OpenCharities

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

2021-09-30-accounts

The Hull & East Yorkshire Medical Research Centre

Consolidated Financial Statements

30 September 2021

SD-0203165-1-6

The Hull & East Yorkshire Medical Research Centre

Contents of the Consolidated Financial Statements for the year ended 30th September 2021

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 8
Consolidated Statement of Financial Activities 9
Consolidated Balance Sheet 10
Charity Balance Sheet 11
Consolidated Cash Flow Statement 12
Notes to the Consolidated Cash Flow Statement 13
Notes to the Consolidated Financial Statements 14 to 23

The Hull & East Yorkshire Medical Research Centre

Report of the Trustees for the year ended 30th September 2021

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30th September 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

04017833 (England and Wales)

Registered Charity number 1095652

Registered office

The Daisy Building Castle Hill Hospital Castle Road Cottingham East Yorkshire HU16 5JQ

Trustees

Dr A Allam Mr T S E Boanas Prof P E Dyer Ms K M Guest Mr D C Heuck Mrs V R Heuck Mr A N Horncastle Mr S Howey Prof M J Lind Dr C A Rowland-Hill Mr M S Simms – resigned 07.03.2021 Prof N D Stafford

Company Secretary

Prof N D Stafford

Auditors

Smailes Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshire HU2 8BA

Solicitors

Andrew Jackson Marina Court Castle Street Hull HU1 1TJ

Gosschalks Queens Gardens Hull HU1 3DZ

Page 1

The Hull & East Yorkshire Medical Research Centre

Report of the Trustees

for the year ended 30th September 2021

REFERENCE AND ADMINISTRATIVE DETAILS (Continued) Bankers

Handelsbanken National Westminster Bank plc First Floor, Westcott House The Square Hesslewood Business Park Willerby Hessle East Yorkshire East Yorkshire HU10 7XW HU13 0PF Yorkshire Bank Beverley Building Society 46 Prospect Centre 57 Market Place Prospect Street Beverley Hull HU17 8AA HU2 8PW

OBJECTIVES AND ACTIVITIES

Objectives and activities

The company's objectives are to establish and fund the provision of medical research facilities for enquiry into the causes, natural history, prevention, diagnosis and treatment of illnesses and diseases of all kinds and to disseminate the useful results of such research for the benefit of the public. Such facilities will be developed for the study of diseases of the heart and cancers, with the anticipation that similar facilities will be offered to other specialist areas of medical research as the centre develops and expands. The trustees have considered the Charity Commission’s guidance on public benefit and are of the opinion that it is fulfilled by the charity’s continued pursuit of its objectives.

Public benefit

The directors have reviewed the activities of the Charity and confirm that they are in accord with its objectives. The directors also confirm that the Charity's aims and objectives fall within the descriptions of purposes section in the Charities Act 2011 and are recognised as charitable and carried out for the benefit of the public at large.

ACHIEVEMENT AND PERFORMANCE

Review of the year and future strategy

The Daisy Building Phase 1, which was brought into use in July 2008, continues to fulfil, at the anticipated level of use, the functions envisaged when the Charity was founded. Sited prominently at the NHS Castle Hill Hospital in East Yorkshire, it provides a focal point for the public perception of the work of the Charity.

The Phase 2 Project is to provide, in conjunction with the NHS, scanning facilities (Phase 2a) and a Molecular Imaging Research Centre (Phase 2b) for both research and clinical applications. The project involves research cooperation with both the University of Hull and the NHS, with the intention of creating a unique, world-class facility.

The project incorporates the provision of a PET-CT scanning patient service facility. The provision of this facility, which became fully operational in May 2014, now generates income to recover its cost over a period of 40 years and provides additional funding for the future research activities of the charity.

The agreement with the Alliance Medical Ltd specifies defined periods of time for the use of the scanning facility for research purposes. Additionally, there is the patient benefit of an onsite state-of-the-art facility for clinical trials, as well as clinical service. This was not previously available in East Yorkshire.

Planning for the Phase 2b project (referred to above) commenced in October 2014. Technical project teams from the NHS Trust and University of Hull are led by three senior employees from those organisations; one of whom took the role of Project Director. External specialists are engaged to assist as necessary. Meetings are held with senior representatives from the manufacturer of the cyclotron (GE Healthcare), which is now approaching the final stage of its development capable of producing a range of radioisotopes. Construction of the Molecular Imaging Research Centre (Phase 2b) commenced in June 2019 and the building will be handed over to the charity during 2022. Equipping and commissioning of the cyclotron and ancillary equipment in the MIRC will be completed in 2022 assuming there are no further disruptions resulting from the Covid pandemic.

