Charity registration numbér 1116918 Company registration number OS935975 (England and Wales) Scottlsh charity reglstralion number SC042984 THE HEART RESEARCH INSTITUTE (UK) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
THE HEART RESEARCH INSTITUTE (UK) LEGALAND ADMINISTRATIVE INFORMATION Trustees MrA C Caton OBE Mr S B Moodey Mr A Phillips Ms E L Pintado MrA W Pollitt Prof Andrew Grace ProfAndrew Coats Charlty number 1116918 Charlty number (Scotland) SC042984 Company number 05935975 Regl$tered offlce Bankside 300 Peachman Way Broadland Business Park Norwich Norfolk NR7 OL8 Audltor Azets Audit Seniices Westpoint Lynch Wood Petertjorough Cambridgeshir• United Kingdom PE2 6FZ 8anker• Santander UK PLC 2 Triton Square Regent's Place London Uniled Kingdom Bank of Ireland 12 The High Street Kildare Town CO. Kilda
THE HEART RESEARCH INSTITUTE (UK) CONTENTS Page Trustees report Statement of Trustees responsibilities Independent audilorfs report Statemenl of financial 8Ctivilies Balance sheet 10 Statement of cash flows 11 Notes to the financial statements 12-19
THE HEART RESEARCH INSTITUTE (UK) TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees present their annual report and financial statements for the year ended 31 December 2024. The financial statements have been prepared in accordance with the accounting policies sel out in note 1 to the financial statements and wmply with The Heart Research Institute (UK)'s Memorandum and Artides of Association, the Companies Acl 2006 and 'Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)" {effeclive 1 January 2019}. Objectives and activities The Heart Research Institute has four core objectives.. To investigate mechanisms contributing to the pathogenesis of cardiovascular disease To develop new ways to detect symptoms of cardiovascular disease before il leads to clinical problems To develop new treatments which can reverse the development of heart disease To prevent individuals developing cardiovascular disease in the future The reason the charity and ils parent company are focusing mainly on cardiovascular disease is because this is the leading cause of death in the world. a phenomena that is also increasing in third-world countries. However, research into the origins of such disease spans many years and requires the sel¢e$ of highly qualified scientists, as well as the usage of expensive technology. That is why a major activity of the charity and its parent is fundraising, because any funding obtained through competitive grants for specific research projects and infrastrLtcture support from govemmenls or other bodies is insufficient to cover all the costs involved. The charity and its parent have a long- term aim of contributing lo a significant reduction in cardiovascular disease, but recognise Ihat eventual success in this regard means extensive investment in research here and now. The charity's main objective for the year ended 31 December 2024 where to determine the best distribution of funds raised to assist with meeting its objectives and focus on further development of the lottery and monthly pledge programs. The strategy for achieving these objectives was to maintain arrangement with reputable contractors well experienced in conducting lotteries and monthly pledge programs in the UK. Significant activities that contributed to the achievement of these objectives the negotiation and resolution of operational procedures. and the recording and processing of resultant transactions. The trustees have given due consideration of the Charity Commission published guidance on the operation of the public benefit requirement. Achievements and perfomiance Funds raised by the HRI in the UK go directly io scientific research helping to find solulions to this global health challenge. Funds are used to support the front line researchers and to purchase the latest research equipment. Financial review The net incoming resources for the year ended 31 December 2024 amounted lo £410,543 (2023-. (£6,376)). The Trustees are confidenl of the future success of projects activities for 2024 and beyond and that these will result in the building of accumulated surpluses. In addition, the Charity enjoys the on-going financial support of its parent company and the significant experience of its management to ensure its future success. Significant events The Charity has generated sufficient financial resources from its activities to allow the Trustees to believe that the charity is operating successfully in the current economic climate. Trustees have reviewed the financial position for a period of 12 months from the dale of approval of these financial statements which indicate that the charity will have sufficient funds to meel its liabilities as they fall due for the period. Therefore, the Trustees believe that the Heart Research Institule {UK) to continue going concem for at least 12 months from the date of approval of the financial slatements. Other than the above development, no other item, transadion or evenl of a material and unusual nature is likely, in the opinion of the Trustees, to affect significanlly the operations of the Charily, the results of those operations. or the stale of affairs of the Charity, in the future years.
