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← The Society For Cardiothoracic Surgery In Great Britain And Ireland

2022-09-30-accounts

REGISTERED COMPANY NUMBER: 05685735 (England and Wales) REGISTERED CHARITY NUMBER: 1113536

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 28

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 05685735)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Society is established to facilitate scientific communication within the specialty, enhance quality of delivery of care and improve the standard of education and training of cardiothoracic surgery in Great Britain and Ireland.

The Society represents the views of cardiothoracic surgeons on all major topics of interest in the specialty. It develops guidelines on clinical management and working practices.

The Society has taken a lead in data collection and analysis for over 25 years. Cardiothoracic surgery is the only medical or surgical specialty in the UK to have comprehensive data on activity and outcomes.

With the Royal College of Surgeons, the Society helps monitor standards and investigate problems that are highlighted by this. It has taken the lead in developing a system of Quality Assurance for the Hospitals involved in Cardiothoracic Surgery.

The Society holds an annual meeting in the spring where lectures are given and papers presented in order that members are updated on current developments within the specialty.

The 2022 annual conference meeting was held in Belfast between 8 and 10 May 2022. The 2023 meeting is due to be held at the ICC in Birmingham between 19 and 21 March 2023.

ACHIEVEMENT AND PERFORMANCE

Fundraising activities

We believe that fundraising should be done in an ethical manner. We never share, sell, swap or rent data to third parties for marketing purposes. We will only send communication to those who want it in the method they have agreed to.

We are committed to protecting privacy and will only use personal data that we collect in line with applicable laws, including the General Data Protection Regulation (GDPR).

We ensure we adhere to all charity sector guidelines and regulations including the Fundraising Code of Practice and take appropriate action if we find any failure to meet these standards.

Achievements

The previous year's annual meeting was held virtually due to the ongoing COVID-19 pandemic. This year the meeting was held in Belfast. Revenue generated from the annual meeting increased on the previous year, although costs for the annual meeting also increased, resulting in a reduced surplus.

The charity continued to run a number educational courses.

Page 1

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 05685735)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

FINANCIAL REVIEW

Principal funding sources

The Charity needs a steady income in order to achieve its objectives. This is achieved by an annual subscription from all members of the Society and by income generation at the annual meeting of the Society for which a registration fee is paid by all attendees and fees are charged to exhibitors.

The total income from the 2022 annual meeting was £475,075 (2021: £218,185). Expenditure was £447,781 (2021: £97,663), resulting in a surplus of £27,294 (2021: £120,522).

Total income from Education was £576,823 (2021: £223,258). Expenditure was £417,960 (2021: £649,870), resulting in a surplus of £158,863 (2021: deficit of £426,612).

Other charitable income totalled £184,427 (2021: £171,645).

The costs of management and administration of the Society's affairs for the year was £240,329 (2021: £329,032). The cost of governance for the year was £55,181 (2021: £32,013).

Investment policy and objectives

The investment policy of the Society is to maintain adequate funds to fulfil its educational objectives and secondly to achieve maximum return on its investments whilst avoiding high risk investments. Certain types of investments, for example, in the tobacco industry or the arms industry are excluded as are any investments which could give rise to a potential conflict of interest within the overall aims of the Society.

Reserves policy

It is the aim of the trustees to increase the reserves of the Society in the future, to be in a position of providing more sponsorship to junior surgeons and researchers and to enhance the development of cardiothoracic surgery in Great Britain and Ireland.

The trustees have satisfied themselves that the charity has the resources to meet its commitments. Sufficient resources are held in an appropriate form to enable each restricted fund to be applied in accordance with the restrictions for their use. Sufficient unrestricted funds are held to enable the charity to cover unforeseen day-to-day operational costs or to mitigate against a reduction in a source of income.

