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← The Society For Cardiothoracic Surgery In Great Britain And Ireland

2023-09-30-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 2023

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 2023

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 2023

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 2023. 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 communicationwithin 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 2023 annual conference meeting was held at the ICC in Birmingham between 19 and 21 March 2023. The 2024 meeting is due to be held at the ICC in Wales between 17 and 19 March 2024.

ACHIEVEMENT AND PERFORMANCE

Fundraising activities

We believe that fundraisingshould 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 charitysector guidelines and regulationsincluding the FundraisingCode of Practice and take appropriate action if we find any failure to meet these standards.

Achievements

The previous year's annual meeting was held in Belfast. This year the meeting was held in Birmingham. Revenue generated from the annual meeting increased on the previous year, although costs for the annual meeting also increased. This still however, resulted in a 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 2023

FINANCIAL REVIEW

Principal funding sources

The Charityneeds a steady income in order to achieve its objectives. This is achieved by an annualsubscription 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 2023 annual meeting was £568,307 (2022: £475,075). Expenditure was £297,357 (2022: £447,781), resulting in a surplus of £270,950 (2022: £27,294).

Total income from Education was £258,475 (2022: £576,823). Expenditurewas £567,607 (2022: £417,960), resulting in a deficit of £308,632 (2022: surplus of £158,863).

Other charitable income totalled £219,935 (2022: £184,427).

The costs of management and administrationof the Society's affairs for the year was £407,857 (2022: £240,329). The cost of governance for the year was £39,268 (2022: £55,181).

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 2023 were as follows:

Unrestricted funds - (£29,072) (2022: £177,195) Restricted funds - £593,122 (2022: £635,284) Total funds - £575,050 (2022: £812,479)

The charity's free reserves represent unrestricted reserves less fixed assets. These amount to (£29,490) (2022: £176,784).

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.

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 2023

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.

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 Chairmanshipof the President of the Society.

Duringthe year to 30 September 2023 there were 1,616 members (2022: 1,103). If the charityis 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 2022-23 was comprised as follows:

Narain Moorjani (President) Amar Coonar (President Elect) Rana Sayeed (Honorary Secretary) Mark Jones (Honorary Treasurer) 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) Attilio Lotto (Elected member) Vipin Zamvar (Elected member) Sarah Murray (Lay representative) Bhuvana Krishnamoorthy (Nursing & AHP Representative) Bassem Gadallah (Trainee Representative) Walid Mohamed (Trainee Representative) Sri Rathinam (Communication Secretary) Hunald Vohra (Innovation Sub-Committee Co-Chair) Eric Lim (Research Sub-Committee Co-Chair) Mahmoud Loubani (Research Sub-Committee Co-Chair) Mr Rajamiyer Venkateswaran (Transplanation Co-Chair) Mr Manoj Kuduvalli (Adult Cardiac Surgery Co-Chair) Mr Uday Trivedi (Adult Sub-Committee Co-Chair) Miss Indu Deglurkar (Equiality, Diversity & Inclusion Co-Chair) Miss Ralitsa Baranowski (WICTS Co-Chair) Karen Remond (Elected member and Thoracic Surgery Co-Chair)

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 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT 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

Registered office

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

Trustees

E F Akowuah (resigned 20.3.2023) A Bose (resigned 20.3.2023) A S Coonar V Y Zamvar C Rajakaruna N Moorjani R A Sayeed J M Jones (appointed 20.3.2023) Prof. A A Lotto (appointed 20.3.2023) Prof. K C Redmond (appointed 20.3.2023) Miss B Evans A J Parry M Purohit

Senior Statutory Auditor

Michaela Johns FCCA

Auditors

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

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 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Bankers

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

Investment Managers

JM Finn 4 Coleman Street London EC2R 5TA

PayPal

PayPal UK Ltd Whittaker House Surrey TW9 1EH

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.

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 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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.

27 Mar 2024

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 2023 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 InternationalStandards 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 auditingthe 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 uncertaintiesrelating 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 understandingof the charitable company and its environmentobtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothingto report in respect of the following matterswhere 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.