Page 2

The Hull & East Yorkshire Medical Research Centre

Report of the Trustees

for the year ended 30th September 2021

ACHIEVEMENT AND PERFORMANCE

Review of the year and future strategy

The charity, with legal advice from its solicitors, has in place all the necessary property, financial and construction agreements and contracts.

The directors (trustees) are satisfied that this project fulfils the Objective and Activities as defined in the Memorandum of Association.

The Molecular Imaging Research Centre referred to above will provide research benefits, as well as having clinical applications. It is, however, dependent on the scanning facilities to enable it to achieve its full research potential. The site for this new building is adjacent to the Scanning Centre. The close proximity enables the manufacture and delivery of innovative tracers for injecting into patients. Some of these tracers have a short life (measured in minutes) before they become ineffective. They enable the provision of very high definition imaging, and hence patient benefits, which are not possible at the present time in most UK facilities. The applications incorporate cancer, cardiac, dementia and Alzheimer's identification and treatment. The development at Castle Hill Hospital will provide a unique opportunity for a truly translational research programme in PET-CT imaging.

The grant funded project undertaken by the University of Hull in conjunction with the cyclotron manufacturer GE Healthcare, as referred to in prior years’ Reports and Financial Statements, has now finished.

The opening of the Scanning Centre and plans for Phase 2b, with its attendant publicity, continues to have a very positive effect on the charity's regional profile.

The ongoing PET-CT research programme headed by Professor Steve Archibald and Dr Azeem Saleem demonstrates the success of the partnership between the NHS and the University of Hull. A number of successful grant funding applications has brought in considerable income with grants from institutions such as the Medical Research Council (MRC), the Engineering and Physical Sciences Research Council (EPSRC) and Cancer Research UK (CRUK). Following on from such successes the group has now been invited to become a member of PET Network UK, a research organisation whose other members are Oxford, Cambridge, Cardiff and Edinburgh universities and Imperial and Kings colleges.

Inevitably the charity has been affected by the Covid pandemic which has delayed the project considerably, however, despite measures put in by Government in 2020/21 the charity has been able to pursue most of its day-to-day activities.

Principal risks and uncertainties

The construction of the Molecular Imaging Research Centre is now at an advanced stage with completion and handover of the building scheduled for 2022, subject to the influences of the “Coronavirus situation”. The cost of the project stands at £8.75 million and the charity’s assets are currently in excess of £7.5 million, therefore the main risk to the charity is bridging this shortfall. It still has a number of opportunities to pursue fundraising from various individuals and institutions and one of the trustees has committed to underwriting any residual funding gap that might exist when the charity is due to pay the balance on both the building and the cyclotron and ancillary equipment.

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

FINANCIAL REVIEW

Reserves and investment policy

Total reserves of £12,055,828 (2020: £11,815,789) were held by the charity at 30 September 2021. The balance held as unrestricted funds was £9,505,954 (2020: £9,853,659) of which £1,950,925 is regarded as free reserves, after allowing for funds relating to tangible fixed assets and investment property.

Restricted funds totalling £2,549,874 (2020: £1,962,130) were held at 30 September 2021 with £4,610,229 (2020: £4,011,161) relating to tangible fixed assets.

Page 3

The Hull & East Yorkshire Medical Research Centre

Report of the Trustees

for the year ended 30th September 2021

Reserves are accumulated until such time as expenditure is required for capital projects and/or research grant funding. As in previous years and for the foreseeable future, all monies will be invested as deposits with banks and building societies, i.e. low risk.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Hull and East Yorkshire Medical Research Centre is a registered charity and a company limited by guarantee, without share capital. The Charity's governing document is its Memorandum and Articles of Association. This restricts its operations to all such lawful acts as are necessary or incidental to the attainment of its objectives.

Members of the charitable company

Members of the company, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1.

Members of the charitable company guarantee to contribute an amount not exceeding £10 each to the assets of the charitable company in the event of a winding up. The total number of such guarantees at 30 September 2021 was 10 and at 2020 was 13.