Reserves at 30 September 2022 were as follows:

Unrestricted funds - £177,195 (2021: £374,462) Restricted funds - £635,284 (2021: £633,372) Total funds - £812,479 (2021: £1,007,834)

The charity's free reserves represent unrestricted reserves less fixed assets. These amount to £176,784 (2021: £373,852).

Page 2

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 05685735)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

FUTURE PLANS

The current objectives of the Society include dissemination of information into the public domain on outcomes following cardiothoracic surgical procedures in the UK. This is available to patients and doctors alike. A second current objective involves reviewing quality of care by use of new outcome measures based on the composite of mortality and morbidity rather than focusing on an individual surgeon's mortality figures. A third objective involves the Society engaging in discussion with patient groups in order to engage them in regular discussions with the Society and thereby promote patient agenda within healthcare workers in our specialty.

The objectives for the Society are reviewed on a regular basis and are normally set out by the President each year. The educational objectives of the Society including its commitment to education at the Royal College of Surgeons and the provision of scholarships remain an ongoing imperative.

The Trustees have concluded that the charity is a going concern for at least 12 month following the signature of these financial statements.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

Appointment of new trustees is governed by the articles of association of the charity, dated 24 January 2006. The Board of Trustees is authorised to appoint new trustees to fill vacancies arising through resignation or death of an existing trustee.

Page 3

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 05685735)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

The Society is governed by an Executive who are elected from the membership of the Society. The officers of the Society are elected by the membership as a whole with the exception of the Secretary and Honorary Treasurer who are nominated from within the Executive but whose appointments are ratified by the membership at the Annual General Meeting. Decisions are made by the Executive, which meets four times a year under the Chairmanship of the President of the Society.

During the year to 30 September 2022 there were 1,103 members (2021: 1,465). If the charity is dissolved, any member who has held office within 12 months of dissolution will be liable to pay an amount up to £10 towards the costs of dissolution and the liabilities incurred by the charity while they were a member.

The SCTS Executive Committee for 2021-22 was comprised as follows:

Narain Moorjani (President) Rana Sayeed (Honorary Secretary) Amal Bose (Honorary Treasurer) Cha Rajakauna (Meeting Secretary) Deborah Harrington (Joint Education Secretary) Elizabeth Belcher (Joint Education Secretary) Enoch Akowuah (Elected member) Aman Coonar (Elected member) Betsy Evans (Elected member) Andrew Parry (Elected member) Manoj Purohit (Elected member) Vipin Zamvar (Elected member) Sarah Murray (Lay representative) Chris Efthymiou (Perfusion Representative) Mobi Chaudhey (Perfusion Representative) Bhuvana Krishnamoorthy (Nursing & AHP Representative) Bassem Gadallah (Trainee Representative) Walid Mohamed (Trainee Representative) Sri Rathinam (Communication Secretary)

Induction and training of new trustees

All new Trustees of the Society are informed of their obligations under Charity Law as a Trustee of the Society. They are encouraged to read a copy of the booklet "What Trustees need to know" and a copy of the Good Trustee Guide (NCVO Publications) is available for their perusal. Because the Society is a fairly small activity no further specific training is offered at the current time in this area of their responsibility.

Key management remuneration

The key management of the charity are considered to be the trustees.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05685735 (England and Wales)

Registered Charity number

1113536

Page 4

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 05685735)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

Registered office

The Royal College of Surgeons of England 35-43 Lincoln's Inn Fields London WC2A 3PE

Trustees

J M Jones (appointed 20.3.2023) Prof. A A Lotto (appointed 20.3.2023) Prof. K C Redmond (appointed 20.3.2023) E F Akowuah (resigned 20.3.2023) A Bose (resigned 20.3.2023) M Chaudhry (resigned 31.3.2022) A S Coonar M Kalkat (resigned 10.5.2022) Ms C Van Doorn (resigned 31.3.2022) V Y Zamvar (appointed 31.3.2022) C Rajakaruna (appointed 10.5.2022) S W H Kendall (resigned 30.9.2022) N Moorjani R D Shah (resigned 23.11.2021) R A Sayeed (appointed 31.3.2022) Miss B Evans A J Parry M Purohit (appointed 31.3.2022)