THE HEART RESEARCH INSTITUTE (UK) TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Principal financial management policies The principal financial management policies adopted In the year include the following.. Revenue recognition Revenue derived from fundraising efforts is recognised when probable. Provisions The charity recognises by way of provision any anticipated oulgoings relevant lo Ihe year under review for which il may have an obligalion, whether legal or constructive. Reserves The charily maintains reserves to cover running costs of the charity and lo enable Il lo fund research opportunities that lull within the charity's objectives as they arise. The actual funds available can vary signilicanlly depending on the liming of research. bul Iruslee5 conclude Ihal the actual level of funds should not f811 below 12 months running cosls. Where Iruslees have internally agreed lo fund specific cardiovascular research in the UK or wilh collaboralors, those funds are sel aside as designated funds until the detail of the funding is agreed with the partner. The actual level of resetves al the year-eiid is higher Ihan that sel by the policy and Ihe Iruslees are actively reviewing further funding opportunities. Grantmaking policy The charity awards grants lo be used in accordance wilh ils charitable objectives. Principal funding sources Principal funding sources during the year were from the generation of revenue from the lollery and monthly pledge campaigns. Expendiliire during the year under review has supported the key objectives of the charity by firmly establishing a viable basis for the fulure success of the lollery and pledge campaigns. Investment powers and policy Under the Memorandum and Articles of Association. lo further 115 objects the ChartY has the power lo invest any funds not Immediately requiTed lor ils objectives in or upon any inveslmenls. securities or property. Risk management The majof ri5k5 to which the charity is exposed relate in particular lo the commitments made to outside parties who undertake the various fundraising campaigns for the charity. There can be considerable set-up costs Involved I new fundraising campaigns. which means there is a delay before a particular campaign realises a surplu5. Once 1he truslees have approved the new Campaign, they subsequently ieceive regular reports of ils progiess and are kept appraised ol any budget Irregularities Ihal the campaign may be facing. Reslriclions on further commitments can be insliluled quickly and, in addition. a request that the oulside contractor comply with specific guidelines lo keep the program contained can be also implemented efficiently. The Iruslees also reqijire that safeguards be incorporated into legal agreements with the fundraising contraclois lo limil the risk exposuTe of the charity. Plans for future period$ The charity will coiilinue lo support Post Doclorale Fellowships for young and emerging UK researchers and Collaborate with The Heart ReseaT¢h Institute Australia in funding specialist equipment and research so we car> undeistand more about. and lo find a cuie for cardiovascular disease5, which are the number one killer of people worldwide.
THE HEART RESEARCH INSTITUTE (UK) TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Structure. govemance and management The Heart Research Institute (UK) is a company limited by guarantee and is governed by ils Memorandum and Articles, dated 14 September 2006. It is also registered as a charity with the Charity Commission for England and Wales (No. 1116918) and, with effed from 1 March 2012, the Scottish Charity Regulator {SC042984). The Truslees, who are also Ihe directors of The Heart Research Inslitute (UK) for the purpose of company law. and who served during the year and up to the date of signature of the financial statements were.. MrA C Caton OBE Mr S B Moodey Mr A Phillips Ms E L Pintado MrA W Pollitt Prof Andrew Gra ProfAndrew Coals As set out in the Articles ofAssociation trustees are appointed by a resolution of the members for a renewable term of three years. The charily shall have al least three Trustees who are not trusteeslandlor employees of The Heart Research Institute Limited. Oryanisation The Heart Research InstitLrte {UK) and The Heart Research Institute Ltd have entered into a 'Service Agreement, to record the basis on which they will work logether lo further the charilies. charilable objects and to outline the services provided by The Heart Research Institute Ltd to The Heart Research Institute (UK). Under the Services Agreement, the day-to-day fundraising and administrative activities of the charity have been delegated to the management staff of The Heart Research Institute Ltd. These staff members report to a Director of the Institute who, in turn, is subject to the Board of Governors of the Australian company. However, any arrangements and aclivilies affecting the UK charity are also subject to the oversight and review of the board of trustees of The Heart Research Institute (UK}. In particular, new fundraising programs require the specific approval of the trustees who will meet as a board to consider and vole on such proposals. Trustee induction and training The charity has espoused a policy of providing new trustees with whatever information and assistance is necessary to help them fulfil their responsibilities under both the Companies Act 2006 and their roles under relevant legislation and regulations affecting the organisation as a charity. The procedures adopted include providing new Iruslees with copy of The Essential Trustee.. what you need to know supplied by the Charity Commission for England and Wales which describes the roles and responsibilities of trustees, as well as a copy of the company's constitution. The trustees are also encouraged to visit the website of the charity commission for regular updates or changes to legislation and guidelines. Ongoing information updates along with regular communication between The Heart Research Institute Ltd management and the trustees ensures knowledge and information currency. Related parties The charity