EUROPEAN RENAL ASSOCIATION REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023
EUROPEAN RENAL ASSOCIATION- CONTENTS Page Reference and Admlnlstrative Details Report of the Council of Management 3-10 Report of the Auditors Consolldated and Assoclatlon Statement of Flnanclal Activities 15 Consolidated and Assoclatlon Balance Sheets 16 Consolldated and Assoclatlon Statement of Cash Flows 17-18 Statement of Accountlng Pollcles 19-22 Notes to the Financlal Statements 23-32
EUROPEAN RENAL ASSOCIATION- REFERENCE AND ADMINISTRATIVE DETAILS Status The following report and financial statements describe the combined affairs of the Association and its subsidiary company consolidated together as a charitable group. A report and financial statements for the subsidiary company is available separately. Council of Management (all were in office at 31 December 2023) a) Four ex-officio members. namely Prof. Christoph Wanner (President) Prof. Ivan Rychlik (Secretary-Treasurer} Prof. Danilo Fliser (Renal scien Chair) Prof. Alberto Ortiz (Clinical Nephrology Governance Chair) b) Nine ordinary members, namely: Prof. Ana Carina Costa Ferreira (term started June 17. 2023) Prof. Pieter Evenepoel Prof. Giovanni Gambaro Prof. Giuseppe Grandaliano (term started June 17, 2023) Prof. Albert Ong Prof. Alexander Rosenkranz Prof. Pantelis Sarafidis Prof. Roser Torra Prof. Serhan Z. Tuglular Executlve Dlrector Monica Fontana Independent Auditor PKF Littlejohn LLP 15 Westferry Circus Canary Wharf London E14 4HD United Kingdom Registered Charity Number 1060134
EUROPEAN RENAL ASSOCIATION - REFERENCE AND ADMINISTRATIVE DETAILS Main Bankers & Investment Advisors HSBC UK Bank PIC 69, Pall Mall St James London SW1Y SEY United Kingdom UBS AG 45, Bahnhotstrasse CH-8098 Zurich Switzerland Azimut Capital Management 4. Via Cusani 20121 Milano Italy Credit Agricole Cariparma Piazzale Barbieri 291A 43125 Paa Italy Reglstered Offlce 15 Wesffery Circus, Canary Wharf London E14 4HD United Kingdom Operatlve Headquarters Strada dei Mercati, 161A 43126 Parma Italy Sollcltors Russell-cooke 2 Putney Hill London SW15 6AB United Kingdom
EUROPEAN RENALASsOcT10N- REPORT OF THE COUNCIL OF MANAGEMENT The members of the Council have pleasure in presenting their report, together with the audited financial statements for the year ended 31 Dember 2023. structure, Governance and Management European Renal Association is an unincorporated association which was registered with the Charity Commissioners on the 14 January 1997 under number 1060134. The General Assembly, on 7 June 2021, decided to change the name of the Charity from European Renal Association - European Dialysis and Transplant Association (ERA-EDTA) to European Renal Association (ERA), receiving formal approval by the Charity Commission for this change. The governing instrument is the Charivs Constitution, which was last revised and approved on 7 June 2021. The administration of the Association as determined by the Constitution is carried out by: The General Assembly The Council b) The President of the Association d) The Secretary-Treasurer The Renal Science Chair Election of Council Members Ordinary members of the Council are elected by the General Assembly. The candidates must be fvll members and supported by two other full members. The term of the ordinary council members is three years. An ordinary member at the expiry of hislher period of office will be ineligible for re-election as an ordinary member of the Council for a period of three years. There are nine ordinary council members. Ex-officio members of the Council are nominated one year in advance by the Council and must then be elected by the General Assembly. They must be full members and also be supported by other full members, furthermore the candidates must have at least five years seniority in the Association. There are four ex-officio members: 1) The President of the Association is appointed for a period of three consecutive years and cannot be re- elected. He or she can only be appointed if he or she was elected as an ordinary council member. 2) The Secretary-Treasurer is appointed for a period of three years and may be r&elected for a further period not exceeding three years. 3) The Renal Science Chair is appointed for three years and may be re-elected for a further period not exceeding three years. 4) The Clinical Nephrology Govemance Chair is appointed for three years and may be re-elected for a further period not exedIng three years.