Recruitment and appointment of new trustees

The directors of the company are appointed in accordance with the governing document, the company's Memorandum and Articles of Association. The directors are all experienced professionals of varying disciplines, all of which are relevant to the Charity's activities and requirements.

Policies and Procedures for the induction and training of new trustees

The charity provides all new trustees with the following induction material; the charity’s governing document and financial information, including up-to-date accounts, together with explanatory material and recent minutes from trustee meetings.

The charity provides support and regularly reviews the development needs of the trustee board to make sure that all trustees are fully acquainted with all matters relating to charity finance, governance and propriety.

Organisational structure

The company's directors meet on a quarterly basis, with additional meetings convened where circumstances dictate. They are responsible for the strategic decisions and policies of the Charity. At the present time there are 11 members from medical, business and professional backgrounds.

Remuneration policy

All trustees give their time freely and no trustee remuneration was paid in the year. Details of trustees’ expenses and related party transactions are disclosed in note 25 to the accounts.

Related parties

The under-mentioned directors (trustees) are employed by:

The University of Hull - Prof M J Lind

The relationship relates to the research grant awarded to the University and the use and/or potential use of the Daisy Research Facility for charitable purposes.

Hull and East Yorkshire Hospitals NHS Trust

The relationship relates to the use and/or potential use of the Research Facility for charitable purposes.

Page 4

The Hull & East Yorkshire Medical Research Centre

Report of the Trustees

for the year ended 30th September 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also the directors of The Hull & East Yorkshire Medical Research Centre for the purposes of company law) are responsible for preparing the Report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

In so far as the trustees are aware:

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 3 March 2022 and signed on its behalf by:

A N Horncastle -Trustee

Page 5

Report of the Independent Auditors to the Members of The Hull & East Yorkshire Medical Research Centre

Opinion

We have audited the financial statements of Hull & East Yorkshire Medical Research Centre (the ‘charitable company’) and its subsidiaries (the ‘group’) for the year ended 30th September 2021 which comprise the Consolidated Statement of Financial Activities, Balance sheet, Consolidated Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our Report of the independent auditor’s 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.

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. We have nothing to report in this regard.

Page 6

Report of the Independent Auditors to the Members of The Hull & East Yorkshire Medical Research Centre

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the group and 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 group and/or the charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the charity only and consolidated financial statements or the operations of the charitable company and the group, including the Companies Act 2006, the Charities Act 2011, data protection, anti-bribery, employment, fundraising regulations, health and safety legislation, health and social care regulations and childcare regulations. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the charitable company's and consolidated financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions.

Page 7

Report of the Independent Auditors to the Members of The Hull & East Yorkshire Medical Research Centre

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to agreeing charity only and consolidated financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims; and reviewing correspondence with HMRC, relevant regulators and the charitable company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors. This description forms part of our auditor’s report.

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 trustees 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Luke Taylor BSc (Hons) ACA (Senior Statutory Auditor) For and on behalf of Smailes Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshire HU2 8BA

3 March 2022

Page 8

The Hull & East Yorkshire Medical Research Centre

Consolidated Statement of Financial Activities (Incorporating an Income and Expenditure account) for the year ended 30th September 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Other trading activities
3
Investment income
4
Commercial trade operations
5
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
Medical Research
Commercial trade operations
5
Total
NET INCOME/(EXPENDITURE)
(Loss)/Gain on investment property
revaluation
Transfers between Funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
852,880
6,572
116,331
244,074
1,219,857
82,080
52,139
196,232
330,451
889,406
(673,682)
(563,429)
(347,705)
9,853,659
9,505,954		 Restricted
funds
£
100,000
-
-
-
100,000
-
75,685
-
75,685
24,315
-
563,429
587,744
1,962,130
2,549,874		 2021
Total
funds
£
952,880
6,572
116,331
244,074
1,319,857
82,080
127,824
196,232
406,136
913,721
(673,682)
-
240,039
11,815,789
12,055,828		 2020
Total
funds
£
899,692
10,271
117,422
231,591
1,258,976
83,366
120,040
192,618
396,024
862,952
1,413,232
-
2,276,184
9,539,605
11,815,789

The notes form part of these financial statements

Page 9

The Hull & East Yorkshire Medical Research Centre (Registered number: 04017833)