is a wholly owned subsidiary of The Heart Research Institute Ltd, an Australian charity which runs heart research programmes and which has built up expertise in the fields of both running a charity and fundraising in this area. The objects of the charity (as outlined above) are compatible with The Heart Research Instilule Ltd and both are committed to the promotion and support of research and the advancement of education in this area. The Heart Research Institute Ltd assists the charity by providing il with the services and support it needs to successfully operale and raise funds in order to support hear research and educate the public. The Heart Research Institute has a presence in Scotland. Our scientisls are working across a number of research areas lo identify factors that contribute to an increase risk of heart disease. Understanding the underlying causes of heart disease is the key to finding a solution.
THE HEART RESEARCH INSTITUTE (UK) TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Auditor In accordance with the company s articles, a resolution proposing that Azets Audil Services be reappoinled as auditor of the company will be pul al a General Meelir¥g. The TrLAslees repo was approved by the Board of Trustees. Mr A W Pollill Dale".
THE HEART RESEARCH INSTITUTE (UK) STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees, who are also Ihe directors of The Heart Research Institute (UK) for the purpose of company law, are responsible for preparing the Trustees Report and the financial slatements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practi). 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 The Heart Research Institute (UK) and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements. the Trustees are required to.. select suitable accounting policies and then apply them consistently. obsetve the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent- state whelher applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the finanal statements-, and prepare the financial statements on the going concern basis unless it is inappropriate to presume Ihat the The Heart Research Institute (UK) will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the The Heart Research Institute {UK} and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the The Heart Research Institute (UK) and hence for laking reasonable steps for the prevention and detection of fraud and other irregularities.
THE HEART RESEARCH INSTITUTE {UK) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE HEART RESEARCH INSTITUTE (UK) Opinion We have audited the financial sl8lemenls ol The Heart Research Inslilule IUKI Ilhe 'The Heart Research Institute IUKI,) for the year ended 31 December 2024 which comprise the statement of financial aclivilies, the balance sheet, the statement of cash flows and notes lo the financial statements, including significant accounting policies. The financial feporting fiamework Ihal has been applied in their preparation is applicable law and United Kingdom Accounting Standards, induding Financial Reporting Standard 102 The Fii?ai?cial Reporting Staiidard applicable in Ihe UK 8nd Republic of I10d (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial statements.. give a true and fair view of the slate of the charitable company's affairs as al 31 December 2024 and of ils incoming resources and application of resources. for the year then ended". have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice". and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducled our audit in accordance with International Standards on ALJdiling IUKI IISAS (UKII and applicable law. Our responsibilities under those standards are further described In Ihe Aiidilofs responsibililies for tl7e audil ol the finaiicial stalemeiils section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial gtalemenls in the UK. including the FRC'S Ethical Standard, and we have fiilfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Con¢lusions relating to going concern In auditing the financial slatemenls, we have concluded Ihal Ihe Trkjslees use of the going concern basis of accounting in the preparation of the financi315taletnenls Is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that. Individually or collectively, may casl significant doubl on the The Heart Research Inslilule IUKI'S ability lo continue as a going concern for a period of al least twelve months from when the financial s131emenls are aulhorised for issue. OUT responsibililies and the iesponsibililies of the Trustees with respect lo going concern are described in the relevant sections of this report. Other infonnation The olher information comprises the Information included in the annual report other than the financial slalements and our auditor's report Ihereon. The Trustees are responsible for the other information contained wilhin the annual report. Our opinion on the financial slalemenls does not cover the other information and we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the olhei information and, in doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained In the course of Ihe audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent maleiial misslalements, we are required lo determine whether this gives rise lo a material misslalemenl in the financial slalemenls themselves. If, based on the work we have pertormed. we conclude that there is a material misslalemenl of this other information, we 8¥e required lo report that fact. Vve have nothing lo report in this regard. Matters on whi¢h we are required to report by exception We have nothing lo report In respect ol the following mallers in relation lo which the Charities IAccounls and Reports) Regulations 2008 require us lo report lo you if, in our opinion.. the information given in the financial slalemenls is inconsislenl in any material respect with the Trustees report.. or sufficient accounting records have not been kept. or the financial slalemenls are not in agreement with the accounting records.. or we have nol received all the infomiation and explanations we require for our audit.