EUROPEAN RENALASSOCIATION- REPORT OF THE COUNCIL OF MANAGEMENT Structure, Governance and Management (continued) The minimum number of Council members is 7, the maximum 13,. there cannot be more than two people on the Council from the same County. The Association is represented by its President or by any other person appointed by the Council. Members of the Association are Honorary members, Senior members, Full members. Associate members and Congress members. The General Assembly is the supreme authority of the Association. The meetings of the General Assembly can be ordinary or extraordinary. Induction and Training of Council Members All newly elected Council members receive a copy of the Constitution and Rules as well as a formal presentation regarding the duties and the legal obligations as trustees with further links of relevant materials all of which they are asked to read carefully. Finally, they must sign an official declaration that confimis that they are suitable, according to the law. to act as Council members (being Trustees). Council of Management's Aims, Objectives and Responsibilities The Council meets on average twice a month (virtual Council meetings) and four times a year (in person), plus there are other informal meetings as required. The virtual meetings started during the Covid-19 pandemic but have been instrumental to make sure that all decisions related to the many Charity activities are closely followed thus this initiative continues. The Council is the executive body of the Association and in furtherance of the objects of the Association the Council may execute powers to: Raise funds b) Buy, take on, lease or exchange any propety Subject to consent, sell, lease or dispose of all or any part of the propety of the Association Subject to consent. borrow and charge all or any part of the property of the Association Employ and dismiss staff Co-operate with other charrties Support any charitable trusts Incorporate a subsidiary company Do all such other lawful things to achieve the objectives of the Association d) g) h)
EUROPEAN RENALASSOCIATION- REPORT OF THE COUNCIL OF MANAGEMENT Council of Management's Aims, Objectives and Responsibilities (continued) Charity 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 Charity and of its financial acts'vits'es ft)r that period. In preparing those financial statements, the Trustees are required to: Select suitable accounting policies and then apply them consistently Make judgements and estimates that are reasonable and prudent State whether the policies adopted are in accordance with the Statement of Recommended Practi for Charities, and with applicable accounting standards. subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going conrn basis. unless it is inappropriate to assume that the Charity will continue in business b) d) The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Constitution. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detects'on of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. Decision making and the relationship between offices Overall, it is the General Assembly that is the supreme authority of the Association. The General Assembly can be ordinary and would be held at the time and place of the annual congress, or the General Assembly can be extraordinary, and summoned in special circUmstans. The Council however is the executive body of the Association and acts on its behalf. The group has offices in various European countries, these offices are simply executive and not decisional, in fact staff follows the instructions outlined and decided by the Council. Foreign Currencies The activities of the Association are transacted in various foreign currencies, the primary currency being Euros. The financial statements of the Association are therefore translated into Euros where appropriate. Subsidiary Trading Companies The Association has a trading subsidiary company, ERA-Eurocongress Limited, a company registered in England and Wales number 03431245. The company's primary activity is to sell exhibition space, industry symposia, advertising and other seplices to companies mainly in conjunction with congresses arranged by the Association. Objectives & Activities The main purpose of the Association is the advanment of medical knowledge for professionals by promoting scientific and clinical advances in the field of nephrology, dialysis, renal transplantation, hypertension and related subjects and consequently is for the benefft of the patients and thus the public. The Association achieves its objectives by publishing medical joumals (Nephrology Dialysis Transplantation and Clinical Kidney Journal, both published by Oxford Univ. Press), holding annual congresses, producing epidemiological data for research in the field of interest of the Association through the ERA Registy. organising continuing medical educational courses, supporting fellowships and grants for young professionals, supporting scientific research for important scientific clinical trials that could bring exireme benefit to nephrology patients, but also supporting specific working groups and committees that engage both in research projects as well as in educational courses, producing advise and implementation guidance as well as position statements for clinical practice through its specific committee ERBP (European Renal Best Practice), disseminating educational material through its congresses and e-seminars (webinars) and co-operating with other scientific medical organisations to reach the objectives outlined above.
EUROPEAN RENALASSOCIATION- REPORT OFTHE COUNCIL OF MANAGEMENT Objectives & Activities (continued) At the beginning of 2023 the new National Society Membership Project became a reality: 31 National Societies joined the project allowing EFIA to reach over 20.000 members in 2023. The project is so successful that the number of EU countries joining is growing and ERA is also reIving requests from outside of Europe (South America. India, etc.)- In March 2023, under the umbrella of EKHA (European Kidney Health Allian). of which ERA is a founding member, a special "Show your kidneys love. campaign featuring Tina Turner was launched with the aim of creating a very much needed awareness on kidney disease among the general public, in particular for prevention purposes. In 2023 ERA celebrated its 60th anniversary and the Congress in Milan (Italy) was an excellent opportunity to celebrate this important date. The Congress was a great success and a similar number of delegates decided to participate, a number as we had pre-covid 19: we had over 9,400 participants <8,000 in person and 1,400 virtually connected). The networking component was even more enhanced by a number of new initiatives that were very much appreciated by our members. For the first time during our annual Congress, we organised "Learn by practi. sessions offering a wide range of very practical tips for the younger generation of specialists (i.e. how to prepare a medical presentation, how to manage family and career, how to set up a clinical trial, etc.). This novelty was very much appreciated, and it will be featured also in the future. The launch of the ERA Neph-manual (an educational online manual which is an ERA membership benefit) was done during the annual Congress. At the General Assembly, at the annual Congress, the first women President was nominated as President Elect.. Prof. Roser Torra (Barcelona, Spain) will officially take office at the time of the 2024 General Assembly. The important EU Funded project, N-Path, which focuses on training in interventional nephrology presented its final outcome during the ERA annual Congress. Sustainability is extremely important. ERA has launched a campaign to make sure that this is taken very seriously in all its activities, annual Congress included. An important article was recently published specifically taking into consideration the 2023 ERA Congress: htt s'.Ildoi.or 110.10931ck'lsfae062 Last, but not least, during the Congress ERA gave a complimentary congress membership to all Turkish and Ukrainian nephrologists- this decision was taken by the ERA Council following the catastrophic earthquake in Turkey as well as the horrific ongoing conflict in Ukraine, thus allowing all our members living and working in these countries to fully attend the Congress (which is hybrid). 2023 was also the year in which the restructuring of the ERA Headquarters in Pamia was finalized. Since then the office hosted a number of very SUCssful full day board meekn'ngs of all ERA bodies, including the ERA Council, thus making full use of the new structure which has been called the "ERA Headquarters and Educational Hub.. The Ukrainian Renal Disaster Relief Task Force (RDRTF), which was created at the beginning of 2022, was transformed into a permanent task force with a new name (Kidney Relief in Disasters). This task force will focus on all disasters (man-made and natural) and also provide education on preparedness, in particular with the National Societies of Nephrology. In 2023 this task force supported members and thus also patients in the Earthquake in Turkey (612123). the civil war in Sudan (with ASN - American Society of Nephrology and ISN - International Society of Nephrology a joint statement in support to the population subject to any type of disaster was issued - 1915123), the floods in Morocco and, finally. the ongoing Gaza-lsrael conflict. Furthermore, on this very important topic, at the end of Dember 2023 at a leadership meeting with ASN and ISN, it was decided to join forces in this area to synergize the three Soc. efforts in this very important area and a very strong declaration against all man-made disasters was issued at the end of the year.
