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2021-12-31-accounts

Registered number: 03153785 Charity number: 1066532

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 11
Independent auditor's report on the financial statements 12 - 15
Consolidated statement of financial activities 16
Consolidated balance sheet 17
Charity balance sheet 18
Consolidated statement of cash flows 19
Notes to the financial statements 20 - 38

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Paul Rosen, Chairman
John Bateson
Roberto Bellucci
José Güell
Till Staffeldt
Company registered
number
03153785
Charity registered
number
1066532
Registered office
5 Fleet Place
London
EC4M 7RD
Company secretary
Oliver Findl
Independent auditor
Crowe U.K. LLP
Fourth Floor
St James House
St James Square
Cheltenham
GL50 3PR
Bankers
Bank of Ireland
28 Main Street
Blackrock
Co Dublin
Ireland
Allied Irish Bank
PO Box 1121
Dublin 4
Ireland
Solicitors
Fox Williams LLP
10 Finsbury Square
London
EC2A 1AF
United Kingdom
BDB Pitmans LLP
One Bartholomew Close
London
EC1A 7BL
United Kingdom

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Investment Bankers

Ruffer LLP 80 Victoria Street London SW1E 5JL United Kingdom Rathbone Investment Management Limited 8 Finsbury Circus London EC2M 7AZ United Kingdom

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the audited consolidated financial statements of the group for the year ended 31 December 2021. The directors have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities (FRS 102)” in preparing the annual report and consolidated financial statements of the group.

Objectives and activities of the society

The European Society of Cataract and Refractive Surgeons (ESCRS) was incorporated on 1 February 1996 under the Companies Act 1985 as a Company Limited by Guarantee and not having a Share Capital.

The charitable company is registered with the Charity Commission in the UK – Number 1066532.

The objects for which the charitable company is established are (i) to promote education and research in the field of implant and refractive surgery and promote the study and practice of ophthalmology and research relating thereto and the dissemination of the useful results thereof and (ii) to promote experimental work in the field of intraocular lens implantation and refractive surgery and the dissemination of the useful results thereof.

ESCRS has one wholly owned subsidiary, ESCRS Trading Limited, whose principal activities include arranging and hosting the annual meetings of ESCRS and publishing the society’s magazine, EuroTimes. ESCRS Trading Limited is limited by shares and all its profits are transferred to the charity under the UK Gift Aid rules.

Details of the external advisors engaged by the charity are listed on the Reference and Administrative Information pages.

Public benefit

The directors have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the society’s aims and objectives and in planning its future activities. In particular, the directors consider how planned activities will contribute to the aims and objectives that have been set.

The purpose of ESCRS is to ensure the best possible outcomes and quality of life for cataract and refractive surgery patients. Through ESCRS’s aims of improving education and standards in ophthalmology across Europe, patients with cataract and refractive conditions and the wider public are our main beneficiaries. The provision of education, the funding of original research and registries for benchmarking surgical outcomes contributes to the development of the field of ophthalmology, the education of its practitioners, and ultimately to better patient care.

Structure, governance and management

The governing documents of the charitable company are its Articles of Association, supported by Bye-Laws.

The directors have overall responsibility for the proper management of the charitable company’s business and regularly review the governing documents with a view to ensuring they are in line with the latest Charity Commission guidance.

The general management of the charitable company is vested in a Council of Management (‘Council’) which has been established to assist the directors by organising the day-to-day operations of the society. The Council consists of the directors of the charitable company, the President of the society, the Treasurer, the Secretary, the Immediate Past President, the European Editor of the Journal of Cataract and Refractive Surgery (‘JCRS’), 10 ordinary members and co-opted members from time to time.

The 10 ordinary members of Council are elected by the members of the society for a period of four years and may be re-elected for a further period of four years only. No more than one ordinary member of the Council may be from the same country. Only ordinary members are elected and entitled to vote.

The Council of Management elects an Executive Committee consisting of the President, the Secretary and the Treasurer, to ensure the decisions of the Council are implemented.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

To be elected President, a candidate must be a full member of the society, but not necessarily a member of the Council. He or she is appointed by the Council for a period of two years, which term shall not be renewable. A two-thirds majority of the voting members of the Council is required for appointment as President.

The Secretary is the executive officer of the society and monitors implementation of the decisions of the Council. The elected members of the Council elect the Secretary every two years from among their number.

The Treasurer is the finance officer of the society and monitors implementation of the financial decisions of the Council. The elected members of the Council elect the Treasurer every two years from among their number.

The European Editor of the Journal of Cataract and Refractive Surgery is proposed by the Executive, in consultation with the existing editor, and approved by the Council. The initial term of office is eight years, with the possibility of extending the term for a further eight years with the agreement of the Council.

The society functions through a number of standing committees including:

The composition of each committee is governed by the Bye-Laws. All members of Council and Committees give their time voluntarily and their contribution is crucial to the ongoing success of the society and its ability to meet its charitable objectives.

The society employs a Managing Director, Tom Ogilvie-Graham, and a Finance Director, Gillian Burgess, and retains the services of an external professional association management and conference organisation company which provides it with a full range of bespoke services including board, financial management, membership, congress, event, publishing, online and education services. The society changed its outsourced services provider with effect from May 2021, following a decision taken in 2020 after an extensive tender evaluation process. MCI UK Ltd took over as services provider in 2021 and the transition was successfully managed in cooperation with the outgoing and incoming providers to ensure that the society’s operations continued to run as normal.

