documented (AGM minutes 2016) and, in accordance with the Foundation Conflict of interest policy, Professor Petrie absented himself from the discussion concerning the award.

FUTURE PLANS

The Novo Nordisk UK Research Foundation future plans are outlined in the Business Plan 2021-2023. In summary the Foundation will continue to attract and support high quality research through the three funding streams – Fellowships, Grants and Fund awards. All awards will continue to be made according to open competitive guidelines as laid down by the Association of Medical Research Charities. The Foundation will pay particular attention to appropriate financial management ensuring that the awards, on average, stay within the annual award from our donor Novo Nordisk Limited.

RISK MANAGEMENT

The trustees have reviewed the major strategic, business, and operational risks which the charity faces and have established systems to mitigate those risks, including appropriate indemnity insurance.

Signed on behalf of the trustees on

20/05/23

Professor Shareen Forbes (Trustee)

The Novo Nordisk UK Research Foundation

TRUSTEES’ RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS for the year ended 31 December 2022

The trustees 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).

The law applicable to charities in England & Wales 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 charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements and;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE NOVO NORDISK UK RESEARCH FOUNDATION

I report to the trustees on my examination of the financial statements of The Novo Nordisk UK Research Foundation (‘the charity’) for the year ended 31 December 2022, which are set out on pages 7 to 12.

Responsibilities and basis of report

As the trustees of the charity, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair view’, and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed: Name: ZOE LONGSTAFF-TYRRELL FCA DChA The Institute of Chartered Accountants in England and Wales

ON BEHALF OF RSM UK TAX AND ACCOUNTING LIMITED Chartered Accountants Portland 25 High Street Crawley West Sussex RH10 1BG

Date: 22/05/23

The Novo Nordisk UK Research Foundation

UNAUDITED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022

Notes INCOME from Donations 2 TOTAL INCOME EXPENDITURE on Charitable activities 3 TOTAL EXPENDITURE NET (EXPENDITURE)/INCOME and net movement in funds Reconciliation of funds Balance brought forward at 1 January 2022 Balance carried forward at 31 December 2022 8		2022 £ 272,000 272,000 326,810 326,810 (54,810) 23,219 (31,591)	2021 £ 255,000 255,000 221,987 221,987 33,013 (9,794) 23,219

All funds are unrestricted.

The notes on pages 9 to 12 form part of these accounts.

The Novo Nordisk UK Research Foundation

UNAUDITED BALANCE SHEET for the year ended 31 December 2022

Notes CURRENT ASSETS Debtors 5 Cash at bank and in hand CREDITORS: Amounts falling due within one year 6 Net current assets CREDITORS: Amounts falling due after more than one year 7 TOTAL NET (LIABILITIES)/ASSETS UNRESTRICTED FUND 8	2022 £ - 629,626 629,626 (360,498) 269,128 (300,719) (31,591) (31,591)	2021 £ 12,000 658,684 670,684 (319,887) 350,797 (327,578) 23,219 23,219

20/05/23

Approved by the trustees on and signed on their behalf by:

Professor Shareen Forbes (Trustee)

The notes on pages 9 to 12 form part of these accounts.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS for the year ended 31 December 2022

The Novo Nordisk UK Research Foundation

1 ACCOUNTING POLICIES

ACCOUNTING CONVENTION

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

The accounts have been prepared to give a ‘true and fair’ view and 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective January 2019.

The Charity constitutes a public benefit entity as defined by FRS 102.

GOING CONCERN

The trustees have considered whether it is appropriate to prepare the financial statements on the basis that the Charity is a going concern. There is an undertaking from Novo Nordisk Limited to cover future committed expenditure on research fellowships awarded by the Charity therefore, the trustees consider it appropriate to adopt the going concern basis for the preparation of its financial statements with funding already secured for 2023, and it is anticipated that this will continue for at least twelve months from the date of approval of these financial statements. Due to the donations exceeding income in the year, the charity’s funds are in deficit at the year end. The trustees have secured an undertaking from Novo Nordisk Limited to cover future committed expenditure on research fellowships awarded by the charity.

INCOME RECOGNITION

Income from donations is recognised when there is evidence of entitlement, receipt is probable, and its amount can be measured reliably. Entitlement usually arises immediately on its receipt.

Donated services are recognised when received at the value of the gift to the charity provided the value of the gift can be measured reliably.

EXPENDITURE RECOGNITION

Expenditure is included on an accrual’s basis.

Support costs comprise costs for processing grants and applications, including support to actual

and potential applicants.

Governance costs comprise costs for the running of the charity itself as an organisation.

Grants payable are charged in the year when the offer is conveyed to the recipient. Amounts not paid at the year end are included as creditors.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS for the year ended 31 December 2022

The Novo Nordisk UK Research Foundation

1 ACCOUNTING POLICIES (continued)

FUNDS

There are no specific restrictions on the use of the General Fund apart from the furtherance of the Charity’s aims.

TAXATION

The Charity is a registered charity with the Charity Commission and therefore is not liable for income tax or corporation tax derived from its charitable activities, as it falls within the various exemptions available to registered charities.

IRRECOVERABLE VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

FINANCIAL INSTRUMENTS

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.

DEBTORS

Prepayments are valued at the amount prepaid.

CREDITORS

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

2 DONATIONS Corporate donor Donated services 3 EXPENDITURE ON CHARITABLE ACTIVITIES Grants Research Fellowship – grants to 1 individual (2021: 1 individual) Grants to Doctors – grants to 2 individuals (2021: 2 individuals) UK Diabetes Fund – grants to 9 individuals (2021: 7 individuals)	2022 £ 260,000 12,000 272,000 2022 £ 276,644 20,960 11,261 308,865	2021 £ 255,000 -
		255,000
		2021 £ 186,335 15,484 10,174 211,993

10 -

The Novo Nordisk UK Research Foundation

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS for the year ended 31 December 2022

3 EXPENDITURE ON CHARITABLE ACTIVITIES (continued) Support costs Indemnity insurance AMRC Subscription Advertising Bank charges and compensation Administration support Governance Fees payable to the independent examiner for: Accountancy fees Independent Examiners fees Total expenditure on charitable activities	2022 £ 773 485 - (53) 12,000 13,205 2,760 1,980 4,740 326,810	2021 £ 895 533 4,059 247 - 5,734 2,460 1,800 4,260 221,987

4 STAFF COSTS

None of the trustees received any remuneration during the current or previous year, nor where any expenses reimbursed to the trustees in either year. There were no employees in either year.

As Novo Nordisk Limited does not run a timesheet system there is no efficient way to accurately quantity the value of this support. Therefore, as the charity does not feel this can be measured reliably, no value has been included within these accounts.

There are no related party transactions in either accounting period that require disclosure.

11 -

The Novo Nordisk UK Research Foundation

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS for the year ended 31 December 2022

5 DEBTORS: Other debtor – Grant to reimbursed 6 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Grants Accruals 7 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Grants 8 UNRESTRICTED FUND Balance at 1 January 2022 Net (expenditure)/income for the year Balance at 31 December 2022		2022 £ - - 2022 £ 355,818 4,680 360,498 2022 £ 300,719 2022 £ 23,219 (54,810) (31,591)		2021 £ 12,000 12,000 2021 £ 315,627 4,260 319,887 2021 £ 327,578 2021 £ (9,794) 33,013 23,219

12 -