Consolidated Balance Sheet At 30th September 2021

Notes
FIXED ASSETS
Tangible assets
14
Investments
Investment property
16
CURRENT ASSETS
Debtors
17
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amount falling due after more than one year 19
PROVISIONS FOR LIABILITIES
20
NET ASSETS
FUNDS
21
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2021
£
5,645,666
6,519,592
12,165,258
347,459
1,905,516
2,252,975
(515,605)
1,737,370
13,902,628
(1,800,000)
(46,800)
12,055,828
9,505,954
2,549,874
12,055,828		 2020
£
4,700,288
7,193,274
11,893,562
115,496
2,446,718
2,562,214
(521,193)
2,041,021
13,934,583
(2,083,088)
(35,706)
11,815,879
9,853,659
1,962,130
11,815,789

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved by the Board of Trustees on 3 March 2022 and were signed on its behalf by:

A N Horncastle -Trustee

The notes form part of these financial statements

Page 10

The Hull & East Yorkshire Medical Research Centre (Registered number: 04017833)

Charity Balance Sheet At 30th September 2021

Notes
FIXED ASSETS
Tangible assets
14
Investments
Investments
15
Investment property
16
CURRENT ASSETS
Debtors
17
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one
year
19
NET ASSETS
FUNDS
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2021
£
4,610,231
1
6,519,592
11,129,824
2,163,879
876,773
3,040,652
(513,379)
2,527,273
13,657,097
(1,800,000)
11,857,097
11,608,185
248,912
11,857,097		 2020
£
3,606,286
1
7,193,274
10,799,561
1,788,971
1,660,345
3,449,316
(500,981)
2,948,425
13,747,986
(2,083,088)
11,664,898
11,440,302
224,596
11,664,898

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved by the Board of Trustees on 3 March 2022 and were signed on its behalf by:

A N Horncastle –Trustee

The notes form part of these financial statements

Page 11

continued...

The Hull & East Yorkshire Medical Research Centre

Consolidated Cash Flow Statement for the year ended 30th September 2021

Notes
Net cash provided by operating activities
1
Cash flows from investing activities:
Purchase of tangible fixed assets
Interest received
Interest paid
Net cash used in investing activities
Cash flows from financing activities:
Loan drawdown in year
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period		 2021
£
667,432
(1,127,183)
-
(81,451)
(1,208,634)
-
(541,202)
2,446,718
1,905,516		 2020
£
390,208
(1,682,962)
1,575
(70,753)
(1,752,140)
600,000
(761,932)
3,208,650
2,446,718

The notes form part of these financial statements

Page 12

The Hull & East Yorkshire Medical Research Centre

Notes to the Consolidated Cash Flow Statement for the year ended 30th September 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the statement of
financial activities)
Adjustments for:
Depreciation charges
Interest received
Interest paid
(Increase)/Decrease in debtors
(Decrease) in creditors and provisions
Net cash provided by operating activities		 2021
£
913,721
181,804
-
(231,963)
(277,581)
667,432		 2020
£
862,952
181,527
(1,575)
70,753
1,739
(725,188)
390,208

The notes form part of these financial statements

Page 13

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements for the year ended 30th September 2021

1. ACCOUNTING POLICIES

Group and Charity Accounting Policies

Basis of preparing the financial statements

The Hull and East Yorkshire Medical Research Centre is a private company, limited by guarantee, registered in England and Wales. The company’s registered number and registered office address is given on page 1 of these financial statements.

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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 in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated. The charitable company adopted FRS 102 in the current year and there has been no effect on transition.

Basis of consolidation

The group financial statements consolidate the financial statements of the Charity and its subsidiary undertaking, Daisy Medical Research Limited, at 30 September 2021 using acquisition accounting.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and when the amount can be measured reliably.

Donations and legacies

Donations and gifts are included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers has not been included. Donated goods are included at the donated valuation by the donor.

Grants receivable

Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

Investment income

Incoming resources from investments are included when receivable.

Expenditure

Expenditure is recognised as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all expenses related to the category. Where expenses cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT is charged as an expense against the activity for which the expenditure was incurred.

Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.

Page 14

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

1. ACCOUNTING POLICIES – continued

Allocation and apportionment of costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, finance, personnel and governance costs which support the charities activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

Investment property

Investment property for which fair value can be reliably measured are measured at its fair value at each reporting date with changes recognised in the statement of financial activities.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds to be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Concessionary loans

Concessionary loans include those payable to third parties which are interest free or below market interest rates and are made to advance charitable purposes. Loans are accounted for in accordance with the terms of the loan agreement.