THE HEART RESEARCH INSTITUTE (UK) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HEART RESEARCH INSTITUTE {UK) Responsibilities of Trustees As explained more fully in the statement of Trustees responsibilities. the Trustees, who are also the directors of the The Heart Research Institute (UK) for the purpose 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 inlemal control as the Trustees determine is necessary to enable the preparation of financial ststemenls that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements. the Trustees are responsible for assessing the The Heart Research Institute {UK}'s abilily to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Trustees either inlend lo liquidate the charitable company or lo rEase operations, or have no realistic alternative but to do so. Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with Ihe Act and relevant regulations made or having effect Ihereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditor's report Ihal 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 misstalemenl when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influen the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https-.11 www.frc.org.uklauditorsresponsibililies. This description forms part of our auditorfs report. Extent to which the audrt was considered capable of detecting irregularities. including fraud Irregularities. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to delect malerial misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the enlity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial slalemenls, whether due to fraud or error, design and perform audit procedures responsive lo those risks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary lo applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance wilh laws and regulations, including fraud. we designed procedures which included.. Enquiry of management and those charged with governan around actual and potential litigation and claims as well as actual, suspected and alleged fraud- Reviewing minutes of meetings of those charged with governance., Assessing the extent of compliance with the laws and regulations considered to have a direct material effecl on the financial statements or the operations of the entity through enquiry and inspection", Reviewing financial statement disclosures and lesting to supporting documentation to assess compliance with applicable laws and regulations., Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjuslments for appropriateness, evaluating the business rationale of significant transactions outside the nomial course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audil. there is a risk that we will not detect all irregularities, including those leading io a materral misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not delecling a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentalions, or the override of intemal control.
THE HEART RESEARCH INSTITUTE (UK) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HEART RESEARCH INSTITUTE (UK) Use of our report This report is made solely to the charity s Iruslees. as a body. in accordance wilh part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charity's Iruslees those mallers we are required to slate lo them in an auditor's report and for no olhef purpose. To the fullesl extent permilled by law, we do not accept or assume responsibility lo anyone other than the charity and the charity s Iruslees as a body, for our audit work, for this report, or for the opinions we have formed. Mr Mark Jackson FCA DChA Isenior Statutory Auditor} for and on behalf ofAzets Audit Services Chartered Accountants ststutory Auditor Weslpoinl Lynch Wood Pelerborough Cambridgeshire United Kingdom PE2 6FZ Azets Audil SeFvices is eligible for appointment as auditor of the The Heart Research In51ilule IUKI by virtue of its eligibility for appoinlment as auditor of a company under section 1212 of the Companies Act 2006.