Senior Statutory Auditor Michaela Johns FCCA

Auditors

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

Bankers

Barclays Bank plc PO Box 104 St Albans Hertfordshire AL1 3AN

Investment Managers

JM Finn 4 Coleman Street London EC2R 5TA

Page 5

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 05685735)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

PUBLIC BENEFIT

The Society provides a benefit to the public through the development of cardiothoracic surgery, the enhancement of quality and standards in the specialty, and the collection, analysis, and publication of data on activity and outcomes in cardiothoracic surgery.

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Society for Cardiothoracic Surgery in Great Britain and Ireland for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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

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

In so far as the trustees are aware:

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.................................................................... J M Jones - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

Opinion

We have audited the financial statements of The Society for Cardiothoracic Surgery in Great Britain and Ireland (the 'charitable company') for the year ended 30 September 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

Our responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Practice, Charity SORP and the relevant tax compliance regulations for the company.

We obtained an understanding of how the company is complying with these frameworks through discussions with management.

We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs, correspondence and a review of board minutes.

We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

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 Report of the Independent Auditors.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

Use of our report

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

Michaela Johns FCCA (Senior Statutory Auditor) for and on behalf of Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR Date: .............................................

Page 10

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2022

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
30
Charitable activities
5
Annual meeting
475,075
Education
120,030
Other charitable activities
184,427
Other trading activities
3
2,750
Investment income
4
4,648
Other income
1,950
Total
788,910
EXPENDITURE ON
Raising funds
6,206
Charitable activities
6
Annual meeting
447,781
Education
74,295
Other charitable activities
298,784
Total
827,066
Net gains/(losses) on investments
(159,111)
NET INCOME/(EXPENDITURE)
(197,267)
RECONCILIATION OF FUNDS
Total funds brought forward
374,462
TOTAL FUNDS CARRIED FORWARD
177,195		 Restricted
funds
£
-
-
456,793
-
-
3,023
-
459,816
11,340
-
343,665
-
355,005
(102,899)
1,912
633,372
635,284		 2022
Total
funds
£
30
475,075
576,823
184,427
2,750
7,671
1,950
1,248,726
17,546
447,781
417,960
298,784
1,182,071
(262,010)
(195,355)
1,007,834
812,479		 2021
Total
funds
£
350,547
218,185
223,258
171,645
6,090
6,961
1,470
978,156
19,916
97,663
649,870
370,569
1,138,018
129,542
(30,320)
1,038,154
1,007,834

The notes form part of these financial statements

Page 11

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 05685735)

BALANCE SHEET 30 SEPTEMBER 2022

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
14
411
Investments
15
541,898
542,309
CURRENT ASSETS
Debtors: amounts falling due within one year
16
382,295
Debtors: amounts falling due after more than
one year
16
4,813
Cash at bank
(604,358)
(217,250)
CREDITORS
Amounts falling due within one year
17
(147,864)
NET CURRENT ASSETS
(365,114)
TOTAL ASSETS LESS CURRENT
LIABILITIES
177,195
NET ASSETS
177,195
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
362,431
362,431
131,257
-
683,001
814,258
(541,405)
272,853
635,284
635,284		 2022
Total
funds
£
411
904,329
904,740
513,552
4,813
78,643
597,008
(689,269)
(92,261)
812,479
812,479
177,195
635,284
812,479		 2021
Total
funds
£
610
1,171,203
1,171,813
108,599
46,979
456,003
611,581
(775,560)
(163,979)
1,007,834
1,007,834
374,462
633,372
1,007,834

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. J M Jones - Trustee

The notes form part of these financial statements

Page 12

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2022
£
(377,442)
(377,442)
82
82
(377,360)
456,003
78,643		 2021
£
174,734
174,734
548
548
175,282
280,721
456,003

