## **ROYAL OSTEOPOROSIS SOCIETY** 

**REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

**Company Number: 4995013 England and Wales Charity Number: 1102712 Scotland Charity Number: SC039755 Isle of Man Foreign Company number 006188F and Charity number: 1284** 


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## CONTENTS 

|Reference and Administrative Details: ................................................................. 2|
|---|
|1.0<br>Introduction ............................................................................................. 5|
|2.0<br>Objectives and Activities ............................................................................ 5|
|3.0<br>Public Benefit Statement ............................................................................ 5|
|4.0<br>Vision, Mission and Values .......................................................................... 5|
|5.0<br>Managing the impact of the Covid-19 pandemic: ........................................... 7|
|Organisation Performance .................................................................................. 7|
|Financial Review ............................................................................................. 14|
|1.<br>Financial Performance`............................................. 14`|
|2.<br>Principal Risks and Uncertainties`.................................... 14`|
|a.<br>Coronavirus`.................................................... 15`|
|b.<br>Fundraising Environment`......................................... 14`|
|c.<br>Digital Development`............................................. 15`|
|d.<br>Damage to our Reputation`........................................ 15`|
|3.<br>Investment Policy`................................................ 15`|
|4.<br>Grant Making Policy`............................................... 16`|
|5.<br>Reserves Policy`.................................................. 16`|
|6.<br>Going Concern`................................................... 17`|
|Structure, Governance and Management ........................................................... 18|
|1.<br>Overview`........................................................ 18`|
|2.<br>Trustee Recruitment, Appointment, Induction and Training`.............. 18`|
|3.<br>Charity Governance Code`.......................................... 19`|
|4.<br>Serious Incidents`................................................. 19`|
|5.<br>Remuneration`.................................................... 19`|
|Statement of Responsibilities of the Trustees ..................................................... 20|
|Independent Auditor’s Report to the Members and Trustees of Royal Osteoporosis|
|Society .......................................................................................................... 21|
|Consolidated Statement of Financial Activities: ................................................... 25|
|Consolidated Balance Sheet: ............................................................................ 25|
|Consolidated Statement of Cash Flows: ............................................................. 27|
|Notes to the Financial Statements: ................................................................... 28|



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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Reference and Administrative Details:** 

|**President**|HRH The Duchess of Cornwall||
|---|---|---|
|**Ambassadors**|Sean Bean|Ross Kemp|
||Deborah Bull, CBE|Felicity Ann Kendal, CBE|
||Wendy Craig|Cath Kidston|
||Peter Cruddas|Miriam Margolyes, OBE|
||Liz Earle|Diana Moran|
||Susan Hampshire, CBE|Maggie Philbin OBE|
||Craig Revel Horwood|Helen Sharman, OBE|
||Nerys Hughes|Dr Miriam Stoppard|
||Trisha Goddard|Lizzie Webb|
|**Honorary Officers**|||
|**Chairman:**|Prof Neil Gittoes||
|**Vice Chairman:**|Mrs Carole Walker (retired 20|May 2021)|
||Mrs Frances Grigg (From 21 May 2021)||
|**Treasurer:**|Mrs Frances Grigg (to 20 May|2021)|
||Mr Peter Gotham (from 21 May 2021)||
|**Trustees:**|Mr Richard Darch||
||Prof Nicholas Harvey||
||Mrs Claire Hook||
||Dr Rosemary Leonard||
||(resigned 16 May 2021)||
||Dr Nicky Peel||
||Ms Caroline Trewhitt||
||Dr Lynne Wigens||



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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Senior Leadership Team:** 

**Chief Executive: Finance & Resources Director: Governance, People and Culture Advisor Director of Clinical Services Director of Development** 

Craig Jones Thom Harvey 

Helen Kingman Lauren Wiggins Jamie Grier 

Appointed March 2020 Appointed May 2021 

Appointed June 1989 Appointed January 2021 Appointed March 2021 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **REFERENCE AND ADMINISTRATIVE DETAILS (continued)** 

|**Registered office:**|St James House|
|---|---|
||Lower Bristol Road|
||Bath|
||BA2 3NH|
|**Auditors:**|Crowe U.K. LLP|
||St James House|
||Cheltenham|
||GL50 3PR|
|**Bankers**:|National Westminster Bank plc|
||3 High Street|
||Midsomer Norton|
||Bath|
||BA3 2ZY|
|**Investment Advisors:**|HSBC Private Bank (UK) Limited|
||8 Cork Street|
||London W1S 3LJ|
|**Solicitors:**|DAC Beachcroft LLP|
||Portwall Place|
||Bristol|
||BS99 7UD|
||Bates Wells|
||10 Queen Street Place|
||London|
||EC4R 1BE|
||Stone King|
||Upper Borough Court|
||Bath|
||BA1 1RG|
|**Company number:**|4995013|
|**Charity number England and Wales:**|1102712|
|**Charity number Scotland:**|SC039755|
|**Charity number Isle of Man:**|1284|
|**Foreign Company number Isle of Man:**|006188F|



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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **1.0 Introduction** 

The trustees present their annual report, including the audited financial statements, summarising the performance and impact of the Royal Osteoporosis Society for the year ended 31 December 2021. 

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments and in accordance with 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) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. 

## **2.0 Objectives and Activities** 

The trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives. The Memorandum of Association states that the principal objects for which the charity exists are as follows: 

- To relieve sickness and to promote and advance medical knowledge, with particular reference to all aspects of osteoporosis and all similar and related conditions; 

- To undertake research in relation thereto, and to publish the useful results of such research. 

The activities undertaken to meet these objectives are set out in our corporate strategy. 

## **3.0 Public Benefit Statement** 

The trustees have complied with the duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s public benefit guidance when reviewing the organisation’s aims, objectives, plans and performance.  The public benefits from the ROS’s work through: 

- Our information and educational resources, including our Helpline and website; 

- Our campaigning work to improve awareness and understanding of osteoporosis; 

- Our investment in research to improve treatment. 

## **4.0 Vision, Mission and Values** 

Our vision: Strong and healthy bones for life 

Our purpose: We transform lives and society by leading the effort to improve bone health and defeat osteoporosis. 

- Improve the bone health of our nation and prevent osteoporosis; 

- Influence healthcare providers and professionals to deliver high quality healthcare so that people are assessed and treated for osteoporosis earlier; 

- Provide the best information, support and services to help people with osteoporosis live well; 

- Drive the research and development of new treatments and therapies that will ultimately beat osteoporosis. 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## Our goals 

- To drive fraction prevention amongst people who are at high risk 

- Quicker diagnosis and better ongoing care, wherever people live. 

- • To support more people to live well with osteoporosis. 

## Our values 

- We’re Bold – We fearlessly stand up for and give a voice to people who need us.; 

- We’re Focused – We concentrate on where we can make the biggest difference; 

- We’re Collaborative – We work as one team and embrace partners to change society together; 

- We have integrity - You can trust us to do what we say we will 

Our **corporate strategy for 2021** identified four aims, **Prevention, Care, Support and Cure** , through which we strive to deliver our vision of a future without osteoporosis.  The activities summarised in this report are aligned with those aims. 


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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **5.0 Managing the impact of the Covid-19 pandemic:** 

The impact of COVID-19 was mainly felt in the areas of income generation and peer-to-peer support services.  On the income side, our face-to-face fundraising events have been a significant part of our portfolio for many years.  Some of these events were cancelled, while others were downsized due to concern about social distancing.  On the peer education side, our support groups continued to meet digitally during the pandemic, but this meant that a small minority of people who were less comfortable online were unable to participate.  The Specialist Nurse Helpline was an alternative to serve their needs over that period. 

The savings we found in 2020 through our strategic restructure ensured that our overall financial position remained strong throughout the year. 

## **Organisational Performance** 

This section provides an overview of the significant activities undertaken by the charity in order to achieve the charity’s strategic aims and objectives for the public benefit. How these activities are financed is outlined in the Financial Statements. 

The charity recognises that our achievements are only made possible thanks to the amazing generosity of our members and donors, and the invaluable contribution made by our volunteers, support groups, committee members, scientific advisors and employees. 

## **Support Services** 

Demand for our support services reached record levels as the NHS continued through the COVID19 pandemic.  We delivered support to members of the public over 347,000 times over the course of the year, beating our target by 16%. 

Calls to our Helpline, already at record levels, increased by a further 28%, resulting in over 14,200 enquiries answered over the course of 2021.  The most common enquiries were about treatment adherence and medication.  The Helpline maintained a 96% user satisfaction rating.  We also developed an in-depth survey to track the impact of calls on the health and wellbeing of users, eight weeks on from the engagement, which offers richer and more sophisticated monitoring model that we’ll deepen further in 2022. 

We continued to modernise our support services through extending our digital offer.  A notable addition was the release of our video series for people who are newly diagnosed, which received over 15,000 views.  Fronted by ROS members and volunteers, as well as Specialist Nurses, the videos are a template for further digital resources. 

With NHS services continuing to operate at severely reduced capacity due to the pandemic we ensured our local support groups were able to come together virtually to facilitate peer-to-peer support.  Over 70% of support groups took advantage of the opportunity to have digital meetings during the pandemic, with almost 2,400 virtual event attendances during the year. 

We deepened our volunteering offer through the launch of a new programme of Lead Volunteer Advocates and Community Advice Network members.  The new model was framed as an extension of the Patient Advocacy role that has been successful in our Academy.  By the end of the year, over 70 advocates had been recruited, with several high-profile examples of putting lived experience at 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

the heart of our work, including in the media, Parliament, our digital support and in the design of our new corporate strategy. 

## **Campaigning** 

We launched our new public affairs programme, which became one of our most successful initiatives of recent years.  We provided in-person or written briefings for 119 legislators and NHS leaders over the course of the year, beating our target.  This included three meetings with the key Minister in the Department of Health and Social Care (DHSC).  Using our relaunched All Party Parliamentary Group (APPG) as a platform for debate, we delivered an ambitious Inquiry into how to end the postcode lottery for a quality-assured Fracture Liaison Service (FLS).  The call for evidence received over 80 responses, with three insight-rich oral evidence sessions attended by NHS leaders, clinicians and Lead Volunteer Advocates.  Our _Life with Osteoporosis 2021_ report gave us a contemporary snapshot of the realities of delayed diagnosis and inadequate follow-up, thanks to the participation of 3,300 members in the 45-minute survey.  A comprehensive Freedom of Information request captured up-to-date evidence on the coverage and quality of FLS across the country, culminating in a detailed policy report and set of recommendations that was received by Gillian Keegan MP, Minister for Care, on behalf of the Government. 

Several other Parliamentary interventions included two sets of questions for short debate in the House of Lords, participation in a menopause debate in Westminster Hall, and also our Mass Virtual Lobby of Parliament on World Osteoporosis Day.  On the same day, we were pleased to present our new policy manifesto, _Breaking the Silence_ , to the Prime Minister’s Health Advisers in a meeting inside Number 10. 

