Report of the Board and Consolidated Financial Statements
For the year ended 31[st] March 2023
Contents
Financial Statements 2022-2023
Reference and administrative details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Structure, governance and management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Report of the Board of Trustees Objects and activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Strategic report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Achievement and performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Financial review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Principal risks and uncertainties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Plans for future periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Trustees’ responsibilities statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Independent auditor’s report to the members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 and trustees of Picker Institute Europe Consolidated Statement of Financial Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Charitable Company Statement of Financial Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Consolidated and Charity Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Consolidated and Charity Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Reference and administrative details
Registered name:
Picker Institute Europe
Picker
Other names:
Number 1081688 Number SC045048 Number 3908160
Registered Charity in England and Wales: Registered Charity in Scotland: Registered Company Limited by Guarantee: Registered office address:
Suite 6, Fountain House, 1200 Parkway Court, John Smith Drive, Oxford OX4 2JY
Patron Stuart Bell CBE Directors and Trustees
The Directors of the charitable company are its Trustees for the purposes of charity law. The Trustees and officers serving during the year and since the year end were as follows:
| Dr Angela Coulter | Chair, from 29th September 2022 |
|---|---|
| Professor Aileen Clarke | Chair, until 29th September 2022 |
| Sally Sykes | Honorary Treasurer |
| Professor Gary Ford CBE | |
| Diane French | Until 11thNovember 2022 |
| Amran Hussain | Until 29th September 2022 |
| Professor Tim Irish | |
| Julia Levy | |
| Ronny Odegbami | Until 22nd June 2022 |
| Professor Wendy Reid | Until 9th May 2023 |
| Dr Magdalena Skrybant | |
| Chris Graham |
Company Secretary
Executive team who are the key management personnel
Chris Graham Group Chief Executive Officer Phillip Stylianides Chief Operations Officer Jenny King Chief Research Officer Mark Collins Chief Financial Officer Phillip Stylianides Managing Director, Picker HWA Ltd
Our advisers
Auditors
Moore Kingston Smith LLP, The Shipping Building, The Old Vinyl Factory, Blyth Road, Hayes, London UB3 1HA NatWest Bank, Willow Court, 7 West Way, Oxford OX2 0JB Wilsons Solicitors LLP, 4 Lincoln’s Inn Fields, London WC2A 3AA
Main bankers Main solicitors
Financial Statements 2022-2023
Reference and administrative details
3
2
Financial Statement 2020-
Structure, governance and management
The governing document is the Memorandum and Articles of Association dated 21[st ] March 2014. The members of the Board of Trustees are the Directors of the Company. It has no share capital and the members of the charity are the Trustees, each of whom agrees to contribute such amount as may be required (not exceeding £1.00) in the event of the charity winding up.
Matters which the Board considers suitable for delegation are contained in the terms of reference of its committees. Day-to-day managerial responsibility is delegated to the Executive Team led by the Chief Executive Officer.
On appointment each Trustee is given an induction pack that includes the Articles of Association, matters reserved for the Board, Charity Commission booklet “The Essential Trustee”, strategic plan, organisational chart, copies of the latest Report of the Board and Financial Statements, impact report, and current business plan. New Trustees meet with the Chair and Chief Executive Officer and are invited to take part in induction meetings with key staff. Training is offered on a continual basis to all Trustees to assist them in their role and governance of the charity.
Recruitment of Trustees is by open application to the Appointments and Remuneration Committee. The Committee shortlist prospective Trustees with advice from the Chief Executive Officer, and members form a panel to interview candidates. Appointment is by resolution of the Board of Trustees. Prior to appointing or re-appointing Trustees the Board of Trustees reviews the skills mix and tries to ensure that all relevant areas of expertise are covered.
As well as regular meetings of the Board of Trustees, there are also the following two standing committees:
Trustees serve for an initial three-year period after which they may be re-appointed for a further three-year term, with the exception of the Chair and Honorary Treasurer, who may be re-appointed by a resolution of the Trustees to continue in office for one year after the end of their term of office. Trustees who have served two consecutive terms of office may not be re-appointed for a further term until a period of one year has elapsed unless the Trustees resolve, by a 75% majority, that the Trustee may be re-appointed immediately for a further term of three years. The Chair and Honorary Treasurer are appointed by the Trustees from among their number.
Finance, Audit and Risk Committee
The Committee is a joint Trustee/Executive committee with membership at the year end of:
Sally Sykes – Honorary Treasurer (Chair of the Committee) Dr Angela Coulter – Chair Professor Tim Irish – Trustee Chris Graham – Chief Executive Officer Mark Collins – Chief Financial Officer Phillip Stylianides – Chief Operations Officer
The Board convenes at least five times per year and has a ‘matters reserved for the Board’ document that sets out the matters that will only be decided by the Board to meet legal requirements or in the interests of the Charity as a whole. The Board controls the Charity’s overall strategy and sections in the document cover:
Appointments and Remuneration Committee
The membership of the committee at the year end was:
Dr Magdalena Skrybant – Trustee (Chair of the Committee)
1. Strategy and management
2. Structure
Dr Angela Coulter – Chair Professor Gary Ford – Trustee Julia Levy – Trustee
3. Financial reporting and controls
4. Internal controls
5. Contracts
Register of interests and people with significant control
6. Communication
7. Board membership and other appointments
8. Remuneration
The charity maintains a register of Trustees’ interests and a register of people with significant control at the registered office address. There is no person or legal entity with significant control.
9. Delegation of authority
10. Corporate governance matters
11. Policies; and
12. Other miscellaneous items.
Report of the Board of Trustees
The Trustees of Picker Institute Europe (Picker) are pleased to present their annual report together with the group consolidated financial statements of the charitable company and its subsidiary for the year ended 31[st ] March 2023, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
Empower staff working in health and social care to improve experiences by effectively measuring and acting upon people’s feedback.
Our values
We are proud of the work we do, and are equally proud of the way we do it.
The financial statements comply with the Charities and Trustees Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Our core values – excellence, integrity, valuing diversity and collaboration – underpin everything that we do, reflecting what we believe in and how we behave.
- Excellence: Maintaining the quality and consistency of our work is our highest priority. We are not willing to accept the status quo and continuously look for new ways to understand, measure and improve the quality of health and social care.
Objects and activities
- Integrity: We ensure our independence using the best possible evidence to drive and support our decision making, our statements and our activities. Our behaviours match our words and we are accountable for all that we do. We only engage in activity which furthers our charitable aims.