EUROPEAN RENALASSOCIATION- REPORT OF THE COUNCIL OF MANAGEMENT Networking and collaboration with other Societies is key for ERA and in 2023 ERA collaborated with patient associab'ons (EKPF - European Kidney Patient Federation and PKD International Polycystic Kidney Disease International) to create patient section on the ERA website, fvrthemiore, another outcome of the collaboration with EKPF was an important document in Chinese to create awareness on kidney disease among the Chinese communities present in Europe. CKJ'S (Clinical Kidney Journal) Editor in Chief was nominated in 2023, Prof. J. Floege (Germany) and he will officially take office during the General Assembly in 2024. Two new task forces were estsblished in 2023: Sustainable Nephrology and Strong Kidneys, the first one will focus on green practices in the field of nephrology and sustainability issues in all ERA'S activities, the second one instead will focus more on public health issues and awareness campaigns. A call for another task force was done in 2023 (the task for will be created in 2024) called WERA = Women in ERA. One of the objectives of this task force will be to make sure that all ERA activities reach gender balance. as well as promote educational acb'vities in this field. Public affairs is also a field that is becoming more and more relevant, for this purpose the ERA Council decided to recruit an independent consultant in PA based in Brussels, his activities will allow ERA to be even more effective in its contribution as a member both to EKHA as well as the Biomedical Alliance in Europe. The ECC (Electronic Communication Committee) in the Fall of 2023 launched ERA'S official Podcast series which has been extremely successful. It not only allows some of our KOIS to give their expert knowledge on clinical cases and research topics, but it especially gives insight into their private lives (i.e. why did you become a nephrologist?) which has been very much appreciated by our members. For a full and detailed outline of the various activities of the Association performed in 2023 please go to our web-site (wwN.era-online.org) to view the "2023 Annual Report.. We have referred to the guidance contained in the Charity Commissions, general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. Financial Review The net movement in group funds as shown by the Statement of Financial Activities on page 15 shows a surplus of É2,558,931 (2022.. E1,722,909 as restated). The Group's principal funding SoUrS are membership fees, congress memberships, congress exhibitions, various sponsorships mainly linked to the annual congress. unrestricted grants as well as the NDT and CKJ Journals. It is from these incoming resources that the Group is able to achieve and continue to support its main objectives. Investment Policy & Perfomiance The day-to-day management of the Association's investment funds are delegated to professional investment managers. The Council of Management's Investment policy is to preseniethe capital to furthertheAssociation's educational and scientific activities investing a part of it in low I medium risk investments. The Association's views concerning investments are that any financial investment made should not cause a conflict of interest in the ethical or scients'fic aims of the Association. Assets are managed by Azimut Capital Management. Movements on investments for the year are disclosed at note 9 to the financial statements.
EUROPEAN RENALASSOCIATION- REPORT OF THE COUNCIL OF MANAGEMENT Reserves Policy The Council of Management's policy on reserves is to accumulate surplus funds sufficient to sustain all the activities of the Association for at least a year in the event of some natural or political catastrophe resulting in the cancellation of the annual congress and therefore the loss of the majorsource of income forthe Association. The reserves target is the annual turnover of at least two years of activities and at the year end the group held accumulated unrestricted fvnds of É15,375,185 (2022: É12,816.254 as restated). The current level of reserves are in linewith the target reserves of c.É10.5m. which would be at least two years of turnover. The charity holds a 'Reserve Fund. within its reserves which comprises the total market value of investments held at 31 December 2023 of E3,292,219, (2022: É3.060,090) together with cash funds of ÉNil, (2022 ÉNil). Fundraising Policy We are not currently engaging in any fundraising acts"vity, as such no complaints have been received either in the current or the prior year. Key management personnel remuneration The trustees are deemed to be the key management personnel of the charity and are not remunerated for their services to ERA. Rlsk Management Policy The Council of Management has examined the principal areas of theAssociation's activities and considered the major risks faced in each of these areas. In the opinion of the Council of Management the Association has reviewed systems which under normal circumStanS should allow these risks to be mitigated to an acceptable level in its day-to-day operations. The Council of Management has identified a number of risks and as a Consequen has introduced the following Risk Management Policy.. Congresses a) Reductlon In Attendance The financial viability of a congress is dependent on the number of registered congress members that attend. Circumstances out of the control of the Association may arise which significantly reduces the number of congress members attending the annual congress. To restrict the financial loss which would ensue, ERA and ERA-Eurocongress Ltd. have the power to negotiate the variable costs in order to reduce considerably the eventual penalty fees. Since 2020 ERA has invested in virtual IT applications and programmes that allow active participation by congress attendants also remotely in a virtual matter thus limiting substantially the problem of having a reduction in attendance. Furthemiore. ERA does not have a different congress membership fee for in person I virtual attendees. b) Congress Cancellation Pandemic situations, acts of terrorism or political instability may result in the cancellation of a congress. To limit the consequences of this a 'force majeure clause, is included in contracts with all suppliers to avoid the payment of penalties in case there is a need to can1 the annual congress for such reasons. As payments are made over a long period of time and as political instability is difficult to predict. In case of cancellation agreements with the major suppliers have been put in place to use any eventual down-payment for a future annual congress thus avoiding any kind of penalty fee.
