2020-12-31-accounts

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

35- 43 Lincoln’s Inn Fields, London, WC2A 3PE

Registered Charity No. 1066994 Company Registration No.3482958

Accounts as at 31st Dec�� 2020

Company limited by guarantee. Company Registration No. 3482958 (England and Wales). Registered Office Address as above

Content Page:

•	Presidents Foreword	�
•	Trustees Annual Report	�
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•	Balance Sheet	��
•	Cash F�� Statement	��
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Presidents Foreword

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Don McBride Bob Handley Immediate Past President President

Trustees Annual Report

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The BOA is established for the advancement for ��

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Promote and support a career in Trauma and Orthopaedic Surgery
Encourage the development of a diverse workforce
Support surgeons in all aspects and at all stages of their careers
• �� Trauma and Orthopaedic team
Encourage and inspire students to become Trauma and Orthopaedic surgeons

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Promote fairness, accountability and resilience
Work in an open and inclusive way
�� bullying and undermining
Communicate clearly, decisively and promptly
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�� data, membership and other processes

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During the Covid pandemic, we were fully engaged �� COVID-related resources and used our website, member emails and social media to signpost latest developments and updates on the evolving ��

COVID BOAST
Statement on NICE planned rapid care guidance
�� orthopaedic surgery
Statement about proposed suspensions of ��
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FAQs for surgeons
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�� membership, with involvement from BOA ��
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�� developing joint guidance documents and �� updates
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�� Surgeons on surgery-wide issues

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Statement on Comprehensive Spending Review

�� bodies, including NICE and NHS England on topics including venous thromboembolic diseases, ��

Following a decision for the BOAST acronym to be altered to BOA Standards to allow a wider remit, �� which were BASK led documents) in 2020:

Aside from the COVID BOAST, the Trauma

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The BOASTs remain one of the most popular resources on our website

BOA Standards (BOASTS)BOA Standards (BOASTs)

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25 BOASTs Over 55k page views in the last produced so far year

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During 2020 we developed new careers material available on the BOA website and increased our �� sponsorship programme for orthopaedic medical ��

�� to update their contact details, download invoices ��

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- Av��ag�� The number of users to the website almost
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- ��rs fro�� • �� • - UK �� • - USA �� �� �� �� stralia

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Membership

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Diversity and Inclusion

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Commitment and Leadership Congress and
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Recruitment Career Support
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Underpinned by seven key principles:

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Virtual Congress

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5443
total delegates
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1489
individual
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5178
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Research

Our funding of the BOA Orthopaedic Surgery Research Centre (BOSRC) at the University of York ��

£11m funding secured

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Fundraising

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The BOA is keen to ensure that it has a clear and ��

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Future Developments for 2021:

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Governance

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Council

The Council is the governing body of the �� Council are its trustees. Council consists of ��

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Elected trustees are elected by a ballot each serving for three years. Four of the elected ��

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BOA Membership Sta��

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BOA Membership Female[Breakdown of Females] by Membership Category

Breakdown of Males by Membership Category

BOA Membership Male

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BOA Total Members

% of overall membership at each grade

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BOA Council

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100
90
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70
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Male Female
27 (93%) 2 (7%)
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Financial Review

Overall we made a surplus of £125.6k this was in part due to legacy income of £100.1k received during the year.

Incoming Resources

There was a total decrease in income in 2020 of £753k, this is an decrease in unrestricted income of £141.4k and a decrease in total restricted income of £612.2k compared to the 2019 figures.

Restricted legacy income reduced from £120.1k in 2019 to £18.2k in the year, a decrease of £101.9k. Unrestricted legacy income of £81.9k was received in 2020 (2019: £195.7k).

Legacy income is variable but our policy is to promote legacy income by direct advertisements to the profession at large through the Journal of Trauma and Orthopaedics and through appeals to our public supporter base. We have a contract with Smee and Ford to monitor other possible sources of legacies.

Income derived from fundraising activities increased by £3.9k to £53.1k (2019: £49.2k). Investment income from bank interest deposits and dividends received decreased by £25.2k from £136.3k in 2019 to £110.9k in 2020. Dividend income decreased by £28.3k.

Our two principal income streams are membership subscriptions and our Annual Congress:

Membership income increased in 2020 as our membership grew.
The Annual Congress income decreased by £430.6k due to no face to face meeting due to COVID.

Resources expended

There was a small decrease in fundraising expenses in the year of £16.8k from £80.7k to £63.9k.

There was a total decrease in expenditure in 2020 of £872.4k, this is a decrease in unrestricted expenditure of £712.9k and a decrease in restricted expenditure of £154k compared to 2019. This is attributable principally to:

Lower costs for our Annual Congress as the meeting was switched to virtual due to COVID
Lower costs for ABC and ASG fellowships as they were cancelled due to COVID

Summary

In conclusion, the result for the year before net investment losses was a surplus of £173.6k in contrast to a gain in 2019 of £54.8k.

Reserves Policy

The primary aim of our reserves policy is to hold sufficient funds to maintain our long-term sustainability and manage short-term volatility in income or liquidity. This is to ensure that we can:

Continue to meet our financial commitments;
Balance sound investment with good liquidity management; and
Avoid short-term decisions to the detriment of our longer-term vision.

Accordingly we aim to:

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Accumulate and sustain unrestricted reserves equivalent to six months running costs between £1.2 - £1.5 million; and
Maintain funds to cover future strategic developments.

Our reserves total £6.3 million made up of unrestricted, restricted and endowment reserves. Having aimed for an unrestricted reserve total of £2.6 million at the end of 2020 our actual reserve was £3.07 million (2019: £2.85

million). This includes free reserves of £1.9 million. Having reviewed the position, our Trustees are satisfied that this level of reserves is appropriate, given the economic outlook.

The BOA also has restricted reserves of £2.1 million and endowment reserves of £1.1 million. More detail is provided on page 34.

Investments

Our Trust Deed states that monies for investment shall be invested in the name of the Company by the trustees in any investments permitted by law for the investment of Trust Funds. The trustees may at any time and from time to time vary such investments for others of like nature.

Investments held for our Strategic Fund and its designated funds could, if necessary, be realised within a short space of time to meet unforeseen commitments incurred by the Association, such as legal, other consultancy or professional expenses. Investments held for our Benevolent Fund are maintained to support possible future claims.

Investment Policy

In general our policy is for the funds to be managed to obtain best returns from both bank interest and dividend income. We discuss portfolio construction and asset allocation regularly with our investment advisers, and interest rates are compared with others available in the market place to ensure they are competitive.