2. DONATIONS AND LEGACIES

Unrestricted
funds
£
Donations
823,080
Legacies
29,800
852,880		 Restricted
funds
£
100,000
-
100,000		 2021
Total
funds
£
923,080
29,800
952,880		 2020
Total
Funds
£
899,692
-
899,692

Page 15

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

3.
OTHER TRADING ACTIVITIES
Unrestricted
Restricted
funds
funds
£
£
Fundraising events
6,015
-
Shop income
557
-
6,572
-
4.
INVESTMENT INCOME
Unrestricted
Restricted
funds
funds
£
£
Rents received
116,331
-
Deposit account interest
-
-
116,331
-
5.
INCOME/(EXPENDITURE) FROM COMMERCIAL TRADE OPERATIONS
TURNOVER
Administrative expenses
OPERATING PROFIT
Interest receivable and similar income
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
Tax on profit on ordinary activities
PROFIT FOR THE FINANCIAL YEAR		 2021
Total
funds
£
6,015
557
6,572
2021
Total
funds
£
116,331
-
116,331
2021
£
244,074
185,138
58,936
-
58,936
11,094
47,842		 2020
Total
funds
£
10,271
-
10,271
2020
Total
funds
£
115,847
1,575
117,422
2020
£
231,591
183,807
47,784
522
48,306
9,333
38,973

The principal activity of the subsidiary undertaking in the year under review was that of medical research and medical treatment.

6. RAISING FUNDS

Raising donations and legacies

Raising donations and legacies
Unrestricted
Restricted
funds
funds
£
£
Sundries
562
-
Other trading activities
Unrestricted
Restricted
funds
funds
£
£
Purchases
6,048
-
PR costs
5,035
-
11,083
-		 2021
Total
funds
£
562
2021
Total
funds
£
6,048
5,035
11,083		 2020
Total
Funds
£
184
2020
Total
funds
£
7,805
5,060
12,865

Page 16

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

6. RAISING FUNDS - continued

Investment management costs

2021
Unrestricted
Restricted
Total
funds
funds
funds
£
£
£
Administrative expenses
18,797
-
18,797
Maintenance charges
51,638
-
51,638
70,435
-
70,435
Aggregate amounts
82,080
-
82,080
7.
CHARITABLE ACTIVITIES COSTS
Direct costs
Grant
funding of
activities
Support
costs
(See note 8)
£
£
£
Medical Research
1,305
-
126,519
8.
SUPPORT COSTS
Management
Finance
Information
Technology
Governance
costs
£
£
£
£
Medical Research
24,595
81,451
2,779
17,694		 2020
Total
funds
£
19,190
51,127
70,317
83,366
Total
£
127,824
Total
£
126,519

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration – audit services
Auditors’ remuneration – non-audit services
Depreciation - owned assets		 2021
£
11,030
6,664
181,805		 2020
£
10,304
11,120
181,527

10. TRUSTEE REMUNERATION AND BENEFITS

There was no trustees' remuneration or other benefits for the year ended 30th September 2021 nor for the year ended 30th September 2020.

Trustee expenses

There were no trustee expenses paid for the year ended 30th September 2021 nor for the year ended 30th September 2020.

Page 17

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2020

11. STAFF COSTS

Wages and salaries
Social security costs		 Group and Charity
2021
2020
£
£
24,132
24,132
-
1,070
24,132
25,202		 Group and Charity
2021
2020
£
£
24,132
24,132
-
1,070
24,132
25,202
25,202

The average number of employees during the year ended 30th September 2021 was 1 (2020: 1).

No employee received emoluments in excess of £60,000.

12. NET INCOMING RESOURCES OF PARENT CHARITY

As permitted by Section 408 of the Companies Act 2006, the Statement of Financial Activities of the parent charity is not presented as part of these financial statements. The parent charity’s net incoming resources for the year ended 30 September 2021 totalled £866,637 (2020: £823,979).