THE HEART RESEARCH INSTITUTE (UK) STATEMENT OF FINANCIALACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024 Unrestricted Unrestricted funds funds general designated 2024 2024 Total Unrestricted Unrestricted funds funds general designated 2023 2023 Total 2024 2023 Notes Income from: Donations and legacies Other trading activrties Investments 421.688 421,688 441,958 441.958 248,413 164,106 248,413 164,106 257,635 165,516 257,635 165.516 Total income 834,207 834,207 865,109 865,109 enditure on: Raising funds 153.020 153,020 273,638 273,638 Charitable activities 171,849 98,795 270,644 437,049 160,798 597,847 Total expenditure 324,869 98,795 423,664 710.687 160.798 871,485 Net incomingl(outgoing resources before transfers 509,338 (98,7951 410,543 154,422 {160.798} (6,376) Gross transfers beeen funds (76,296) 76,296 132,992 1132,9921 Net incomellexpenditurel for the yearl Net movement in funds 433.042 {22,499) 410,543 287,414 (293,7901 (6,376> Fund balances at 1 January 2024 2,754,929 314,006 3,068,935 2,467,516 607,795 3,075,311 Fund balances at 31 December 2024 3,187,971 291,507 3,479,478 2.754,930 314.005 3,068,935 The slatemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
THE HEART RESEARCH INSTITUTE (UK) BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Current assets Debtors Cash al bank and in hand 11 23,828 3,695,436 28.445 3,424,056 3,719,264 3.452,501 Creditors.. amounts falling due within one year 12 (239,786) 1383,5661 Nel Currenl assets 3,479,478 3,068,935 Income funds Unreslricled funds Designated funds General unreslficled funds 13 291,507 3.187.971 314.005 2,754.930 3.479,478 3,068,935 3,479.478 3.068 935 The company Is enlilled lo the exemption from the audit requirement contained In section 477 of the Companies Act 2006. for the year ended 31 December 2024, although an audit ha5 been carried out under section 144 of the Charities Act 2011 The directors acknowledge their responsibilities for complying with the requirements ol the Companies Act 2006 with respect lo accounting records and the preparation of financial slalements. The member5 have not required the company lo obtain an audit of ils financial statements under the requirements of the Companies Act 2006. for the year In question In accordance with section 476. These f1nancial slalemenls have been prepared In accordance with the provisions applicable lo companies subject lo the small companies regime. The financial slalemenls were approved by Ihe Trustees on Mr A W Pollill Trustee Company registration number 05935975 10
THE HEART RESEARCH INSTITUTE (UK) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Notes Cash flo¥ from oporallng actlvlties Cash generated froml{absorbed by) operations 16 107,274 (218,083) Investing activitie8 Investment income reiVed 164,106 165.516 Net ¢ash generated from inv•sting actAvltle$ 164,106 165,516 Not cash used In financlng actlvitles Net Sncreaselldecreasel In cash and ¢a$h •quivalents 271.380 (52,567) Cash and cash equivalents at beglnning of year 3,424,056 3,476,623 Ca$h and ¢a$h equlvalents at end of year 3,695,436 3,424,056 11
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies Charity inforniation The Heart Research Iiislilule {UK} is a private company limited by guarantee incorporated in England and Wales. The registered office is Bankside 300, Peachman Way Broadland Business Park. Nomich. Norfolk, NR7 OLB, United Kingdoffi. 1.1 Accounting convention The financial slalemenls have been prepared In accordance ivilh the The Heart Research Inslilule IUKI'S articles of associalioii, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable In the UK and Republic of Ireland" I'FRS 102.1 and the Charitie5 SORP Accounting and Reporting by Charities". Slalemenl of Recommended Practice applicable lo charities pieparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) leffeclive 1 January 20191. The The Heart Research InslilLJle IUKI is a Public Benefit Enlily as defined by FRS 102. The financial slalemenls are prepared in sterling, which is the functional currency of the The Heart Research Inslilule {UKI Monetary amounts in these financial slalemenls are rounded to the nearest £. 1.2 Going concern The charity has generaled sufficient financial resources from ils activities lo allow the Trustees lo believe that the charity is well placed lo manage ils business 115ks successfully in the current economic climate. Accordingly, the Trustees have a reasonable expectation that the charity has adequale resources lo continue in exislence for the foreseeable future, thus they continue lo adopt the going concern basis ol accounting in preparing the financial slalemenls. The financial slalemenls have been prepared on a going concern basis which the Trustees consider lo be appropiiale for the following reasons. The business model of Ihe charity Is such that ils charitable activities are limited lo those which il has sufficient fuiids lo support from the excess of funding received over the costs of administering the charity. The charity Iherefoie has no specific commitments and commilled costs beyond ils fixed costs of operation. The Trustees have reviewed the cash flow foreca51s for a period of 12 months from the dale of approval of these financial slalemenls which indicate that the charity will have sufficient funds lo meet Ils liabilities as they fall due for that period. Consequently. the Trustees are confident that the charity will have sufficient funds lo continue lo meet Ils liabilities as they fall due at least 12 months from the dale of approval of the financial slalemenls. 1.3 Charitable funds Unreslricled funds are available foi use al the discretion of the Trustees in furtherance of their chaiilable obieclives. Desigiialed funds comprise funds which have been sel aside al the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are gel out in the notes lo the financial slalemenls. Reslricled funds are subject 10 Specific conditions by donois as lo how they may be used. The purposes and uses of Ihe reslricled funds are sel out In the notes lo the financial slalemenls. 1.4 Income Income is recognised when the The Heart Research InslilLile IUKI is legally enlilled lo il after any performance conditions have been mel. the amounts c8n be n)easured reliably, and il is probable that income will be received.