Our investment policy objectives are met by investing prudently in a broad range of fixed interest securities and equities which are quoted on a recognised Investment Exchange, unit trusts, and OEICs (open ended investment companies) which are authorised under the Financial Services and Markets Act 2000.

All our funds have ethical restrictions on investments in any company whose principal business is the manufacture or supply of, or trading in, armaments and tobacco products. No initial investment should exceed 10% of the total value of the funds under management. No ‘pooled’ investment should represent more than 15% of the overall portfolio when purchased.

The funds should not be invested in high risk investments including warrants, futures, contracts for difference, options and other type of derivatives unless such investments are used to moderate risk.

Investment Performance

The ARC Steady Growth Index which represents average charity performance had a growth of +3.5% (net of fees) for 2020. Over 2020 The BOA had four portfolios, two following a balanced mandate (Strategic Fund +3.3% and Benevolent Fund +3.6%) and two following an income mandate (Soli Lam Fund -3.2% and Chatterjee Fund -2.0%). Following a restructuring in Q4 all four funds are now all following a balanced mandate.

Our primary focus during these turbulent times was to ensure that the charity’s short-term liabilities were being met, and secondly that the portfolios remained well positioned to provide good growth prospects in the longer term.

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For each of the non-cash funds we have adopted a cautious, balanced approach and will continue to do so throughout 2020 with a focus on longer term returns.

Unrestricted investment income

Our aim is to maximise this source of funding to subsidise expenditure on fellowships, awards and prizes, representational and governance costs for which we do not have specific income streams.

Total unrestricted investment income earned in the year was £52.6k (2019: £70k).

Restricted investment income

Restricted investment income of £58.3k (2019: £70k) earned in the year is split between three funds, the Benevolent Fund, the Soli Lam Scholarship Fund, the Ram Kumar Chatterjee Fund:

Benevolent Fund income for the year was £10.6k (2019: £14.5k)
Investment income from the Soli Lam Endowment Fund was £42.7k (2019: £40.3k)
Investment income from the Ram Kumar Chatterjee Fund was £13.1k (2019: £15.2k)

Risk Management

The trustees have overall responsibility for managing the risks of the charity, ensuring that the risk appetite of the association is fully understood and reflected in our practices and processes.

The risk register has been reviewed and updated in light of the developments from the COVID pandemic.

The major risks are considered to be:

Area	Risk	Mitigation
Business Continuity	Ineffective Business Continuity planning in event of significant disruption (e.g. pandemic or fire within local vicinity) compromises the ability of the BOA to function effectively.	General agreed processes in place � IT system based on laptops and effectively supports remote working � Use of Zoom, Skype etc. to facilitate regular communications with staff, Council and others. � Contact details held for all key RCS and Building Personnel � Centralised staff database (cloud hosted) to support contact with all staff � Cloud based CRM system supports management of all membership functions � Staff and Exec What’s App groups allow prompt communication and quick updates � HR support company providing regular guidance on how to manage all aspects of the staffing situation and absences from the office
	Responding to workplace risks in a pandemic (including further waves)	� Social distancing measures in place for when returning to the office � Handwashing facilities in place and extra hand sanitiser in place � Deep clean facilitated when potential risk of exposure understood

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Area	Risk	Mitigation
		� Good ICT infrastructure in place to facilitate remote working
Membership	Loss of Membership Subscription Income - economic pressures and general perceptions of reduced BOA relevance, effectiveness and member focus result in significantly reduced subscription income	� Review of member support during COVID-19. Increase in communications and diversification of offer � Providing dedicated and relevant support to members through targeted communications and guidance � Ensuring BOA ‘products’ meet the needs of members and reflect changing circumstances (developments in guidance, support and congress format) � Sustained external and internal communications focus through the Journal of Trauma and Orthopaedics (JTO), monthly newsmails and Presidential mails � Increased social media presence and use of new/emerging platforms � Dedicated membership drives on targeted grades � Continued to focus on and enhance SAS offering � Enhanced relationship with members through CRM � Engagement at Specialist Society meetings through the BOA exhibition stand and Executive member presence
Financial	A reduction in the value of investment assets is sufficient to undermine the charity’s strategic objectives Expenditure on project exceeds budget undermining financial stability.	� Use of Investment Company to monitor investment assets and adjust according trustee approach to risk and the current financial need of the BOA � Regular review by trustees of value of investments and advice sought on the potential for market recovery following COVID-19 � Adjusted activity to reflect impact of COVID-19 and potential for projects funded through investments to be postponed until investment income recovers � Trustee approval required for new or expansion of major projects � Monthly finance reports against agreed priorities enable effective management of income and expenditure
Operational	Processing failures, fraud, or major incidents, impede the charity’s ability to function effectively, and thus to deliver its charitable objectives.	� Fraud awareness in all staff � Online fraud awareness provided through Hiscox insurance � Development of core process documentation to support all areas � Robust IT approach through outsourced providers including, infrastructure, new website and new CRM � Appropriate insurance arrangements in place
Compliance	A failure to comply with charity law, the general law,requirements of GDPR and	� Robust HR policies and procedures and support via externalproviders

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Area	Risk	Mitigation
	the founding Trust Deed, compromises the charity’s status and its future.	� GDPR training undertaken by all staff and policies in place � Data retention schedule developed � Process for dealing with data subject access requests in place and accessible by staff in online system

Ensuring that these, and other risks, are managed appropriately is central to the trustees’ governance, which is the subject of continuing attention. Systems and procedures for risk management are reviewed at trustees’ meetings, a risk register is updated regularly, and the performance of the professional managers employed to manage the charity’s substantial investment assets is monitored closely.

Grant Policy

As described in last year’s report, our grant policy changed in 2014 when we shifted from a focus on small pump priming grants for basic science research to a single consolidated grant of circa £60k per annum over a three year period to fund the BOA Orthopaedic Surgery Research Centre (BOSRC) at the York Trials Unit. The York Trials Unit funding has come to an end and two new centres in Nottingham and Exeter have been awarded gransts of circa £40k per annum over the next three years. The aim of the BOSRC is to increase substantially the profile of T&O research.

Going Concern

The potential for disruption to our business from the pandemic, lockdowns, quarantine restrictions and social distancing measures has been considered by the trustees and a review of the finances undertaken accordingly. During 2020 the budget was re-forecast on a regular basis to assess any changes in income or expenditure and our financial resilience in the face of further disrupted revenues and activities.