The Trustees set the pay and remuneration of key management personnel, through the annual performance appraisal process. The Trustees then inform the Finance Committee.

Directors of the charitable company

The number of directors, who are the Trustees of the charity, shall not be less than three but shall not be more than five. The Trustee positions are advertised, applicants are interviewed by a nominations committee and a recommendation made to the Council who then appoint the Trustees. All Trustees are given an induction and ongoing training on their responsibilities and other matters as required.

Those who served as directors during the financial year and up to the date of this report are listed below: Paul Rosen (Chairman) John Bateson Roberto Bellucci Jose Guell Till Staffeldt

The directors work with and oversee the Council of Management, which is elected by the membership. The directors do not retire by rotation. In general, a director must retire when he or she has served for a maximum term of 8 years.

The secretary who served during the financial year was Oliver Findl.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Strategic Report

Principal risks and uncertainties

Annual congress

The main source of income to the society is its annual congress. A key risk to the society is a failed or significantly diminished annual congress and the resultant loss of income that would arise. This includes the risk to an annual congress from an act of terrorism or, as transpired in 2020 and 2021, from a pandemic. There is also the risk that changes in conditions occur, over time, which reduce the attractiveness and relevance of a large annual meeting developed around a scientific programme, for delegates or industry supporters. The directors mitigate these risks by taking out insurance for each conference where possible against insurable risks, by continuing to evolve the format of the meeting in response to feedback and innovations in the marketplace, and by maintaining sufficient reserves at all times to ensure the society could continue its operations uninterrupted for a period of at least 12 months while corrective action is taken and alternative revenue sources could be developed.

Outsourced service provider

The society outsources the day-to-day operation of its activities, including the organisation of the annual congress, to a third-party service provider. There is a risk, therefore, that supplier failure or poor performance could impact on the society’s operations or its income. The directors mitigate this risk by utilising a robust process for supplier selection, including a detailed assessment of financial viability, and by ongoing, detailed monitoring of supplier performance, overseen by the society’s Managing Director and Finance Director.

The impact of the COVID-19 pandemic on the society in 2021 is discussed further below under ‘Achievements and Performance’ and under ‘Going Concern and Future Business Success’.

Achievements and performance

The main activities of the society during 2021, including the ongoing effects of the pandemic on its operations and the society’s response to those challenges, were as follows.

(a) Membership

Membership of the ESCRS is open to ophthalmologists and to ophthalmologists-in-training. At the end of 2021 there were 6,940 (2020: 7,772) members in total, 3,018 (2020: 3,760) of whom were trainee ophthalmologists. Over 20 European national societies offer group membership of ESCRS and the Society values the close collaboration with these organisations.

The decline in membership during the year is due in part to the COVID-19 pandemic. In particular the reduced scale of the Annual Congress in 2021 took away an important milestone around which many renew their membership for the year ahead.

Membership is free for trainee ophthalmologists for up to five years. As a member they can access ESCRS iLearn and ESCRS On Demand, two key education resources, and the peer-reviewed scientific journal of the society, the Journal of Cataract & Refractive Surgery. They also pay a nominal registration fee to attend the ESCRS meetings and are eligible to apply for various grants and bursaries.

The aim of providing free membership for trainees is to invest in the future of this subspecialty of ophthalmology by ensuring that the education resources and the annual meetings are available to as many ophthalmologists as possible.

(b) Meetings ESCRS Meetings

The ESCRS Annual Congress and Winter Meeting, held each year, are the highlight of the society’s calendar.

The 25th ESCRS Winter Meeting took place as a virtual event in February 2021 and was attended by 1,836 delegates.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The society was delighted to be able to hold the 39th Annual Congress of ESCRS as a hybrid (in-person and virtual) meeting in Amsterdam in October 2021. The meeting was a great success, with 4,267 delegates attending in Amsterdam and a further 2,842 joining virtually. 112 industry partners participated in the exhibition, and it was apparent that delegates and industry alike were heartened to return to an in-person event, albeit on a smaller scale than before, in order to comply with the regulations in force at the time.

ESCRS was the first medical society in Europe to return to a major in-person meeting in 2021; this involved significant risk management and planning, in addition to flexibility in the organisation of the event, responding to the evolving regulations.

ESCRS Participation in Other Meetings

As part of its Education Programme, the ESCRS supports and participates in several national society meetings each year, by funding expert ophthalmologists from the society to attend these meetings, thereby bringing international expertise and teaching to ophthalmologists who might not be able to travel to attend the ESCRS meetings.

ESCRS also collaborates with the other regional cataract and refractive societies around the world through participation in joint symposia and other sessions. The sharing of research results and new developments among the world leaders has an invaluable role in the global advancement of cataract and refractive surgery.

Physical meetings continued to be significantly curtailed in 2021, due to travel restrictions, however the ESCRS leadership was pleased to be able to represent the society in person at Aegean Cornea XXV and at the meetings of the American Society of Cataract & Refractive Surgery (ASCRS) and the American Academy of Ophthalmology (AAO) during the year.

(c) Publications

The EuroTimes magazine, which includes the latest news and developments in the world of ophthalmology, is published by the society and circulated free of charge to over 45,000 ophthalmologists worldwide. 10 issues were published in 2021.

The Journal of Cataract & Refractive Surgery, which is published jointly with ASCRS, is circulated free of charge to members of the ESCRS and contains peer-reviewed articles on the latest research in the field. 12 issues were published in 2021.