Our purpose
Picker was established to promote the idea and benefits of person centred care.
Our objects
- Valuing diversity: We recognise all people as equals, valuing individual worth and diversity. Ideas and contributions are judged on their merit not their source.
The objects of the charity are:
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to promote public health for the benefit of the community in particular by improving standards of treatment and care for patients of health care services;
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Collaboration: We encourage ideas and knowledge to be shared freely. We believe that lasting change cannot be delivered in isolation and actively seek partnership opportunities to achieve greater impact.
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to advance education in healthcare in particular by the provision of training for healthcare professionals in communication skills; and
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to advance education in healthcare in particular by developing research tools and undertaking research into patients’ perspectives of health care services and to publish the useful results of the same for the public benefit.
Our vision
The highest quality person centred care for all, always.
Our mission
We are here to:
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Influence policy and practice so that health and social care systems are always centred around people’s needs and preferences.
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Inspire the delivery of the highest quality person centred care, developing tools and services that enable people’s experiences to be better understood.
Financial Statements 2022-2023
Financial Statements 2022-2023
Report of the Board of Trustees
4 Structure, governance and management
5
Activities
Picker carries out a range of activities to further its charitable objects. Collectively, these include research and insight work around person centred care, as well as work to measure and improve staff and users’ experiences of care. Typical examples of our activities include:
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Developing and implementing applied social research including surveys, interviews, and focus groups to gather feedback about the quality of care services.
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Designing and conducting in-depth research to evaluate the impact of policy and practice on people’s experiences and service quality, and creating innovative new approaches to support better measurement.
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Sharing research findings and best practice with the wider community of policy makers, professionals, researchers, and the public to inspire and enable improvements in the quality of services.
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Working with providers, commissioners, and professionals to support them to understand and act on the things that matter most to their patients, populations, and staff, including through local and national workshops and events.
Public benefit
The Trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit.
The Trustees ensure that our work is carried out for the public benefit by delivering services that directly involve the public and, wherever possible, seldom heard communities, and ensure that those with responsibility to influence people’s care have both the information and tools to aid them in their role. Our beneficiaries are the public and all involved in health and social care (patients, service users, friends and families, and care staff). We promote public health to improve standards of treatment and care and by developing research tools and undertaking research into patients’ perspectives of health care services and publishing them for the public benefit. All our products and services are designed to deliver benefit for patients, service users, communities, care professionals, and the public regardless of whether they are undertaken under contract, are grant aided, or are an allocation of resources.
Volunteers
We actively seek input from patients and members of the public in much of the work we do, and opportunities are available for volunteers to contribute to the design, planning, and delivery of research studies that we conduct. Further opportunities are available for volunteers to gain experience at Picker and to help achieve the organisation’s objectives.
Environmental, Social and Governance
We are actively using Environmental, Social and Governance (ESG) factors to assess how far advanced we are with our behaviours and systems around sustainability. They are integrated into our processes, policies, and statements such as our Environmental and Sustainability Policy, Carbon Reduction Plan, Equality, Diversity, and Inclusion Policy, and our approach to continual improvement especially through our international standard accreditations. Our mission reflects our public (societal) benefit as reported in our Impact Report. Governance and behaviours are described in the Annual Report as referenced earlier in the report though the Matters Reserved for the Board, the committee structure with terms of reference, and our core values. We recognise that ESG is developing and evolving and so is our thinking and approach.
Strategic report
Achievements and performance
We pioneered the Picker Principles of Person Centred Care, which continue to be used as a world-renowned framework to support the delivery of consistent, high-quality care. We influence, inspire, and empower others to ensure that people are placed at the heart of health and social care provision. We believe advocating for the delivery of each of the Principles is crucial to achieving this.
We are experts in understanding and measuring people’s experiences. Our research provides the clarity, tools and data to achieve the buy-in needed to drive improvements in care standards.
We use our experience and expertise to help care providers, commissioners, and professionals engage and empower people to build a culture that consistently delivers person centred care for all, always.
In the financial year ending 31[st] March 2023, we continued to advance our vision of person centred care for all, always, by delivering a range of programmes and activities to support the measurement, understanding, and improvement of people’s experiences of health and care. As always, we have focussed on delivering projects and services that create impact for our beneficiaries: patients, service users, the public, and health and care staff. Notable examples in 2022/23 include:
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Continuing our work on the NHS Staff Survey, which we have coordinated on behalf of NHS England and NHS Improvement since 2011. The survey has grown over the last decade to become the largest workforce survey in the world, collecting over 630,000 responses in 2022, and recognition and use of its results have grown correspondingly. As well as coordinating the survey nationally, Picker worked with more than 140 NHS organisations to collect and act on staff feedback, gathering more than half of all responses to the survey.
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Working with Jersey Care Commission to develop and launch a new national survey programme for the Island, encompassing people’s experiences of inpatient services, urgent and emergency care, maternity care, and community mental health services. The new surveys are supporting the regulator and care providers to promote and support best practice and improve standards of care, and provide improved insight by enabling comparisons across the Island’s services and against similar services in England.
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Further developing the state of evidence around people’s experiences of cancer care in England by continuing to manage national surveys of both adults and children and young people affected by cancer for NHS England. In 2022 we published results from a survey of more than 59,000 adults, which showed generally positive experiences of care but a need for greater personalisation and improvements in support outside of hospital. Similarly, we published results from a survey of 960 children and young people: most respondents felt well looked after, but there was evidence of room for improvement around the continuity of care.
Our strategic priorities this year have included a focus on whole pathway care, as well as maintaining and developing our status as a though leader in the measurement and use of patient and staff experience information.
People experiencing physical or mental health conditions often require the support from a range of health and care organisations. These interactions may be sequential (such as seeing a general practitioner and being referred for outpatient treatment at a hospital) or services may complement one another over a period of time (for example, receiving cancer care at a hospital whilst also receiving support in the community). Our vision of person centred care for all requires this range of care services to work together around the needs of their users. In line with this, we have sought to engage with providers and commissioners across the whole care pathway.
This was the first full year of operations for Picker HWA, our subsidiary that we had launched on the 1[st] July 2021. We aimed to review the services that the subsidiary was offering; to complete its integration into the Picker Group, and to build our impact with private health and with social care providers. Colleagues in Picker HWA have made very strong progress in these regards, and are making a strong contribution to the Picker Group as a whole by engaging with a growing range of partners across pathways of care.