The notes form part of these financial statements

Page 13

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING FROM OPERATING
ACTIVITIES
2022 2021
£ £
Net expenditure for the reporting period (as per the Statement of
Financial Activities) (195,355) (30,320)
Adjustments for:
Depreciation charges 199 883
Losses/(gain) on investments 262,010 (129,542)
Loss on disposal of fixed assets - 1,382
Interest received (82) (548)
Investment management fees 12,453 13,160
Dividends received (7,589) (6,413)
Increase in debtors (362,787) (54,647)
(Decrease)/increase in creditors (86,291) 380,779
Net cash (used in)/provided by operations (377,442) 174,734
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.10.21 Cash flow At 30.9.22
£ £ £
Net cash
Cash at bank 456,003 (377,360) 78,643
456,003 (377,360) 78,643
Total 456,003 (377,360) 78,643

The notes form part of these financial statements

Page 14

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

Income

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

Expenditure

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

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

Raising funds

Cost of generating funds are included in the Statement of Financial Activities on an accruals basis, exclusive of Value Added Tax and relate to Annual General Meeting expenses.

Charitable activities

Charitable activities are included in the Statement of Financial Activities on an accruals basis, exclusive of Value Added Tax and relate to the costs of the annual meeting, the costs of grants and scholarships, and the general management and administration of the charity.

Governance costs

Governance costs are included in the Statement of Financial Activities on an accruals basis, exclusive of Value Added Tax.

Allocation and apportionment of costs

All support costs relate to the general management and administration of the charity.

Tangible fixed assets

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

Fixtures and fittings - either 15% reducing balance or 33% straight line

There is no value below which assets are not capitalised.

Page 15

continued...

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. ACCOUNTING POLICIES - continued

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Fixed asset investments

Fixed asset investments comprise the charity's investments in listed equities. Fixed asset investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

Cash and cash equivalents

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

Financial assets

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial assets are recognised in the balance sheet when the charity becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities

Basic financial liabilities, which include trade and other payables, are initially measured at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Page 16

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THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.
DONATIONS AND LEGACIES
Donations
Gift aid
3.
OTHER TRADING ACTIVITIES
Advertising
4.
INVESTMENT INCOME
Income from fixed asset investments
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Registrations
Annual meeting
Sponsorship
Annual meeting
Exhibitors
Annual meeting
Sponsorship
Education
Educational income
Education
Subscriptions
Other charitable activities

continued...

Page 17

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

6. CHARITABLE ACTIVITIES COSTS

Direct
Costs (see
note 7)
£
Annual meeting
447,781
Education
205,960
Other charitable activities
3,274
657,015
DIRECT COSTS OF CHARITABLE ACTIVITIES
Advertising
Venue hire
Catering
Audio visual
Travel and accommodation
Printing
Other annual meeting costs
Educational expenditure
Society projects
Loss on sale of assets		 Grant
funding of
activities
(see note
8)
£
-
212,000
-
212,000		 Support
costs (see
note 9)
£
-
-
295,510
295,510
2022
£
15
237,556
283
2,604
119,799
10,233
42,179
242,546
1,800
-
657,015		 Totals
£
447,781
417,960
298,784		 Totals
£
447,781
417,960
298,784
1,164,525
2021
£
208
11,731
2,013
1,815
8,389
8,242
66,711
76,370
6,696
1,382
183,557

7. DIRECT COSTS OF CHARITABLE ACTIVITIES

8. GRANTS PAYABLE

Grants to individuals Grants to individuals
£ £
The Ethicon Scholarships 90,000 90,000
The Ionescu Education and Quality Trust - 468,500
The Mr M and Dr C Ionescu Travelling Fund - 15,000
The AstraZeneca Scholarships 122,000 -
212,000 573,500

continued...