EUROPEAN RENAL ASSOCIATION - REPORT OFTHE COUNCIL OF MANAGEMENT c) Personal Safety Contracts with congress centres and commercial exhibitors who construct exhibition stands or sub-contract such work to be undertaken must provide evidence of adequate insurance cover for any personal injury which may arise as a result of accidents occurring to any congress members, speakers, or temporary staff. ERA has a specific insurance to cover any liability against third parties. Employees a) Staff employed by the Association are issued with appropriate contracts which meet all legal requirements of the countries where such staff are employed. b) Obligatory Insuran is included in contracts in all the countries where EFIA staff are employed. Additional insurance is available for employees who are required to travel as a consequence of their employment. Financial Risks Investment Managers are instructed not to invest in high-risk funds and additionally are required to regularly review the investment portfolio and provide a written report to the Council of the Association. Records of the Association a) Electronic Files Files held electronically are copied on a regular basis, such that infomiation is held in at least bNO separate places. b) Paper Files Important paper files are held in the administration offiS of the Association. c) Confidentiality Electronic data held by the Association is not disclosed to third parties without the permission of the Member providing the data. All staff undergoes regular courses regarding confidentiality and strictly complies with the EU GDPR rules. Furthermore, all Council members and members of the various ERA bodies sign a confidentiality agreement regarding topics discussed during their meets'ngs, the same is also valid for the staff that attends the meetings. d) Virus and firewall Protection All computers used by the Association are checked at intervals with the most up to date firewall and anti- virus Sofare.
EUROPEAN RENALASSOCIATION- REPORT OF THE COUNCIL OF MANAGEMENT Future plans and activiti88 During the winter Councll m8eling a full half day was devoted to a strategic workshop aimed at Identifylng new projects in Ilne with the strategic goals of ERA. Below are the projects idenlified.. Educational meetings organiz8d in collaboration with the Nattonal Societies of Nephrology focuslng on training the younger generation of nephrologists in lopics that are needed in the region. ERA aims to start these meetings in 2025 with a pilot program of 0, the full programme will be ofthree each year to held in areas of Europe in which our annual congress, due to Its size, never takes place. One very scientiftcally relevant meeting lo be held once a year with the alm of producing a declaratlonlwhite paper. This type of meeting will be focused on novelties in the leld of nephrology, bringing top experts in th8 fi81d to create importanl statements about such topics. Invest more funds in our Gurrent fellowship program. in particular the short-lerm ones including interventional nephrology. Th1$ last type of activity is the result of a very important EU funded project {N-Pathl in which ERA was a partner. Investing more funds in the producllon of guidan In the field of nephrology, al80 collaboratlng WFth other medical societies when appropriate. One of the main ERA membership benefits is the neOrkIng opportunits'ès among colleagues and peers. An exchange programme beeen peers to leam best practices In various European centers will be a new program that ERA will 8(y)n be lau1hing. b) d) By Order of the Councll ..ISecretary-Treasurer) Dale fl, z( 2031 10
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF EUROPEAN RENAL ASSOCIATION Oplnion We have audited the financial statements of European Renal Association (the 'parent charity,) and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated and Parent Charity Statements of Financial Activities, the Consolidated and Parent Charity Balance Sheets, the Consolidated and Parent Charity 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 A¢pted Accounting Practice). In our opinion, the financial statements: give a true and fair view of the state of the group's and of the parent charity's affairs as at 31 December 2023 and of the group's incoming resources and application of reSoUrs. including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the Charities Act 2011. Basls for oplnlon We conducted our audit in accordance with International Standards on Audits"ng (UK) (ISAS (UK)) and applicable law. Our responsibilities underthose standards are fijrther described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity 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 eviden 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, which includes the review of budgets and forecasts along with challenging the adequacy of the reserves policy, 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 charity'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 concem are described in the relevant sections of this report. Other Inforniatlon The other information comprises the infomation included in the Report of the Council of Management, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the Report of the Council of Management. Our opinion on the group and parent charity financial statements does not cover the other information and 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 inconsistentwith the financial statements or our knowledge obtained in the course of the audit, or otherwise
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF EUROPEAN RENAL ASSOCIATION Other information (continued) appears to be materially misststed. If we identify such material inconsistencies or apparent material misstatements. we are required to detemine 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. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: the information given in the financial statements is inconsistent in any material respect with the trustees, report., or sufficient accounting records have not been kept., or the parent charity financial statements are not in agreement with the accounting records. or we have not received all the infomiation and explanations we require for our audit., or Responsibilitles of trustees As explained more fully in the trustees. responsibilities ststement, the trustees are responsible for the preparation of the group and parent charity financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is neSSary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the group and parent charity financial statements. the trustees are responsible for assessing the group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so. Auditor's responslbllltles for the audit of the financial ststements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and the relevant regulations made or having effect thereunder. 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 assuran, 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 Influen the economic decisions of users taken on the basis of these financial statements. 12