The Charity itself has also focussed on services out of hospital and on commissioning across integrated care systems (ICSs), which were established on a statutory basis from the 1[st] July 2022. This has included work with the Quality, Safety, and Outcomes of Health and Social Care Policy Research Unit (QSO PRU) throughout the year, where we have investigated how the new ICSs understand quality. We have also continued to work with NHS England on plans for gathering workforce experience data in primary care, building on an earlier feasibility study and pilot that we conducted.
As well as these newer areas of work, we have sought to build on our existing partnerships and programmes. This year, this has notably included securing renewals of two key service agreements – provision of the coordination centres for the NHS Patient Survey Programme (for the Care Quality Commission) and for the NHS Staff Survey (for NHS England). We are delighted to have the opportunity to continue to support these important initiatives, and they will be key parts of our programme of work for the year ahead.
Financial Statements 2022-2023
Financial Statements 2022-2023
6 Report of the Board of Trustees
Report of the Board of Trustees
7
Financial review
The is the group financial review of the charitable company and the wholly owned subsidiary Picker HWA Ltd for the full year 2022/23. Total income for the group was £4.412 million which is an increase on the prior year of 8.8%. The Charity had total income of £4.105 million which was an 8.7% year on year increase. The principal sources of income (over £100,000) during the year were NHS England, the Care Quality Commission and The Mid Yorkshire Hospitals NHS Trust.
Expenditure for the group has increased by 13.6% year-on-year to £4.069 million (£3.892 million for the charity). This has resulted in a group surplus for the year of £343,000 (£213,000 for the charity) before corporation tax and has increased the unrestricted funds to £2.451 million (£2.290 million for the charity). This builds up our reserves to meet the levels set out in the Reserves policy, which will in turn assist delivery of our strategy and allow us to have a bigger impact in delivering our purpose whilst ensuring sustainability.
Reserves policy
Picker has a policy of maintaining sufficient free reserves to enable the group to have between six and nine months of projected group operational expenditure. Based on our projected expenditure over 2023/24, we estimate a minimum requirement of £1.664 million to meet operational costs for six months, with an upper target limit of £2.496 million for nine months’ expenditure.
At the end of March 2023, free reserves were £2.283 million or the equivalent of 8.2 months. This exceeds the minimum level required by the reserves policy and is within our target range. The Trustees regularly monitor and review the reserves held within the context of the funds required to fulfil the objectives of the charity.
Going concern policy
The Trustees have reviewed the status of the group’s funding arrangements and future plans. The group has a strong balance sheet and cash position at the year end with the expectation of increasing cashflows over the coming twelve months. In addition, detailed financial projections have been produced to enable the Trustees to evaluate a period of at least the next twelve months from the date of signature of these financial statements and, as a result, the Board are satisfied that it remains appropriate to continue to prepare the financial statements on a going concern basis.
Remuneration policy
The objectives of our remuneration policy are to:
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reward staff appropriately and enable the recruitment and retention of high calibre staff;
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ensure the proper use of the charity’s resources in accordance with its aims and within affordable limits based on the financial circumstances of the group;
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be non-discriminatory, just and equitable in the evaluation of jobs and their remuneration by providing a stable framework for the remuneration of the team;
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operate within the law; and
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pay at a competitive level taking account of external market rates, with the aim being to set pay at comparable rates to posts in the voluntary sector, subject to the group’s financial position.
Remuneration policy is reviewed on an annual basis by the Appointments and Remuneration Committee and agreed by the Board of Trustees. When setting pay levels, the group gives consideration to external benchmark comparators, the cost of living, changes in the national average earnings index, equalities, affordability and other internal and external pressures including recruitment and retention. This year we commissioned an external review of our approach to pay and reward and, based on the recommendations from this, we implemented a revised salary structure for staff across the Picker Group from 1[st] April 2023.
The above policy applies to all staff, including the group’s Executive Team. Remuneration of the Executive Team is set by the Board of Trustees.
Principal risks and uncertainties
2. Supply chain
Like many organisations, we are mindful of the impact of the UK’s cost-of-living crisis and rising rates of inflation on both our workforce and partners. Through our remuneration policies we have sought to manage impact and support staff, but we remain conscious of the threat to supply chain partners from increasing costs. Mitigation taken includes a risk assessment of key supply chain vulnerabilities, including plans for market testing in key areas and developing specific plans for resilience.
The Trustees have considered the principal risks and uncertainties for the group. The financial and operational effects of the cost-of-living crisis and the control measures relating to this affected the principal risks and uncertainties facing the group during the reporting period and beyond the year end. As a good governance exercise and as standard practice, we have completed an annual review of the group’s winding up costs against its reserves.
3. Trustee recruitment
A strategic risk register is maintained and presented at every ordinary Finance, Audit and Risk Committee and Board meeting. The top strategic risks assessed with the actions taken to address them are:
Maintaining a skilled and effective Board is important to ensuring the proper governance and successful strategic development of the Group and its impact. With a number of Trustees approaching the end of their terms of office, it is necessary to review our Board membership. At the time of writing, however, an open recruitment process has been completed and we expect to appoint several high calibre candidates with suitable skills and experience. Once this is completed, we will follow an established process to induct new Trustees, and we will rerun the board skills audit to identify any outstanding gaps in experience and expertise.
1. Recruitment, retention and onboarding
Successful business development has created a need for the Group to grow its workforce to meet demand, and this will require the recruitment of a number of new posts early in 2023/24. Key mitigating actions taken include using multiple channels for recruitment, appointment of new HR Manager, a ‘buddy system’ for new starters, and a review of our employment offer. We also offer exit interviews and collected detailed workforce experience data in our staff survey in order to ensure that we are a person centred employer and to learn from colleague feedback.
The strategy for managing the key risks is by the Board instructing the key management personnel to put in place effective control procedures, plans, awareness raising, and training, and reviewing the systems in place to manage the operations of the group. Regular reviews of the monitoring process are in place with individual accountability and responsibility for each risk and any further actions required.
Financial Statements 2022-2023
Financial Statements 2022-2023
8 Report of the Board of Trustees
Report of the Board of Trustees
9
Plans for future periods
1. New sectors – undertaking more work outside of our traditional ‘core’ area of secondary and tertiary care providers, including in primary care and social care.