Membership income has remained broadly stable. We have worked hard to provide our members with support, guidance and alternatives to the key benefits from membership, including the Congress and to date this has proved successful. Much of our course delivery has moved online, with positive feedback from the delegates, and can remain there for the foreseeable future. Our exam is already held online and has not been disrupted.

A draft budget for 2021 has been created to reflect activity as it is currently planned and this has involved an assessment of the likelihood of an ‘in person’ Congress. There are ongoing discussions with the 2021 venue to facilitate decisions regarding the viability of the Congress, taking into account any government restrictions and limiting the financial impact of any move to virtual delivery. As with 2020 we have conducted cash flow analysis, and the budget will be regularly reviewed and updated to reflect emerging situations, and to enable us to take prompt action to manage and minimise any further adverse impact on our financial position. The charity has reviewed its forecasts and cashflow analysis for the period up to 31 December 2022.

The trustees are satisfied that our income and demand for services are broadly stable, and can be delivered in an effective way to meet the needs of the members, but we will also be conducting a membership survey during the year to assess their views and any changes required.

The BOA has cash reserves and has no requirement for external funding. The Trustees have a reasonable expectation that the BOA has adequate resources to continue in operational existence for the foreseeable future and

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therefore there are no material uncertainties over the Charity’s financial viability. They continue to consider the going concern basis of accounting is appropriate in preparing the annual financial statements.

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The trustees are responsible for preparfn8 the report of the trustee5 and the financial ststements In accordance with applicable law and re8ulatM)ns. Company law requlres the trustees to prepare financial ststew*nts for each financial year in accordance wlth United Klngdom Generally Accepted Accounting Prartire (United Klngdom Accounting Standards) and applicable law. This report has been prepared in accordance wlth the special pro¥lslons for small companie5 under Part 15 of the Companies Act 2(rf. Under company law the trustee5 must not approve the financial ststements unless they are satlsfied that they give true and fair ofthe slate of affairs of the chafitsble CLMnpany and of Its net incomiryl(xrt8oin8 resources for that period. In preparlng these financial statements. the trustees are requlred to: select suitsble accountlng policles and then apply them conslstently; make jud8rnents and estimates that are reasonable and prudent. stste whether applicable accounting Standards have been followed, subjert to any materlal departures disclosed and explained In the financial 5tstements' and prepare the financial Statements on the going COnM basis unless St Is Inappropriate to presume thatthe charity wlll continue to operate. The trustees are responslble for keeping proper accountlng records that are sufficient tt> 5ht)w and explain the chatitabte comparfs transactions and disclose with reasonable accuracy at anytlme the financial position of the CharItab company and enable them to ensure that the fin3nclal statements comply with the Companies Act 2(6. They are also responsible for safeguardin8 the assets of the charTrty and nce fortaklng reasonable steps for the preventK>n and detection of fra1 and other Irrewlaritrs. So far as each trustee Ss aware, there is no relevant audit information of whlch the cornpany's auditor5 ore unaware, and each trustee has tsken all the steps that he or she outht to have taken as a compary dlrector in order to make himself or herself aware of any relevant audit infomation and to estsblish that the companws audftors are aware of that Snformatlon. Crowe U.K LLP has indtcated its willlngne55 to be reappolnted as statory auditors. This report was approved by the trustee5 of the Charity on 28 April 2021. in thelr capacty as company director5. and 5i8ned on ts behalf by the Vlce President John Skinner and Vice Prestdent Elect. Deborah Eastwood. Vlce Presldent Elert Date of apwoval: 28 Aprfl 2021

Independent Auditor � s Report to the Members of The British Orthopaedic Association

Opinion

We have audited the financial statements of The British Orthopaedic Association (‘the charitable company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of 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 requirements of the Companies Act 2006.

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's 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 charitable company's to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s

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report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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

adequate and proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ directors’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 24, 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

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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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor � s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out 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 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 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 ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR).

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.

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We identified the greatest risk of material impact on the financial statements from irregularities, including fraud and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Board of Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

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 non-compliance 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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Thomas

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP

Statutory Auditor

London

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Statement of Financial Activities

British Orthopaedic Association: Statement of Financial Activities (including income and expenditure account) for the year ended at 31 December 2020

Note Income and endowments from: Voluntary income: Donations and legacies Charitable activities: Membership Education Professional Practice Representation Other Trading Activities Investment Income 2 Total income and endowments Expenditure on Raising funds Charitable activities: Membership Education Professional Practice Representation Research Grants Other Trading Activities Other Costs Total expenditure 3 Net Gains/(losses) on investment Transfer between funds Net movement in funds 5 Total funds brought forward Total funds carried forward 12	Unrestricted funds Restricted funds Endowment funds Total funds 2020 £’000 £’000 £’000 £’000	Total funds 2019 £’000
	82.5 71.3 - 153.8 1,373.3 316.4 - 1,689.7 555.7 16.2 - 571.9 65.7 34.0 - 99.7 - - - - 7.5 0.5 - 8.0 52.6 58.3 - 110.9 2,137.3 496.7 - 2,634.0 21.4 71.1 19.2 111.7 477.6 5.1 - 482.7 959.7 229.3 - 1,189.0 286.2 8.7 - 294.9 57.5 - - 57.5 15.2 - - 15.2 - 183.2 - 183.2 126.0 0.1 - 126.1 - - - - 1,943.6 497.5 19.2 2,460.3 28.6 6.9 (83.6) (48.1) (2.1) 2.1 - - 220.2 8.2 (102.8) 125.6 2,852.4 2,143.6 1,203.3 6,199.3 3,072.6 2,151.8 1,100.5 6,324.9	365.5 1,393.1 1,386.7 97.2 1.6 7.3 136.2
		3,387.6
		139.6 511.2 1,938.4 328.7 113.8 18.3 112.2 170.7 -
		3,332.9
		479.4 - 534.1
		5,665.2
		6,199.3

All of the above results derive from continuing activities. The Association has no other recognised gains and losses other than those stated above. The accompanying notes numbered 1 to 17 form part of these financial statements.