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF EUROPEAN RENAL ASSOCIATION Auditor's responsibilities for the audit of the financial statements (continued) Irregularities, including fraud, are instances of non-complian 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 extent to which our prOdureS are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the group and parent charity and the sector in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, sector research and application of cumulative audit knowledge and experience of the sector. We determined the principal laws and regulations relevant to the group and parent charity in this regard to be those arising from the Charities Act 2011, Charities SORP 2019. Financial Reporting Standard 102 and UK employment law. We designed our audit procedures to ensure the audit team considered whether the were any indications of non-compliance by the charity with those laws and regulations. These procedures included, but were not limited to enquiries of management, review of minutes and review of legal and regulatory correspondence. We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that there was potential for management bias in the judgements made around recoverability of debtors. We addressed this through examination of post year end cash received. review of correspondence with debtors and discussion of recoverability with management. We also identified potential for management bias in the allocation of support costs against charitable activity categories. We addressed this through reviewing the method used for reasonableness and re-performing the calculation to ensure it had been performed accurately and in line with the stated method. As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals,. reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial ststements or non-complian with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularits'es occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion. omission or misrepresentation. A further description of our Sponsibl11t1es for the audit of the financial ststements is located on the Financial Reporting Council's website at: www.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. 13
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF EUROPEAN RENAL ASSOCIATION Use of our report This report is made solely to the charity's trust*s. as a body, in accordan with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not acpt or assume responsibility to anyone, other than the charity and the charity's trustees as a body. for our audit work, for this report, or for the opinions we have formed. 15 Westferry Circus Canary Wharf London E14 4HD PKF Llttlejohn LLP Statutory Auditor Date: PKF Littlejohn LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006 14
EUROPEAN RENAL ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2023 Group Group Charity (Restated) (Restated) 2023 2022 2023 2022 Total Total Total Total unrestricted unrestricted unrestricted unrestricted funds funds funds funds Charity Income from: Donations Donations Gift aid payments from subsidiary Note 53.330 53,330 2,455,370 1,450,603 Charltable activities 4.811.170 4.308.242 4.811,170 4,308,242 Other trading activities Trading activity - Exhibition spa, industry syrnposia, sponsorship and other ancillary services Other trading activity - Euromeetings 4.250,628 3,849,945 Investments Income from investments Interest received Other Income 9a 19,791 34.783 376 47,492 19,791 34,783 376 47,492 Total 9,169,702 8,206,055 7,374,444 5,806,713 Expendlture on: Ralslng funds Promotional activities Other trading activity - Euromeetings 248,954 213,273 240,953 165,332 Charitable activit1•8 6,538,777 5,861,987 5,203,429 4,386,991 Total 6,787,731 6,075,260 5,444,382 4,552,323 Net Income before other gains and losses 2.381,971 2,130,795 1,930,062 1,254,390 Currency movements on translation Net gainsl(losses) on investments {61,288) 238,248 {18,918) (388,968) (4,445) 238,248 (18,918) (388,968} 9a Net income and net movement Sn funds 2,558,931 1.722,909 2,163,865 846,504 Reconciliation of funds: Total funds brought forward as previously stated Prior year adjustment 12,918,390 11,093,345 10,223,353 9,274,713 (102,136) (102,136) 19 Total funds brought forward - Reststed 12,816,254 11,093,345 10,121,217 9,274,713 Total funds carried forward 15.375,185 12.816,254 12,285,082 10,121,217 The Group has no gains or losses that are not shown above and all activities are continuing. The accompanying notes form part of these accounts. 15
EUROPEAN RENAL ASSOCIATION CONSOLIDATED AND ASSOCIATION BALANCE SHEErs YEAR ENDED 31 DECEMBER 2023 Group Group (Restatèd) 2022 Charlty Charity (Restated) 2022 Notes 2023 2023 Fixed assets Tangible fixed assets Intangible fix8d assets Investm&nts 929,561 929,561 14,162 14,162 3.292,219 3,060.090 3,292,223 3,060,095 534,095 534,095 4,235.942 3,594,185 4,235,946 3,594,190 Currenl A8sel8 Debtors Cash at bank and in hand 10 1,276,769 1,249.812 718.687 616,746 11 11,704,440 10.329,553 8,811.822 7,725,871 12,981,209 11,579,165 9,530.509 8,342,617 Llabllltlas Creditors.. Amounts falllng due withln one year 12 1,666,404 2,213,939 1,305,811 1,672,433 Nèt Current A388t8 11,314,805 9,365,226 8,224,698 6,670,184 Total assets less current liabllltle8 15,550,747 12,959,411 12,460,644 10,264,374 Creditors.. Amounts falling due aft8r more one year 12 175,562 143.157 175,582 143,157 Net Assets 15,375.185 12.816,254 12,285,082 10,121,217 Funds of the Charity Unrestricted fund8 15.375,185 12.816.254 12,285,082 10,121,217 Total Charlty Funds 15.375,186 12.816.254 12,285,082 10,121,217 The financial slatemenls were authorised and approved for issue by the Counal of Management and slgned on their behalf by.. Prof. I an Ry¢hlik (Secretary-Treasurer) 2024 The accompanyin otes fomi part of these aOunts. 16
EUROPEAN RENAL ASSOCIATION STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2023 Group Group (Restated) 2022 Charity Charity (Restated) 2022 Notes 2023 2023 Net cash from operating activities 1,799,429 2,334,784 1,510,493 1,279,615 Cash flows from investing activities: Purchase of fixed assets Interest received PrOed$ from sale of investments (450,453) (538,299) (450,453) (538,299) 19,791 376 19,791 376 6,120 6,906 6,120 6,906 Cash used by investing activities (436.782) {531,017) (424,542) (531,017) Change in cash and cash equivalents in the year 1,374.887 1,803,391 1,085,951 748,598 Cash and cash equivalents brought forward 10,329,553 8,526,162 7,725,871 6.977,273 Total cash and cash equivalents carried foThvard 3 11,704.440 10,329,553 8,811,822 7,725,871 17