In addition to the detailed operational actions mentioned above, we will pursue four distinct but interlinked strategic goals designed to address our key challenges and support achievement of our vision and charitable objectives. The four goals are:
2. New territories – working with international (including UK four nations) partners and clients to spread the use of our tools and methods and to share insight and learning.
1. Advancing our vision
2. Broadening our horizons
3. New methods – developing our expertise and credibility with a wider set of methods to create new offers, especially including programme evaluation.
3. Diversifying
4. Moving beyond measurement
To help us meet our goals, we will need to ensure that we have the right staff, resources, and ways of working to help us progress. We continue to identify four ‘enablers’: areas where supporting action will be required to allow us to deliver our strategy. These are:
We recognise that the Picker Group is growing and that this creates opportunities for us to be more impactful. And because our four strategic goals are interlinked, it makes sense that they should share a common focus that reflects this growth trajectory. In this strategic cycle, we will develop our presence, activity, and impact in new sectors, new territories, and through the application of new methods.
People Equality, diversity, and inclusion IT Marketing and communications
Strategic goals
| Advancing | Broadening | Diversifying | Moving beyond | |||
|---|---|---|---|---|---|---|
| our vision | our horizons | measurement | ||||
| Achieving person | Picker’s work is most | Revenue diversity | Person centred care is | |||
| centred care requires | visible in acute public | is important for | broader than experience | |||
| services to understand | healthcare – but this | resilience in a charity | of care: measurement | |||
| what matters to users, | accounts for only | that operates on | is necessary but | |||
| and to measure | a fraction of all care. | a fee-for-service | not sufficient | |||
| and act on this. | model. | to improve quality. | ||||
| Goal: to advance our | Goal: our Principles | Goal: to ensure our | Goal: to support | |||
| vision, we will continue | and evaluation tools | sustainability and | lasting improvements | |||
| to be seen as leaders | will be widely utilised | independence, and to | in care, we will | |||
| in how to use people’s | to understand and | allow us to invest in | review our role as | |||
| experiences to | improve person | generating impact, new | an improvement | |||
| measure, understand, | centred care, allowing | business outside of NHS | practitioner and we | |||
| evaluate, and improve | us to make a difference | national programmes | will define and launch | |||
| person centred care. | to care in range of | will contribute at least | a clear offer to help | |||
| settings and sectors. | £1m p.a. by 2024/25. | our partners. | ||||
Focal areas: working with new partners…
...in new sectors …in new territories …using new methods
Enablers
Equality, People diversity, and IT inclusion (EDI)
Marketing and communication
Treasury and Investment policy
The Board of Trustees review and approve the Treasury and Investment policy annually. The purpose of the policy statement is to provide a written framework for the investment risk appetite of the group, its investment portfolio, and the management of the group’s cash and near-cash assets (Treasury funds). The group has a low-to-medium risk appetite, with regard to investments and treasury funds. Its primary objective is to manage cashflow to remain solvent while looking at a reasonable income or capital investment growth rather than just capital preservation. This determines the type of investments it chooses, the institutions they are made with, and the total level of funds placed with any single institution.
Trustees’ responsibilities statement
The Trustees (who are also directors of Picker Institute Europe for the purposes of company law) are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
Company law requires charity trustees to prepare financial statements for each year that 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 charitable group for that period. In preparing the financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement as to disclosure to our auditors
In so far as the Trustees are aware at the time of approving our Trustees’ annual report:
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there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the groups’ auditor is unaware; and
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the Trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The Report of the Board of Trustees including the Strategic Report has been approved by order of the Board of Trustees and signed on their behalf by:
Chair: Dr Angela Coulter
Date: 20[th] July 2023
10 Report of the Board of Trustees
Financial Statements 2022-2023
Financial Statements 2022-2023
Report of the Board of Trustees
11
Independent auditor’s report to the members and trustees of Picker Institute Europe
Opinion
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31[st] March 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
We have audited the financial statements of Picker Institute Europe (‘the parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31st March 2023 which comprise the Consolidated and Parent Charitable Company Statements of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash flows and notes to the financial statements, 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.
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 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 and 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.
Other information
Matters on which we are required to report by exception
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. 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.
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion:
In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; 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 exemption in preparing the Trustees’ Annual Report and from preparing a Strategic Report.
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 the audit:
-
the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
trustees’ annual report have been prepared in accordance with applicable legal requirements.
Independent auditor’s report to the members 12 and trustees of Picker Institute Europe
Independent auditor’s report to the members and trustees of Picker Institute Europe
Financial Statements 2022-2023
Financial Statements 2022-2023
13
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006 and Section 151 of the Charities Act 2011 and report to you in accordance with regulations made under those Acts.
Responsibilities of trustees
As explained more fully in the Trustees’ responsibilities statement set out earlier in the Report of the Board Trustees, 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.
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
In preparing the financial statements, the trustees are responsible for assessing the group and 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.
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 to the right.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
-
We obtained an understanding of the legal and regulatory requirements applicable to the group and parent charitable company and considered that the most significant are the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
-
We obtained an understanding of how the group and parent charitable company complies with these requirements by discussions with management and those charged with governance.
-
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
-
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
-
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit.
We also:
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
-
Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group and parent charitable company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Independent auditor’s report to the members 14 and trustees of Picker Institute Europe
Independent auditor’s report to the members and trustees of Picker Institute Europe
Financial Statements 2022-2023
Financial Statements 2022-2023
15
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; and to the charity’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and in respect of the consolidated financial statements, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body for our audit work, for this report, or for the opinion we have formed.