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Balance Sheet Brfilsh Orthopaedk Assod•tkn Balance Sheet as of 31 December 2020 20 Tar*ible assets IntsnBible assets InNEstments 191.1 4144.0 4.340.9 4.177.2 4,271.7 Debtors Cash at bank and in hand 571.2 1163.0 2.743.7 490.7 L987.2 2,487.6 Cr•dI0 Amountsfalkng due witlin oneyèaf 166&01 629.2 W5.7 Credknrs: Amountsfallirtrd tkn after morethan one year li 122S} Net assets or liabilities excluding pens at or Ilability Totsl net assetsor Ilabilitie5 2,053.2 6J24.9 1,858.4 6,199.3 R•preseTht¢d br. Unrestricted fvnd5 Restricted fvnds Endowment Funds Total Fund5 3.0716 2,151.8 I,ILKJ.5 6324.9 18514 2.143.6 1.203.3 6,199.3 The financkl ststernents are prepared in acCOrdae with the special provlsk>n5 of Part 15 of the Cryies Att 26 latlng to sm811 companies and in acctydance with the Financial Reporting Standard IFR51021 lefferti¥e 01 January 20151 Approvtd by the Trustees on 28 Aprll 2021 and slgned on its bthall by: Trustee John Sklnner M8BS FKS. FRCS (Orthl Oeborah Eastwofyl MB. FRCS The accompanylwd notes numbered I to 17 forni part of these financlal statements

Cash Flow Statement

British Orthopaedic Association Statement of Cash Flows For the year ended 31 December 2020

Cash flows from operating activities: Net cash used in operating activities (Note 1) Cash flows from investing activities: Dividends and interest from investments Proceeds from the sale of tangible fixed assets Purchase of intangible fixed assets Proceeds from sale of investments Purchase of investments Net cash provided by (used in) investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at 1 January (Note 2) Cash and cash equivalents at 31 December (Note 2) Note 1 to the cash flow statement Reconciliation of changes in resources to net cash inflow/(outflow) from operating activities Net income / (expenditure) for the year per the SOFA Adjustments for: Depreciation charges Losses/(gains) on investments Dividends and interest from investments Loss/(profit) on the sale of fixed assets Decease/(increase) in stocks Decrease/(increase) in debtors (Decrease)/increase in creditors Net cash used in operating activities Note 2 to the consolidated cash flow statement Analysis of Cash and Cash equivalents Cash at bank and in hand Total Cash and Cash equivalents	2020 £’000 161.3 110.9 - (15.3) 952.7 (1,033.8) 14.5 175.8 1,987.2 2,163.0 2020 £’000 125.7 113.3 48.0 (110.9) 4.1 0.1 (80.7) 61.7 161.3 2020 £’000 2,163.0 2,163.0	2019 £’000	2019 £’000
		17.9
		136.2 - (80.3) 264.5 (304.3)
		16.1 34.0 1,953.2
		1,987.2
		2019 £’000 534.1 106.9 (479.4) (136.2) 0.7 0.7 38.1 (47.0)
			17.9
		2019 £’000 1,987.2
		1,987.2

The accompanying notes numbered 1 to 17 form part of these financial statements

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Notes to the Financial Statements

Note 1: Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

a) Company information:

The Charity is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 12 December 1997 (company number: 3482958) and registered as a charity on 19 December 1997 (charity number: 1066994).

b) Basis of preparation

The financial statements have been prepared under the historical cost convention in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the 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 from 1 January 2015, and the Charties Act 2011. British Orthoapedic Association constitutes a public benefit entity as defined by FRS 102.

The functional currency of the Charity is considered to be GBP because that is the currency of the primary economic environment in which the Charity operates.

The financial staements have been prepared on a going concern basis. The disruption that the the pandemic, lockdowns, quarantine restrictions and social distancing measures may cause to our professional and business activities for an indeterminate period has created some financial uncertainty. The Brithish Orthopaedic Assocation has undertaken a robust review of its immediate financial position and its financial resilience in the face of future disrupted revenues and activities for the period up to 31 December 2022

A provisional budget for the new year was prepared in the autumn, and this involved a thorough and prudent reassessment of the impact of the outbreak and government restrictions on our revenue streams. The trustees concluded that our primary revenue streams were broadly resilient, that demand remained stable and that most of our courses have been delivered virtually or under socially distancing measures. With our membership directly impacted by the coronavirus outbreak, this crisis has also demonstrated the value that the British Orthopaedic Association can provide for its members and membership revenue have held up well. The budget will be regularly reviewed and updated to reflect emerging situations, and to enable the British Orthopaedic Association to take prompt action to manage and minimise any further adverse impact on its financial position.

After reviewing the Charity's forecasts and projections, the trustees have a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future. The Charity is of the opinion there are no material uncertainties over its ongoing financial viability and therefore continue to adopt the going concern basis on their consolidated accounts. T

c) Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described in this note, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. 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.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

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The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the presentation of the financial statements are as follows:

d) Company status

The Charity is a company limited by guarantee. The Trustees are Directors of the Company and in the event of the Charity being wound up; the liability in respect of the guarantee is limited to £1 per member of the Charity.

e) Membership subscriptions

Subscriptions are accounted for in the year in which they become due in full when received except when subscriptions received are for multiple years, in which case those additional years are deferred until the commencement of the appropriate accounting period. Outstanding amounts at the year-end that are considered to be recoverable are shown on the balance sheet.

f) Investment

Investments are stated at mid-market value at the balance sheet date. Gains are calculated based on the difference between the closing market value or sales proceeds and the purchase price or opening market value. Investment inomce is credited on a receivable basis

g) Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds that are available for use at the discretion of the Trustees in furtherance of the general objectives of the Association and that have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside at the discretion of the Trustees for specific purposes. The purpose and use of the designated funds is set out in the notes to the financial statements.

Restricted funds are funds subject to restrictions imposed by donors or the nature of the appeal. The funds are not therefore available for work performed by British Orthopaedic Association other than that specified by the donor.

Endowment funds are comprised of bequests to the BOA which have been invested on the request of the donor to provide on-going fellowships and awards. The income from the endowment funds, Soli Lam Fund and Chatterjee Funds is regarded as restricted. See page 34 for further details.

h) Donations and legacies

Donations and legacies are included in full in the Statement of Financial Activities when the Charity is legally entitled to the income, when receipt is probable and when the amount can be quantified with sufficient reliability.

i) Expenditure

Charitable expenditure comprises expenditure related to the direct furtherance of the Association’s charitable objectives. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with use of the resources.

Representation costs cover attendances by the President in his formal capacity at meetings of sister associations and travel and accommodation expenses of nominated British Orthopaedic Association representatives on relevant external organisations.

Staff costs are allocated on the percentage of time spent by staff on each project or aspect of the Association’s charitable objectives.

Support costs comprise the operational costs of rent, overheads, IT, telephone, mailing, printing and stationery etc. that have not been directly allocated to projects or charitable activities. They contain some staff costs and are allocated on the same basis as staff costs on time spent by personnel on projects or charitable activities with the aim of ensuring that those costs remaining within governance relate to the strategic as opposed to day to day management of the charity’s activities.

Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements. They are included within the statement of financial activities as a separate component of support costs.

Grants are charged to the statement of financial activities when a legal or constructive obligation exists notwithstanding that they may be paid in future accounting periods.

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j) Stocks

Stocks are stated at the lower of cost and net realisable value. They consist of medals, cups, ties and publications. Publications are only included in stocks if they have a quantifiable lifespan beyond the year in which they are produced.

k) Tangible fixed assets

Tangible fixed assets costing more than £1,000 have been capitalised. They are stated at cost and amortised over their estimated useful lives on a straight line basis as follows:

Computer equipment - 33% per annum Office equipment - 10% per annum Office refurbishment - 20% per annum

l) Intangible fixed assets

Intangible fixed assets costing more than £1,000 have been capitalised. Intangible fixed assets represent software costs capitalised in accordance with FRS102. These are stated at historical cost and amortised on a straight line basis over the period which revenue is expected to be generated (3 years).

Amortisation is recognised in the statement of financial activities as part of expenditure and is allocated across the expenditure headings on the same basis as Support & Governance costs

m) Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

n) Pensions

The British Orthopaedic Association is a Participating Employer in SAUL. The actuarial valuation applies to SAUL as a whole; the market value of SAUL's assets was £3,205 million representing 102% of the liabilities for benefits accrued up to 31 March 2017. It is not possible to identify an individual Employer's share of the underlying assets and liabilities of SAUL. The British Orthopaedic Association accounts for its participation in SAUL as if it were a defined contribution scheme and pension costs are based on the amounts actually paid (i.e. cash amounts) in accordance with paragraphs 28.11 of FRS 102.

o) Taxation

The British Orthopaedic Association is a registered charity. As such its sources of income and gains, received under Section 466 to 493 Corporation Tax Act 2010, are potentially exempt from taxation to the extent that they are applied exclusively to its charitable objectives. No tax charge has arisen in the year.

p) Financial instruments

Financial assets and financial liabilities are recognised when the Trust becomes a party to the contractual provisions of the instrument.

Additionally, all financial assets and liabilities are classified according to the substance of the contractual arrangements entered into. Financial assets and liabilities are initially measured at transaction price (including transaction costs) and are subsequently re-measured where applicable at amortised cost except for investments which are subsequently measured at fair value with gains and losses recognised in the Statement of Financial Activities.

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Note 2: Investment income

Investment income for the year was derived from the following sources:

Government Bonds Bonds Equities Total dividends receivable Bank Interest Receivable	2020 2020 2020 2019 Unrestricted Restricted Total Total Funds Funds Funds Funds £’000 £’000 £’000 £’000
	2.0 1.8 3.8 4.0 10.7 11.1 21.8 23.0 38.6 43.6 82.2 109.2
	51.3 56.5 107.8 136.2 1.3 1.8 3.1 -
	52.6 58.3 110.9 136.2

Note 3: Expenditure

Expenditure on: Fundraising Charitable activities: Membership Education Professional Practice Representation Research Grants Other Trading Activities Other Costs Total expenditure Expenditure in support of activities	Direct Grants Staff Support Total Total Costs Costs Costs Costs Costs (Note 16) (Note 4) 2020 2019 £’000 £’000 £’000 £’000 £’000 £’000
	42.8 - 19.7 49.2 111.7 139.6 339.8 - 39.9 103.0 482.7 511.2 452.2 - 209.7 527.1 1,189.0 1,938.4 13.3 - 80.5 201.1 294.9 328.7 31.2 - 7.5 18.8 57.5 113.8 0.1 - 4.3 10.8 15.2 18.3 - 165.7 5.0 12.5 183.2 112.2 20.3 - 40.9 64.9 126.1 170.7 - - - - - -
	899.7 165.7 407.5 987.4 2,460.3 3,332.9 512.7 - 474.7 (987.4) - -
	1,412.4 165.7 882.2 - 2,460.3 3,332.9

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Note 4: Support costs

Expenditure on: Raising funds Charitable activities: Membership Education Professional Practice Representation Research Grants Investments Other Total Expenditure	Premises Office IT & Finance Sundry Governance BHS Support 2020 2019 Man Comms Costs Total Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
	4.3 7.7 9.2 8.2 1.9 17.9 - 49.2 64.3 8.8 15.7 18.5 16.5 3.8 36.2 3.6 103.1 105.3 46.4 81.9 97.3 87.1 20.0 190.5 4.0 527.2 570.9 17.8 31.4 37.3 33.4 7.7 73.1 0.4 201.1 187.0 1.7 2.9 3.5 3.1 0.7 6.9 - 18.8 17.9 1.0 1.7 2.0 1.8 0.4 3.9 - 10.8 12.1 1.1 2.0 2.3 2.1 0.5 4.6 - 12.6 4.7 - - - - - - - - - 9.1 16.0 19.0 17.0 3.9 - - 65.0 85.7
	90.2 159.3 189.1 169.2 38.9 333.1 8.0 987.8 1,047.9

Governance Costs Professional Fees Travel and subsistence Staff Costs Support Costs	2020 2019 £’000 £’000
	37.0 31.8 7.3 34.7 111.7 83.3 177.1 135.5
	333.1 285.

Grants Awarded

The Trustees are permitted to award grants to further the aims of the Association as described in the Rep

The Trustees are permitted to award grants to further the aims of the Association as described in the Outstanding liabilities at the start of the year Awarded during the year Benevolence grants awarded during the year Paid during the year Cancelled grants Grants falling due within one year Grants falling due after more than one year	Report of the Trustees.
	2020 2019 £’000 £’000
	98.5 97.0 148.0 67.8 17.6 37.6
	264.1 202.4 (97.0) (103.9) - -
	167.1 98.5
	144.6 98.5 22.5 -
	167.1 98.5

During the year we awarded four research grants totalling £147,976 and two benevolent grants totalling £20,233. The research grants were: Nottingham Trials Unit (£39,926), Exeter Trials Unit (£36,550), RCS England (£67,500) and one for

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James Lind Alliance Priority Setting Partnerships of £4000 and discussed in the Annual Report section on Research on page 23.

Grant Commitment

At 17 December 2020, grants approved amounting to £156,404 (2019: £0) which fall due to be paid more than 12 months after the balance sheet date have not been accounted for as they are subject to conditions that have nto been met at the year-end.