As a prelude to further influencing across the devolved nations in 2022, we lobbied Scottish politicians on the need or an FLS Database north of the border, as well as challenges within the local health service in Glasgow. 

2021 was our strongest year for media coverage in recent memory, with over 1,000 pieces generated over the course of the year, with an advertising value of £2.9m (beating our revised target of £2.5m).  Several policy-focused news reports in the Mail, Telegraph and Scotsman articulated the emerging evidence from our APPG Inquiry.  In an interview with the BBC’s _Morning Live_ programme, HRH The Duchess of Cornwall spoke movingly about the need to raise awareness of bone health amongst young people.  This high-profile intervention secured an extraordinary amount of coverage on World Osteoporosis Day, both at home and abroad.  Gloria Hunniford offered to become an ROS Ambassador following the interview, joining Trisha Goddard, Val Stones and Helen Sharman as new celebrity advocates for ROS. 

We raised ROS’s profile in the charity sector through published opinion pieces in Third Sector Magazine and Civil Society Magazine on our management of the pandemic and office move, respectively. 

We invested in the improvement of our website, both in terms of content and look and feel.  Alongside this, we built our social media following by 17%, reaching a high for the organisation on Facebook, Twitter and Instagram. 

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**ROYAL OSTEOPOROSIS SOCIETY** 

**TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Clinical engagement** 

Over the course of the year we delivered education, training and development opportunities for healthcare professionals over 2,800 times. Topics included: Vertebral (spinal) fracture identification, DXA quality, secondary fracture prevention, managing complex cases and lifelong bone health.  We completed work on our State of the Nation Report into Vertebral (spinal) Fractures and publicised the findings in the Daily Mail.  Key insights included the finding that 2.2m people are estimated to have undiagnosed spinal fractures, with 70% of these fractures never coming to medical attention.  We launched our new eLearning for clinical identification of spinal fractures and our guidance for HCPs on the same subject is being finalised for launch in early 2022. We delayed our set-piece conference for HCPs owing to the COVID-19 pandemic, pivoting instead towards planning a shorter conference in 2023.  We phased out our direct administration of clinical networks across the UK, moving to a collaborative, hands-off model where we work in partnership with HCPs across the four nations on public affairs advocacy and service improvement. 

## **Driving improvement to NHS services** 

ROS has been a major contributor to both NHS England’s _Best MSK Health_ pathway redesign programme and the Welsh Governments MSK framework.  Our aim has been to ensure that the Fracture Liaison Service (FLS) model is a key component in both policy documents, which we can then use for leverage in local influencing. 

We’ve supported seven NHS Trusts that are looking at establishing an FLS with benefits calculation data and pathway costings.  We’ve supported a further 14 NHS Trusts with FLS data for service improvement business cases. 

We’ve supported the team at an Integrated Care System (ICS) to improve their three FLSs and standardise provision across the locality to ensure services are resourced and are delivering to KPIs for the population. We’ll use the insights from this pilot to inform our work with further ICSs in 2022. 

## **Investment in research** 

We published our Research Roadmap through our Academy in January, setting out the academic community’s priorities for research.  Later in the year we delivered the biggest investment in research grants in our history, with £400k of investment in projects aligned with the Research Roadmap.  This grants round generated the greatest number of applications ROS has ever received.  We put the patient voice at the heart of the selection process for the winners, thanks to our first-rate Patient Advocates and lay assessors. 

The five project grants we’re now funding are these: 

## **Creating an infrastructure to improve understanding and outcome of Pregnancy** 

## **Associated Osteoporosis** _**(Professor Ralston, University of Edinburgh, £100,000).**_ 

Pregnancy Associated Osteoporosis is a rare but devastating condition which typically presents with the occurrence of multiple spinal fractures during the late stages of pregnancy. This large- 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

scale UK wide study aims to provide new insights into risk factors and genetic factors associated with Pregnancy Associated Osteoporosis and provide an infrastructure which will form the basis of improved diagnosis and new approaches to treatment. 

## **Implementing improved fracture risk assessment in primary care: enhancing capture and quality of self-reported risk factors in electronic health records in primary care** _**(Professor McCloskey, University of Sheffield, £92,178).**_ 

We can identify patients at increased risk of fractures using simple questionnaire-based tools and have safe treatments that work well. However, unfortunately three out of four people at increased risk of fracture don't receive treatment, largely because this risk goes unidentified. The study aims to address opportunities and barriers to easy assessment of fracture risk and explore patient centred interactive approaches to efficiently bring this to the attention of GPs. 

## **Using real world audit data to identify the high-risk fracture patients and determinants of effective and efficient secondary fracture prevention** _**(Dr Javaid, University of Oxford, £70,093).**_ 

The NHS funds Fracture Liaison Services (FLSs) to provide osteoporosis checks for patients after a broken bone. However, there are significant differences between FLSs with only 1:10 patients receiving the highest standards of care. This study aims to improve how well FLSs work by identifying key organisational factors and also focus on patients at very high risk to update patient pathways to better manage this group. 

## **Applicability of Vfrac in Men: An Osteoporotic Vertebral Fracture Screening Tool for Use in Older People with Back Pain** _**(Professor Clark, University of Bristol, £32,597).**_ 

A spinal fracture increases the chance of more fractures, but only one in three patients are diagnosed. The study aims to address an important gap in our understanding of the experiences of men with osteoporotic spinal fractures. This will lead to modification of an existing effective spinal fracture screening tool to be relevant for both men and women, thereby promoting equity and fairness in delivery of the best quality healthcare for older people with osteoporosis. 

## **How can understanding of DXA scans among primary care practitioners & patients be optimised to potentially increase treatment uptake?** _**(Dr Bullock and Dr Paskins, Keele University, £62,627).**_ 

Osteoporosis is diagnosed by a bone density (DXA) scan, which calculates how dense your bones are. Understanding your own DXA result is of critical importance in understanding your own risk of fracture and to inform decision-making about medicines. This study aims to create new resources for GPs and healthcare professionals aimed at increasing patient understanding of a DXA scan result to improve initiation and adherence to osteoporosis medication. 

The Early Career Grant recipient will lead the following study: 

## **Are advanced glycation end products (AGEs) biomarkers of long- term low bone remodelling?** _**(Dr Tatiane Vilaca, University of Sheffield, £23,372).**_ 

Advanced glycation end products (AGEs) are formed when sugars bind to the collagen in bone, and this modification is known to negatively affect the ageing skeleton. This study will investigate if AGEs can give us information about bone quality and long-term bone renewal in people receiving osteoporosis treatment, which will help to personalise osteoporosis treatments in the future. 

## The Innovative Grant recipient will lead the following study: 

## **Assessing the validity and acceptability of using smartphones to monitor bone-specific activity (BSA)** _**(Dr Victoria Stiles, University of Exeter, £10,000).**_ 

Previous research has shown women who accumulated more than 2 mins of moderate-impact bone-specific activity (BSA) per day had 6% better bone mineral density (BMD) compared to those who did less, and a 6% BMD increase almost halves the risk of spinal and hip fractures. 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

Smartphones (owned by >75% UK adults) contain similar technology to the monitors used in this research, however no app currently monitors characteristics of activity most relevant to bone health. This study will assess the validity and acceptability of using smartphones to monitor bonespecific activity to inform future app interventions to help prevent osteoporosis. 

## **Running an effective organisation** 

Recognising the amount of change in the external environment since our last strategy was launched in 2019, the Board of Trustees commissioned a refresh of the corporate strategy.  Over a six-month process, the senior team commissioned extensive research into the views of members, volunteers, healthcare professionals and members of other customer 

groups.  Structured interviews were conducted with funders, Parliamentarians and NHS leaders to learn more of external impressions of ROS’s impact and performance.  The findings of our _Life with Osteoporosis 2021_ survey provided a contemporary snapshot into the needs of our service users.  A new corporate strategy was designed based on the insights gathered.  The new strategy, which was adopted by the Board of Trustees for commencement in January 2022, includes a greater focus on public policy influencing, public awareness campaigning, digital support, and equality and diversity. 

We surveyed our workforce on their office accommodation needs following the pandemic, finding a strong preference for hybrid working.  New policies were drafted and consulted on to enable our employees to enjoy the best of both worlds between office and home working.  This enabled us to successfully market our Camerton office, with a completion date of March 2022.  We’ll move to a smaller floorplate in a leased office in Bath City Centre from April 2022. 

A combination of spending restraint following our 2020 restructure and a strong legacy year enabled us to rebuild our reserves.  The higher threshold set by Trustees was met by the end of the year.  The expectation of further legacy income and the proceeds of our building sale have enabled us to embark on a £1.7m investment programme in four areas of growth between 20224: digital support, public affairs, annual research grants rounds, and public advertising linked to the Prevention strand of our new strategy. 

Our efforts to diversify our income in 2021 fell short of our short-term ambitions due to the difficult funding environment for charities and some capacity gaps in our fundraising teams.  A three-year funding plan to remedy these issues was approved by the Board of Trustees, ready for roll-out in 2022, backed by the recruitment of strong candidates into key roles. 

We spent an average of £1,000 per head in the professional development of our people, which is a high watermark of training investment at ROS.  We conducted another annual employee survey, establishing an engagement score of 76%, which is 4pt ahead of the charity sector average, but a small decline on our 82% score from 2021.  We’ll be carrying out an engagement exercise to identify where we can improve, with a view to raising this score in our January 2023 survey. 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Looking ahead** 

In 2021 the organisation completed a strategic review engaging in depth with a broad range of stakeholders including service users, clinicians, volunteers, staff and policy makers.  This has produced a strategy which will reorientate ROS to meet the needs of society following the COVID19 pandemic. 

Even before the pandemic, the treatment gap for osteoporosis was startlingly wide, with around two-thirds of people missing out on the treatment they need. NHS backlogs have widened that treatment gap still further. 

## **Action is now beyond the point of urgency.** 

For the lifetime of this strategy, we’ll focus on closing the treatment gap through our advocacy, while reducing demand on the NHS through prevention and support. 

Demand for our support services has reached record levels as we’ve filled in for NHS services. We know the NHS’s recovery will take time, so we’ll continue to step up for everyone who needs help. This puts a premium on the need to invest in, widen access to, and improve our direct support services. 

On a local and national level, we’ll influence the NHS to change, holding decision makers to account to ensure fairer and more equitable care across all parts of the UK. 

This strategy is also about inspiring a revolution in prevention. We want greater awareness amongst people in high-risk groups, and a ’nudge’ to action to prevent avoidable fractures. Early intervention is the golden ticket to beating osteoporosis and fractures, while safeguarding our NHS. 