EUROPEAN RENAL ASSOCIATION NOTES TO THE STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2023 1 Reconciliation of net movements in funds to net cash flow from operating activitles Group Group (Restated) 2022 Charlty Charlty (Restatedl 2022 2023 2023 Net movement in funds for the reporting period (as per the statement of financial actlvltles 2,558,931 1,722,909 2,163,865 846,504 Adjustments for.. Net {gaInS)oSseS on investments Depreciation Amortisation Interest received (Increase)Idecrease in debtors (Decrease)fincrease in creditors (238,248) 33,745 7,080 (19.791) (27.158) (515,130) 388,968 13,384 (238.248) 388,968 33,745 13,384 7,080 (376) (19,791) (376) (29.198) (101,941) (242,005) 238,721 (334,217) 273,140 Net cash generated from operating activities 1,799,429 2,334,408 1,510,493 1,279,615 2 Reconciliatlon of net cash flow to movement in net funds Group 2023 Group 2022 Charlty 2023 Charlty 2022 Balance at 1 January Net cash inflow Exchange (losses) I gains on cash 10,329,553 8,526,162 7,725,871 6,977,273 1,436,175 1,822,309 1,090,396 767,516 (61,288) (18,918) (4,445) (18,918) Balance at 31 Dember 11.704,440 10.329,553 8.811,822 7,725,871 3 Analysls of cash and cash and cash equivalents Group 2023 Group 2022 Charity 2023 Charity 2022 Cash at bank and in hand 11,704,440 10,329,553 8,811,822 7.725,871 18
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 1. Accounting Policies The Association is an unincorporated charity registered in England and Wales and with its principal office and operative headquarters disclosed on page 2. The charity's principal objectives are disclosed on page 5. The principal accounting policies, all of which have been applied consistently throughout the year, are set out below, a. Basls of preparation The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts. The financial statements 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) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The financial statements consolidate those of the Charity and its wholly owned non-charitable subsidiary trading companies, ERA Eurocongress Limited as well as Euromeetings Srl up to the date it was placed into liquidation on 4 September 2020. The financial statements are prepared in Euros which is the functional currency of the charity and to the nearest É. The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared to gtve a 'true and fairf 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 the 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn. b. Going concern The financial statements are prepared on the going concem basis. ERA has consolidated reserves of 15,375,185 at 31 Dember 2023 including net current assets of É11,314,805 and cash at bank of É11,704,440. The Trustees have reviewed the financial position of the charity at 31 Dernber 2023 and considered their forecasts and consider the charity is a going concern for a period of at least e1ve months from the date of signing these financial statements and that there are no material uncertainties to note. c. Fund structure Unrestricted funds are general fvnds that are available for use at the Council of Management's discretion in furtherance of any objectives of the charity. 19
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 1. Accounting Policies (continued) d. Income recognition All income is recognised in the period in which the charity is entitled to reipt, the amount can be measured with reasonable certainty and it is probable that the income will be reived, and specifically as follows.. i) Income from trading activities is income receivable by the subsidiary company on selling exhibition space, industry symposia, sponsorships and other ancillary servIS in connection with those congresses held by the Association or with other events organised by the subsidiary company. Turnover is stated after trade discounts, exclusive of VAT and other sales taxes. li) Investment income includes income from investments and bank interest and is recognised in the year in which it is receivable. iii) Membership fee income is recognised in the year to which fees relate. iv) Congress proceeds are recognised in the year that the congress was held. v) Donations from the Association's subsidiary undertaking are recognised on a receivable basis and third paty grants and donations are recognised in the year in which they are due. vi) Nephrology Dialysis Transplantation (NDT) and Clinical Kidney Journal (ckj). The Association utilises the services of Oxford University Press to print and to distribute Nephrology Dialysis Transplantstion (NDT) and to publish the online journal Clinical Kidney Joumal. Each year Oxford University Press prepares audited financial statements of their activities and the results and the net result is either remitted to the Association or invoiced to the Association. This year the Journal has made a profit. The net financial effects of these activities are disclosed as an incoming resource of the Association and is recognised in the year these are received. e. Expendlture recognltlon Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governan costs are allocated or apportioned to the applicable expenditure headings. i) Raising funds are those costs attributable to generating incoming resources for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity's objects. ii) Charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable are apportioned beeen the categories of charitable expenditure in addition to the direct costs. The total cost of each category of charitable expenditure therefore includes support costs and an apportionment of overheads. Grants payable are accrued insofar that the beneficiary has an expectation of receiving a grant as at the balance sheet date, but only if such grant is unconditional. Where the charity retains its discretion over grants to be made, and the grants are conditional on the beneficiary satisfying certain requirements. then such grants are not accrued. iii) Support and governan costs and allocation Support costs have been allocated to direct charitable expenditure based on proportion of direct costs. Govemance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practi. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. 20
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 1. Accounting Policies (continued) Fixed assets Fixed assets, including property, plant and equipment and intangible assets. costing more than É500 are capitalised and accounted for at historical cost. The assets are written off over their useful economic lives as follows-. Buildings - 2 % on cost per annum. Furniture and Fittings - 330/0 on cost per annum Electronic equipment and Software - 33 % on cost per annum Website development_ 33 % on cost per annum ere the recoverable amount of an asset is found to be below its net book value, the asset is written down to its recoverable amount and the loss on impairment is charged to the relevant expenditure category of the statement of financial activities. Where an asset is not primarily used to generate income, its impairment is assessed by reference to its service potential on its initial acquisition. In the year the charity currently has no tangible fixed assets to which impairment provisions apply. g. Flxed asset Investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Charity does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. h. Reallsed gains and losses Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of financial activities in the year of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end. Foreign currencies Transactions in foreign currencies are translated at an average rate calculated for the year. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. All other exchange differences are dealt with through the Statement of Financial Activities. Taxation The Association is registered as a charity under the Charities Act 2011 and it is not liable to UK tax on its income and chargeable gains. as they fall within the various exemptions available to registered charities. Following the triennial review of FRS 102 applicable for accounting periods commencing on or after 1 January 2019, there must be a legal obligation in place in order for a donation of profit from subsidiary to parent to be recognised in the financial staternents. There was no legal obligation in pla at 31 December 2023 and so the donation of the subsidiary company's profit to ERA has correctly not been recognised within these financial statements. Where the post year end payment of the profit for the previous financial year is deemed probable, this is taken into account within the tax computation of the subsidiary company. 21