Note 5: Net incoming resources

Net incoming resources are stated after charging: Audit fees Depreciation / Amortisation Operating lease rentals: plant & machinery Operating lease rentals: other	2020 2019
	£’000 £’000 31.2 31.8 113.3 107.0 1.7 3.4 62.8 77.4
	209.0 219.6

Note 6: Tangible fixed assets

Cost At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2020 Charges for the year Disposals At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Office Office Computer equipment refurbishment equipment Total £’000 £’000 £’000 £’000
	9.0 145.0 10.4 164.4 - - - - (5.1) (145.0) (10.4) (160.5)
	3.9 - - 3.9
	9.0 139.1 10.4 158.5 - 1.4 - 1.4 (5.1) (140.5) (10.4) (156.0)
	3.9 - - 3.9

	- - - -
	- 5.8 - 5.8

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Note 7: Intangible fixed assets

Cost At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge for year Disposals At 31 December 2020 Net Book value At 31 December 2020 At 31 December 2019	BHS Website Website Database Total £’000 £’000 £’000 £’000
	- 104.7 230.9 335.6 15.3 - - 15.3 - (15.5) - (15.5)
	15.3 89.2 230.9 335.4
	- 48.1 96.4 144.5 - 34.9 77.0 111.9 - (15.5) - (15.5)
	- 67.5 173.4 240.9

	15.3 21.7 57.5 94.5
	- 56.6 134.5 191.1

Note 8: Investments

Market Value at 1 January 2020 Additions at cost excl. S/Brokers cash Disposals at market proceeds Net investment (loss)/gain Market value at 31 December 2020 Historical Cost at 31 December 2020 Investments held with Investec Wealth & Investment Fixed Interest UK Equities Overseas Equities Property Alternative Assets Market value at 31 December 2020	2020 £’000 4,144.1 1,033.7 (952.7) (47.90)	2019 £’000 3,624.9 304.4 (264.5) 479.3
	4,177.2	4,144.1
	3,091.9 2020 £’000 % 715.1 17% 1,591.5 38% 1,249.5 30% 268.2 6% 352.9 8% 4,177.2	2,960.4 2019 £’000 % 688.3 19% 1,752.4 42% 1,058.7 23% 293.1 8% 351.6 8% 4,144.1

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Note 9: Debtors

Trade Debtors Other debtors Prepayments Accrued Income Value added tax Gift Aid recoverable Members’ subscriptions in arrears Debtors include a Bad debt provision of £0 (2019: £51.2k) Bad debts written off in 2020 £9.6k (2019: £3.8k)	2020 2019 £’000 £’000
	0.9 108.0 0.1 2.1 460.9 265.6 55.8 55.3 8.2 15.7 44.0 44.0 1.3 -
	571.2 490.7

Note 10: Creditors; amounts falling due within one year

Trade Creditors Social Security Sundry Creditors Accruals Deferred Income JA Research grants	2020 2019 £’000 £’000
	152.5 121.0 33.4 27.0 49.9 33.5 146.3 235.1 141.3 139.5 144.6 73.0
	668.0 629.1

Movement on deferred income

Movement on deferred income
1 January 2020 Released in the year Deferred in the year 31 December 2020	Total 2019 £’000
	106.6 (106.6) 141.3
	141.3

In 2020, the deferred income of £74.2k related to course registrations for courses due to take place in the first half of 2021, £15k related to elective care reviews, £3k on BHS Registry and £44.3k related to membership subscription income.

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Note 11: Creditors: Amounts falling due in more than one year

Grants Payable – Research Grants	2020 2019 £’000 £’000
	22.5 -

Note 12: Net assets by funds

Unrestricted funds Restricted funds Endowment funds	Tangible fixed assets Intangible fixed assets Fixed assets investments Other net assets Total 2020 £’000 £’000 £’000 £’000 £’000
	- 79.2 2,245.5 747.9 3,072.6 - 15.3 461.9 1,674.6 2,151.8 - - 1,469.8 (369.3) 1,100.5
	- 94.5 4,177.2 2,053.2 6,324.9

Comparative net assets by fund

Unrestricted funds Restricted funds Endowment funds	Tangible fixed assets Intangible fixed assets Fixed assets investments Other net assets Total 2019 £’000 £’000 £’000 £’000 £’000
	5.8 191.1 2,193.1 462.4 2,852.4 - - 431.6 1,712.0 2,143.6 - - 1,519.3 (316.0) 1,203.3
	5.8 191.1 4,144.0 1,858.4 6,199.3

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Note 13: Total funds

General Funds Restricted Funds Benevolent Fund Research Fund Casting Co-ordinator Howard Steel Foundation Naughton Dunn Memorial Lecture Fund Grants British Hip Society Soli Lam Spinal Fellowship Soli Lam Orthopaedic Fellowship Chatterjee Fellowship Zimmer Fellowship Andrew Sprowson Fellowship ABC Fellowship Post-Graduate Orthopaedics Travelling Fellowship Endowment Fund Chatterjee Fund Soli Lam Spinal Fellowship Fund Soli Lam Orthopaedic Fellowship Fund	1-Jan- 2020 Income Expenditure Transfers between funds Net investment gain/(loss) 31-Dec- 2020 £’000 £’000 £’000 £’000 £’000 £’000
	2,852.4 2,137.3 (1,943.6) (2.1) 28.6 3,072.6
	498.1 24.1 (24.9) - 6.9 504.2 1,193.7 59.8 (229.5) - - 1,024.0 5.6 5.3 (12.5) 1.6 - - 37.8 - - - - 37.8 7.2 - - - - 7.2 11.6 - - - - 11.6 140.2 351.2 (187.9) - - 303.5 57.7 12.1 (7.1) - - 62.7 112.6 20.6 (6.4) - - 126.8 62.3 13.1 (7.9) - - 67.5 16.8 7.0 (17.3) - - 6.5 - 1.5 (1.5) - - - - - (0.5) 0.5 - - - 2.0 (2.0) - - -
	2,143.6 496.7 (497.5) 2.1 6.9 2,151.8
	320.4 - (6.9) - (20.2) 293.3 275.6 - (4.5) - (23.4) 247.7 607.3 - (7.8) - (40.0) 559.5
	1,203.3 - (19.2) - (83.6) 1,100.5