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

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 irregularitieseven 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,includingthe 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 understandingof 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 27 Mar 2024 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 2023

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
30
Charitable activities
5
Annual meeting
568,307
Education
18,473
Other charitable activities
219,935
Other trading activities
3
13,166
Investment income
4
7,441
Other income
1,715
Total
829,067
EXPENDITURE ON
Raising funds
4,581
Charitable activities
6
Annual meeting
297,357
Education
272,767
Other charitable activities
461,833
Total
1,036,538
Net gains/(losses) on investments
1,204
NET INCOME/(EXPENDITURE)
(206,267)
RECONCILIATION OF FUNDS
Total funds brought forward
177,195
TOTAL FUNDS CARRIED FORWARD
(29,072)		 Restricted
funds
£
-
-
240,502
-
-
3,680
-
244,182
3,772
-
294,840
-
298,612
12,268
(42,162)
635,284
593,122		 2023
Total
funds
£
30
568,307
258,975
219,935
13,166
11,121
1,715
1,073,249
8,353
297,357
567,607
461,833
1,335,150
13,472
(248,429)
812,479
564,050		 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

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 2023

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
14
418
Investments
15
443,542
443,960
CURRENT ASSETS
Debtors: amounts falling due within one year
16
109,998
Debtors: amounts falling due after more than one
year
16
-
Cash at bank
(462,594)
(352,596)
CREDITORS
Amounts falling due within one year
17
(120,436)
NET CURRENT ASSETS/(LIABILITIES)
(473,032)
TOTAL ASSETS LESS CURRENT
LIABILITIES
(29,072)
NET ASSETS
(29,072)
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
373,853
373,853
754
-
584,360
585,114
(365,845)
219,269
593,122
593,122		 2023
Total
funds
£
418
817,395
817,813
110,752
-
121,766
232,518
(486,281)
(253,763)
564,050
564,050
(29,072)
593,122
564,050		 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

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: 27 Mar 2024

.............................................

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 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of fixed asset investments
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		 2023
£
(58,000)
(58,000)
(382)
100,000
1,505
101,123
43,123
78,643
121,766		 2022
£
(377,442)
(377,442)
-
-
82
82
(377,360)
456,003
78,643

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 2023

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

ACTIVITIES
Net expenditure for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
(Gain)/losses on investments
Loss on disposal of fixed assets
Interest received
Investment management fees
Dividends received
Decrease/(increase) in debtors
Decrease in creditors
Net cash used in operations		 2023
£
(248,429)
252
(13,472)
123
(1,505)
10,022
(9,616)
408,367
(203,742)
(58,000)		 2022
£
(195,355)
199
262,010
-
(82)
12,453
(7,589)
(362,787)
(86,291)
(377,442)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.22 Cash flow At 30.9.23
£ £ £
Net cash
Cash at bank 78,643 43,123 121,766
78,643 43,123 121,766
Total 78,643 43,123 121,766

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 2023

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 investmentswhich 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 FinancialActivities 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 2023

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. Contributionspayable 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 investmentscomprise the charity's investmentsin listed equities. Fixed asset investmentsare 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 includingtransaction 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 initiallymeasured 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 2023

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
Grants
Annual meeting
Sponsorship
Education
Educational income
Education
Grants
Education
Subscriptions
Other charitable activities		 2023
£
30
-
30
2023
£
13,166
2023
£
9,616
1,505
11,121
2023
£
181,888
6,452
369,967
10,000
-
213,904
45,071
219,935
1,047,217		 2022
£
24
6
30
2022
£
2,750
2022
£
7,589
82
7,671
2022
£
141,957
64,801
268,317
-
150,304
426,519
-
184,427		 2022
£
24
6
30
2022
£
2,750
2022
£
7,589
82
7,671
1,236,325

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 2023

6. CHARITABLE ACTIVITIES COSTS

Direct
Costs (see
note 7)
£
Annual meeting
297,357
Education
397,607
Other charitable activities
14,585
709,549
7.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Advertising
Venue hire
Catering
Audio visual
Travel and accommodation
Printing
Other annual meeting costs
Educational expenditure
Society projects		 Grant
funding of
activities
(see note
8)
£
-
170,000
-
170,000		 Support
costs (see
note 9)
£
-
-
447,248
447,248
2023
£
159
137,768
-
3,437
59,750
55,844
107,711
344,880
-
709,549		 Totals
£
297,357
567,607
461,833		 Totals
£
297,357
567,607
461,833
1,326,797
2022
£
15
237,556
283
2,604
119,799
10,233
42,179
242,546
1,800
657,015