Luke Holt - Senior Statutory Auditor
For and on behalf of Moore Kingston Smith LLP, London, UB3 1HA
The Shipping Building, The Old Vinyl Factory Date: 7[th] August 2023
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
Consolidated Statement of Financial Activities
(including consolidated income and expenditure account) For the year ended 31[st] March 2023
| For the year ended 31st March 2023 | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| Unrestricted | Total | Total | ||||
| funds | funds | funds | ||||
| Notes | £’000 | £’000 | £’000 | |||
| Income from: | ||||||
| Donations | ||||||
| In kind support | 8 | 8 | 32 | |||
| Charitable activities | ||||||
| Research and insight on person centred care | ||||||
| and the measurement and improvement | ||||||
| of staff and user experiences of care | 3,960 | 3,960 | 3,746 | |||
| Other trading activities | 437 | 437 | 279 | |||
| Interest on deposits | 2 | 7 | 7 | - | ||
| Total income | 4,412 | 4,412 | 4,057 | |||
| Expenditure from: | ||||||
| Charitable activities | ||||||
| Research and insight on person centred care | ||||||
| and the measurement and improvement | ||||||
| of staff and user experiences of care | 3,763 | 3,763 | 3,336 | |||
| Other expenditure | 10 | 306 | 306 | 245 | ||
| Total expenditure | 4 | 4,069 | 4,069 | 3,581 | ||
| Surplus | 343 | 343 | 476 | |||
| Corporation Tax | 3 | 3 | - | |||
| Net movement in funds | 340 | 340 | 476 | |||
| Reconciliation of funds: | ||||||
| Total funds brought forward | 2,111 | 2,111 | 1,635 | |||
| Total funds carried forward | 2,451 | 2,451 | 2,111 |
The notes on pages 21 to 31 form part of these financial statements.
The statement of financial activities includes all gains and losses recognised in the year. All activities are continuing.
Independent auditor’s report to the members and trustees of Picker Institute Europe
Consolidated Statement of Financial Activities
Financial Statements 2022-2023
Financial Statements 2022-2023
17
16
Charitable Company Statement of Financial Activities
(including income and expenditure account) For the year ended 31[st] March 2023
| For the year ended 31st March 2023 | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| Unrestricted | Total | Total | ||||
| funds | funds | funds | ||||
| Notes | £’000 | £’000 | £’000 | |||
| Income from: | ||||||
| Donations | ||||||
| In kind support | 8 | 8 | 32 | |||
| Charitable activities | ||||||
| Research and insight on person centred care | ||||||
| and the measurement and improvement of staff | ||||||
| and user experiences of care | 4,090 | 4,090 | 3,746 | |||
| Interest on deposits | 2 | 7 | 7 | - | ||
| Total income | 4,105 | 4,105 | 3,778 | |||
| Expenditure from: | ||||||
| Charitable activities | ||||||
| Research and insight on person centred care | ||||||
| and the measurement and improvement of staff | ||||||
| and user experiences of care | 3,892 | 3,892 | 3,336 | |||
| Total expenditure | 4 | 3,892 | 3,892 | 3,336 | ||
| Surplus | 213 | 213 | 442 | |||
| Net movement in funds | 213 | 213 | 442 | |||
| Reconciliation of funds: | ||||||
| Total funds brought forward | 2,077 | 2,077 | 1,635 | |||
| Total funds carried forward | 2,290 | 2,290 | 2,077 |
The notes on pages 21 to 31 form part of these financial statements.
The statement of financial activities includes all gains and losses recognised in the year. All activities are continuing.
Consolidated and Charity Balance Sheets
Balance Sheets |
|||||||
|---|---|---|---|---|---|---|---|
| As at 31st March 2023 | |||||||
| Company number: 3908160 | Group | Group | Charity | Charity | |||
| 2023 | 2022 | 2023 | 2022 | ||||
| Notes | £’000 | £’000 | £’000 | £’000 | |||
| Fixed assets: | |||||||
| Intangible assets | 8 | 112 | 147 | 42 | 64 | ||
| Tangible assets | 9 | 56 | 79 | 56 | 79 | ||
| Total fixed assets | 168 | 226 | 98 | 143 | |||
| Current assets: | |||||||
| Stock | - | 1 | - | 1 | |||
| Debtors | 11 | 1,805 | 1,379 | 1,711 | 1,266 | ||
| Investments | - | - | 1 | 1 | |||
| Cash at bank and in hand | 1,454 | 1,719 | 1,353 | 1,671 | |||
| Total current assets | 3,259 | 3,099 | 3,065 | 2,939 | |||
| Liabilities: | |||||||
| Creditors: amounts falling due within one year | 12 | 951 | 1,158 | 873 | 1,005 | ||
| Net current assets | 2,308 | 1,941 | 2,192 | 1,934 | |||
| Total assets less current liabilities | 2,476 | 2,167 | 2,290 | 2,077 | |||
| Creditors: amounts falling due after more | |||||||
| than one year | 13 | 25 | 56 | - | - | ||
| Total net assets | 2,451 | 2,111 | 2,290 | 2,077 | |||
| The funds of the charity: | |||||||
| Unrestricted funds | 16 | 2,451 | 2,111 | 2,290 | 2,077 | ||
| Total charity funds | 2,451 | 2,111 | 2,290 | 2,077 |
The notes on pages 21 to 31 form part of these financial statements.
The Trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 44 of the Charities and Trustee Investment (Scotland) Act 2005.
The financial statements were approved and authorised for issue, by the Trustees on 20[th] July 2023 and signed on their behalf by Dr Angela Coulter, Chair.
Charitable Company Statement of Financial Activities
Financial Statements 2022-2023
Consolidated and Charity Balance Sheets
Financial Statements 2022-2023
19
18
Consolidated and Charity Statement of Cash Flows
For the year ended 31[st] March 2023
of Cash Flows For the year ended 31st March 2023 |
|||||||
|---|---|---|---|---|---|---|---|
| Group | Group | Charity | Charity | ||||
| 2023 | 2022 | 2023 | 2022 | ||||
| Notes | £’000 | £’000 | £’000 | £’000 | |||
| Cash flows generated from/ | |||||||
| (used in) operating activities: | |||||||
| Net cash used in operating activities | 18 | 261 | 191 | (315) | 52 | ||
| Cash flows generated from/ | |||||||
| (used in) investing activities: | |||||||
| Interest on deposits | 7 | - |
7 | - | |||
| Purchase of intangible assets | - | (112) | - | (19) | |||
| Purchase of tangible fixed assets | (12) | (94) | (12) | (94) | |||
| Receipts from disposals of tangible fixed assets | 1 | - | 1 | - | |||
| Purchase of investments | - | - | - | (1) | |||
| Net cash used in investing activities | (4) | (206) | (4) | (114) | |||
| Change in cash and cash equivalents in the year | (265) | (15) | (319) | (62) | |||
| Cash and cash equivalents at the beginning | |||||||
| of the year | 1,719 | 1,734 |
1,672 | 1,734 | |||
| Cash and cash equivalents at the end of the year | 19 | 1,454 | 1,719 | 1,353 | 1,672 |
Notes to the Financial Statements
c) Financial instruments
1. Principal Group accounting policies
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.