(d) Educational Resources

The society makes available a broad range of educational resources, in support of its charitable objects.

The ESCRS Education Portal and the ESCRS Player are free for all ophthalmologists to access, providing a wide variety of expert-led educational resources, including articles, podcasts and video content. Landmark articles published in peer-reviewed scientific ophthalmology journals, selected by the ESCRS Publications Committee, are made available free of charge, alongside a selection of Online Case Reports from the Journal of Cataract & Refractive Surgery, which provide an excellent opportunity to see how scientific and medical knowledge is ‘put into practice’. The podcast and video content includes: ‘EyeJC’, a regular online journal club led by Young Ophthalmologists; ‘Eye Contact’ video interviews with experts on a range of key topics; a Video Journal of Cataract and Refractive Surgery; expert videos of surgical techniques; and an archive of historical videos. There have been over 449,000 page views in total on the ESCRS Player since it began, with 559 videos now available

An annual survey is conducted at the ESCRS meetings, as part of the Independent Medical Education (IME) programme, to establish key educational needs amongst ophthalmologists. Educational programmes, funded by unrestricted educational grants from supporting companies, are then designed in response to the needs identified, with a programme typically including a symposium at an ESCRS meeting, EuroTimes supplements, and creation of online resources (videos and podcasts). These are free for all ophthalmologists to access on the ESCRS Education Forum.

Additional educational resources are available for members of the society; ESCRS On Demand is an extensive

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

library of presentations and videos from ESCRS meetings, which expands each year with content from the most recent Winter Meeting and Congress. ESCRS iLearn is an e-learning platform offering highly interactive and assessed content. Upon successful completion of a module, a learner can claim CME credits. ESCRS Tutorial Groups are structured around the iLearn courses, whereby a volunteer mentor, who is a well-known surgeon across Europe, guides a group of young ophthalmologists and trainees through a series of online activities and discussions in the run up to the annual meeting. The group then attend wet labs (practice surgery sessions) together at the conference. The tutorial groups did not run in 2021 due to the pandemic but are returning in 2022.

(e) Clinical and Scientific Research

ESCRS provides funding for research projects through its Clinical Research Awards and Pioneer Research Awards. A call for applications is normally issued annually; no call was made in 2021, as one of several cost management measures in response to the pandemic, however a call has been issued in 2022. In late 2021, the society signed a funding agreement for the Toric IOL study, a randomized controlled trial to define the clinical indications and cost-effectiveness of toric intraocular lenses. This is a multi-centre study, led by Oxford University, which was approved in 2020 and will commence in 2022.

Research projects which were ongoing in 2021 were: the META-COR Study (METAgenomics guided treatment of CORneal infections – an interventional blinded randomized clinical trial; the CaMPoL Study (Cataract, agerelated Macular degeneration and Polarization perception); the vRESPOND Study (Virtual REfractive Surgery for the Prevention Of Negative Dysphotopsia); the MYOPRED Study (Influence of posterior vitreous detachment on retinal detachment after lens surgery in myopic eyes); the NECSUS Study (NEuroadaptation after Cataract and refractive SUrgery Study); the MERoV Study (Monofocal Extended Range of Vision); the EPICAT Study (Effectiveness of Periocular drug injection in CATaract surgery); and the PCME-SNP study (PCME associated to genetic alterations of single nucleotide polymorphisms (SNP)).

(f) Surgical outcomes registries

The society manages and funds two important surgical outcomes registries, The European Registry of Quality Outcomes for Cataract and Refractive Surgery (EUREQUO), and the European Cornea and Cell Transplantation Registry (ECCTR).

EUREQUO includes data from more than 3.5 million cataract surgeries and 150,000 refractive surgeries. Uploading data to the registry provides a unique opportunity for surgeons to monitor and compare their surgical results. This benchmarking encourages surgeons to adjust and improve their technique, improving their results and providing a better patient outcome. Use of the registry is available to ESCRS members free of charge.

ECCTR was established in 2019, under a project initially funded by both ESCRS and the EU, and involving eight partner organisations. Corneal disease is the second largest cause of blindness worldwide and an estimated 30,000 cornea transplantations are performed annually in Europe. ECCTR is a web-based registry and network for academics, health professionals and authorities to assess and verify the safety, quality and efficacy of corneal transplantation.

Work continued in 2021 on establishing a new European registry of childhood cataract surgical outcomes, called EuReCCa, which is now ready for data collection to commence.

(g) Grants and bursaries

Ordinarily, ESCRS makes available a number of bursaries annually for trainee doctors to attend the two ESCRS conferences, in addition to observership grants for trainee doctors to spend a period observing clinical practice at a European centre of expertise. The Peter Barry Fellowship is awarded annually and offers a grant of €60,000 for a trainee to spend a year abroad gaining clinical or research experience at a centre of excellence anywhere in the world.

These grants were temporarily put on hold in 2021, in response to the impact of the COVID-19 pandemic (in hospitals and on constantly evolving travel restrictions) but have been reinstated for 2022.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

(h) Direct donations

ESCRS makes annual direct donations to selected charities. In 2021 a donation of €48,000 was made to Orbis to support a project providing integrated eye care services to Rohingya refugees and the South East Bangladesh local host population in Cox’s Bazar, and a donation of €41,000 was made to St John Eye Hospital Group to establish the first evidence-based school screening programme in Palestine.