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (Continued) Voluntary Income Donations are generated through the pledge program activity are inGluded within inwming resources when probable. Other income Other income, including interest income. are included wilhin incoming resources when probable. 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Costs of generating voluntary income include expenditure associated with Ihe activities undertaken by the charity to generate such income, such a5 the pledge programme. Fundraising expenditure includes expenditure associaled with the selling up and running the lottery activities undertaken by the charity and consists of the direct costs relaling lo these activities. Granls payable are included within the statement of financial activities when approved by the trustees and agreed with the recipient unless there are restrictions of future funding that allow the charity to withdraw the funding at their discretion. Governance costs include expenditure incurred in the governance of the charity and its assets. These are primarily associated with the constitutional and statulory requirements. 1.6 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-lemi liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.7 Financial instruments The Heart Research Institute {UK) has elected lo apply the provisions of Section 11 'Basic Financial Inslrumenls, and Section 12 '0ther Financial Instrumenls Issues, of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the The Heart Research Institute (UK)'s balance sheet when the The Heart Research Instilule (UK) becomes party to the conlractual provisions of the instrument. Financial assets and liabilities are offset. with the net amounts presented in the financial statements, when there is a legally enforceable righl to set off the recognised amounls and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets. which include debtors and cash and bank balances, are initially measured al transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured al the present value of the future receipts discounted al a market rate of interest. Financial assels classified as receivable within one year are not amortised. 13-
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (Continued) Basic financial liabilities Basic financial Iiabililies, including creditors and bank loans are initially recognised al transaction price unless the arrangement constilules a financing Iransaclion. where the debt Inslrumenl is measured al the presenl value of the future payments discounted al a market rale of interest. Financial liabilities classified as payable wilhin one year are not amortised. Debt inslrumenls are subsequently carried al amort15ed cost, using the effective interest rale method Trade creditors are obligations lo pay for goods or Services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities If payment is due within one yeai or less. If not. they are presented as non-¢urrenl liabilities. Trade creditors are recognised initially al transaction pri and subsequently measured al amortised cost using the effective inleresl melhod. Derecognitiol) of financial liabilities Financial liabilities are derecognised when The Heart ReseaTch Institute (UKI'S conliaclual obligations expiie or afe discharged or cancelled. Critical accounting estimates and judgements In the application of The Heart Research Inslilule IUK}'s accounting policies, the Trustees are required lo make judgements, estimates and assumptions about the carrying amount of assels and Iiabililies that are not readily apparent from other sources. The estimates and associaled assiimplions are based on hisloiical experience and other factors that are considered to be relevant. Actual resLJlls may differ from these eslimales. The estimates and underlying assumptions are reviewed on sn ongoing basis. Revisions lo accounting eslimales ale iecogni5ed in the period in which the estimate is revised where the revision affecls only that period. or in the period ol the revision and future periods where the revision affects both current and future periods. Donations and legacies Unrestricted Unrestricted funds funds general general 2024 2023 Donations and gifts 421,688 441.958 Donations and gifts General donations Pledge program donations 50,804 370,884 40,519 401,439 421,688 441958 14