13. COMPARATIVES FOR THE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
178,648
Other trading activities
10,271
Investment income
117,422
Commercial trade operations
231,591
537,932
Total
EXPENDITURE ON
Raising funds
83,366
Charitable activities
Medical Research
49,287
Commercial trade operations
98,022
Total
230,675
NET INCOME/(EXPENDITURE)
307,257
Gain on investment property revaluation
1,413,232
Transfer between funds
(1,205,682)
NET MOVEMENT IN FUNDS
514,807
RECONCILIATION OF FUNDS
Total funds brought forward
9,338,852
TOTAL FUNDS CARRIED FORWARD
9,853,659		 Restricted
funds
£
721,044
-
-
-
721,044
-
70,753
94,596
165,349
555,695
-
1,205,682
1,761,377
200,753
1,962,130		 Total
funds
£
899,692
10,721
117,422
231,591
1,258,976
83,366
120,040
192,618
396,024
862,952
1,413,232
-
2,276,184
9,539,605
11,815,789

Page 18

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

14. TANGIBLE FIXED ASSETS
Property Plant and
under machinery
construction etc Total
£ £ £
GROUP
COST
At 1st October 2020 3,602,367 2,792,870 6,395,237
Additions 1,005,249 121,934 1,127,183
––––––––– ––––––––– –––––––––
At 30th September 2021 4,607,616 2,914,804 7,522,420
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1st October 2020 - 1,694,949 1,694,949
Charge for year - 181,805 181,805
––––––––– ––––––––– –––––––––
At 30th September 2021 - 1,876,754 1,876,754
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30th September 2021 4,607,616 1,038,050 5,645,666
�������� �������� ��������
At 30th September 2020 3,602,367 1,097,921 4,700,288
�������� �������� ��������
CHARITY
COST
At 1st October 2020 3,602,367 545,646 4,148,013
Additions 1,005,249 - 1,005,249
––––––––– ––––––––– –––––––––
At 30th September 2021 4,607,616 545,646 5,153,262
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1st October 2020 - 541,727 541,727
Charge for year - 1,304 1,304
––––––––– ––––––––– –––––––––
At 30th September 2021 - 543,031 543,031
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30th September 2021 4,607,616 2,615 4,610,231
�������� �������� ��������
At 30th September 2020 3,602,367 3,919 3,606,286
�������� �������� ��������

Page 19

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

15. FIXED ASSET INVESTMENTS

Shares in
group
CHARITY undertakings
£
MARKET VALUE
At 1st October 2020 and 30th September 2021 1
NET BOOK VALUE
At 30th September 2021 1
At 30th September 2020 1

The charity’s investments at the balance sheet date in the share capital of companies comprise the following:

Daisy Medical Research Limited

Nature of business: Medical research and treatment

%
Class of share: holding
Ordinary 100
2021 2020
£ £
Aggregate capital and reserves 198,732 150,890
Profit for the year 47,843 38,973
16. INVESTMENT PROPERTY
GROUP AND CHARITY
£
MARKET VALUE
At 1st October 2020 7,193,274
Revaluations (673,682)
–––––––––
At 30th September 2021 6,519,592
–––––––––
NET BOOK VALUE
At 30th September 2021 6,519,592
��������
At 30th September 2020 7,193,274
��������

The market value of investment property was assessed by the trustees at 30 September 2021 and is based on valuations undertaken by the Hull and East Yorkshire Hospitals NHS Trust as at 30 April 2021.

Page 20

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Amounts owed by group undertakings
Other debtors
VAT
Tax
Prepayments and accrued income		 Group
2021
2020
£
£
-
-
39,922
83,757
35,271
-
245,455
-
26,811
31,739
347,459
115,496		 Charity
2021
2020
£
£
1,849,808
1,741,330
14,748
35,065
47,474
-
245,455
-
6,394
12,576
2,163,879
1,788,971		 Charity
2021
2020
£
£
1,849,808
1,741,330
14,748
35,065
47,474
-
245,455
-
6,394
12,576
2,163,879
1,788,971
1,788,971

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
VAT
Accruals and deferred income
Social security and other tax
Other creditors		 Group
2021
2020
£
£
24,964
19,482
-
377,560
195,913
123,830
317
321
294,411
-
515,605
521,193		 Charity
2021
2020
£
£
24,963
12,035
-
366,931
193,688
121,606
317
319
294,411
-
513,379
500,891		 Charity
2021
2020
£
£
24,963
12,035
-
366,931
193,688
121,606
317
319
294,411
-
513,379
500,891
500,891

Included in the above total is a loan of £294,411 (2020: £283,088) which is unsecured and interest free. The loan is repayable in full on 25 March 2022. The 2020 total was disclosed with other creditors due after more than one year, at note 19.