The society aims to increase charitable donations and partnerships with charitable eye care providers in the developing world to advance and promote the study and practice of ophthalmology and to benefit patients directly, and indirectly; this could not be advanced in 2021 due to the overall drop in income however is discussed further under Future Developments, below.

(i) Fundraising

The charity had no fundraising activities during 2021 which require disclosure under S162A of the Charities Act 2011.

Future Developments

Notwithstanding that it will take time for in-person meetings to fully recover to pre-pandemic levels, the directors do not envisage any substantial changes to the nature of the charity’s activities and, through its work, are confident in the charity’s ability to continue to make meaningful impacts on the lives of patients across the world. In 2022, the society will benefit from the full year impact of significant cost savings realised through the change in its outsourced service provider.

The 26th ESCRS Winter Meeting was held as a virtual event in February 2022 and the 40th Annual Congress is planned to be held as a hybrid event in Milan in September 2022. Industry support for the Congress is strong, exceeding expectations, and the society will also launch a new 1-day meeting immediately before the Congress in 2022, which will bring together doctors and industry executives to discuss innovations in ophthalmology. The society has made sustainability a major focus of the 40th Annual Congress, implementing various measures to reduce or offset the carbon footprint of the meeting.

In 2022, the society has approved a new discretionary grant policy, under which up to €1.5m of charitable donations may be made over a three-year period to NGO-led eye care projects in the developing world. Applications for funding will be assessed by the society’s Charity committee, based on a range of criteria established in the grant policy.

Support for Ukraine

The society has been deeply disturbed by the recent and ongoing invasion of Ukraine and has taken steps to provide support to colleagues in Ukraine. The society has established a restricted fund, to which members and sister societies can make financial donations, which will be directed exclusively towards ophthalmology-related relief efforts in Ukraine and in support of Ukrainian doctors and patients outside of Ukraine and has also designated funds from the society’s reserves for the same purpose. Substantial financial donations have already been received. In addition, the society has coordinated significant donations of ophthalmological supplies and equipment from industry partners and has arranged for these to be transported to clinics across Ukraine. The society is extremely grateful to all those who have supported these efforts and reiterates its full support for Ukrainian colleagues, who are often continuing to serve their patients under the most challenging of circumstances.

Financial review

The group made a loss before investment gains of €(2,711)k in 2021 (2020: €(4,716)k). The overall loss in 2021 after investment gains was €(829)k (2020: €(3,569)k).

The group’s principal source of funding is the revenue generated by its annual congress, in particular the exhibition revenues generated by industry participation and delegate registration fees. The surplus generated by the annual congress supports the society’s investment in education and research programmes, and charitable donations. The resources available to the group and those expended during the year are set out in the Statement of Financial Activities.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Income increased to €7,716k in 2021 (2020: €4,791k), as the annual congress was staged as a hybrid (in-person and virtual) meeting in Amsterdam, including an industry exhibition, whereas the 2020 annual congress was a virtual-only event. There remains some way to recover to the 2019 income level of €17,638k, pre-pandemic, however the trajectory is positive.

In response to the continued reduction in income in 2021, planned reductions to certain costs were determined as part of the 2021 budget process, in order to limit losses. The slow-down in expenditure on ongoing research projects also continued in 2021, due to the impact of the pandemic.

The group uses the following financial key performance indicators to assess its position:

2019 2020 2021
€’000 €’000 €’000
Income 17,638 4,791 7,716
Surplus/(deficit)before investmentgains/(losses) 1,828 -4,716 -2,711
General reserves at 31 December 24,027 19,619 18,087

The company changed its outsourced services provider with effect from May 2021, following a decision taken in 2020 after an extensive tender evaluation process. MCI UK Ltd took over as services provider in 2021 and the transition was successfully managed in cooperation with the outgoing and incoming providers to ensure that the company’s operations continued to run as normal. The full impact of the associated cost savings will be seen in 2022 onwards, as there were one-off costs associated with the transition in 2021.

Notwithstanding the impact of the pandemic in 2020 and, to a lesser extent, in 2021, the ESCRS group has adequate reserves and remains in a healthy financial position. This will ensure the continued funding of educational initiatives, high-quality research projects and support for charitable projects in the developing world.

Reserves Policy

The reserves policy takes into consideration the major risks that could affect ESCRS in the future and principally the threat posed to the income of the society through a failed (or diminished) annual congress whether due to a pandemic, competitive factors, an act of God, acts of terror, or the potential withdrawal over time of funding from corporate supporters due to legislative and regulatory changes.

The reserves policy is designed to allow ESCRS to continue running its activities uninterrupted for at least a 12month period, regardless of the level of income received, during which projects would be re-evaluated depending on the circumstances and the need to, and success in, generating new revenue streams. Allowing a 12-month period helps to minimise the risk of compromising the core objectives and activities of ESCRS.

On this basis, the directors consider that the required level of readily usable reserves should be €13.2m. This compares to a total unrestricted general reserve as shown in the audited accounts of €18.08m. There was therefore a surplus above the reserve requirement of €4.88m at 31 December 2021.

The directors are aware of the surplus and actively keep it under consideration, conscious however that there may be longer term effects of the COVID-19 pandemic against which the society needs to insulate itself.

The reserves policy will be monitored closely in the year ahead as the effects of the ongoing pandemic become clearer. In the meantime, surplus funds are being held either as cash balances or invested in a yield portfolio with the investment managers.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Investments

The Investment Policy of the society was reviewed and an updated Investment Policy Statement adopted in 2017.