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Other tradlng actlvltles Unrestrfcted Unrestrfcted funds fund$ general general 2024 2023 Lottery activities 248.413 257,635 Investments Unrestricted Unrestrlctsd funds fund$ general general 2024 2023 Interest receivable 164,106 165,516 Raising funds Unre$trl¢ted Unrnstricted funds funds general general 2024 2023 in Seeking donations, grants and legacies Other fundraising costs 19,982 133,038 22,011 251,627 Fundraising and publicity 153,020 273,638 153,020 273,638 15-
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Charitable activities 2024 2023 Awareness costs Research c051s 17.223 230.581 13 347 548.472 247,804 561.819 Share of governance cosls (see note 81 22.840 36,028 270,644 597.847 Analysis by fund Unreslricled funds general Unreslricled funds - designated 171.849 98,795 437 049 760.798 270,644 597,847 Inclucled within the research costs noted above is £214,644 {2023. £491.1031 ol contributions by the charity lo the pareiil company lor research and scientific expènditure. Of this amount. £nil 12023". £330.3051 relate5 10 the eslablishmenl of a fluxomics cenlre al HRI Australia out of unreslricled funds. Support and governaiice costs 2024 2023 Governance Governance costs costs Auditor fees Legal and professional 19.000 3.840 18.900 17.128 22,840 36 028 Charitable activities 22,840 36 028 Governance c0515 includes payments lo the auditors of £16,50012023- £15,600) for audit fees. Trustees Noiie of the Trustees lor any persons connected with them) received any remuneration or benefits from the The Heart Research Institute IUKI during the year. 10 Taxation The charity Is exempl from 13x on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxalionof Chargeable Gains Act 1992 to the exlenl that these are applied lo ils charitable objects. 16
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 11 Debtors 2024 2023 Amounts falling due within one y•ar: Other debtors Prepayments and accrued income 16,142 7,686 17,481 10,964 23,828 28,445 12 Credltors: amounts falllng due wlthln one year 2024 2023 Notss Accrued grant expendlture Trade creditors Amounl owed lo parent undertaking Accruals and deferred income 136,399 50.601 33,765 19,021 247,163 91,164 26,022 19,217 239,786 383,566 13 Deslgnated funds The income funds of the charity include the following designated funds which have been sel aside out of unrestricted funds by the trustees for specific purposes.. 8alanc• at 1 January 2023 Rgsour¢es expend¢d Transfvrn B•lanc• at 1 January 2024 R•¥ourcvJ exPd Transt•rs 8•lan¢e at 31 D•c•mb•r 2024 Collaborator ¢ontrad$ Funding committed for parent ompany 79,529 (79,529) 528,266 <160.798) {53,463} 314,005 (98,794) 76,296 291,507 607,795 (160,798) (132,992) 314,005 (98,794) 76,296 291,507 The designated funds represent grants that have been set aside by the Board for intemal programmes not finalised at the year end. 17-
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 14 Analysis of net assets between funds Unrestricted Designated funds funds 2024 2024 Totsl Unreslricled Designated funds funds 2023 2023 Total 2024 2023 FLind balance5 al 31 December 2024 are represented by. Cuiienl asselsllliabililiesl 3.187.971 291,507 3.479,478 2.754.930 314.005 3,068.935 3,187,971 291.507 3,479.478 2.754,930 314,005 3.068.935 15 Related party transactions The followiiig amoun15 were oulslanding al the reporting end date. Amounts owed to related parties 2024 2023 Balance due lo The Heart Research Limited. the ultimate parenl company. 33.765 26.022 33,765 26,022 16 Cash generated from operations 2024 2023 surplu51ldeficill foi the year 410,543 16,3761 Adjustments for". Investment income recognised in statement of financial 8clivilies 1164.106) 1165.516) Movements in working capital". Decrease in debtors {Decreasel In creditors IDe¢reasellincrease in deferred income 4,617 (33,016} 1110.7641 36.070 {329,4241 247,163 Cash generated fromllabsorbed by) operations 107,274 1218.0831 18-
THE HEART RESEARCH INSTITUTE (UK) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 17 Ultimat• parent company The company's ultimate parent company, both this year and the previous year, was The Heart Research Institute Ltd. a Company incorporated in Australia. A5 such. these financial statements will be consolidated within this entity. The Heart Research Institute Ltd is located al the following address- 7 Eliza Street Newtown NSW 2042 Australia 18 Controlllng Intsrest The company is ultimately controlled by The Heart Research Institute Ltd both this year and the previous year. 19-