## **1 Awareness** 

Our Awareness strand aims to raise the profile and understanding of osteoporosis across civil society, challenging the unhelpful myths and stereotypes that often get in the way of a quick diagnosis.  This programme will influence partner organisations, opinion-formers and commentators to take bone health more seriously and empower people to look after their bones.  In 2022, we’ll start by raising the value of our media coverage – already at a record level – by a further 15%.  We’ll also use advice, accreditation and publicity to 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

drive up standards in organisations that provide services for people living with osteoporosis, focusing in 2022 on increasing participation in our Bone Health Accreditation Scheme. 

## **2 Prevention** 

Our Prevention strand is about warning people who may be at higher risk, so we can get them into the system faster and ensure early intervention.   We'll focus our work on the people who are at the greatest likelihood of needing us in future.  This will include people who have already had their first fracture and people who are over 45 – the age that five-yearly health checks begin and the time when the perimenopause begins for women.  We’ll launch a national advertising campaign to direct these groups towards an online osteoporosis risk-checker tool.  People found to be low risk will be given lifestyle advice to maintain that position.  People found to be at higher risk will be given advice on how to have a good conversation with their GP. 

Another priority group is people whose pre-existing health conditions or medication puts them at higher risk of osteoporosis.  In 2022, we’ll reach a further 50,000 people in this category through platform speeches, articles, podcasts and joint webinars with the health charities who represent them. 

## **3 Influencing care** 

The Influencing Care strand aims to put osteoporosis at the top of the public health agenda and keep it there, driving up standards of care.  In 2022, we’ll continue momentum behind our All Party Parliamentary Group (APPG) by carrying out another solution-focused Inquiry, this time into under-diagnosis of osteoporosis in primary care.  We’ll launch a branded campaign to lobby local decision-makers to implement the findings of last year’s APPG report into ending the postcode lottery for Fracture Liaison Services.  Learning from our impact in Westminster, we’ll extend our campaigning work across the devolved nations, lobbying for change in the Welsh Senedd, Holyrood and Stormont.  To ensure to build the evidence base underpinning our advocacy campaign, we’ll continue our record investment in research, spending at least £250k on research studies which can help close the treatment gap. 

## **4 Support** 

The Support strand is about helping more people than ever to live well with osteoporosis, widening our channels for support.  A priority will be to use digital, one-to-many channels to reach more people and do it in a way that’s more cost-effective.  We’ll put a particular emphasis on helping people become more confident with their treatment regime, which is at the top of the list of people's concerns.  In 2022, we’ll deliver support at least 400,000 times and show that at least 70% of service users felt the intervention made them better able to manage the impact of the condition in their lives. 

## **5 Equity** 

We know there are people whose experience of osteoporosis is even harder, including people from lowerincome households.  Our cross-cutting Equity strand is putting areas where there is the greatest need at the front of the queue.  It’s also about engaging the people and communities we’ve found hard-to-reach in the past.  In 2022, we’ll make sure at least three of our priority programmes are designed to serve the needs of people from lower-income households.  This will include media buying for our Prevention campaign, the emphasis of our service improvement work to improve care in the NHS, and the refresh of the content and tone of our online clinical information. 

## **6 Sustainability** 

We’ll only succeed in our mission if we run an effective, high-performing organisation.  Our cross-cutting Sustainability strand is about transforming and modernising the charity so we can achieve excellence in all we do.  We’ll prize financial responsibility by growing and diversifying our income, while keeping value for money front of mind at all times.  In 2022, we’ll focus on growing our target income lines (all funding lines, bar legacies) by 30% and engaging 400 new supporters.  We’ll also raise our employee engagement rating and continue our record investment in training and development of employees to make sure they’re the best at what they do. 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Financial Review** 

## **1. Financial Performance** 

The financial performance of the charity is set out in the financial statements. The Consolidated Statement of Financial Activities separates out unrestricted funds into Designated and General as it is important to differentiate between planned expenditure relating to previous designated funds and amounts spent on regular core activities. 

Total income of £4,288,882 reduced by £786,786 compared to 2020 (restated). Of this decrease £572,900 related to a Government DHSC grant to support services in response to the pandemic and receipts from the Coronavirus Job Retention Scheme.  Excluding these items income decreased by £213,886. 

Legacies continue to be the main source of income for the charity.  In 2021 legacy income was £2,720,061 which equates to 63% of total income, an increase compared to 2020. Diversifying our income to reduce dependency on this income stream is at the heart of our income growth strategy. Around half of the legacies received are left by people who have been members of the charity and who understand the difference their support can make. 

Expenditure increased by £191,228 compared to 2020.  Staff costs reduced by £507,722 as a result of the restructuring activity that took place in 2020. 

2021 concluded with an overall net income of £524,320. 

## **2. Principal Risks and Uncertainties** 

The Trustees have a risk management strategy in place. The risks the charity may face are identified and reviewed; systems and procedures to mitigate risks identified; and procedures are designed to minimise any potential impact on the charity should those risks materialise. Through this risk management process, the Trustees are satisfied that reasonable steps are being taken to mitigate exposure to the identified major risks.  It is recognised that systems can only provide reasonable, but not absolute, assurance that major risks have been adequately managed. 

## **a.** 

## **Attracting and retaining key individuals** 

The charity benefits from the support of a broad range of volunteers from those bring their professional experience to support our clinical work to those of give up their time to support local people in their areas.  We are also dependent on our staff team to deliver our work.  The pandemic has introduced a range of challenges to recruiting, engaging and retaining both groups and the charity has adopted a range actions to mitigate these risks in its 2022 plan. 

## **b. Fundraising Environment** 

Pressures in the fundraising environment will continue through 2022 as the country faces into a period of higher inflation.  This is anticipated to create a headwind for growth in the short to medium term. 

With this backdrop the charity has completed an income generation review and put in place a 5 year plan to reduce our dependency on legacy income. We will continue to implement the recommendations income generation review with the objective of reducing our dependency income and develop a balanced portfolio of funding streams and increasing sustainability. 

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**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **c. Digital Development** 

In a cost pressured environment, the charity is highly dependent upon stable, fully functioning, integrated digital systems including our Customer Relationship Management (CRM) and website to operate to drive impact growth. 

It remains an organisational priority to continue development of our digital capability and systems to support our strategic direction.  We will continue to invest in relevant expertise and resources to enhance this capability in 2022. 

## **d. Damage to our Reputation** 

The charity ensures it is well run by maintaining good governance and management practices.  In addition, there is a rigorous recruitment process and ongoing training for staff and trustees to ensure that people do the right thing at the right times.  If things go wrong, we have a clear Crisis Management/Business Continuity Plan in place and insurance to mitigate the financial risk to the charity. 

## **e. Coronavirus** 

As 2021 came to an end the emergence of the Omicron variant demonstrated that we are still operating in a highly uncertain environment.  Having restructured the charity and reduced our headcount significantly in 2020, the organisation has seen ensuring the remaining resources were aligned with the charity strategy and operating plans for 2021. 

The restructured organisation is braced for a more challenging post-COVID-19 fundraising environment.  In 2021 the charity produced a revised strategy which will reorientate to the needs of society following the pandemic. 

## **3. Investment Policy** 

The Trustees have delegated investment decisions to the Finance, General Purposes and Audit Committee (FGP&A) and have appointed HSBC Private Bank (UK) Ltd to manage professionally the investment portfolio. The charity seeks to produce the best financial return within an acceptable level of risk.  The performance of the investment portfolio is benchmarked against the ARC Peer Group (Balanced) benchmark and HSBC’s own in-house UK Balanced benchmark. 

Reflecting a reduction in uncertainty and a cash surplus in the prior year, we have invested a further £0.6m in our portfolio in 2021. The fund was valued at £2.7m at 31 December 2021. 

15 



**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **4. Grant Making Policy** 

It is the policy of the charity to fund research that is in line with the charity’s mission statement and which follows the recommendations of the Charity Commission and the Association of Medical Research Charities (AMRC) of which the Royal Osteoporosis Society is a member.  Our Research Grants Committee (RGC) reports to the Trustees on matters regarding the award and monitoring of grants through the Clinical and Scientific Committee (CSC).  The availability of funding is advertised through our regular publications and website. 

In 2021, the charity continued to support a total of five new research projects, with a total value of £384k. 

## **5. Reserves Policy** 

The Royal Osteoporosis Society has no endowment funding, and is largely dependent for income on donor funding, including a significant reliance on legacies. These income streams are subject to large fluctuation from year to year. As a result, the trustees believe our charity should hold reserves to provide protection against such fluctuations and enable us to continue operating in all circumstances and following all eventualities including any significant unexpected fall in income. In addition, we face external risks such as an economic recession, or the continued risks associated with the Covid-19 public health emergency and internal risks relating to our people and technology. We need reserves to ensure that we can respond to unforeseen events, without jeopardising our ability to continue to support people to maintain their bone health and meet our obligations as they fall due. 

The trustees reviewed the existing reserves policy in November 2021 and concluded that a riskbased reserves policy was the most appropriate way of managing reserves. The policy states that the Royal Osteoporosis Society should keep sufficient reserves to cover: 

## • Restricted reserves. 

• Any major designated funds to support the future development of the organisation or delivery of key programmes. 

- Fixed assets reserves. 

- Free reserves to cover: 

|a) Working capital needs<br>b) Risk response.<br>c) The orderly wind up of the charity|£0.5m<br>£1.5m<br>£1.1m<br>£3.1m|
|---|---|



The risk response reserve requirement is based upon the expected cost of responding to our two largest risk materialising at the same time. These risks are considered as part of our corporate risk register, as explained in our annual report under Principal Risks and Uncertainties. 

16 



**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

At December 2021, the charity had free reserves of £1.8m which is below the target amount.  The charity intends to dispose of the Camerton property in 2022.  On completion proceeds will be transferred, the free reserves target will be met. 

## **6. Going Concern** 

The Board of Trustees have reviewed Royal Osteoporosis Society activities, financial position and risk management policies together with factors likely to affect future development, including the impact of economic uncertainty on voluntary income, and the impact of the Coronavirus.   They have concluded that as a result of the actions taken, it is reasonable to expect Royal Osteoporosis Society to have adequate resources to continue in operation for the foreseeable future. Accordingly, the going concern basis of accounting continues to be adopted in preparing the financial statements. 

The charity has provided our Auditors with financial projections out to the end of 2023 These have been constructed with three scenarios demonstrating the worst to best case projections, all of which demonstrate going concern. 

## **Our approach to fundraising** 

The Royal Osteoporosis Society seeks to transform lives and society by leading the effort to improve bone health and defeat osteoporosis.  We are entirely dependent on the commitment of our supporters and takes our responsibilities to supporters very seriously. 

We fundraise in a wide range of ways in order to maximise our investment in our mission.  Our current fundraising activities include our membership programme, direct mail and email marketing, sponsored challenge and community events and host fundraising events.  We also welcome legacy and in-memoriam donations, work with grant giving trusts and foundations and corporate partners. We are registered with the regulatory body for fundraising in the UK, the Fundraising Regulator, and pay an annual levy to support its work.  We adhere to the standard outlined the regulator’s Code of Fundraising Practice (the code). 