a) Basis of preparation and assessment of going concern
The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to the 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[st] January 2016) and comply with the Charities Act 2011 and Companies Act 2006.
d) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the charitable company and all group undertakings. Income and expenditure in foreign currencies is converted at the average exchange rate for the period. Acquisitions are accounted for under the acquisition method. The results of companies acquired or disposed of are included in the Statement of Financial Activities after or up to the date that control passes respectively. Both a group Consolidated and Charitable Company Statement of Financial Activities is published and some notes for the parent charitable company are omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
The Parent charity and group constitutes a public benefit entity as defined by the Charities SORP (FRS 102).
e) Legal status
The financial statements have been prepared on a going concern basis. The group has a strong balance sheet and cash position at the year end. There was a positive operations performance for the current year which exceeded expectations. Detailed financial forecasts have been produced reflecting the expected impact on the business plan and budget for 2023/24. The Trustees consider that, there are no material uncertainties about the group’s ability to continue as a going concern. This is on the basis of the expectation of the group having sufficient cashflow, income and levels of reserves to continue for at least 12 months from the date of authorising these financial statements. There are no significant areas of judgement or key assumptions that will materially affect the position.
The charity is a registered company limited by guarantee and has no share capital. The members of the company are the Trustees. Each member undertakes to contribute such amount as may be required (not exceeding £1.00) to the charity’s assets in the event of it being wound up.
f) Fund accounting
The charity holds the following funds:
Unrestricted funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
g) Income
Incoming resources are recognised to the extent that the group has provided the services and/or goods. For contracts in place at the year end the value of the contract that has been completed at the year end is compared to the invoices raised and adjustments made to include accrued income or deferred income as appropriate.
b) Group accounts
These accounts consolidate the results of the charitable company and its wholly owned subsidiary, Picker HWA Ltd which was incorporated on 24[th ] May 2021 and commenced trading on 1[st] July 2021. The first period of accounts was from incorporation to 31[st ] March 2022.
The notes on pages 21 to 31 form part of these financial statements.
20 Consolidated and Charity Statement of Cash Flows
Financial Statements 2022-2023
Notes to the Financial Statements
Financial Statements 2022-2023
21
h) Donated services
In kind support is recognised as income when the following criteria are met:
-
Entitlement – Control over the expected economic benefits that flow from the donation has passed to the charity and any performance related conditions attached to the donation have been fully met.
-
Probable – It is more likely than not that the economic benefits associated with the donated item will flow to the charity.
-
Measurement – The fair value or value to the charity of the donated item can be measured reliably.
i) Expenditure and irrecoverable VAT
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs according to a category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
Governance costs are those incurred in connection with the management of Picker Institute Europe’s assets, organisational administration and compliance with constitutional and statutory requirements.
The charity is registered for VAT and any irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Picker HWA Ltd is separately registered for VAT.
j) Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Computers 3 years (33%) straight line Office equipment 3 years (33%) straight line or length of lease
Individual assets with a cost more than £500 are capitalised as tangible fixed assets.
k) Intangible fixed assets and amortisation
Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, based on the duration of the acquisition agreement and the client contact list that forms goodwill, as follows:
Website 3 years (33 1/3%) straight line Computer 5 years (20%) straight line applications
Registered Trade 10 years (10%) straight line Marks
Online research 3 years (33 1/3%) straight line platform
Intellectual property 3 years (33 1/3%) straight line and brand assets
Goodwill 10 years (10%) straight line Individual assets with a cost more than £500 are capitalised as intangible fixed assets.
l) Investments
Investments in group undertakings are recorded at cost less impairment.
m) Stocks
Stocks are stated at the lower of cost and the net realisable value, using the first-in first-out basis. Where necessary, provision is made for obsolete, slow moving and defective stock.
n) Leasing
Rentals payable under operating leases are charged to the statement of financial activities over the period in which the cost is incurred. Assets obtained under finance leases are capitalised as tangible fixed assets, depreciated and the liability is recognised at the point of purchase.
o) Pensions
The pension costs charged in the financial statements represent the contributions payable by the group during the year to defined contribution schemes.
p) Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. The resulting gains or losses are recognised within the statement of financial activities.
q) Judgements and key sources of estimation uncertainty
There is a degree of judgement exercised at each period end in respect of client project contracts that extend beyond the year end, where recognition of income and related external expenditure is based on key milestones.
The calculation for the consideration for the acquisition of the business for Howard Warwick Associates Ltd and the associated fair values of the assets acquired is based on the best estimate of the individual assets of value to the company and the expected purchase price based on the acquisition agreement. The balancing or residual number is the amount of goodwill of continuing a going concern business based on its client
contacts and delivery contracts in place. The amortisation period for computer software is a key judgement for the economic useful life of the write off of Intangible fixed assets. There were no other significant judgements made in the process of applying the above accounting policies that have had a major effect on amounts recognised in the financial statements.