Page 18

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

9. SUPPORT COSTS

Governance
Management
costs
£
£
Other charitable activities
240,329
55,181
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2022
£
Depreciation - owned assets
199
Deficit on disposal of fixed assets
-
Accountancy fees - audit / independent examination
12,600
Accountancy fees - other services
5,464		 Totals
£
295,510
2021
£
883
1,382
1,050
8,733

10. NET INCOME/(EXPENDITURE)

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2022 nor for the year ended 30 September 2021.

Trustees' expenses

Expenses totalling £3,086 (2021: £300) were reimbursed to six (2021: three) trustees in respect of costs attending trustees and executive meetings.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
130,000
6,084
7,209
143,293		 2021
£
134,470
9,860
7,466
151,796

The average monthly number of employees during the year was as follows:

2022 2021
Administration 4 4

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

No remuneration was paid to persons considered to be Key Management in either year.

continued...

Page 19

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
81,997
268,550
Charitable activities
Annual meeting
218,185
-
Education
108,258
115,000
Other charitable activities
171,645
-
Other trading activities
6,090
-
Investment income
4,537
2,424
Other income
1,470
-
Total
592,182
385,974
EXPENDITURE ON
Raising funds
6,587
13,329
Charitable activities
Annual meeting
97,663
-
Education
60,370
589,500
Other charitable activities
370,569
-
Total
535,189
602,829
Net gains on investments
79,907
49,635
NET INCOME/(EXPENDITURE)
136,900
(167,220)
Transfers between funds
30,000
(30,000)
Net movement in funds
166,900
(197,220)
RECONCILIATION OF FUNDS
Total funds brought forward
207,562
830,592
TOTAL FUNDS CARRIED FORWARD
374,462
633,372		 Total
funds
£
350,547
218,185
223,258
171,645
6,090
6,961
1,470
978,156
19,916
97,663
649,870
370,569
1,138,018
129,542
(30,320)
-
(30,320)
1,038,154
1,007,834

continued...

Page 20

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

14. TANGIBLE FIXED ASSETS

COST
At 1 October 2021 and 30 September 2022
DEPRECIATION
At 1 October 2021
Charge for year
At 30 September 2022
NET BOOK VALUE
At 30 September 2022
At 30 September 2021
15.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 October 2021
Revaluations
At 30 September 2022
NET BOOK VALUE
At 30 September 2022
At 30 September 2021
The movement in the fair value of listed investments is as follows:
Fair value at 1 October 2021
Investment income
Investment gains on disposals
Change in market value
Investment management fees
Fair value as at 30 September 2022		 Fixtures
and
fittings
£
6,651
6,041
199
6,240
411
610
Listed
investments
£
1,171,203
(266,874)
904,329
904,329
1,171,203
£
1,171,203
7,589
102,922
(364,932)
(12,453)
904,329		 Fixtures
and
fittings
£
6,651
6,041
199
6,240
411
610
Listed
investments
£
1,171,203
(266,874)
904,329
904,329
1,171,203
£
1,171,203
7,589
102,922
(364,932)
(12,453)
904,329

continued...

Page 21

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

15. FIXED ASSET INVESTMENTS - continued

Investments comprise: 2022 2021
£ £
UK equities 378,615 467,670
Overseas equities 424,112 607,604
Gilts 57,225 71,833
Cash 44,377 24,096
904,329 1,171,203

The historic cost of the above fixed asset investments are £743,241 (2021: £779,350)

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
VAT
Prepayments and accrued income		 2022
£
189,506
10,525
33,200
280,321
513,552		 2021
£
6,629
8,349
13,183
80,438
108,599

DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022 2021
£ £
Prepayments and accrued income 4,812 46,979
4,812 46,797

continued...

Page 22

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
Deferred Income		 2022
£
50,600
6,096
14,510
618,063
689,269		 2021
£
41,387
3,800
4,529
725,844
775,560
2022 2021
£ £
Deferred income at the start of the year 100,453 36,074
Resources deferred during the period 46,214 100,453
Amounts released from the prior period (100,453) (36,074)
Deferred income at the end of the year 46,214 100,453

The deferred income relates to subscriptions received in advance.