We review all our fundraising campaigns to ensure they fully comply with the code, do not place an unreasonable intrusion of anyone’s privacy or put undue pressure on them to donate.  These activities are overseen by our Finance and General Purposes Committee and the Board of Trustees. We work with a small number of partners to deliver some fundraising activities.  As part of our careful selection process we ensure that they are compliant with the code and all applicable laws.  We monitor their work carefully to ensure it meets our own high standards. 

We operate a fundraising lottery, licensed by the Gambling Commission currently managed externally for us by Unity Lottery, with signposting for responsible gambling advice provided on our website. Each of our corporate partnerships has an associated contract or commercial participator agreement as appropriate. 

We work in full compliance with the General Data Protection Regulation (GDPR) guidelines.  We contact people by telephone and email only if they specifically agree to it and we are pleased that our supporters respond warmly to our communications. 

We welcome feedback from our supporters and have a complaints handling process for when things go wrong, and make sure we learn lessons when they do.  In 2021 we received no complaints relating to our fundraising activity. 

17 



**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Structure, Governance and Management** 

## **1. Overview** 

The Royal Osteoporosis Society was established in 1986 (as the National Osteoporosis Society). The organisation is a charitable company limited by guarantee, incorporated on 15 December 2003 and registered as a charity on 18 March 2004. On 31 July 2008, the charity registered with the Scottish Charity Register to further the development of its activities in Scotland. The charity was registered with the Foreign Company Registry in the Isle of Man on 4 April 2019 and the Isle of Man Charities Registry on 20 June 2019. The organisation was established under a memorandum of association which established the objects and powers of the organisation and is governed under its articles of association. The charity is governed by a Board of Trustees. Those in office during the year, and at the date of signing these financial statements are set out on page 3. Trustees have delegated authority for the day-to-day management of the charity to the Chief Executive. 

Following a period of engagement with Members, a Special Resolution was passed in 2014 removing company law responsibility from our standard and professional membership.  At the end of 2020, the main Board has 6 committees that enable the effective delivery of organisational objectives and strategic advice to the Board.  These committees meet up to 4 times per year and are listed below: 

- Clinical & Scientific Committee • Appointments & Governance Committee 

- • Members & Volunteers Committee • Remuneration Committee • Finance, General Purposes & Audit Committee • Osteoporosis and Bone Research Academy Committee 

In addition, the charity has one wholly owned, subsidiary company, The ROS Trading Company Limited, which was incorporated on 29 September 2009. 

The leadership and delivery of the organisation’s objectives is undertaken by a Senior Leadership Team based at the charity’s registered office in Camerton, near Bath. 

## **2. Trustee Recruitment, Appointment, Induction and Training** 

The Royal Osteoporosis Society has a robust approach to governance. We strive to meet the highest of standards to ensure our beneficiaries, supporters and the general public can have trust and confidence in us.  The charity adheres to a governance handbook which sets out our approach to governance, including how we recruit and select Trustees. This handbook is reviewed and refreshed regularly. 

The Appointments & Governance Committee has established a process of Trustee succession planning and is responsible for the recruitment, appointment and induction of new Trustees, and meets regularly throughout the year. Trustee vacancies are advertised externally to support equality of opportunity. One Trustee stepped down in 2021. 

We have a skills-based approach to recruitment. We undertake a regular ‘skills audit’ of our Board of Trustees to ensure we have a broad mix of skills and experience. Our Board composition is reflective of our current beneficiary demographic. 

Trustees participate in a comprehensive induction programme to ensure they fully understand their duties, the charity sector and the charity.  Training of Trustees is addressed by offering internal and external courses as part of their induction. Records of training attended are maintained by the Governance, People and Culture Advisor. Additionally, the Chair/Vice Chair 

18 



**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2021** 

hold annual ‘check-ins’. These are an opportunity for Trustees to meet individually and discuss performance and development. This process is enabling the charity to respond more effectively to the needs of Trustees and ensure they feel supported and fully equipped to discharge their duties. 

Our Equality, Diversity and Inclusion Policy was updated in 2018 to reflect updated guidance and compliance with equalities legislation. This policy applies to trustees, employees and volunteers. 

## **3. Charity Governance Code** 

The Charity Governance Code has given a renewed focus to governance activity at the ROS. Following a workshop in 2018 and using the NVCO’s governance wheel assessment tool trustees awarded an `8’ which is **‘Moving beyond competence: starting to think beyond compliance and good practice to best practice.’** 

Since conducting this workshop, the board have undertaken some internal and externally facilitated board development focusing on the areas requiring improvement.  . This has resulted in a board development action plan.  The action plan is monitored by the Appointments and Governance Committee and reported to the Board. There are planned workshops taking place in 2022. 

## **4. Serious Incidents** 

No serious incidents occurred in 2021.  The Charity has a Serious Incident Policy which is updated regularly. 

## **5. Remuneration** 

The pay and remuneration of the key management is set out in note 8b to the accounts.  The principles are set out in the _Setting Chief Executive and Executive Director Remuneration_ policy, approved by the Remuneration Committee. This committee is chaired by the Chair of the Board of Trustees. 

The principles used when determining the pay and remuneration are: 

- To pay a fair salary, sufficient to attract and retain skilled, expert senior leaders of the charity. 

- • Salaries and benefits should be competitive, proportionate to the complexity of each role and reflect the range of responsibilities. 

- The Chief Executive and Senior Leadership Directors will have an annual appraisal. Whilst maintaining confidentiality any noteworthy considerations that would impact on pay should be brought to the Remuneration Committee’s attention by either the CEO (Senior Leadership Directors) or Chair (Chief Executive). 

- Research will be made available to inform the Remuneration Committee on market rates, trends and comparative data from a variety of sources to ensure relevance to each role. 

When determining pay a number of considerations are necessary, for example, but not exhaustive: 

   - Charity Sector Comparisons 

   - Health Sector comparisons – both private and NHS 

   - National organisations and companies 

   - Profession comparisons (e.g. Finance, IT) 

   - Location and ability to recruit and retain 

- Value placed on skills, knowledge and experience 

- All Trustees gave their time voluntarily and they received no benefit from the charity. Any expenses reclaimed from the charity are set out in Note 8c to the accounts. 

19 



**ROYAL OSTEOPOROSIS SOCIETY TRUSTEES’ REPORT (continued)** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Statement of Responsibilities of the Trustees** 

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. 

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and group, and of the result of the charitable company and group for that year. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the principles in the Charities SORP; 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity and Subsidiary’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and subsidiary and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

So far as each of the trustees is aware at the time the report is approved: 

- there is no relevant audit information of which the group's auditors are unaware; and 

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

## **Auditors** 

A resolution to reappoint Crowe U.K. LLP as auditors will was agreed at the annual accounts meeting. 

Signed for and on behalf of the trustees on 8 June 2022 


Neil Gittoes Chair of the Board of Trustees 

20 



**ROYAL OSTEOPOROSIS SOCIETY INDEPENDENT AUDITORS’ REPORT** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

**Independent Auditor’s Report to the Members and Trustees of Royal Osteoporosis Society** 

## **Opinion** 

We have audited the financial statements of Royal Osteoporosis Society (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 December 2021 and of the group’s income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended). 

## **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** 

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 charitable company's or the group’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** 

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

21 



**ROYAL OSTEOPOROSIS SOCIETY INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021** 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

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

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

- adequate and proper 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 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 20, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder. 

22 



**ROYAL OSTEOPOROSIS SOCIETY INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021** 

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. 

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

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

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

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. 

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

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with the completeness and timing of legacies, donations and grant income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance, and the General-Purpose Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Scottish Charity Regulator, designing audit procedures over the completeness and timing of legacies, donations and grant income, and reading minutes of meetings of those charged with governance. 

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

23 



**ROYAL OSTEOPOROSIS SOCIETY INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021** 

intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


Tara Westcott Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor 

4[th] Floor St James House St James’ Square Cheltenham Gl50 3PR Date:4 July 2022 

24 



**ROYAL OSTEOPOROSIS SOCIETY** 

**CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Consolidated Statement of Financial Activities:** 

|||||||_Total_|
|---|---|---|---|---|---|---|
|||||**Unrestricted**|**Total**|_2020_|
|||**Restricted**|**Designated**|**General**|**2021**|_(Restated)_|
||Note|**£**|**£**|**£**|**£**|_£_|
|**Income and endowments from:**|||||||
|Donations and legacies|2|102,593|-|3,853,451|3,956,044|_4,611,788_|
|Other trading activities|3|67|-|202,063|202,130|_343,827_|
|Investments||-|-|46,016|46,016|_30,933_|
|_Charitable activities:_|||||||
|Education and awareness|4|-|-|84,692|84,692|_89,120_|
|||---------------------|---------------------|---------------------|---------------------|_---------------------_|
|**Total**||102,660|-|4,186,222|4,288,882|_5,075,668_|
|||---------------------|---------------------|---------------------|---------------------|_---------------------_|
|**Expenditure on:**|||||||
|_Raising funds_|||||||
|Costs of generating voluntary funds||10,739|69,297|718,004|798,040|_590,855_|
|Fundraising Trading: costs of|||||||
|goods sold and other costs||264|1,277|57,027|58,568|_85,147_|
|_Charitable activities_|||||||
|Services to members, support|||||||
|Groups and the general public||13,891|58,294|619,563|691,748|_1,027,950_|
|Communications & Policy||40,486|42,097|505,436|588,019|_614,245_|
|Education and Information|||||||
|Provision||118,650|103,757|929,127|1,151,534|_1,223,680_|
|Osteoporosis & Bone Research|||||||
|Academy|5|557,344|31,853|49,903|639,100|_193,905_|
|||---------------------|---------------------|---------------------|---------------------|_---------------------_|
|**Total**|6a|741,374|306,575|2,879,060|3,927,009|_3,735,782_|
|||---------------------|---------------------|---------------------|---------------------|_---------------------_|
|**Net expenditure**|||||||
|**before other recognised**|7|(638,714)|(306,575)|1,307,162|361,873|_1,339,886_|
|**gains/(losses)**|||||||
|Net gains/(losses) on investments|10|-|-|162,437|162,437|_(11,469)_|
|||---------------------|---------------------|---------------------|---------------------|_---------------------_|
|**Net income/(expenditure)**||(638,714)|(306,575)|1,469,599|524,310|_1,328,417_|
|Total funds brought forward||718,099|2,534,644|1,851,513|5,104,256|_3,775,839_|
|Funds Transfer in year||-|1,488,208|(1,488,208)|-|_-_|
|||---------------------|---------------------|---------------------|---------------------|_---------------------_|
|**Total funds carried forward**||79,385|3,716,277|1,832,904|5,628,566|_5,104,256_|
|||==========|==========|=========|==========|_==========_|



There were no other recognised gains or losses other than those stated above. The notes on pages 28 to 45 form part of these financial statements. Details of the restatement as result of a change in accounting policy are set out in note 22. 