2. Interest on deposits
| 2. Interest on deposits | ||||||
|---|---|---|---|---|---|---|
| Group | Group | Charity | Charity | |||
| 2023 | 2022 | 2023 | 2022 | |||
| £’000 | £’000 | £’000 | £’000 | |||
| Bank interest received | 7 | - | 7 | - |
3. Resources expended
a) Analysis of Consolidated total resources expended
| Other | |||||||
|---|---|---|---|---|---|---|---|
| Staff | Support | direct | Governance | Total | |||
| costs | costs | costs | costs | 2023 | |||
| £’000 | £’000 | £’000 | £’000 | £’000 | |||
| Charitable activities | |||||||
| Research and insight on person | |||||||
| centred care and the measurement | |||||||
| and improvement of staff and user | |||||||
| experiences of care | 2,079 | 628 |
1,322 | 40 | 4,069 | ||
| Total charitable activities | 2,079 | 628 |
1,322 | 40 | 4,069 |
| Other | |||||||
|---|---|---|---|---|---|---|---|
| Staff | Support | direct | Governance | Total | |||
| costs | costs | costs | costs | 2022 | |||
| £’000 | £’000 | £’000 | £’000 | £’000 | |||
| Charitable activities | |||||||
| Research and insight on person | |||||||
| centred care and the measurement | |||||||
| and improvement of staff and user | |||||||
| experiences of care | 1,787 | 678 | 1,077 | 39 | 3,581 | ||
| Total charitable activities | 1,787 | 678 | 1,077 | 39 | 3,581 |
22 Notes to the Financial Statements
Financial Statements 2022-2023
Notes to the Financial Statements
Financial Statements 2022-2023
23
b) Analysis of Consolidated support costs
----- Start of picture text -----
Total Total
2023 2022
£’000 £’000
----- End of picture text -----
| Total 2023 £’000 |
Total 2022 £’000 |
|
|---|---|---|
| Support costs: | ||
| Travel | 7 | 1 |
| Premises | 69 | 188 |
| Exhibitions and conferences | 37 | 9 |
| Communications and IT | 60 | 103 |
| Financial, legal and consultancy | 74 | 42 |
| Postage and printing | 67 | 46 |
| Other administration | 244 | 220 |
| Depreciation and amortisation | 70 | 69 |
| Total support costs | 628 | 678 |
4. Total expenditure
| 4. Total expenditure | ||||||
|---|---|---|---|---|---|---|
| Group | Group | Charity | Charity | |||
| 2023 | 2022 | 2023 | 2022 | |||
| £’000 | £’000 | £’000 | £’000 | |||
| This is stated after charging: | ||||||
| Amortisation | 35 | 27 | 22 | 17 | ||
| Depreciation | 35 | 29 | 35 | 29 | ||
| Auditors’ remuneration - Audit fee | 19 | 14 | 19 | 13 | ||
| Auditors’ remuneration - Consultancy services | 5 | 3 | 5 | 3 |
5. Trustees’ expenses
The Trustees’ of the charity and group neither received nor waived any emoluments (remuneration or pension arrangements) in the year or prior year. Out of pocket expenses were reimbursed to the following number of Trustees:
| Out of pocket expenses were reimbursed to the following number of Trustees: |
2023 Number |
2023 £’000 |
2022 Number |
2022 £’000 |
||
|---|---|---|---|---|---|---|
| Travel and accommodation | 7 | 1 | 5 | 1 |
6. Consolidated staff costs
| 6. Consolidated staff costs | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| £’000 | £’000 | |||
| Employees: | ||||
| Wages and salaries | 1,706 | 1,490 | ||
| Settlements to leaving employees | 4 | 11 | ||
| Social security costs | 190 | 147 | ||
| Pension costs | 62 | 54 | ||
| Subtotal | 1,962 | 1,702 | ||
| Freelance contractors | 4 | - | ||
| Training | 15 | 24 | ||
| Recruitment | 98 | 61 | ||
| Total | 2,079 | 1,787 | ||
| The group average monthly number of employees was 46 (2022: 39), | ||||
| when calculated on an average headcount basis. When calculated | ||||
| on a full time equivalent basis (FTE), including casual and part-time staff, | 2023 | 2022 | ||
| the average monthly number of employees was: | Number | Number | ||
| The average number of FTE employees during the year was: | 43 | 36 | ||
| The number of employees whose emoluments as defined for taxation | ||||
| purposes amounted to over £60k in the year was as follows: | ||||
| £70,000 - £79,999 | 2 | 2 | ||
| £80,000 - £89,999 | 1 | 2 | ||
| £100,000 - £109,999 | 1 | - | ||
| The total amount of compensation of key management, as defined in the |
The total amount of compensation of key management, as defined in the Report of the Trustees, for the group was £405,000 (2022: £368,000).
7. Pension costs
The charitable company operates a defined contribution pension scheme with Standard Life. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the scheme and amounted to £65,000 (2022: £54,000). Of this £17,000 (2022: £16,000) related to employees whose emoluments were over £60,000 as shown in the consolidated staff costs note 6.
Notes to the Financial Statements
Financial Statements 2022-2023
Notes to the Financial Statements
Financial Statements 2022-2023
25
24
8. Consolidated Intangible fixed assets
a) Consolidated Intangible fixed assets
| Intellectual | ||||||
|---|---|---|---|---|---|---|
| Software | property | Goodwill | Total | |||
| £’000 | £’000 | £’000 | £’000 | |||
| Cost: | ||||||
| At 1st April 2022 | 113 | 19 | 77 | 209 | ||
| At 31st March 2023 | 113 | 19 | 77 | 209 | ||
| Amortisation: | ||||||
| At 1st April 2022 | 49 | 7 | 6 | 52 | ||
| Charge for the year | 24 | 3 | 8 | 35 | ||
| At 31st March 2023 | 73 | 10 | 14 | 97 | ||
| Net book value: | ||||||
| At 31st March 2023 | 40 | 9 | 63 | 112 | ||
| At 31st March 2022 | 64 | 12 | 71 | 147 |
b) Charity Intangible fixed assets
| b) Charity Intangible fixed assets | |||||
|---|---|---|---|---|---|
| Intellectual | |||||
| Software | property | Total | |||
| £’000 | £’000 | £’000 | |||
| Cost: | |||||
| At 1st April 2022 | 106 | 10 | 116 | ||
| At 31st March 2023 | 106 | 10 | 116 | ||
| Amortisation: | |||||
| At 1st April 2022 | 47 | 5 | 52 | ||
| Charge for the year | 21 | 1 | 22 | ||
| At 31st March 2023 | 68 | 6 | 74 | ||
| Net book value: | |||||
| At 31st March 2023 | 38 | 4 | 42 | ||
| At 31st March 2022 | 59 | 5 | 64 |
9. Consolidated and Charity Tangible fixed assets
| Office | Total | ||||
|---|---|---|---|---|---|
| Computers | Equipment | funds | |||
| £’000 | £’000 | £’000 | |||
| Cost: | |||||
| At 1st April 2022 | 164 | 10 | 174 | ||
| Additions | 12 | - | 12 | ||
| Disposals | (2) | - | (2) | ||
| At 31st March 2023 | 174 | 10 | 184 | ||
| Depreciation: | |||||
| At 1st April 2022 | 88 | 7 | 95 | ||
| Charge for the year | 33 | 2 | 35 | ||
| On disposals | (2) | - | (2) | ||
| At 31st March 2023 | 119 | 9 | 128 | ||
| Net book value: | |||||
| At 31st March 2023 | 55 | 1 | 56 | ||
| At 31st March 2022 | 76 | 3 | 79 |
Included in office equipment are assets held under finance leases with a net book value of £1,000 (2022: £2,000). The depreciation charge on these assets was £1,000 (2022: £1,000).