The Investment Policy Statement sets out the investment aims and objectives of the society and closely reflects the reserves policy of the society. The investments are divided into two portfolios. Portfolio A provides the reserve fund for ESCRS in the event of a failed annual congress, the main source of income to the society. It is to be managed on a conservative low risk basis with the principal objective of maintaining the real capital value of the funds and to generate a minimum total return in excess of inflation plus 2.5% over rolling three-year periods. Portfolio B is to be managed on a low to medium risk basis and provide income which is to be factored into the short-term spending plans of the society.

The overall return on the society’s investments in 2021, net of fees, was positive at 10.9%. The directors review and benchmark the investment performance of the fund managers on an ongoing basis.

Going concern and future business success

The directors have reviewed the activities of the group and its available resources in light of the ongoing pandemic.

Notwithstanding the ongoing impact of the pandemic on the main revenue generating activity of the society, the holding of annual meetings, industry demand for the exhibition at the 2022 Annual Congress is very strong, exceeding expectations. The directors acknowledge that it may take time for meetings to return solely to an inperson format, however the demand for face-to-face engagement, balanced with risk management considerations, is clear. The group also continues to manage costs carefully; in particular, the change in its outsourced services provider will generate a significant reduction in ongoing fixed costs.

The Society has adequate reserves to help cushion any medium-term impact of the pandemic on its activities. These will be used as necessary to maintain continuity of operations, in conjunction with measures to limit overall losses and the resulting impact on reserves.

On this basis the directors are confident that the group will continue in operational existence and that the financial statements should continue to be drawn up on a going concern basis.

Indemnity insurance

The group purchased and maintained, throughout the financial year, Directors' and Officers' Liability Insurance in respect of the directors.

Statement of Trustees’ responsibilities

The Trustees (who are also directors of European Society for Cataract and Refractive Surgeons for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the Trustees are required to:

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure to our auditor

The trustees in office at the date of approval of this Trustees’ Annual Report confirm that, so far as they are each aware, there is no relevant audit information of which the charity’s auditor is unaware and each trustee has taken all the steps they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.

The group accounts are prepared in accordance with section 398 of the Companies Act 2006, section 138 of the Charities Act 2011, and with the special provisions of part 15 of the Companies Act relating to small companies. The constitute the annual accounts required by the Companies Act 2006 and are for circulation to the members of the company.

The auditors, Crowe U.K. LLP, (Chartered Certified Accountants and Statutory Auditors) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

Approved by order of the members of the board of Trustees on 6/10/2022

_______ and signed on their behalf by:

Paul Rosen Trustee

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

Opinion

We have audited the financial statements of European Society of Cataract and Refractive Surgeons (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of 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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or 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 Trustees with respect to going concern are described in the relevant sections of this report.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial 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.

Opinion on 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 our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

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

Responsibilities of trustees

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

In preparing the financial statements, the Trustees are responsible for assessing the Group's and 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 Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 13

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context were General Data Protection Regulation (GDPR), Health and safety legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of Independent Medical Education income, congress income from exhibition and sponsorship, publishing income, provisions and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures to test the timing of income, reviewing the calculations of provisions, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Page 14

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS (CONTINUED)

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the 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 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tara Westcott (Senior statutory auditor)

for and on behalf of Crowe U.K. LLP Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR

Date: 14 October 2022

Page 15

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net expenditure before net gains on
investments
Net gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2021
€
-
-
-
-
-
-
-
-
-
-
1,572
-
1,572		 Unrestricted
funds
2021
€
7,432,154
217,701
66,019
7,715,874
132,762
10,294,317
10,427,079
(2,711,205)
1,881,626
(829,579)
21,438,681
(829,579)
20,609,102		 Total
funds
2021
€
7,432,154
217,701
66,019
7,715,874
132,762
10,294,317
10,427,079
(2,711,205)
1,881,626
(829,579)
21,440,253
(829,579)
20,610,674		 Total
funds
2020
(restated)
€
4,688,806
-
102,000
4,790,806
127,355
9,379,540
9,506,895
(4,716,089)
1,147,047
(3,569,042)
25,009,295
(3,569,042)
21,440,253

Results of the charitable company for the year were a loss of €231,076 (2020: gain €2,886,242).

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 20 to 38 form part of these financial statements.

Page 16

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS REGISTERED NUMBER: 03153785

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Provisions for liabilities
19
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 1,168,120
2,703,747
3,871,867
(1,942,643)		 2021
€
-
19,596,145
19,596,145
1,929,224
21,525,369
(101,526)
(813,169)
20,610,674
1,572
20,609,102
20,610,674		 1,210,065
4,873,747
6,083,812
(1,584,254)		 2020
(restated)
€
59,723
17,629,580
17,689,303
4,499,558
22,188,861
(130,394)
(618,214)
21,440,253
1,572
21,438,681
21,440,253

The financial statements (company number: 03153785) were approved and authorised for issue by the Trustees on _______6/10/2022 and signed on their behalf by:

Paul Rosen

Trustee

The notes on pages 20 to 38 form part of these financial statements.