	6,199.3 2,634.0 (2,460.3) - (48.1) 6,324.9

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Comparative total funds

General Funds Restricted Funds Benevolent Fund Research Fund Casting Co-ordinator Howard Steel Foundation Naughton Dunn Memorial Lecture Fund Grants British Hip Society Soli Lam Spinal Fellowship Soli Lam Orthopaedic Fellowship Chatterjee Fellowship Zimmer Fellowship Singhal Fellowship Andrew Sprowson Fellowship ABC Fellowship Post-Graduate Orthopaedics Travelling Fellowship Endowment Fund Chatterjee Fund Soli Lam Spinal Fellowship Fund Soli Lam Orthopaedic Fellowship Fund	1-Jan- 2019 Income Expenditure Transfers between funds Net investment gain/(loss) 31-Dec- 2019 £’000 £’000 £’000 £’000 £’000 £’000
	2,500.9 2,749.5 (2,656.6) (13.2) 271.8 2,852.4
	481.4 14.8 (49.5) - 51.4 498.1 1,178.0 169.0 (153.3) - - 1,193.7 11.0 1.7 (7.1) - - 5.6 37.8 - (4.3) 4.3 - 37.8 7.2 - (0.8) 0.8 - 7.2 11.6 - - - - 11.6 133.9 251.1 (244.8) - - 140.2 56.5 14.9 (13.7) - - 57.7 103.1 25.4 (15.9) - - 112.6 58.3 15.2 (11.2) - - 62.3 13.7 115.6 (112.5) - - 16.8 - 1.4 (1.4) - - - - 1.5 (1.5) - - - - 25.0 (33.1) 8.1 - - - 2.5 (2.5) - - -
	2,092.5 638.1 (651.6) 13.2 51.4 2,143.6
	289.7 - (9.4) - 40.1 320.4 238.3 - (5.7) - 42.9 275.6 543.8 - (9.6) - 73.2 607.3
	1,071.8 - (24.7) - 156.2 1,203.3

	5665.2 3,387.6 (3,332.9) - 479.4 6,199.3

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Note 13: Total funds (cont.)

Benevolent Fund

The fund exists to meet any successful claims for relief from poverty or distress that might arise from eligible members of the British Orthopaedic Association.

Joint Action (JA) Research Fund

Joint Action was established to raise funds for orthopaedic research and to award grants to successful applicants.

E-Learning Fund

This fund was originally received to fund the development of the electronic logbook for trainees. The remaining funds have been used to fund the development of the e-learning platform.

Casting Co-ordinator Fund

This fund existed to pay the salary of the Casting Co-ordinator. Funds will still be received for this purpose but will now form part of the ‘other restricted funds’ received by BOA.

Howard Steel Foundation

Funds were received over a period of years from Dr Howard Steel that were restricted to pay an honorarium to a speaker whose speech content at the Annual Congress was of a non-orthopaedic nature. The first lecture took place at the Association’s 1998 Annual Congress in Dublin.

Naughton Dunn Memorial Lecture Fund

The fund was established from a donation received from Mrs Ethel Dunn to sponsor an annual memorial lecture in memory of her husband, a former President of the Association.

Grants (ex Wishbone)

Donations received for orthopaedic research and for the awarding of research grants.

British Hip Society

The British Hip Society has come under the BOA umbrella as an autonomous Trust with their investments and other funds being accounted for as a restricted item with in the BOA accounts.

Other restricted funds

From time to time we receive funds for specific purposes. In this year they include the, the ABC, Zimmer, Singhal and Andrew Sprowson travelling fellowships and Quality Outcomes.

Endowment Fund

An endowment of £300.0k was received in 2006 from Mr Soli Lam, a BOA member, the income from which was to support an annual fellowship in spinal surgery. The terms allow for a Spinal fellowship dependent on the returns from the capital. An endowment legacy of £529.1k was received from the estate of Mr Soli Lam in 2013; the income from this endowment is to support an annual traveling orthopaedic fellowship.

Transfers

The restricted fund for the ABC fellowship exceeded the funding held as a result the BOA General funds covered the extra costs. The restricted funds for Howard Steel and Naughton Dunn did not incur any income to cover the costs as a result the BOA General fund covered the costs.

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Note 14: Operating lease commitments

At 31 December 2019 the Association had annual commitments under non-cancellable operating leases as follows:

Payment date: Within one year Between two and five years Over five years	2020 2019 Land and buildings Other Land and buildings Other £’000 £’000 £’000 £’000
	81.8 - 77.4 6.4 - - 32.2 - - - - -
	81.8 - 109.6 6.4

During 2020 we paid rent and services charges to the Royal College of Surgeons and a photocopying lease to Konica which ended in 2020.

Note 15: Staff Costs

Wages and salaries Social Security costs Pension costs Other staff costs	2020 2019 £’000 £’000
	692.1 669.4 66.6 62.9 104.1 84.8 19.5 38.4
	882.3 855.5

In 2020, there were no redundancy and termination payments (2019: £0). Termination payment totals now include National Insurance payments.

The number of employees whose emoluments as defined for tax purposes amounted to over £60,000 in the year was as follows:

follows:
£60,000 - £70,000 £70,000 - £80,000 £80,000 - £90,000	2020 2019 Number Number
	1 2 - - 1 1
	2 3

The total remuneration to key management for the year was £437.9k (2019: £395.4k)

The average number of persons employed by the charity (excluding council members), during the year was as follows:

Office and Administration	2020 2019 Number Number
	17.0 17.0

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No Trustee received remuneration during the year (2019: Nil). Out of pocket expenses for travel, subsistence and accommodation paid to 13 Trustees (2019: 18) were £24.5k (2019: £56.9k). Trustee expenses invoiced directly to the British Orthopaedic Association for travel, subsistence and accommodation were £20.5k (2019: £43.8k) This includes outstanding amounts at the year-end of £0k (2019: £4.9k)

Pension Scheme

The British Orthopaedic Association participates in the Superannuation Arrangements of the University of London ("SAUL"), which is a centralised defined benefit scheme within the United Kingdom and is contracted-out of the Second State Pension (prior to April 2016).

SAUL is an independently-managed pension scheme for the non-academic staff of over 50 colleges and institutions with links to higher education.

Pension benefits accrued within SAUL currently build up on either a Final Salary basis or a Career Average Revalued Earnings ("CARE") basis.

The British Orthopaedic Association is not expected to be liable to SAUL for any other current participating employer's obligations under the Rules of SAUL, but in the event of an insolvency event of any participating employer within SAUL, an amount of any pension shortfall (which cannot otherwise be recovered) in respect of that employer, may be spread across the remaining participating employers and reflected in the next actuarial valuation. Funding Policy

SAUL's statutory funding objective is to have sufficient and appropriate assets to meet the costs incurred by the Trustee in paying SAUL's benefits as they fall due (the "Technical Provisions"). The Trustee adopts assumptions which, taken as a whole, are intended to be sufficiently prudent for pensions and benefits already in payment to continue to be paid and for the commitments which arise from Members' accrued pension rights to be met.