25 



**ROYAL OSTEOPOROSIS SOCIETY CONSOLIDATED BALANCE SHEET** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Consolidated Balance Sheet:** 

|**onsolidated Balance Sheet:**||
|---|---|
||_Group_<br>_Charity_|
||**Group**<br>**Charity**<br>_2020_<br>_2020_|
||**2021**<br>**2021**<br>_(Restated)_<br>_(Restated)_|
|**Notes**|<br>**£**<br>**£**<br>_£_<br>_£_|
|**INTANGIBLES & FIXED ASSETS**||
|Intangibles<br>9|135,793<br>135,793<br>_244,427_<br>_244,427_|
|Fixed Assets<br>9|1,613,174<br>1,613,174<br>_1,669,563_<br>_1,669,563_|
|Investments<br>10|2,771,370<br>2,771,371<br>_1,981,664_<br>_1,981,665_|
|||
||4,520,337<br>4,520,338<br>_3,895,654_<br>_3,895,655_|
|**CURRENT ASSETS**||
|Merchandise Stock|1,246<br>-<br>_2,395_<br>_116_<br>357,814<br>374,963<br>_472,043_<br>_621,763_<br>1,494,797<br>1,472,159<br>_1,263,483_<br>_972,810_|
|Debtors<br>12||
|Bank<br>13||
|||
||1,853,857<br>1,847,122<br>_1,737,921_<br>_1,594,689_|
|||
|**CURRENT LIABILITIES**||
|Creditors: amounts due within 1 year<br>14|(558,625)<br>(551,889)<br>_(515,349)_<br>_(372,117)_|
|||
|**NET CURRENT ASSETS**|1,295,232<br>1,295,232<br>_1,222,572_<br>_1,222,572_|
|||
|**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**|5,815,569<br>5,815,570<br>_5,118,226_<br>_5,118,227_|
|||
|Creditors: Amounts due within 1 year|187,003<br>187,003<br>_13,970_<br>_13,970_|
|||
|**NET ASSETS**<br>18|**5,628,566**<br>**5,628,567**<br>**_5,104,256_**<br>**_5,104,257_**|
|||
|||
|**FUNDS**||
|Restricted funds<br>17|79,385<br>79,385<br>_718,099_<br>_718,099_|
|Unrestricted funds||
|- Designated<br>17|3,716,277<br>3,716,277<br>_2,534,644_<br>_2,534,644_|
|- General<br>17|1,832,904<br>1,832,905<br>_1,851,513_<br>_1,851,514_|
|||
|**TOTAL FUNDS**|**5,628,566**<br>**5,628,567**<br>**_5,104,256_**<br>**_5,104,257_**|



The notes on pages 28 to 45 form part of these financial statements. Details of the restatement as result of a change in accounting policy are set out in note 24. 

The surplus for the Charity dealt with in the financial statements was £524,310 (2020: surplus of £1,328,417). The financial statements were approved and authorised for issue by the Board the Trustees on 8 June 2022 and were signed below on its behalf by: 


Neil Gittoes Chair of Trustees 

Peter Gotham Treasurer 

## **Company number: 4995013** 

26 



**ROYAL OSTEOPOROSIS SOCIETY CONSOLIDATED STATEMENT OF CASH FLOW** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**Consolidated Statement of Cash Flows**:|**Consolidated Statement of Cash Flows**:||||
|---|---|---|---|---|
||||**2021**|_2020_|
|||**Notes**|**£**|_£_|
|**Cash flows from operating activities**||**a**|812,567|_1,368,564_|
|**Cash flows from investing activities**|||||
|Dividends and interest|||46,016|_30,933_|
|Purchase of property, plant and equipment|||-|_(76,424)_|
|Purchase of investments|||(2,956,630)|_(1,373,340)_|
|Proceeds from the sale of investments|||2,329,360|_835,104_|
||||----------------------|_----------------------_|
|**Net cash(used in) / provided by investing activities**|||(581,405)|_(583,727)_|
|**Change in cash and cash equivalents in the reporting period**|||231,313|_784,837_|
||||----------------------|_----------------------_|
|**Cash and cash equivalents at the beginning of the reporting period**|||1,263,483|_478,646_|
||||----------------------|_----------------------_|
|**Cash and cash equivalents at the end of the reporting period**||**b**|1,494,797|_1,263,483_|
||||==========|_==========_|
|**NOTES TO THE CASH FLOW STATEMENT**|||||
|**a.**|**RECONCILIATION OF NET INCOME TO NET**||**2021**|_2020_|
||**CASH FLOW FROM OPERATING ACTIVITIES**||**£**|_£_|
||Net Income for the year||524,310|_1,654,457_|
||Loss on fixed asset disposal||4,414|_954_|
||Depreciation charges||160,609|_136,593_|
||Increase in stock||1,149|_951_|
||Decrease / (increase) in debtors||114,229|_(304,469)_|
||Increase / (decrease) in creditors||216,308|_(100,458)_|
||Interest and Dividends||(47,016)|_(30,933)_|
||(Gains) / losses on investments||(162,236)|_11,469_|
||||-----------------------|_-----------------------_|
||**Net cash provided by operating activities**||811,567|_1,368,564_|
||||===========|_===========_|
|**b.**|**ANALYSIS OF CASH AND CASH EQUIVALENTS**||||
||||**2021**|_2020_|
||||**£**|_£_|
||Cash at bank and in hand||1,494,797|_1,263,483_|
||||==========|_==========_|



27 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Notes to the Financial Statements:** 

## **1. ACCOUNTING POLICIES** 

## **a)     Basis of Accounting** 

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments and in accordance with 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)– (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. 

The Royal Osteoporosis Society meets the definition of a public benefit entity under FRS102. 

These financial statements consolidate the results of the charitable company including the regional support groups and the ROS Trading Company Limited on a line-by-line basis. 

## **Preparation of Accounts on a Going Concern Basis** 

The Trustees have undertaken detailed planning and forecasting and continue to closely monitor the developing situation with regards to COVID-19. In 2020 the Trustees initiated a programme of restructuring the Charity’s cost base, including significantly reducing the staff headcount. This has increased the organisations financial resilience and the Trustees believe that the Charity’s financial resources and contingency planning is sufficient to ensure the ability of the Charity to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis. 

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

The principle accounting policies and estimation techniques are as follows. 

## **b) Income** 

Income is received from both traditional fundraising activities and through supply of goods or services and treated according to the income stream. 

Voluntary income received by way of subscriptions, donations and gifts to the Charity is included in full in the statement of financial activities when receivable. Volunteer time is not included in the financial statements. 

Legacies are recognised when evidence of entitlement exists and ROS is able to measure reliably. As a result, accrued legacy income is recognised at times, in advance of receiving the cash. 

Legacies are accounted for based on settlement of the estate or receipt of payment, whichever is the earlier. Where pecuniary legacies are of a size that is apparent they will be paid, these are recognised at the point of probate. 

This represents a change in accounting policy where previously legacy income was recognised once probate had been granted and where sufficient information has been received on an estimated basis with regard to the cash. The 2020 prior period comparative figures shown in these accounts have been restated to reflect the change. The effects of which are shown in note 24. 

Income generated from the supply of goods or services, including conferences, is included in the 

28 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

statement of financial activities in the period in which the supply is made. 

Government grants receivable are credited to income as these become receivable, except in situations where they are related to performance, in which case these are accrued as the charity earns the right through performance. 

## **c) Deferred Income** 

Income has been deferred where the supply of service will be delivered in a future financial year. 

## **d) Expenditure** 

Expenditure is recognised in the period in which the liability is incurred.  Expenditure includes attributable VAT which cannot be recovered. 

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function (support costs), is apportioned to each activity using an estimate based on staff numbers.  Details of the support cost allocation is highlighted in note 6. Redundancy and termination costs only occur where absolutely necessary and are accounted for on an accruals basis when the commitment to terminate a post on the grounds of redundancy has been made. 

## **e) Grants** 

Grants payable are included in the statement of financial activities in the year in which they are committed. 

## **f) Governance** 

Governance costs are the costs associated with the governance arrangements of the charity.  These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities. 

## **g) Costs of Generating Voluntary Funds** 

The costs of generating voluntary funds relate to the costs incurred by the group and charity in raising funds for the charitable work. 

Fundraising and publicity costs represent staff costs, legal costs and associated office and administrative costs in connection with fundraising events and publications aimed at donors and the general public.  Costs associated with publications aimed at beneficiaries, which further the objects of the charity, are included as part of the costs of the activity to which they relate. 

## **h) Tangible Fixed Assets** 

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.  The depreciation rates in use are as follows: 

Freehold buildings 2% straight line Office furniture and equipment 25% straight line No depreciation is provided on land. 

Items of equipment are capitalised where the purchase price exceeds £500.  Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.  Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. 

## **i) Intangible Fixed Assets** 

Amortisation is provided at rates calculated to write down the cost of each asset to its estimated 

29 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

residual value over its expected useful life.  The amortisation period is estimated at 3 years, straight line. 

## **j) Restricted Funds** 

Restricted funds are to be used for specified purposes as laid down by the donor.  Expenditure which meets these criteria is allocated to the fund. 

## **k) Unrestricted Funds** 

Unrestricted funds are donations and other income received or generated for the charitable purposes. 

## **l) Designated Funds** 

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. 

## **m) Operating Leases** 

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities in the year in which they fall due. 

## **n)** 

## **Investments** 

Investments held as fixed assets are revalued at mid-market value at the balance sheet date.  The gain or loss for the period is taken to the statement of financial activities. 

## **o)** 

## **Financial Instruments** 

The charity 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. 

## **p) Cash at Bank and in Hand** 

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity. 

## **q)** 

## **Debtors** 

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. 

## **r)** 

## **Creditors** 

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. 

## **s) Pension Scheme** 

The charity operates a defined contribution pension scheme.  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 under the scheme by the Charity to the fund.  The charity has no liability under the scheme other than for the payment of those contributions.  For defined contribution schemes the amount charged to the SOFA in respect of pension costs and other postretirement benefits is the contributions payable in the year; allocated between activities and to unrestricted and restricted funds on the same basis as other employee-related costs. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. 

## **t) Critical Judgements and Estimates** 

In the application of the accounting policies, the Trustees are required to make judgements, 

30 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. These judgements, estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant.  Actual results may differ from these estimates. 

Estimates and underlying assumptions are reviewed on an ongoing basis. In accordance with accounting standards, revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects current and future periods. 