Page 17

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS REGISTERED NUMBER: 03153785

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Provisions for liabilities
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 3,024,370
1,187,386
4,211,756
(726,204)		 2021
€
-
19,596,145
19,596,145
3,485,552
23,081,697
(101,526)
(341,347)
22,638,824
1,572
22,637,252
22,638,824		 2,519,555
3,725,404
6,244,959
(664,755)		 2020
(restated)
€
59,723
17,629,581
17,689,304
5,580,204
23,269,508
(130,394)
(269,214)
22,869,900
1,572
22,868,328
22,869,900

The Charity's net movement in funds for the year was €(231,076) (2020 - €2,886,242). The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on and6/10/2022 signed on their behalf by:

Paul Rosen Trustee

The notes on pages 20 to 38 form part of these financial statements.

Page 18

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investments
Proceeds from sale of investments
Increase in cash held for reinvestment
Dividends and interest from investments
Proceeds from the sale of fixed assets
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
€
(2,312,841)
-
(1,370,306)
1,518,492
(233,125)
217,701
10,079
142,841
(2,170,000)
4,873,342
2,703,342		 2020
€
(3,169,162)
(7,513)
-
1,694
-
-
-
(5,819)
(3,174,981)
8,048,323
4,873,342

The notes on pages 20 to 38 form part of these financial statements

Page 19

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. General information

The European Society of Cataract and Refractive Surgeons (No. 03153785) is a company limited by guarantee incorporated in the United Kingdom. The registered office of the company is 5 Fleet Place, London, EC4M 7RD, United Kingdom which is also the principal place of business of the company. The financial statements have been presented in Euro which is also the functional currency of the company.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

The European Society of Cataract and Refractive Surgeons 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.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

Notwithstanding the ongoing impact of the pandemic on the main revenue generating activity of the society, the holding of annual meetings, industry demand for the exhibition at the 2022 Annual Congress is very strong, exceeding expectations. The directors acknowledge that it may take time for meetings to return solely to an in-person format, however the demand for face-to-face engagement, balanced with risk management considerations, is clear. The group also continues to manage costs carefully; in particular, the change in its outsourced services provider will generate a significant reduction in ongoing fixed costs.

Management have prepared a forecast for 2022 and 2023 and closely monitors its income, cost and cashflow requirements.

The Society has adequate reserves to help cushion any medium-term impact of the pandemic on its activities. These will be used as necessary to maintain continuity of operations, in conjunction with measures to limit overall losses and the resulting impact on reserves.

On this basis the directors are confident that the group will continue in operational existence and that the financial statements should continue to be drawn up on a going concern basis.

Page 20

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.3 Income

Income comprises membership income, congress income, publishing and other income. Income is included in the Statement of Financial Activities when the group is legally entitled to it, its financial value can be quantified with reasonable certainty and there is reasonable certainty of its ultimate receipt. Income received in advance for membership is accounted for as deferred income until earned. All other income is accounted for on an accruals basis.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes investment managers fees.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Purchase lease - 21 years
Leasehold improvements - 15 years
Fixtures and fittings - 5 years
Computer equipment - 5 years

Page 21

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.10 Financial instruments

The Group 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 22

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.11 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments 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 circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Provision has been made for doubtful debts at the end of the financial year. This requires management to consider the recoverability of debtor balances and, with regard to those where recovery is considered doubtful, estimate the risk of doubtful debts becoming irrecoverable based on their knowledge and experience. Provision has also been made for potential indirect tax liabilities and potential lease dilapidations liabilities, using assumptions made with input from specialist professional advisors.

Page 23

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4. Income from charitable activities

Unrestricted
funds
2021
€
Membership
399,767
Congress income
5,806,177
Publishing
1,184,813
Royalty income
41,397
7,432,154
Unrestricted
funds
2020
€
Membership
451,254
Congress Income
3,206,948
Publishing
1,030,604
4,688,806		 Total
funds
2021
€
399,767
5,806,177
1,184,813
41,397
7,432,154
Total
funds
2020
€
451,254
3,206,948
1,030,604
4,688,806

5. Investment income

Unrestricted Total Total
funds funds funds
2021 2021 2020
€ € €
Income from listed investments 217,701 217,701 -

Page 24

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

6. Other incoming resources

Other income
Other income
Investment management costs

Investment management fees
Investment management fees		 Unrestricted
funds
2021
€
66,019
Unrestricted
funds
2020
€
102,000
Unrestricted
funds
2021
€
132,762
Unrestricted
funds
2020
€
127,355		 Total
funds
2021
€
66,019
Total
funds
2020
€
102,000
Total
funds
2021
€
132,762
Total
funds
2020
€
127,355

7. Investment management costs

Page 25

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
€
Congress costs
5,782,420
Publications and other
1,851,075
Membership costs
127,089
Research costs
1,112,367
Education costs
1,331,781
Donations
89,585
10,294,317
Unrestricted
funds
2020
€
Congress costs
4,255,559
Publications and other
1,485,183
Membership costs
145,944
Research costs
1,544,904
Education costs
1,909,450
Donations
38,500
9,379,540		 Total
funds
2021
€
5,782,420
1,851,075
127,089
1,112,367
1,331,781
89,585
10,294,317
Total
funds
2020
€
4,255,559
1,485,183
145,944
1,544,904
1,909,450
38,500
9,379,540

Page 26

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9. Analysis of expenditure by activities

Congress costs
Publications and other
Membership costs
Research costs
Education costs
Donations		 Activities
undertaken
directly
2021
€
5,302,626
1,697,483
84,892
743,032
903,340
89,585
8,820,958		 Support
costs
2021
€
479,794
153,592
42,197
369,335
428,441
-
1,473,359		 Total
funds
2021
€
5,782,420
1,851,075
127,089
1,112,367
1,331,781
89,585
10,294,317
Congress costs
Publications and other
Membership costs
Research costs
Education costs
Donations		 Activities
undertaken
directly
2020
€
4,001,873
1,400,517
97,712
1,034,344
1,197,915
38,500
7,770,861		 Grant
funding of
activities
2020
€
-
-
-
-
80,500
-
80,500		 Support
costs
2020
€
253,686
84,666
48,232
510,560
631,035
-
1,528,179		 Total
funds
2020
€
4,255,559
1,485,183
145,944
1,544,904
1,909,450
38,500
9,379,540

10. Auditor's remuneration

The auditor's remuneration amounts to an auditor fee of €21,420 ( 2020 - €21,500 ).