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Other creditors Group
2021
2020
£
£
1,800,000
2,083,088
1,800,000
2,083,088		 Charity
2021
2020
£
£
1,800,000
2,083,088
1,800,000
2,083,088		 Charity
2021
2020
£
£
1,800,000
2,083,088
1,800,000
2,083,088
2,083,088

Included in the above total is a loan of £1,800,000 (2020: £1,800,000) which is unsecured. The loan is repayable in full on 31 December 2035 and interest is payable at 3.5% per annum.

20. PROVISIONS FOR LIABILITIES

Group
2021
2020
£
£
Deferred tax
46,800
35,706
Balance at 1st October 2020
Charge to Statement of Financial Activities during the year
Balance at 30th September 2021		 Charity
2021
2020
£
£
-
-
Deferred tax
£
35,706
11,094
46,800		 Charity
2021
2020
£
£
-
-
Deferred tax
£
35,706
11,094
46,800
46,800

Page 20

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2021 2020
Unrestricted Restricted Total Total
fund funds funds funds
£ £ £ £
Fixed assets 1,035,437 4,610,229 5,645,666 4,700,288
Investment property 6,519,592 - 6,519,592 7,193,274
Current assets 2,218,919 34,056 2,252,975 2,562,214
Liabilities (221,194) (2,094,411) (2,315,605) (2,604,281)
Provisions (46,800) - (46,800) (35,706)
9,505,954 2,549,874 12,055,828 11,815,789
MOVEMENT IN FUNDS
Incoming Resources Revaluation Transfers
At 01.10.20 resources expended Loss between At 30.09.21
reserves
£ £ £ £ £ £
Unrestricted funds
General fund 9,853,659 1,219,857 (330,451) (673,682) (563,429) 9,505,954
Restricted funds
Medical equipment 34,057 - - - - 34,057
Phase 2 1,928,073 100,000 (75,685) - 563,429 2,515,817
1,962,130 100,000 (75,685) - 563,429 2,549,874
TOTAL FUNDS 11,815,789 1,319,857 (406,136) (673,682) - 12,055,828

22. MOVEMENT IN FUNDS

Phase 2 fund - Funds donated for development of Phase 2 as explained in the trustees' report.

Comparative information in respect of the preceding period is as follows:

Unrestricted funds
General fund
Restricted funds
Medical equipment
Phase 2
TOTAL FUNDS		 At 01.10.19
Incoming
resources
Resources
expended
Revaluation
Loss
Transfers
between
reserves
At 30.09.20
£
£
£
£
£
£
9,338,852
537,932
(230,675)
1,413,232
(1,205,682)
9,853,659
34,057
-
-
-
-
34,057
166,696
721,044
(165,349)
-
1,205,682
1,928,073
200,753
721,044
(165,349)
-
1,205,682
1,962,130
9,538,605
1,258,976
(396,024)
1,413,232
- 11,815,789

Page 22

The Hull & East Yorkshire Medical Research Centre

Notes to the Financial Statements - continued for the year ended 30th September 2021

23. COMMITMENTS

2021
Research building service costs £
Payable within one year 51,638
2-5 years 206,552
Over 5 years 361,466
–––––––
619,656
������

The research building service costs are subject to an annual increase in respect of the Health Service cost index.

The commitments are covered, except for a relatively small amount of irrecoverable VAT, by rental income receivable on the 25 year lease.

At 30 September 2021 the charitable group has a capital commitment of £3,573,916 which is contracted but not provided for in the financial statements.

24. LEASING AGREEMENTS

The investment property is let out to tenants under operating leases. At the year end the committed lease receipts due under non-cancellable leases are as follows:

Falling due:
Within one year
Between one and five year
Over five years		 2021
£
114,873
459,493
1,726,882
2,301,248		 2020
£
114,873
459,493
1,841,755
2,416,121

25. RELATED PARTY DISCLOSURES

At 30 September 2021 the charity owed £300,000 (2020: £300,000), discounted to its present value of £294,411 in the financial statements to a company controlled by a trustee of the charity. The form of this liability is an interest free loan.

There are no further related party transactions requiring disclosure during the year ended 30 September 2021.

Page 23