Items in the financial statements where significant judgements and estimates have been made include: 

## **Useful economic lives of intangible and tangible assets** 

The annual amortisation and depreciation charges for the intangible and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates, based on the economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the intangible and tangible assets and notes 1h) and 1i) for the useful lives for each class of asset. 

||||||_Restated_|
|---|---|---|---|---|---|
|**2.**|<br>**DONATIONS AND LEGACIES -**|**Restricted**|**Unrestricted**|**Total 2021**|_Total 2020_|
||**CONSOLIDATED**|**£**|**£**|**£**|_£_|
||Donations Received at Head Office|85,468|479,978|565,446|_1,148,125_|
||Donations Received by Support Groups|-|7,473|7,473|_8,653_|
||Legacies|-|2,720,061|2,720,061|_2,267,522_|
||Fundraising Events|17,125|93,666|110,791|_48,060_|
||Membership Subscriptions and donations|<br>-|551,115|551,115|_466,528_|
||Government Grants||1,158|1,158|_572,900_|
|||---------------------|----------------------|---------------------|_---------------------_|
|||102,593|3,853,451|3,956,044|_4,611,788_|
|||==========|==========|==========|_==========_|



The value of legacies notified to the charity but which do not meet the income recognition criteria (and so are not accounted for within the financial statements) is approximately £3.0m. 

|**3.**|**OTHER TRADING ACTIVITIES -**|**Restricted**|**Unrestricted**|**Total 2021**|_Total 2020_|
|---|---|---|---|---|---|
||**CONSOLIDATED**|**£**|**£**|**£**|_£_|
||Advertising|-|17,124|17,124|_17,293_|
||Corporate Trading Income|-|174,749|174,749|_315,845_|
||Merchandise Sales|67|10,190|10,257|_10,689_|
|||---------------------|--------------------|--------------------|_--------------------_|
|||67|202,063|202,130|_343,827_|
|||==========|=========|=========|_=========_|



31 



## **ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**4.**|**EDUCATION AND AWARENESS -**|**Restricted**|**Unrestricted**|**Total 2021**|_Total 2020_|
|---|---|---|---|---|---|
||**CONSOLIDATED**|**£**|**£**|**£**|_£_|
||Conference|-|364|364|_78,978_|
||Training|-|84,328|84,328|_10,142_|
|||---------------------|--------------------|--------------------|_--------------------_|
|||-|84,692|84,692|_89,120_|
|||==========|=========|=========|_=========_|
|**5.**|**OSTEOPOROSIS & BONE RESEARCH ACADEMY**|||**2021**|_2020_|
|||||**£**|_£_|
||Osteoporosis and Bone Research Academy Staff costs|||131,088|_95,509_|
||Direct and allocated expenditure from Restricted Funds|||60,706|_57,852_|
||Direct and allocated expenditure from Designated Funds|||13,428|_8,540_|
||Direct and allocated expenditure from Unrestricted Funds|||49,905|_32,471_|
||Research grants in year|||383,974|_-_|
||Research accrual overstated from previous years|||-|_(467)_|
|||||--------------------|_--------------------_|
|||||639,101|_193,905_|
|||||=========|_=========_|



32 



## **ROYAL OSTEOPOROSIS SOCIETY** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**6a.**|**TOTAL EXPENDITURE -**||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
||**CONSOLIDATED**||||||||||
|||**Costs of **|**Fundraising**|**Services to**||**Information**|**Osteoporosis**||||
|||**Generating**|**Trading**|**Members &**||**Health Professional**|**& Bone**||||
|||**Voluntary**|**Costs**|**General**|**Communications**|**Training**|**Research**|**Support**|**Total**|_Total_|
|||**Income**||**Public**|**& Policy**|**Helpline Services**|**Academy**|**Costs**|**2021**|_2020_|
|||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|_£_|
||Staff costs (note 8)|463,425|8,180|352,141|343,640|667,002|131,087|167,356|2,132,831|2,640,553|
||Fundraising costs|115,806|-|137,777|-|-|-|-|253,583|172,357|
||Grants payable|-|-|-|-|-|383,974|-|383,974|(467)|
||Conference costs|-|-|-|-|-|-|82|82|41,396|
||Equipment|-|44,100|-|-|-|-|-|44,100|655|
||Charitable support activities|49,844|1,425|46,774|110,346|202,818|72,914|17,544|501,665|295,491|
||Irrecoverable VAT|20,625|594|18,927|16,361|34,388|6,241|7,307|104,443|103,996|
||Digital development|-|-|-|-|-|-|-|-|21,002|
||Other IT costs|50,144|1,443|46,016|39,777|83,604|15,172|17,764|253,920|236,823|
||Depreciation|31,717|913|29,106|25,160|52,881|9,597|11,236|160,610|136,593|
||Audit and accountancy|3,491|100|3,204|2,770|5,821|1,056|1,237|17,679|21,581|
||Trustees’ meetings and||||||||||
||expenses|773|22|709|613|1,288|234|274|3,913|1,523|
||Finance fees and similar charges|7,961|229|7,306|6,315|13,274|2,409|2,820|40,314|26,961|
||Legal & professional|3,504|101|3,215|2,779|5,842|1,060|1,241|17,742|23,617|
||Other|2,400|69|2,202|1,904|4,001|727|850|12,153|13,701|
|||--------------------|-----------------|--------------------|------------------|--------------------|---------------|-------------------|--------------------|--------------------|
|||749,690|57,176|647,377|549,665|1,070,919|624,471|227,711|3,927,009|3,735,782|
||Support costs|48,351|1,392|44,370|38,354|80,615|14,630|(227,711)|-|-|
|||--------------------|-----------------|--------------------|------------------|--------------------|-----------------|--------------------|--------------------|--------------------|
|||798,041|58,568|691,747|588,019|1,151,534|639,101|-|3,927,009|3,735,782|
|||========|==========|==========|=========|==========|========|=========|==========|==========|



33 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **6b. TOTAL EXPENDITURE - CONSOLIDATED** 

Total support costs were £227,711 (5.7% of total expenditure) compared to £230,605 in 2020 (6.2% of total expenditure).  These costs have been allocated to each activity based on estimated staff numbers as follows: 

|||**2021**|_2020_|
|---|---|---|---|
||Costs of generating funds|21.8%|_16.4%_|
||Services to members, support groups and the general public|19.5%|_26.5%_|
||Communications and Policy|16.9%|_17.3%_|
||Education and Information provision|35.4%|_35.0%_|
||Research|6.4%|_4.8%_|
|**7.**|**NET MOVEMENT IN FUNDS – CONSOLIDATED**|**2021**|_2020_|
|||**£**|_£_|
||This is stated after charging:|||
||Interest and bank charges payable|40,314|_26,961_|
||Depreciation|160,609|_136,593_|
||Trustees’ reimbursed expenses|-|_1,671_|
||Auditors remuneration:|||
||- Audit – charity excluding VAT|15,400|_19,904_|
||Audit – trading company excluding VAT|2,280|_1,677_|
||Non Audit Services – trading company excluding VAT|1,020|_1,000_|
||Operating lease rentals:|||
||- Equipment|31,256|_31,256_|
|||_=======_|_=======_|
|**8.**|**STAFF COSTS & NUMBERS - CONSOLIDATED**|**2021**|_2020_|
|||**£**|_£_|
||Staff costs were as follows:|||
||Salaries and wages|1,655,072|_1,996,002_|
||Social security costs|172,584|_176,362_|
||Pension contributions|204,832|_239,317_|
||Redundancy costs|25,604|_149,935_|
||Contractors and Agency Staff|74,739|_78,937_|
|||---------------------|_---------------------_|
||**Total staff costs**|2,132,831|_2,640,553_|
|||==========|_==========_|



The key management personnel comprise the senior leadership team and is made up of the following positions within the organisation. 

## • Chief Executive 

- Director of Clinical Services 

- Director of Development 

- Director of Finance & IT 

- Governance, People and Culture Advisor 

34 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

The total remuneration, benefits and pensions paid to them in the year was: 

||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Salaries|424,825|_394,536_|
|Employers National Insurance|49,740|_44,657_|
|Pension|78,971|_64,338_|
||---------------------|_---------------------_|
|**Total**|553,586|_503,531_|
||==========|_==========_|
|The average estimated number of employees during the year was:|||
||**2021**|_2020_|
||**No.**|_No._|
|Fundraising|7|_8_|
|Services to members and general public|7|_12_|
|Communications and Policy|6|_8_|
|Education and Information Provision|13|_16_|
|Research|2|_2_|
|Support and governance|3|_2_|
||---------------|_---------------_|
||38|_48_|
||=======|_=======_|
|The emoluments of higher paid employees fell within the following ranges|**2021**|<br>_2020_|
||**No.**|_No._|
|£60,001 - £70,000|1|_2_|
|£70,001 - £80,000|1|_1_|
|£80,001 - £90,000|1|_1_|
|£90,001 - £100,000|1|_-_|



The average total number of staff employed in the period was 38.3 (2020: 47.6) including average full-time staff of 23.8 (2020: 28.5) and part time staff of 14.5 (2020: 19.1). 

All staff numbers are the same for both the Charity and Consolidated accounts. 

During the year no (2020: £1,671)  Travel expenses were reimbursed Trustees to any Trustees (2020: 5).  There were no new Trustees replaced/recruited in 2021. 

Total donations of £1,180 were received from Trustees in the year (2020: £324). 

All Trustees of the Charity give their time voluntarily and contribute towards all aspects of the Charity’s operations. 

The Charity is also reliant on the support provided by its volunteer base.  In accordance with the Charities SORP (FRS 102) the economic value of this support is not included in these financial statements. 

35 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **9. INTANGIBLE AND TANGIBLE FIXED ASSETS** 

||**GROUP & CHARITY**<br>**Building**<br>**Improvements**<br>**Land &**<br>**Buildings**<br>**Equipment**<br>**Intangibles**||**Total**|
|---|---|---|---|
||**£**<br>**£**<br>**£**<br>**£**||**£**|
|||||
||**Cost**|||
||At beginning of the year<br>_1,662,609_<br>_725,198_<br>_75,949_<br>_325,903_||_2,789,659_|
||Additions<br>-<br>-<br>-<br>-||-|
||Disposals<br>-<br>-<br>(60,892)<br>-||(60,892)|
||---------------------<br>---------------------<br>---------------------<br>---------------------||---------------------|
||As at 31 December 2021<br>1,662,609<br>725,198<br>15,057<br>325,903||2,728,767|
|||||
||**Depreciation**|||
||At beginning of the year<br>_431,584_<br>_298,989_<br>_63,620_<br>_81,476_||_875,669_|
||Depreciation<br>33,253<br>11,504<br>7,218<br>108,634||160,609|
||Disposals<br>-<br>-<br>(56,478)<br>-||(56,478)|
||---------------------<br>---------------------<br>---------------------<br>---------------------||---------------------|
||As at 31 December 2021<br>464,837<br>310,493<br>14,360<br>190,110||979,800|
|||||
||**Net Book Value**|||
|||||
||As at 31 December 2021<br>1,197,772<br>414,705<br>697<br>135,793||1,748,967|
||=========<br>==========<br>=========<br>=========||==========|
||As at 31 December 2020<br>_1,231,025_<br>_426,209_<br>_12,329_<br>_244,427_||_1,913,990_|
||=========<br>==========<br>=========<br>=========||==========|
|||||
|||||



Intangibles comprise the development costs of the Web and CRM systems. 