Non-audit fees for the year totalled €4,165 (2020 - €nil).

Page 27

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. Staff costs

Wages and salaries
Social security costs		 Group
2021
€
287,576
11,769
299,345		 Group
2020
€
173,225
10,751
183,976		 Charity
2021
€
287,576
11,769
299,345		 Charity
2020
€
173,225
10,751
183,976

The average number of persons employed by the Charity during the year was as follows:

Group Group Charity Charity
2021 2020 2021 2020
No. No. No. No.
Administration and Management 2 1 2 1

The number of employees whose employee benefits (excluding employer pension costs) exceeded €60,000 was:

Group Group
2021 2020
No. No.
In the band €93,200 - €104,850 1 -
In the band €163,100 - €174,750 1 1

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - €NIL) .

During the year ended 31 December 2021, Trustee expenses were incurred at €4,166 (2020 - €7,533) .

Page 28

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. Tangible fixed assets

Group and Charity

Cost or valuation
At 1 January 2021
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
14.
Fixed asset investments
Group and Charity
Cost or valuation
At 1 January 2021
Additions
Disposals
Revaluations
Foreign exchange movement
At 31 December 2021		 Purchase
lease
€
261,282
-
261,282
236,398
24,884
-
261,282
-
24,884		 Leasehold
improvemen
ts
€
52,587
-
52,587
34,108
18,479
-
52,587
-
18,479		 Fixtures and
fittings
€
447,956
-
447,956
446,634
1,322
-
447,956
-
1,322		 Computer
equipment
€
496,688
(496,688)
-
481,650
4,959
(486,609)
-
-
15,038		 Total
€
1,258,513
(496,688)
761,825
1,198,790
49,644
(486,609)
761,825
-
59,723
Listed
investments
€
17,629,580
1,370,306
(1,518,492)
1,881,626
233,125
19,596,145

Page 29

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

14. Fixed asset investments (continued)

The historical cost of investments at 31 December 2021 (including investment cash) was €16,170,565 (2020: €15,928,921).

15. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Tax recoverable		 Group
2021
€
571,856
-
12,258
497,334
86,672
1,168,120		 Group
2020
€
458,365
-
-
665,362
86,338
1,210,065		 Charity
2021
€
44,950
2,870,784
12,258
96,378
-
3,024,370		 Charity
2020
€
64,068
2,387,900
-
67,587
-
2,519,555

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

16. Creditors: Amounts falling due within one year

Bank overdrafts
Trade creditors
Other taxation and social security
Accruals and deferred income
Deferred income at 1 January 2021
Resources deferred during the year
Amounts released from previous periods		 Group
2021
€
405
769,683
18,398
1,154,157
1,942,643
Group
2021
€
372,875
333,130
(242,481)
463,524		 Group
2020
(restated)
€
405
257,020
-
1,326,829
1,584,254
Group
2020
(restated)
€
420,379
205,471
(252,975)
372,875		 Charity
2021
€
405
85,553
3,704
636,542
726,204
Charity
2021
€
372,875
222,614
(242,481)
353,008		 Charity
2020
(restated)
€
405
189,202
-
475,148
664,755
Charity
2020
(restated)
€
420,379
205,471
(252,975)
372,875

Deferred income relates to membership fees and grant income which are received in advance of specific conditions being met. The income is shown as deferred until those conditions are fully satisified.

17. Creditors: Amounts falling due after more than one year

Group Group Charity Charity
2020 2020
2021 (restated) 2021 (restated)
€ € € €
Accruals and deferred income 101,526 130,394 101,526 130,394

Page 31

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18. Financial instruments

Group Group Charity Charity
2020 2020
2021 (restated) 2021 (restated)
€ € € €
Financial assets
Financial assets measured at fair value
through income and expenditure 19,596,145 17,629,580 19,596,145 17,629,580

19. Provisions

Group

At 1 January 2021 (restated)
Additions
Charity
At 1 January 2021 (restated)
Additions		 2021
€
618,214
194,955
813,169
2021
€
269,214
72,133
341,347

The provision has been made for potential indirect tax liabilities, dilpaidations and repayment on grant funding using assumptions made with input from specialist professional advisors.

An adjustment has been made to the prior year figure to reallocate the provision balance from accruals to provisions.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

20. Prior year adjustments

Prior year adjustments (Group)

During the year the following adjustments were identified.

The 2020 comparatives have been restated to take account of these 2 adjustments. The impact of this adjustment means that free reserves at 31 December 2020 have increased by €54,796. The impact of this adjustment means that total funds at 31 December 2020 have increased by €54,796.