Notes to the Financial Statements
Financial Statements 2022-2023
Notes to the Financial Statements
Financial Statements 2022-2023
27
26
10. Investments
The group structure includes Picker HWA Ltd. The charity owns 100% of the share capital. A summary of the results for Picker HWA Ltd for the year ended 31[st ] March 2023 is shown below (2022: is for the period of 9 months ended 31[st] March 2022):
| 2023 | 2022 | |||
|---|---|---|---|---|
| £’000 | £’000 | |||
| Profit and loss account: | ||||
| Income | 437 | 279 | ||
| Expenditure | 306 | 245 | ||
| Corporation tax | 3 | - | ||
| Retained profit for the period | 128 | 34 | ||
| Balance sheet: | ||||
| Fixed assets | 70 | 83 | ||
| Current assets | 290 | 308 | ||
| Creditors: amounts falling due within one year | 172 | 300 | ||
| Net Current assets | 118 | 8 | ||
| Total assets less current liabilities | 188 | 91 | ||
| Creditors: amounts falling due after more than one year | 25 | 56 | ||
| Total Net Assets | 163 | 35 | ||
| Called up share capital | 1 | 1 | ||
| Profit and loss account | 162 | 34 | ||
| Shareholders’ funds | 163 | 35 |
----- Start of picture text -----
Group Group Charity Charity
2023 2022 2023 2022
11. Debtors
£’000 £’000 £’000 £’000
Trade debtors 1,182 1,148 1,083 963
Inter organisational account - - 94 147
Accrued income 343 123 254 48
Prepayments 280 108 280 108
1,805 1,379 1,711 1,266
12. Creditors: amounts falling
due within one year
Obligations under finance leases 1 1 1 1
Purchase consideration 46 37 - -
Trade creditors 166 393 157 326
Taxation and social security 199 172 187 166
Accruals 99 142 89 112
Deferred income 441 400 440 400
Inter organisational account - 13 - -
951 1,158 1,005 1,005
Deferred income comprises project related revenue for the
performance of activities that were not completed before
the year end and continued in the following financial year.
At 1 [st] April 2022 400 708 400 738
Released to income (400) (708) (400) (708)
Deferred in the year 441 400 440 400
At 31 [st] March 2023 441 400 440 400
13. Creditors: amounts falling
due after more than one year
Purchase consideration 25 56 - -
25 56 - -
----- End of picture text -----
28 Notes to the Financial Statements
Financial Statements 2022-2023
Notes to the Financial Statements
Financial Statements 2022-2023
29
14. Financial commitments
| 14. Financial commitments | ||||
|---|---|---|---|---|
| At the year end the group had the following future minimum lease | ||||
| payments under non-cancellable operating leases in respect of plant and land and buildings which fall due as follows: |
2023 £’000 |
2022 £’000 |
||
| Expiry date: | ||||
| Within one year | 37 | 35 | ||
| 37 | 35 |
15. Related party transactions
The charity had transactions with the subsidiary Picker HWA Ltd during the year of £133,000 (2022: £76,000) and had a year end balance owed of £94,000 (2022: £160,000).
16. Reserves
| 16. Reserves | ||||||
|---|---|---|---|---|---|---|
| Group | Group | Charity | Charity | |||
| 2023 | 2022 | 2023 | 2022 | |||
| £’000 | £’000 | £’000 | £’000 | |||
| The movement on unrestricted funds | ||||||
| is as follows: | ||||||
| At 1st April 2022 | 2,111 | 1,635 | 2,077 | 1,635 | ||
| Income | 4,413 | 4,057 | 4,105 | 3,778 | ||
| Less expenditure | 4,072 | 3,581 | 3,892 | 3,336 | ||
| At 31st March 2023 | 2,451 | 2,111 | 2,290 | 2,077 | ||
| Consolidated unrestricted funds | 2,451 | 2,111 | ||||
| Less fixed asset reserves | (168) | (226) | ||||
| Unrestricted general Funds | 2,283 | 1,885 | ||||
| Represents in months the projected group operational | ||||||
| expenditure, adjusted for amounts covered | ||||||
| by restricted funds, for the next financial year | 8.2 | 9.0 |
17. Corporation taxation
The charity is exempt from tax on income and gains falling within the Corporation Tax Act 2010 and the Taxation of Chargeable Gains Act 1992 to the extent that these are applied for charitable purposes.
For Picker HWA Ltd tax is recognised in the Statement of Financial Activities.
The current tax charge is calculated based on tax rates and laws at the balance sheet date.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date.
| 18. Reconciliation of net income/ | ||||||
|---|---|---|---|---|---|---|
| (expenditure) to net cash flow | Group | Group | Charity | Charity | ||
| from operating activities | 2023 £’000 |
2022 £’000 |
2023 £’000 |
2022 £’000 |
||
| Net income/(expenditure) for the year | ||||||
| (as per the statement of financial activities) | 339 | 486 | 213 | 442 | ||
| Adjustments for: | ||||||
| Depreciation charges | 35 | 29 | 35 | 29 | ||
| Amortisation charges | 35 | 17 | 22 | 17 | ||
| Interest on deposits | (7) | - | (7) | - | ||
| Loss/(profit) on sale of fixed assets | (1) | 13 | (1) | 13 | ||
| Decrease/(increase) in stocks | 1 | - | 1 | - | ||
| (Increase)/decrease in debtors | (426) | (72) | (446) | 42 | ||
| Increase/(decrease) in creditors | (237) | (375) | (132) | (491) | ||
| Net cash used in operating activities | (261) | 98 | (315) | 52 | ||
| 19. Analysis of cash | ||||||
| and cash equivalents | ||||||
| Cash in hand | 344 | 290 |
243 | 243 | ||
| Notice deposits (less than 3 months) | 1,110 | 1,429 | 1,110 | 1,429 | ||
| Total cash and cash equivalents | 1,454 | 1,719 | 1,353 | 1,672 |
20. Capital commitments
There were no capital commitments at the year end or the prior year.
30
Notes to the Financial Statements
Financial Statements 2022-2023
Notes to the Financial Statements
Financial Statements 2022-2023
31
Picker Group Suite 6, Fountain House 1200 Parkway Court John Smith Drive Oxford OX4 2JY
+44 (0) 1865 208100 info@pickereurope.ac.uk picker.org
Registered Charity in England and Wales: 1081688 Registered Charity in Scotland: SC045048 Registered Company Limited by Guarantee: 03908160