36 



## **ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**10.**|<br>**INVESTMENTS**|<br>**INVESTMENTS**|<br>**INVESTMENTS**||**Group**||**Charity**|_Group_|_Charity_||
|---|---|---|---|---|---|---|---|---|---|---|
||||||**2021**||**2021**|_2020_|_2020_||
||**Listed investments**||||**£**||**£**|_£_|_£_||
||Market value at the start of the year||||2,000,351|2,000,351||_1,417,955_|_1,417,955_||
||Additions at historic cost||||2,842,097|2,842,097||_1,428,969_|_1,428,969_||
||Disposals|||(2,329,360)||(2,329,360)||_(835,104)_|_(835,104)_||
||Gain/(loss) on investments||||162,436||162,436|_(11,469)_|_(11,469)_||
||||||---------------------|---------------------||_---------------------_|_---------------------_||
||Market value at the end of the year||||2,675,524|2,675,524||_2,000,351_|_2,000,351_||
||**Other investments**||||||||||
||Capital & Income Account HSBC Global Asset||||||||||
||Management Ltd||||95,846||95,846|_(18,687)_|_(18,687)_||
||**Equity investment in group undertaking**||||||||||
||ROS Trading Company Limited||||-||1|_-_|_1_||
||||||---------------------|---------------------||_---------------------_|_---------------------_||
||Total Investments||||2,771,370|2,771,371||_1,981,664_|_1,981,665_||
||||||==========|==========||_==========_|_==========_||
|||||||||**Group**|<br>_Group_||
|||||||||**2021**|<br>_2020_||
|||||||||**£**|<br>_£_||
||||Historic cost at the year end|||||2,434,632|<br>_1,824,936_||
|||||||||=========|<br>_=========_||
||||Investments comprise:||||||||
||||Equities & Funds|||||1,358,463|<br>_1,054,870_||
||||Fixed Income|||||1,060,399|<br>_789,784_||
||||Alternative Investments|||||166,436|<br>_65,346_||
|||||||||--------------------|<br>_--------------------_||
|||||||||2,585,298|<br>_1,910,000_||
||||Capital & Income Account HSBC Global Asset Management||||||||
||||Ltd|||||90,187|<br>_(24,401)_||
|||||||||--------------------|<br>_--------------------_||
||||Total Investments – Group|||||2,675.485|<br>_1,885,599_||
||||Short Term investments held for future activities|||||95,885|<br>_96,065_||
|||||||||--------------------|<br>_--------------------_||
|||||||||_2,771,370_|_1,981,664_||
|||||||||=========|_=========_||



37 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **11. SUBSIDIARY UNDERTAKINGS** 

The Royal Osteoporosis Society has one, wholly owned, subsidiary company (Registration number 07033698) 

The ROS Trading Company Limited’s principal activity is to organise conferences, arrange sponsorship and sell sundry items to procure profits and gains for the purposes of paying them to the Royal Osteoporosis Society. 

A summary of its results for the year ended 31 December 2021 is shown below: 

|||||**2021**|_2020_|
|---|---|---|---|---|---|
|||||**£**|_£_|
||Turnover|||79,317|_114,857_|
||Cost of sales|||(69,080)|_(100,061)_|
|||||-----------------|_-----------------_|
||**Gross profit**|||10,237|_14,796_|
||Administrative expenses|||(3,680)|_(3,170)_|
|||||-----------------|_-----------------_|
||**Operating profit / (loss)**|||6,557|_11,626_|
||Interest receivable|||18|_148_|
|||||-----------------|_-----------------_|
||**Profit /(Loss) on ordinary activities**|||6,575|_11,774_|
||Gift aid to parent undertaking|||6,575|_(11,774)_|
|||||-----------------|_-----------------_|
||**Retained profit / (loss) carried forward**|||-|_-_|
|||||========|_========_|
||The aggregate of the assets, liabilities and funds was:|||||
||Assets|||29,953|_323,381_|
||Liabilities|||(29,952)|_(323,380)_|
|||||-----------------|_-----------------_|
||Funds|||1|_1_|
|||||=========|_=========_|
|**12.**|**DEBTORS**|||_Group_|_Charity_|
|||**Group**|**Charity**|_2020_|_2020_|
|||**2021**|**2021**|_(Restated)_|_(Restated)_|
|||**£**|**£**|_£_|_£_|
||Trade debtors|30,347|30,347|_31,141_|_22,887_|
||Other debtors|222,676|216,778|_336,615_|_334,811_|
||Prepayments|104,791|104,621|_104,286_|_93,091_|
||Due from trading subsidiary|-|23,217|_-_|_170,974_|
|||---------------------|---------------------|_---------------------_|_---------------------_|
||Total|357,814|374,963|_472,042_|_621,763_|
|||==========|==========|_==========_|_==========_|



38 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**13.**|**CASH AT BANK AND IN HAND**|**Group**||**Charity**|_Group_|_Charity_|
|---|---|---|---|---|---|---|
|||**2021**||**2021**|_2020_|_2020_|
|||**£**||**£**|_£_|_£_|
||Head office|1,434,201||1,411,563|_1,201,387_|_910,714_|
||Support groups|60,596||60,596|_62,096_|_62,096_|
|||_-----------------_||_-----------------_|_-----------------_|_-----------------_|
||Total|1,494,797||1,472,159|_1,263,483_|_972,810_|
|||==========||==========|_==========_|_==========_|
|**14.**|**CREDITORS: AMOUNTS FALLING**|**DUE WITHIN ONE YEAR**|||||
|||**Group**||**Charity**|_Group_|_Charity_|
|||**2021**||**2021**|_2020_|_2020_|
|||**£**||**£**|_£_|_£_|
||Trade creditors|102,960||102,466|_206,313_|_91,210_|
||Taxation & social security|51,213||51,213|_80,689_|_89,862_|
||Other creditors|25,969||23,108|_18,348_|_18,348_|
||Accruals|118,354||114,975|_222,469_|_185,167_|
||Grants authorised by not yet paid*|249,452||249,452|97,084|_97,084_|
||Deferred Income|10,677||10,677|_1,500_|_1,500_|
|||-----------------||-----------------|_-----------------_|_-----------------_|
||Total|558,625||551,889|_515,349_|_372,117_|
|||=========||=========|_=========_|_=========_|
||*See note 20||||||
||Deferred Income relates to income invoiced in||the period relating to work to be||||
||completed for a partner in the next period.||||||



|**15.**|**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE**|**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE**|**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE**|**YEAR**||
|---|---|---|---|---|---|
|||**Group**|**Charity**|_Group_|_Charity_|
|||**2021**|**2021**|_2020_|_2020_|
|||**£**|**£**|_£_|_£_|
||Grants authorised but not yet paid|||||
||(see note 20)|187,003|187,003|_13,970_|_13,970_|
|||-----------------|-----------------|_-----------------_|_-----------------_|
||Total|187,003|187,003|_13,970_|_13,970_|
|||=========|=========|_=========_|_=========_|
|**16.**|**FINANCIAL INSTRUMENTS**|**Group**|<br>**Charity**|<br>_Group_|_Charity_|
|||**2021**|<br>**2021**|<br>_2020_|_2020_|
|||**£**|<br>**£**|<br>_£_|_£_|
||Financial assets measured at|||||
||amortised cost|1,747,819|<br>1,719,284|<br>_2,553,414_|_2,252,683_|
||Financial liabilities measured at|||||
||amortised cost|(694,412)|<br>(687,678)|<br>_(448,629)_|_(296,225)_|
|||==========|<br>==========|<br>_==========_|_==========_|



39 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **17. MOVEMENT IN FUNDS – CONSOLIDATED** 

|||**At**<br>**1 January**<br>**At**<br>**31 December**|
|---|---|---|
|||**2021**<br>**Transfers**<br>**Income**<br>**Expenditure**<br>**2021**|
|||**£**<br>**£**<br>**£**<br>**£**<br>**£**|
|||**Restricted funds**|
|||Care<br>7,434<br>-<br>-<br>(7,434)<br>-|
|||Support<br>146,084<br>-<br>54,011<br>(120,710)<br>79,385|
|||Cure<br>564,581<br>-<br>48,649<br>(613,230)<br>-|
|||_----------------------_<br>-------------------<br>--------------------<br>----------------------<br>----------------------|
|||**Total restricted funds**<br>718,099<br>-<br>102,660<br>(741,374)<br>79,385|
|||_==========_<br>=========<br>=========<br>==========<br>==========|
|||**Unrestricted funds**|
||||
|||_Designated funds_|
|||Fixed & Intangible Assets<br>1,913,990<br>-<br>-<br>(165,023)<br>1,748,967|
|||Care<br>46,075<br>(46,075)<br>-<br>-<br>-|
|||Cure<br>54,965<br>-<br>-<br>(28,037)<br>26,928|
|||Future activities<br>519,614<br>(519,614)<br>-<br>-<br>-|
|||Sustainability & growth<br>-<br>329,002<br>-<br>(113,515)<br>215,485|
|||Prevention campaign<br>-<br>950,615<br>-<br>-<br>950,615|
|||Modernising digital support<br>-<br>354,880<br>-<br>-<br>354,880|
|||Public affairs and<br>advocacy<br>-<br>121,712<br>-<br>-<br>121,712|
|||<br>Research<br>-<br>297,688<br>-<br>-<br>297,688|
|||_----------------------_<br>--------------------<br>--------------------<br>----------------------<br>----------------------|
|||_Total designated funds_<br>2,534,644<br>1,488,208<br>-<br>(306,575)<br>3,716,275|
||||
|||General funds<br>1,851,513<br>(1,488,208<br>)<br>4,348,659<br>(2,879,061)<br>1,832,903|
|||<br>_----------------------_<br>---------------------<br>---------------------<br>----------------------<br>----------------------|
|||**Total unrestricted funds**<br>4,386,157<br>-<br>4,348,659<br>(3,185,635)<br>5,549,180|
|||_----------------------_<br>--------------------<br>---------------------<br>----------------------<br>----------------------|
|||**Total funds**<br>5,104,256<br>-<br>4,451,319<br>(3,927,009)<br>5,628,566|
|||_==========_<br>=========<br>==========<br>==========<br>==========|



The Corporate Strategy as described in the Trustees report page 7, identifies six aims, **Awareness, Prevention, Influencing Care, Support, Equity and Sustainability.** , which together strive to deliver our vision of **strong and healthy bones for life.** The restricted and designated funds reflect the charity’s six aims. 

Designated funds includes a fund for the Camerton building within Fixed & Intangible Assets, reflecting the net book value of the building and a designated fund created for future activities. 