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 1. Accounting Policies (continued) k. Critical judgements and estimates In the application of these accounting policies, the TrUStS are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other SoUrs. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumStans. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results may ultimately differ from those estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects current and future periods. The Trustees consider the following items to be areas subject to estimation and judgement.. i) Income recognition in respect of the deferral of income ii) Accruals and commitments in respect of grants payable iii) The allocab'on of expenditure between reportable categories Financlal Instruments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the excepb'on of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes. Debtors Trade and other debtors are recognised at the settlement due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Credltors and provlslons Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are nomially recognised at their settlement amount after allowing for any trade discounts due. Employee benefits Short tsrm bener Short term benefits including holiday pay are recognised as an expense in the period in which the Servi is reived. Employee terniination benefts Termination benefits are accounted for on an accrual basis and in line with FRS 102. Prior year adjustment A prior year adjustment has been made to reflect the transactions previously omitted from the 2022 financial statements. As a consequence. the 2022 balanS have been restated. Further information on the change has bn disclosed in Note 19. 22
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 2 Income- Donations Group 2023 Group 2022 Charity 2023 Charity 2022 Working Groups 53,330 53,330 53,330 53,330 3 Income- Charltable activities Group Group (Restated 2022 Charity Charity (Restated) 2022 2023 2023 Congress Proceeds.. Direct- Congress Membership Fees Membership Journals and Editorial Offices 2,713,213 656,873 1,441,084 2,262,501 497,735 1,548,006 2,713,213 2,262,501 656,873 497,735 1,441,084 1,548,006 4,811,170 4,308,242 4,811,170 4,308,242 4 Expendlture- Support Costs Group 2023 Group 2022 Charity 2023 Charlty 2022 ERA HQ and staff management Professional Fees - Governance costs Administration Management Miscellaneous Staff costs Bank Charges & Other Commission Bad Debts 89,943 195,304 658,385 31,715 969,240 69,790 24 43,587 262,212 384,700 31,338 899,007 56,231 651 89,943 153,913 618,552 31,715 969,287 69,449 43,587 221,437 384,700 31,338 899,007 54,924 2,014.401 1,677,726 1,932,859 1634,993 Support costs have been allocated to direct charitable expenditure based on proportion of direct costs. Staff costs are allocated as support costs in furtheran of all charitable objectives of ERA. 23
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 4 Charitable Expenditure- Group Support cost 2023 Total Total (Reststed) 2023 2022 Direct cost 2023 Congresses and other trading Education Research Meetings Relations with Societies and Institutions 3.091.522 1,376.447 4,467,969 4,298,050 360,737 160,612 521,349 288,266 991,663 441,521 1,433,184 1,179,036 26,454 11,778 38,232 24,586 54,000 24,043 78.043 72.049 4,524,376 2.014,401 6,538.777 5,861,987 Charitable Expenditure- Group Comparative (Restated) Support cost 2022 Direct cost 2022 Total 2022 Congresses and other trading Education Research Meetings Relations with Societies and Institutions 3,082,073 203,156 830,928 17.327 50,777 1,215,977 4,298,050 85,100 288,266 348,108 1.179,036 7,259 24,586 21.272 72,049 4.184,261 1,677,726 5.861,987 Charltable Expendlture- Charity Support cost 2023 Total Total (Reststed) 2023 2022 Direct cost 2023 Congresses and other trading Education Research Meetings Relations with Societies and Institutions 1.837,716 1,086,064 2,923,780 2,584,274 360.737 213,190 573,927 332,278 991,663 586.058 1,577,721 1,359,049 26,454 15,634 42,088 28,340 54.000 31,913 85,913 83,050 3,270.570 1,932,859 5,203,429 4,386,991 Charitable Expendlture - Charity Comparative (Restated) Direct cost Support cost 2022 Total 2022 2022 Congresses and other trading Education Research Meetings Relations with Societies and Institutions 1,649,810 203.156 830.928 17,327 50.777 934,464 2.584,274 129,122 332,278 528,121 1,359,049 11,013 28,340 32,273 83,050 2,751,998 24 1.634.993 4,386,991
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 5 Staff Costs Group 2023 Group 2022 Wages and salaries Social security costs Pensions costs 513,527 451,618 4,141 530,634 368,373 969,286 899,007 The average number of employees during the year was 13 (2022.. 11) with all employee time involved in providing either support serrfices to its governan and charitable activities. During the year ended 31 December 2023. termination payments totalling É1,965 (2022.. É122) were paid to 2 (2022.1) employees. There were no termination payments outstanding at the year end. The number of employees whose total employee benefits exceeded 0,000 for the year ended 31 December 2023 and fell within the following band was: 2023 2022 70,001- f80,000 80,001- É90,000 110,001- É120,000 120,001- É130,000 140,001- £150,000 ERA considers its key management personnel to comprise three from the ex-officio members (President, Secretary-Treasurer, Renal Science Chair (former Chair of Administrative Offices)) detailed on page 1. No key management personnel received any remuneration for their services. No Trustees were remunerated by the charity (2022: ÉNil). DL5ring the year ended 31 Dember 2023 sums totalling É50,654 were paid to 15 {2022: E1,745 paid to 2) Council members in relation to the reimbursement of travel and subsistence expenses. 6 Auditors. Remuneration Group 2023 Group 2022 Fees payable to the Companvs auditor and its associates for the audit for the Group's annual financial statements (including subsidiary companies) Fees payable to the Company's auditor and its assoclates In respect of: Taxation compliance services All other ServIS 5,735 5,330 4125 25