The Technical Provisions assumptions include appropriate margins to allow for the possibility of events turning out worse than expected. However, the funding method and assumptions did not completely remove the risk that the Technical Provisions could be insufficient to provide benefits in the future.

A formal actuarial valuation of SAUL is carried out every three years by a professionally qualified and independent actuary. The last actuarial valuation was carried out with an effective date of 31 March 2017. Informal reviews of SAUL's position, reflecting changes in market conditions, cash flow information and new accrual of benefits, are carried out between formal valuations.

The funding principles were agreed by the Trustee and employers in June 2018 and are due to be reviewed at SAUL’s next formal valuation in 2020. The 2020 valuation is being finalised and is expected in June 2020.

At the 31 March 2017 valuation SAUL was fully funded on its Technical Provisions basis so no deficit contributions were required. The Trustee and the Employers have agreed that the ongoing Employers’ contributions will continue at a rate of 16% of CARE Salaries.

Accounting Policy

The British Orthopaedic Association is a Participating Employer in SAUL. The actuarial valuation applies to SAUL as a whole; the market value of SAUL’s assets was £3,205 million representing 102% of the liabilities for benefits accrued up to 31 March 2017.

It is not possible to identify and individual Employer’s share of the underlying assets and liabilities of SAUL. The British Orthopaedic Association accounts for its participation in SAUL as if it were a defined contribution scheme and pension costs are based on the amounts actually paid (i.e. cash amounts) in accordance with paragraphs 28.11 of FRS 102.

As there was a Technical Provisions surplus at 31 March 2017 there is no defined benefit liability (i.e. the present value of any deficit contributions due to SAUL) to be recognised by the British Orthopaedic Association.

SAUL is subject to triennial valuations by professionally qualified and independent actuaries. The last available valuation was carried out as at 31 March 2017 using the projected unit credit method in which the actuarial liability makes allowance for projected earnings. The main assumptions used to assess the technical provisions were:

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Latest actuarial valuation	31.03.2017	31.03.2014
Investment return per annum	1.96%	3.86%
Salary scale increases per annum	3.49%	3.72%
Pension increases per annum	2.49%	2.72%
Market value of assets	£3,205 Million	£1,927 Million
Liabilities at date of last valuation	£3,149 Million	£1,986 Million
(Deficit)/surplus in scheme	£56 million	(£59 million)
Proportion of accrued benefits covered by the actuarial value	102%	97%

The total pension cost for the Association was: Contributions to SAUL Other Pension Costs Pension Deficit Provision Total Pension cost	Year ended 31-Dec-20 £’000 111.4 - - 111.4	Year ended 31-Dec-19 £’000 101.7 - (16.9)
		84.8

The employers contribute 16% of salaries, staff members’ contribute 6.0% of salaries.

It is not possible to identify the Association’s share of the underlying assets and liabilities of the scheme. Therefore contributions are accounted for as if SAUL were a defined contribution scheme and pension costs are equal to the contribution payable for the year in accordance with FRS102.

Note 16: Related Parties

There have been no related party transactions in the reporting period that require disclosure.

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Note 17: Comparative Statement of Financial Activity

British Orthopaedic Association: Statement of Financial Activities (including income and expenditure account) for the year ended at 31 December 2019

Note Income and endowments from: Voluntary income: Donations and legacies Charitable activities: Membership Education Professional Practice Representation Grant Other Trading Activities Investment Income 2 Total income and endowments Expenditure on Raising funds Charitable activities: Membership Education Professional Practice Representation Research Grants Other Total expenditure 3 Net Gains/(losses) on investment Transfer between funds Net movement in funds Total funds brought forward Total funds carried forward 12	Unrestricted funds Restricted funds Endowment funds Total funds 2019 £’000 £’000 £’000 £’000
	196.3 169.2 - 365.5 1,368.6 24.5 - 1,393.1 1,033.5 353.2 - 1,386.7 77.2 20.0 - 97.2 1.6 - - 1.6 - - - - 6.1 1.2 - 7.3 66.2 70.0 - 136.2
	2,749.5 638.1 - 3,387.6
	24.3 90.6 24.7 139.6 501.1 10.1 - 511.2 1,507.8 430.6 - 1,938.4 320.9 7.8 - 328.7 113.8 - - 113.8 18.3 - - 18.3 - 112.2 - 112.2 170.4 0.3 - 170.7
	2,656.6 651.6 24.7 3,332.9
	271.8 51.4 156.2 479.4 (13.2) 13.2 - -
	351.5 51.1 131.5 534.1
	2,500.9 2,092.5 1,071.8 5,665.2
	2,852.4 2,143.6 1,203.3 6,199.3

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Reference and Administrative Detail

Trustees and Senior Staff

Officers of Council

D J McBride President to 17/09/20, then Past President R C Handley Vice President to 17/09/20, then President J Skinner Vice President elect to 17/09/20, then Vice President and Honorary Treasurer from 01/01/18 D Eastwood Vice President elect from 17/09/20 Simon Hodkinson Honorary Secretary from 01/01/20 P G Turner Appointed trustee from 17/09/20 to 23/09/21

Elected Members of Council

2018 – 2020	2019 – 2021	2020-2022	2021-2023
P Giannoudis R Morgan-Jones H Simpson D Tennent	G Giddins R Gregory F Monsell A Stephen	C Esler A Hui A Manktelow I McNab	Fare Haddad Amar Rangan Sarah Stapley Hiro Tanaka

Honorary Posts

Archivist

I B M Stephen

Key Management

Chief Operating Officer Director of Finance Director of Policy and Programmes Director of Communications and Operations Interim Director of Communications

J Clarke E Fry J Trusler E Storey A Heninger

Registered Address

Charity Registration Number

British Orthopaedic Association 1066994 At the Royal College of Surgeons 35-43 Lincoln’s Inn Fields Company Registration Number London WC2A 3PE 3482958

Bankers

National Westminster Bank PLC Marylebone and Harley Street Branch P O Box 2021 10 Marylebone High Street London W1A 1FH

Auditor

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW

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Solicitors

Bircham Dyson Bell LLP 50 Broadway London SW1 0BL

Investment Advisors

Investec Wealth Management 2 Gresham Street London EC2 7QN

Employment Advisors

Ellis Whittam Ltd Woodhouse Aldford Cheshire CH3 6JD

HR Inspire 64-68 Akeman Street, Tring, Hertfordshire HP23 6AF

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