40 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **17. MOVEMENT IN FUNDS – CONSOLIDATED (PRIOR YEAR)** 

|||_At_<br>_1 January_<br>_At_<br>_31 December_|
|---|---|---|
|||<br>_2020_<br>_Transfers_<br>_Income_<br>_(Restated)_<br>_Expenditure_<br>_2020_|
|||_£_<br>_£_<br>_£_<br>_£_<br>_£_|
|||**Restricted funds**|
|||Care<br>_48,071_<br>_-_<br>_-_<br>_(40,637)_<br>_7,434_|
|||Support<br>_85,366_<br>_-_<br>_540,136_<br>_(479,418)_<br>_146,084_|
|||Cure<br>_452,718_<br>_-_<br>_328,026_<br>_(216,163)_<br>_564,581_|
|||_----------------------_<br>_-------------------_<br>_--------------------_<br>_----------------------_<br>_----------------------_|
|||**Total restricted funds**<br>_586,155_<br>_-_<br>_868,162_<br>_(736,218)_<br>_718,099_|
|||_==========_<br>_=========_<br>_=========_<br>_==========_<br>_==========_|
|||**Unrestricted funds**|
||||
|||_Designated funds_|
|||Camerton Building<br>_1,708,285_<br>_343,252_<br>_-_<br>_(137,547)_<br>_1,913,990_|
|||Prevention<br>_97,508_<br>_(87,649)_<br>_-_<br>_(9,859)_<br>_-_|
|||Care<br>_143,583_<br>_(87,649)_<br>_-_<br>_(9,859)_<br>_46,075_|
|||Support<br>_102,877_<br>_(93,018)_<br>_-_<br>_(9,859)_<br>_-_|
|||Cure<br>_252,472_<br>_(187,648)_<br>_-_<br>_(9,859)_<br>_54,965_|
|||Future activities<br>_107,786_<br>_411,828_<br>_-_<br>_-_<br>_519,614_|
|||_----------------------_<br>_--------------------_<br>_--------------------_<br>_----------------------_<br>_----------------------_|
|||_Total designated funds_<br>_2,412,511_<br>_299,116_<br>_-_<br>_(176,983)_<br>_2,534,644_|
||||
|||General funds<br>_1,373,308_<br>_(299,116)_<br>_3,599,902_<br>_(2,822,581)_<br>_1,851,513_|
|||<br>_----------------------_<br>_---------------------_<br>_---------------------_<br>_----------------------_<br>_----------------------_|
|||**Total unrestricted funds**<br>_3,785,819_<br>_-_<br>_3,599,902_<br>_(2,999,564)_<br>_4,386,157_|
|||_----------------------_<br>_--------------------_<br>_---------------------_<br>_----------------------_<br>_----------------------_|
|||**Total funds**<br>_4,371,974_<br>_-_<br>_4,468,064_<br>_(3,735,782)_<br>_5,104,256_|
|||_==========_<br>_=========_<br>_==========_<br>_==========_<br>_==========_|



|**18.**|**ANALYSIS OF GROUP NET ASSETS**|
|---|---|
||**BETWEEN FUNDS – CONSOLIDATED**|
||**2021**|



|**2021**|||||
|---|---|---|---|---|
||**Restricted**|**Designated**|**General**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|
||**£**|**£**|**£**|**£**|
|Intangible fixed assets|-|135,793|-|135,793|
|Tangible fixed assets|-|1,613,169|-|1,613,174|
|Investments|-|1,967,315|804,060|2,771,270|
|Current assets|79,385|-|1,774,472|1,853,857|
|Current liabilities|-|-|(558,625)|(558,625)|
|Long term liabilities|-|-|(187,003)|(187,003)|
||-------------------|---------------------|---------------------|---------------------|
|**Net assets at the end of the year**|79,385|3,716,277|1,832,904|5,628,566|
||=========|==========|==========|==========|



41 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **18. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS – CONSOLIDATED 2020** 

|**2020**|||||
|---|---|---|---|---|
||**Restricted**|**Designated**|**General**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|
||**£**|**£**|**£**|**£**|
|Intangible fixed assets|_-_|_244,427_|_-_|_244,427_|
|Tangible fixed assets|_-_|_1,669,563_|_-_|_1,669,563_|
|Investments|_-_|_620,654_|_1,361,010_|_1,981,664_|
|Current assets|_718,099_|_-_|_907,665_|_1,625,764_|
|Current liabilities|_-_|_-_|_(417,162)_|_(417,162)_|
||_-------------------_|_---------------------_|_---------------------_|_---------------------_|
|**Net assets at the end of the year**|_718,099_|_2,534,644_|_1,853,513_|_5,104,256_|
||_=========_|_==========_|_==========_|_==========_|



## **19. RELATED PARTY TRANSACTIONS** 

There were no related party transactions with Trustees in the period. 

As stated in note 11 to the financial statements, the charity has a wholly-owned subsidiary company – ROS Trading Company Limited. 

During the year a management charge was made by Royal Osteoporosis Society to ROS Trading Company Limited of £17,628 (2020: £52,363). At the end of year, gift aid of £6,575 (2020: £11,774) was payable to Royal Osteoporosis Society by ROS Trading Company Limited. The total year-end balance owed to Royal Osteoporosis Society was £23,217 (2020: £170,974). 

## **20. OPERATING LEASE COMMITMENTS** 

The Charity had commitments at the year-end under operating leases as follows: 

||||**Equipment**|**Equipment**|
|---|---|---|---|---|
||||**2021**|_2020_|
||||**£**|_£_|
|Due within|1|year|31,256|_31,256_|
|Due within|2|– 5 years|7,952|_39,208_|
||||-----------------|_-----------------_|
||||39,208|_70,464_|
||||========|_========_|



42 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**21.**|**GRANTS RECONCILIATION**|||||
|---|---|---|---|---|---|
|||**Grants**|||**Grants**|
|||**outstanding**|**Grants**||**outstanding at**|
|||**at 1 January**|**authorised**|<br>**Grants paid**|**31 December**|
|||**2021**|**in the period**|<br>**in the period**|**2021**|
|||**£**|**£**|<br>**£**|**£**|
||Dr. Hampson - Guy' & St Thomas' Hospital|18,190|-|<br>-|18,190|
||Dr Carolyn Greig - University of|||||
||Birmingham|15,667|(6,514)|<br>(9,153)|-|
||Prof Lanham - New University of Surrey|13,970|-|<br>-|13,970|
||Dr Mavroeidi - University of Strathclyde|654|(654)|<br>-|-|
||Dr Paskins - Keele University|35,826|-|<br>(34,701)|1,125|
||Dr Ireland - Manchester Metropolitan|||||
||University|12,729|-|<br>(426)|12,303|
||Dr Abel - Imperial College|48|(48)|<br>-|-|
||Prof Clark - University of Bristol|-|32,597|<br>-|32,597|
||Dr Bullock / Paskins - Keele University|-|62,627|<br>-|62,627|
||Dr Javaid - University of Oxford|-|70,093|<br>-|70,093|
||Prof Ralston - University of Edinburgh|-|100,000|<br>-|100,000|
||Prof McCloskey - University of Sheffield|-|92,178|<br>-|92,178|
||Dr Vilaca - University of Sheffield|-|23,372|<br>-|23,372|
||Dr Stiles - University of Exeter|-|10,000|<br>-|10,000|
|||_-------------------_|_---------------------_|<br>_---------------------_|_---------------------_|
||**Total**|97,084|383,651|(44,280)|436,455|
|||_=========_|_==========_|<br>_==========_|_==========_|
|**22.**|**SUPPORT GROUPS**|||**2021**|_2020_|
|||||**£**|_£_|
||**Income from:**|||||
||Donations|||7,473|_8,653_|
||Membership/fundraising events|||2,545|_9,834_|
||Other income|||338|_312_|
|||||-----------------|_-----------------_|
||**Total income**|||10,357|_18,799_|
|||||-----------------|_-----------------_|
||**Expenditure on:**|||||
||Fundraising and publicity|||173|_322_|
||_Charitable expenditure_|||||
||Costs in furtherance of charitable objects|||3,112|_8,140_|
||Support costs|||18,558|_6,882_|
|||||-----------------|_-----------------_|
||**Total expenditure**|||21,843|_15,344_|
|||||-----------------|_-----------------_|
||**Net (deficit) / surplus**|||(11,487)|_3,455_|
||**Total funds brought forward**|||126,650|_123,195_|
|||||----------------|_----------------_|
||**Total funds carried forward**|||115,163|_126,650_|
|||||========|_========_|



Support Groups follow the ‘Support Group Policy’ of the Royal Osteoporosis Society.  The objectives of the Groups are the same as those of the Royal Osteoporosis Society, and they operate under the same Charity number and charitable status as the Royal Osteoporosis Society. 

43 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

Costs in furtherance of charitable objects includes £17,158 (2020: £3,924) donations made to head office. These amounts are adjusted against head office income on consolidation so that income for the Charity as a whole is not overstated. 

On consolidation the funds at the end of the year are shown as unrestricted as they cover the Charity’s core operations and objectives.  However, within the Groups there are some restrictions and designations, for example for geographical locations.  The breakdown of the restrictions within groups is shown as follows: 

||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Restricted funds|12,423|_12,423_|
|Unrestricted funds|102,740|_114,227_|
||-----------------|_-----------------_|
|**Total funds**|115,163|_126,650_|
||========|_========_|



44 



**ROYAL OSTEOPOROSIS SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **23. CAPITAL COMMITMENTS** 

At 31 December 2021, there were no commitments for capital expenditure (2020: £nil). 

## **24. CHANGE IN ACCOUNTING POLICIES** 

In 2021 the charity has changed its accounting policy for the recognition of legacies. Previously the charity accounted for all legacies once probate had been granted and where sufficient information had been received, on an estimated basis as follows: cash elements are recognised at a monetary value, valued at probate or estimated market value. Values were reviewed and adjusted up to thepoint of the accounts approval. 

Legacies are now accounted for based on settlement of the estate or receipt of payment, whichever is the earlier. Where pecuniary legacies are of a size that is apparent they will be paid, these are recognised at the point of probate. 

The 2020 comparatives have been restated to take account of a prior year adjustment and a change to the legacy accounting policy. The impact of this adjustment means that free reserves at 1 January 2020 and 31 December 2020, have decreased by £596,135 and £922,175 respectively. 

|**Reconciliation of reserves:**<br>Reserves (as previously stated)<br>Legacy accrual – change in basis<br>Reserves (as restated)<br>**Reconciliation of 2020 surplus for the period:**<br>2020 surplus (as previously stated)<br>Legacy accrual movement – change in basis<br>2020 surplus (as restated)|At 1 Jan 2020<br>£<br>4,371,974<br>(596,135)|At 31 Dec<br>2020<br>£<br>6,026,431<br>(922,175)|
|---|---|---|
||3,775,839|5,104,256|
|||2020<br>£<br>1,654,457<br>(326,040)|
|||1,328,417|



45