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 7 Tangible Assets - Group & Charlty Land & Furniture Electronics & Building & Fittings Software Total Cost At 1 January 2023 Additions 529,608 350.225 15.363 44,713 34,890 34,273 579,861 429,211 At 31 December 2023 879,833 60,076 69,163 1.009,72 Depreciation At 1 January 2023 Charge in year 7,944 21.142 13.399 3,992 24,423 8,611 45,766 33,745 At 31 December 2023 29,086 17,391 33,034 79,511 Net Book Value 31 December 2023 850,747 42,685 36,129 929,561 31 December 2022 275 1,964 10,467 534,095 8 Intangible Assets- Group & Charity Website Development Total Cost At 1 January 2023 Additions 21,242 21,242 At 31 Dember 2023 21,242 21,242 Amortisation At 1 January 2023 Charge in year 7,080 7,080 At 31 December 2023 7,080 7,080 Net Book Value 31 Dember 2023 14,162 14,162 31 December 2022 26
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 9 Investments - Charity & Group 2023 2022 Grou - Listed non-UK investments on recognised stock exchanges (note 8a) 3,292.219 3,060,091 Investment in Subsidiary Charl 3,292,223 3,060,095 Historical Cost Group - Listed non-UK investments on recognised stock exchanges (note 8a) 2,386,974 2,393,094 Investment in Subsidiary Charity 2023 2,386,978 2,393,098 Subsidiary Undertakings ERA Eurocongress Limited is a company registered in England and Wales under the company number 03431245 and is wholly owned by the Charity. The company prepares financial statements to 31 December and has reported the following: 2023 2022 Net assets Turnover Expenditure Profit 3,090,107 2,695,142 4,250,628 3,849,945 (3,920,372) (2,868,023) 330,256 981,922 27
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 10 Debtors: Amounts falling due within one year Group Group (Reststed) 2022 Charity Charlty (Restated) 2022 2023 2023 Amounts due from subsidiary undertaking Trade debtors Future congress expenses paid in advan Accrued income Other debtors 498,624 663,855 40.417 6,582 246,419 23,222 254.508 417,180 40,417 6,582 246,419 23,222 27,128 27,128 1.209.478 296,769 718,687 296,769 Debtors: Amounts falllng due after more than one year Trade debtors Future congress expenses paid in advan 486,130 466,713 67,291 319,977 67,291 952,843 319,977 Total Debtors 1,276,769 1,249.612 718,687 616,746 11 Cash at bank and In hand Group 2023 Group 2022 Charlty 2023 Charity 2022 Bank accounts Petty cash accounts 11,699,498 10,328,107 8.806,880 7,724,425 4,942 1.446 4,942 1,446 11,704,440 10,329.553 8,811,822 7,725,871 12 Credltors: Amounts falling due within one year Group Group (Restated) 2022 Charity Charity (Restated) 2022 2023 2023 Other creditors Accruals and deferred income 249,035 369,799 1,417,369 1,844,140 249,035 258,246 1,056,776 1.414,187 1.666.404 2,213.939 1.305,811 1,672,433 Creditors: Amounts falling due after more than one year Defeffed salary 175,562 143,157 175,562 143,157 29
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 Deferred Income Group 2023 Group 2022 Charity 2023 Charity 2022 At 1 January Resources deferred in the year Amount received from previous year 1,704,487 1,485,044 1,303,500 993,757 1,099,906 1,704,487 803,665 1,303,500 (1,704.487) (1,485.044) (1,303.500) (993,757) At 31 December 1,099,906 1,704,487 803,665 1,303.500 Deferred income mainly relates to membership income received in advan of the following year along with Congress income received in advan of the following year. 13 Net Assets 2023 Reserve Fund 2022 (Restated) Reserve Fund General Fund General Fund Total Total Fixed Assets Fixed assets Investments 943,723 943.723 3,292,219 3,292.219 534,095 534,095 3,060,090 3,060,090 943,723 3,292,219 4,235,219 534.095 3,060,090 3,594,185 Net current assets 11,314.805 11,314,805 9,365,226 9,365,226 Creditors due after more than a year {175.562) (175.562) {143,157) (143,157) Total 12,082,966 3,292.219 15.375.185 9,756.164 3,060,090 12,816,254 In accordance with the Council of Management Report the 'Reserve Fund, which comprises the total market value of the investments at the year together with cash funds held in those investments totalled 3,292,219 (2022: f3,060,090) which is below the 'Reserve Fund Maximum Amount of É6,000,000. 14 Glfts The Association receives services for which no costs are charged. No monetary amounts have been included within the financial statements as it is difficult to quantify these benefits and in the opinion of the Members of the Council, these benefits are not material to the accounts. 30
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 15 Related Partles As at 31 December 2023 the Association was owed ÉNil (2022.. ÉNil) from its subsidiary company ER4 Eurocongress Limited which includes ÉNil (2022: ÉNil) as a gift aid payment. During the year, the spouse of the Executive Director. Monica Fontana, was paid É11,302 (2022.. 19,152) for sep11S provided to the charity on an arm's length basis. There were no other related party transactions during the current or the prior year. 16 Contlngent Liabilities As noted in the Report of the Council of Management, the Association has indicated its intention to support research projects into the future through the payments to outsourced professional companies in charge of preparing the application for EU funds. At the year end the Association had indicated its intention to set aside funds for this purpose. 17 Capital Commltments There was no committed expenditure at either year end. 18 Operatlng Leases The group had the following future minimum lease payments under non-cancellable operating leases for each of the reporting periods.. 2023 2022 Payments due Not later than one year Later than one year but not later than five years 31
EUROPEAN RENAL ASSOCIATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 19 Prior year reststement A restatement of prior year balances (for both the Charity and the Group) was carried out during the current year in order to account for transactions in 2023 that related to the year ended 31 December 2022. The restatement has resulted in an increase, from grants not recognised, in income and debtors of É77,419' an increase in expenditure and creditors of E179,555 from expenditure not accrued at the prior year end,. and a resulting reduction in the net assets of the Charity and the Group of É102,136. The errors only relate to transactions that should have been recorded in the prior year. As a result, there is no impact to the opening reserves of the prior year that need to be disclosed. These restatements are summarised in the tables below: Group: As prevlously stated at 31 December 2022 Restatement As restated at 31 December 2022 SOFA". Income 8,128.636 77.419 8,206,055 Expenditure 5,895,705 179,555 6,075,260 Balance Sheet: Debtors due under one year 1,172,193 77,419 1,249,612 Creditors due under one year 2,034,384 179,555 2,213,939 Net assets: 12,918,390 (102,136) 12.816,254 Charity: As previously ststed at 31 December 2022 Restatement As restated at 31 December 2022 SOFA.. Income 5,729,294 77,419 5,806,713 Expenditure 4,372,768 179,555 4,552,323 Balance Sheet: Debtors due under one year 539.327 77,419 616,746 Creditors due under one year 1,492,878 179,555 1,672,433 Net assets: 10,223,353 (102.136) 10.121,217 32