8. GRANTS PAYABLE

Grants to individuals Grants to individuals
£ £
The Ethicon Scholarships - 90,000
Heart Research UK 79,000 -
ACT - SCTS Travelling Fellowship 20,000 -
The AstraZeneca Scholarships 66,000 122,000
Robotic 5,000 -
170,000 212,000

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 2023

9. SUPPORT COSTS

SUPPORT COSTS
Governance
Management Finance costs Totals
£ £ £ £
Other charitable activities 407,857 123 39,268 447,248

10. NET INCOME/(EXPENDITURE)

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

2023 2022
£ £
Depreciation - owned assets 252 199
Deficit on disposal of fixed assets 123 -
Accountancy fees - audit 13,200 12,600
Accountancy fees - other services 6,909 5,464

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2023 nor for the year ended 30 September 2022.

Trustees' expenses

Expenses totalling £9,179 (2022: £3,086) were reimbursed to ten (2022: six) trustees in respect of costs attending trustees and executive meetings.

Fellowships were awarded to two trustees in the year, prior to their appointments as trustees. Manoj Purohit receiving £15,000 for work at the University Hospital of Seoul. Attilio Adrea Lotto receiving £10,000 for a visit to The Hospital for Sick Children, Toronto.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2023
£
137,384
9,379
3,964
150,727		 2022
£
130,000
6,084
7,209
143,293

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

2023 2022
Administration 5 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 2023

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
30
-
Charitable activities
Annual meeting
475,075
-
Education
120,030
456,793
Other charitable activities
184,427
-
Other trading activities
2,750
-
Investment income
4,648
3,023
Other income
1,950
-
Total
788,910
459,816
EXPENDITURE ON
Raising funds
6,206
11,340
Charitable activities
Annual meeting
447,781
-
Education
74,295
343,665
Other charitable activities
298,784
-
Total
827,066
355,005
Net gains/(losses) on investments
(159,111)
(102,899)
NET INCOME/(EXPENDITURE)
(197,267)
1,912
RECONCILIATION OF FUNDS
Total funds brought forward
374,462
633,372
TOTAL FUNDS CARRIED FORWARD
177,195
635,284		 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

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 2023

14. TANGIBLE FIXED ASSETS

COST
At 1 October 2022
Additions
Disposals
At 30 September 2023
DEPRECIATION
At 1 October 2022
Charge for year
Eliminated on disposal
At 30 September 2023
NET BOOK VALUE
At 30 September 2023
At 30 September 2022
15.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 October 2022
Revaluations
At 30 September 2023
NET BOOK VALUE
At 30 September 2023
At 30 September 2022
The movement in the fair value of listed investments is as follows:
Fair value at 1 October 2022
Investment income
Investment gains on disposals
Change in market value
Investment management fees
Investment withdrawals
Fair value as at 30 September 2023		 Fixtures
and
fittings
£
6,651
382
(4,156)
2,877
6,240
252
(4,033)
2,459
418
411
Listed
investments
£
904,329
(86,934)
817,395
817,395
904,329		 Fixtures
and
fittings
£
6,651
382
(4,156)
2,877
6,240
252
(4,033)
2,459
418
411
Listed
investments
£
904,329
(86,934)
817,395
817,395
904,329
£
904,329
9,616
77,375
(63,903)
(10,022)
(100,000)
817,395

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 2023

15. FIXED ASSET INVESTMENTS - continued

Investments comprise: 2023 2022
£ £
UK equities 423,851 378,615
Overseas equities 273,970 424,112
Gilts 99,438 57,225
Cash 20,136 44,377
817,395 904,329

The historic cost of the above fixed asset investments are £696,710 (2022: £743,241)

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
VAT
Prepayments and accrued income		 2023
£
49,830
2,305
754
57,863
110,752		 2022
£
189,506
10,525
33,200
280,321
513,552

DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023 2022
£ £
Prepayments and accrued income - 4,812
- 4,812

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 2023

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income
Deferred Income		 2023
£
11,299
30
3,454
11,000
460,498
486,281		 2022
£
50,600
6,096
-
14,510
618,063
689,269
2023 2022
£ £
Deferred income at the start of the year 46,214 100,453
Resources deferred during the period 48,330 46,214
Amounts released from the prior period (46,214) (100,453)
Deferred income at the end of the year 48,330 46,214