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2022
£
16,080
42,290
58,370		 2021
£
16,080
58,370
74,450

continued...

Page 23

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

19. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
The Ionescu Education and Quality Trust
Risk modelling
Ethicon Trainee Scholarships
Cardio Solutions Fellowship
The Mr M and Dr C Ionescu Travelling
Fellowship for Consultant Surgeons
BD Interventional Training Fund
Ethicon Courses
Heart Research UK
TOTAL FUNDS
Net movement in funds, included in the above a
Unrestricted funds
General fund
Restricted funds
The Ionescu Education and Quality Trust
Ethicon Trainee Scholarships
BD Interventional Training Fund
Research and Clinical Trial Education
Ethicon Courses
Heart Research UK
TOTAL FUNDS		 re as follows:
Incoming
resources
£
788,910
3,023
90,000
-
132,000
155,793
79,000
459,816
1,248,726		 At 1.10.21
£
374,462
255,760
8,150
113,641
6,541
240,280
9,000
-
-
633,372
1,007,834
Resources
expended
£
(827,066)
(11,340)
(90,000)
(9,000)
(132,000)
(112,665)
-
(355,005)
(1,182,071)		 Net
movement
in funds
£
(197,267)
(111,216)
-
-
-
-
(9,000)
43,128
79,000
1,912
(195,355)
Gains and
losses
£
(159,111)
(102,899)
-
-
-
-
-
(102,899)
(262,010)		 At 30.9.22
£
177,195
144,544
8,150
113,641
6,541
240,280
-
43,128
79,000
635,284
812,479
Movement
in funds
£
(197,267)
(111,216)
-
(9,000)
-
43,128
79,000
1,912
(195,355)

continued...

Page 24

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.10.20
£
Unrestricted funds
General fund
207,562
Restricted funds
The Ionescu Education and Quality Trust
416,980
Risk modelling
8,150
Ethicon Trainee Scholarships
113,641
Covidien Educational Grant
30,000
Cardio Solutions Fellowship
6,541
The Mr M and Dr C Ionescu Travelling
Fellowship for Consultant Surgeons
255,280
BD Interventional Training Fund
-
830,592
TOTAL FUNDS
1,038,154
Comparative net movement in funds, included in the above are a
Incoming
resources
£
Unrestricted funds
General fund
592,182
Restricted funds
The Ionescu Education and Quality Trust
270,974
Ethicon Trainee Scholarships
90,000
The Mr M and Dr C Ionescu Travelling
Fellowship for Consultant Surgeons
-
BD Interventional Training Fund
25,000
385,974
TOTAL FUNDS
978,156		 Net
movement
in funds
£
136,900
(161,220)
-
-
-
-
(15,000)
9,000
(167,220)
(30,320)
s follows:
Resources
expended
£
(535,189)
(481,829)
(90,000)
(15,000)
(16,000)
(602,829)
(1,138,018)		 Transfers
between
funds
£
30,000
-
-
-
(30,000)
-
-
-
(30,000)
-
Gains and
losses
£
79,907
49,635
-
-
-
49,635
129,542		 At 30.9.21
£
374,462
255,760
8,150
113,641
-
6,541
240,280
9,000
633,372
1,007,834
Movement
in funds
£
136,900
(161,220)
-
(15,000)
9,000
(167,220)
(30,320)

Page 25

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THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

19. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
The Ionescu Education and Quality Trust
Risk modelling
Ethicon Trainee Scholarships
Covidien Educational Grant
Cardio Solutions Fellowship
The Mr M and Dr C Ionescu Travelling
Fellowship for Consultant Surgeons
Ethicon Courses
Heart Research UK
TOTAL FUNDS		 At 1.10.20
£
207,562
416,980
8,150
113,641
30,000
6,541
255,280
-
-
830,592
1,038,154		 Net
movement
in funds
£
(60,367)
(272,436)
-
-
-
-
(15,000)
43,128
79,000
(165,308)
(225,675)		 Transfers
between
funds
£
30,000
-
-
-
(30,000)
-
-
-
-
(30,000)
-		 At 30.9.22
£
177,195
144,544
8,150
113,641
-
6,541
240,280
43,128
79,000
635,284
812,479

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
The Ionescu Education and Quality Trust
Ethicon Trainee Scholarships
The Mr M and Dr C Ionescu Travelling
Fellowship for Consultant Surgeons
BD Interventional Training Fund
Research and Clinical Trial Education
Ethicon Courses
Heart Research UK
TOTAL FUNDS		 Incoming
resources
£
1,381,092
273,997
180,000
-
25,000
132,000
155,793
79,000
845,790
2,226,882		 Resources
expended
£
(1,362,255)
(493,169)
(180,000)
(15,000)
(25,000)
(132,000)
(112,665)
-
(957,834)
(2,320,089)		 Gains and
losses
£
(79,204)
(53,264)
-
-
-
-
-
-
(53,264)
(132,468)		 Movement
in funds
£
(60,367)
(272,436)
-
(15,000)
-
-
43,128
79,000
(165,308)
(225,675)

The general fund represents the free funds of the Society which are not designated for particular purposes.

Page 26

continued...

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

19. MOVEMENT IN FUNDS - continued

The only restricted funds in place at the year end were as follows:

The Ionescu Education and Quality Fund

The purpose of this fund is to award scholarships to young consultants (normally within 5 years of appointment) wishing to add on to their educational experience and in particular for the purpose of bringing new techniques back to their department.

The Mr M and Dr C Ionescu Travelling Fellowship for Consultant Surgeons

The Society has received a donation in order to fund £10,000 per annum for the annual Mr M and Dr C Ionescu travelling fellowships for consultant surgeons.

Risk Modelling

The Society has received a donation to undertake risk modelling to predict mortality outcome for high risk aortic valve implantation from the Society database. The outputs of the research will inform the development of a national evaluative process for the roll out of Transcatheter Aortic Valve Implantation (TAVI), an emerging alternative therapy for patients with severe symptomatic aortic stenosis who are at high risk from conventional surgical aortic valve replacement.

Ethicon Trainee Scholarships

The Ethicon Trainee Scholarships offers individuals a scholarship with the purpose being to enable an individual to finesse surgical skills in a "Finishing School" scholarship over a targeted experience of six months.

Cardio Solutions Fellowship

An annual sum of £10,000 has been donated by Cardiosolutions in 2015/16 and 2016/17 to promote educational activity pertaining to mechanical circulatory support. The funding will be divided equally between the three National PeriCCT Transplant Fellowship post holders to be used during the 18 month tenure of their post. The funds may be used to attend designated courses, visits, and meetings.

BD Interventional Training Fund

The BD Interventional Training Grant was received to support educational training programmes.

Research and Clinical Trial Education Fund

The Research and Clinical Trial Education Fund offers individuals a scholarship with the provide the necessary grounding in research methodology and hands on-experience to develop future leaders of thoracic surgery clinical trials.

Ethicon Courses Fund

The Ethicon Courses Fund has been provided to support independent medical education.

Heart Research UK

The Heart Research UK Fund was received to support for fellowships in Audit and Paediatric Cardiac Surgery, fellowships in Academic Research, fellowship for Medical Students Travelling and fellowships for Patient Education and Awareness project.

continued...

Page 27

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022

20. RELATED PARTY DISCLOSURES

A Bose was also a trustee of Cardiac and Thoracic Surgery UK ("CTS"). During the year the charity provided bookkeeping services totalling £750 (2021: £750) to CTS. £nil (2021: £8,349) was due from CTS at the year end.

Page 28