Reconciliation of Reserves

At 31 December 2019 At 31 December 2020
€ €
Total reserves previously stated 24,954,499 21,385,457
To increase deferred income
 (125,152) (125,152)
To include missing investments 179,948 179,948
Total reserves restated
 25,009,295 21,440,253

There was no impact to the Statement of Financial Activities for 2020.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Research Fund
Charity Fund
General funds
Unrestricted
General Fund
Total
Unrestricted
funds
Restricted
funds
Endophthalmitis
study
Total of funds		 Balance at 1
January
2021
(restated)
€
1,500,260
318,715
1,818,975
19,619,706
21,438,681
1,572
21,440,253		 Income
€
-
-
-
7,715,874
7,715,874
-
7,715,874		 Expenditure
€
(209,463)
(89,581)
(299,044)
(10,128,035)
(10,427,079)
-
(10,427,079)		 Transfers
in/out
€
1,001,980
-
1,001,980
(1,001,980)
-
-
-		 Gains/
(Losses)
€
-
-
-
1,881,626
1,881,626
-
1,881,626		 Balance at
31
December
2021
€
2,292,777
229,134
2,521,911
18,087,191
20,609,102
1,572
20,610,674

Restricted funding relates to monies given for an Endophthalmitis study.

The Research Fund relates to amounts committed to approved research grants but not yet spent.

The Charity Fund contains funds designated for expenditure on charitable donations to be made in accordance with the Society's discretionary grant policy.

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Research Fund
Charity Fund
General funds
Unrestricted
General Fund
Total
Unrestricted
funds
Restricted
funds
Endophthalmitis
study
Total of funds		 Balance at
1 January
2020
(restated)
€
743,312
237,215
980,527
24,027,196
25,007,723
1,572
25,009,295		 Income
€
-
-
-
4,790,806
4,790,806
-
4,790,806		 Expenditure
€
(443,052)
(38,500)
(481,552)
(9,025,343)
(9,506,895)
-
(9,506,895)		 Transfers
in/out
€
1,200,000
120,000
1,320,000
(1,320,000)
-
-
-		 Gains/
(Losses)
€
-
-
-
1,147,047
1,147,047
-
1,147,047		 Balance at
31
December
2020
(restated)
€
1,500,260
318,715
1,818,975
19,619,706
21,438,681
1,572
21,440,253

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
Total		 Restricted
funds
2021
Unrestricted
funds
2021
€
€
-
19,596,145
1,572
3,870,295
-
(1,942,643)
-
(101,526)
-
(813,169)
1,572
20,609,102		 Total
funds
2021
€
19,596,145
3,871,867
(1,942,643)
(101,526)
(813,169)
20,610,674

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments (restated)
Current assets
Creditors due within one year (restated)
Creditors due in more than one year (restated)
Provisions for liabilities and charges
Total		 Restricted
funds
2020
€
-
-
1,572
-
-
-
1,572		 Unrestricted
funds
2020
€
59,723
17,629,580
6,082,240
(1,584,254)
(130,394)
(618,214)
21,438,681		 Total
funds
2020
€
59,723
17,629,580
6,083,812
(1,584,254)
(130,394)
(618,214)
21,440,253

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EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

23. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains on investments
Dividends and interests from investments
(Increase)/decrease in debtors
Increase in creditors
Net cash used in operating activities		 Group
2021
€
(829,579)
49,644
(1,881,626)
(217,701)
41,945
524,476
(2,312,841)		 Group
2020
(restated)
€
(3,569,042)
35,772
(1,019,692)
-
1,280,284
103,516
(3,169,162)

24. Analysis of cash and cash equivalents

Cash in hand
Overdraft
Total cash and cash equivalents
25.
Analysis of changes in net debt		 Group
2021
€
2,703,747
(405)
2,703,342		 Group
2020
€
4,873,747
(405)
4,873,342
Cash at bank and in hand
Bank overdrafts repayable on demand		 At 1
January
2021
€
4,873,747
(405)
4,873,342		 Cash flows
€
(2,170,000)
-
(2,170,000)		 At 31
December
2021
€
2,703,747
(405)
2,703,342

Page 37

EUROPEAN SOCIETY OF CATARACT AND REFRACTIVE SURGEONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

26. Related party transactions

The Society has research funding agreements in place with sponsor institutions in relation to two research projects where the Principal Investigator is a related party:

A research funding agreement with the Vienna Institute for Research in Ocular Surgery, with a total value of €628,293, was approved in 2016 for the MYOPRED project, whose Principal Investigator is Oliver Findl, the Company Secretary of the charitable company. At 31 December 2021, the remaining funding available under the agreement was €122,072 (31 December 2020: €132,072).

A research funding agreement with the University of Oxford was approved in 2021 for the Toric-IOL study, with a total value of €1,429,245, whose Principal Investigator is Paul Rosen, the Chairman of the Trustees of the charitable company. At 31 December 2021, the remaining funding available under the agreement was €1,429,245, as the project will commence in 2022.

27. Subsidiary

ESCRS Trading Limited

The above entity is registered at 5 Fleet Place, London, EC4M 4RD, United Kingdom, and is consolidated as European Society for Cataract and Refractive Surgeons holds 100% of the shares.

The financial results for the year were:

2021 2020
€ €
Income
 7,034,994 4,311,094
Expenditure (7,633,497)
 (5,740,741)
Loss (598,503) (1,429,647)
Net liabilities
 (2,028,149) (1,429,646)

Amounts owed to European Society for Cataract and Refractive Surgeons are included as a debtor in these accounts were €2,870,784 (2020: €2,387,900).

Page 38