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		 2023
£
19,983
32,573
52,556		 2022
£
16,080
42,290
58,370

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 2023

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
Ethicon Courses
Heart Research UK
Medtronic
TOTAL FUNDS
Net movement in funds, included in the above a
Unrestricted funds
General fund
Restricted funds
The Ionescu Education and Quality Trust
Research and Clinical Trial Education
Ethicon Courses
Heart Research UK
Michael Warburg SCTS Fellowship
Medtronic
TOTAL FUNDS		 re as follows:
Incoming
resources
£
829,067
3,680
66,000
129,502
-
20,000
25,000
244,182
1,073,249		 At 1.10.22
£
177,195
144,544
8,150
113,641
6,541
240,280
43,128
79,000
-
635,284
812,479
Resources
expended
£
(1,036,538)
(3,772)
(66,000)
(113,840)
(79,000)
(20,000)
(16,000)
(298,612)
(1,335,150)		 Net
movement
in funds
£
(206,267)
12,176
-
-
-
-
15,662
(79,000)
9,000
(42,162)
(248,429)
Gains and
losses
£
1,204
12,268
-
-
-
-
-
12,268
13,472		 At 30.9.23
£
(29,072)
156,720
8,150
113,641
6,541
240,280
58,790
-
9,000
593,122
564,050
Movement
in funds
£
(206,267)
12,176
-
15,662
(79,000)
-
9,000
(42,162)
(248,429)

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 2023

19. MOVEMENT IN FUNDS - continued

Comparatives for 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
Comparative net movement in funds, included in the above are a
Incoming
resources
£
Unrestricted funds
General fund
788,910
Restricted funds
The Ionescu Education and Quality Trust
3,023
Ethicon Trainee Scholarships
90,000
BD Interventional Training Fund
-
Research and Clinical Trial Education
132,000
Ethicon Courses
155,793
Heart Research UK
79,000
459,816
TOTAL FUNDS
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
s follows:
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)

Page 25

continued...

THE SOCIETY FOR CARDIOTHORACIC SURGERY IN GREAT BRITAIN AND IRELAND

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2023

19. MOVEMENT IN FUNDS - continued

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

Net
movement
At 1.10.21 in funds At 30.9.23
£ £ £
Unrestricted funds
General fund 374,462 (403,534) (29,072)
Restricted funds
The Ionescu Education and Quality Trust 255,760 (99,040) 156,720
Risk modelling 8,150 - 8,150
Ethicon Trainee Scholarships 113,641 - 113,641
Cardio Solutions Fellowship 6,541 - 6,541
The Mr M and Dr C Ionescu Travelling
Fellowship for Consultant Surgeons 240,280 - 240,280
BD Interventional Training Fund 9,000 (9,000) -
Ethicon Courses - 58,790 58,790
Medtronic - 9,000 9,000
633,372 (40,250) 593,122
TOTAL FUNDS 1,007,834 (443,784) 564,050

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
BD Interventional Training Fund
Research and Clinical Trial Education
Ethicon Courses
Heart Research UK
Michael Warburg SCTS Fellowship
Medtronic
TOTAL FUNDS		 Incoming
resources
£
1,617,977
6,703
90,000
-
198,000
285,295
79,000
20,000
25,000
703,998
2,321,975		 Resources
expended
£
(1,863,604)
(15,112)
(90,000)
(9,000)
(198,000)
(226,505)
(79,000)
(20,000)
(16,000)
(653,617)
(2,517,221)		 Gains and
losses
£
(157,907)
(90,631)
-
-
-
-
-
-
-
(90,631)
(248,538)		 Movement
in funds
£
(403,534)
(99,040)
-
(9,000)
-
58,790
-
-
9,000
(40,250)
(443,784)

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

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

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 2023

19. MOVEMENT IN FUNDS - continued

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 individualsa 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 2023

20. RELATED PARTY DISCLOSURES

During the year, the Society provided bookkeeping services totalling £750 ( 2022: £750) to Cardiac and Thoracic Surgery UK (CTSUK), a charitable company which shared a common trustee until 20 March and is under common administration. £750 (2022: £750) was due to the Society at the year end.

Page 28