Charity Number 1120460 Company Number 06309182 (England and Wales)
BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT, INDEPENDENT EXAMINERS REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
BOWEL DISEASE RESEARCH FOUNDATION
CONTENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| CONTENTS | PAGES |
|---|---|
| Charity Information | 1 - 2 |
| Trustees’ Report | 3 – 11 |
| Independent Auditor’s Report | 12 - 13 |
| Statement of Financial Activities | 14 |
| Balance Sheet | 15 - 16 |
| Cash Flow Statement | 17 |
| Notes to the Financial Statements | 18 - 34 |
BOWEL DISEASE RESEARCH FOUNDATION
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY ITS TRUSTEES AND ADVISORS FOR THE YEAR ENDED 31 DECEMBER 2020
TRUSTEES
Asha Senapati PhD FRCS Chairman Richard Pertwee JP BA (resigned 01/03/2020, reappointed 25/05/21) Paul Reynolds (appointed 25/05/21) Alan Roe ChM FRCS (resigned 26/05/21) Professor Robert Arnott FRHistS FHM (resigned 26/05/21) Austin George Acheson MD FRCS (resigned 05/07/20) Nicola Fearnhead MD FRCS (resigned 26/05/21) Professor Michael Keighley MS FRCS (resigned 13/02/20) Professor Dion Morton MD FRCS (resigned 26/05/21) Bowel Research UK (appointed 08/06/2020)
PATRONS
Sir Barry Jackson MS FRCS Prof John Nicholls MChir FRCS
CHIEF EXECUTIVE
Peter Rowbottom (stepped down 26/4/20) Rebecca Porta (appointed Chief Executive 27/4/20)
CHARITY NUMBER 1120460 COMPANY NUMBER
06309182 (England and Wales)
PRINCIPAL ADDRESS The Royal College of Surgeons AND REGISTERED 35-43 Lincoln’s Inn Fields OFFICE London WC2A 3PE
INDEPENDENT AUDITOR
Tara Westcott FCCA Crowe U.K. LLP 4[th] Floor, St James House St James’ Square Cheltenham Gloucestershire GL50 3PR
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BOWEL DISEASE RESEARCH FOUNDATION
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY ITS TRUSTEES AND ADVISORS FOR THE YEAR ENDED 31 DECEMBER 2020
BANKERS
HSBC 106 Albert Road Southsea Hampshire PO5 2SD
WEBSITE
www.bowelresearchuk.org
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BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
CHAIRS STATEMENT
In November 2019 Bowel Disease Research Foundation announced its intention to combine with the charity, Bowel and Cancer Research (B&CR). With a shared commitment to investing in our scientific and medical communities, we believe that a cure for bowel cancer and effective treatments to mitigate, or entirely eradicate, other bowel diseases are entirely possible in the future.
Collectively the two charities have awarded grants totalling £9 million over the last ten years towards research into bowel cancer and other bowel diseases. This research has improved our understanding of these diseases and identified new ways to treat and manage them thereby improving the outlook for patients and their families.
Despite the impact and many challenges we faced with the COVID-19 pandemic, we remained committed to bringing together the two charities and the launch of our new charity, Bowel Research UK, CIO registered number 06309182 on the 29th September 2020 was a great success. The launch offered the opportunity to celebrate the important contribution the founding charities have made to improving the outlook for those diagnosed and living with bowel cancer and other bowel diseases alongside announcing our new research priorities and our commitment to radically changing the landscape and ultimately the outlook for current and future generations.
Our close connection with the Association of Coloproctology of Great Britain and Ireland (ACPGBI) was of major importance and we took steps to make sure this relationship not only did not suffer but was enhanced by this move.
Supported by them and a wide range of other stakeholders including the public, patients and their families, the research community, Parliamentarians, decision makers, strategic partners and the media, we announced our commitment to investing £1million in innovative, cutting edge research over the next eighteen months and in the longer term, to funding life changing research. By researching cutting edge treatments and investing in the best science, we're saving and improving people's lives.
I am pleased to report that £182,610 has been invested in research and PhD programmes at the end of 2020, £320,000 in January 2021 and a further £325,000 awarded as part of our Inaugural Grants round in July 2021. Funding will enable important developments in clinical practice, a better quality of life and improvements in patient outcomes.
The launch of Bowel Research UK offers hope to the 42,000 people diagnosed every year with bowel cancer in the UK and the 1 million plus living with other bowel diseases such as the inflammatory bowel diseases Crohn’s disease and Ulcerative Colitis. We look forward to an exciting future and to radically changing the landscape.
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BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
CHAIRS STATEMENT (continued)
We were proud to have our Patrons and I would like to thank them for supporting us over the years. We particularly remember Lynn Faulds Wood who died in 2020. Her sterling contribution to the awareness and research into bowel cancer will never be forgotten.
I would like to take this opportunity to thank the Trustees who stepped down from the Board during the year. We particularly remember Philip Salt who died in 2020 for his valuable support of the charity. Over many years they have provided much support, guidance and wisdom and I am immensely grateful for their contribution.
Particular mention needs to be made of Bob Arnott. As a Trustee he was also the Hon Secretary and performed these tasks with immense vigour. He continued in this role during the discussions with B&CR and then became Secretary of Bowel Research UK before he stood down from this post due to ill health.
I would also like to thank the members of the Association of Coloproctology of Great Britain and Ireland (ACPGBI) for their continued commitment. Our relationship with the ACPGBI, comprising over 1,000 surgeons, nurses, and allied health professionals has been long standing and in this exceptional and most challenging of years their support and friendship has been paramount.
Finally, a heartfelt thank you to everyone who has supported us during the year. It is thanks to the ACPGBI and its members, patients and their families, funders, our staff and all those involved in raising awareness of bowel cancer and other bowel diseases that we have been able to achieve so much.
Asha Senapati Chairman Dated: 26 October 2021
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BOWEL DISEASE RESEARCH FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
WHY DOES THE CHARITY EXIST?
Funding Research – Grant Giving
We are proud of our many achievements and the important contribution we make in furthering innovative, cutting edge research into bowel cancer and other bowel diseases.
Our research programme
During the year we worked with colleagues at Bowel & Cancer Research (B&CR) to bring together our research programmes, establish our research priorities and ensure the relevant systems and protocols were in place to ensure the quality of the research we consider, to advance understanding of bowel cancer and other bowel diseases and maximize the impact of our funding. This included:
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The appointment of a new Grants Committee to consider grant applications and make recommendations for funding
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The appointment of our first Director of Research and PPI to oversee and lead the research programme
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Establishing research priorities to include diseases with significant impact, poorer outcomes and low awareness
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A monitoring system for our grant programmes through the grants management system, Wizehive
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Communicating with all current grant holders and key stakeholders regarding the launch of Bowel Research UK.
ACPGBI Annual Meeting
The charity was once again delighted to be part of the ACPGBI Annual Meeting. This year’s virtual event saw a range of world class experts presenting the latest news, developments and sharing scientific content. The BDRF Lecture given by Prof Simon Bach, was a huge success and our thanks to all those involved.
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BOWEL DISEASE RESEARCH FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
WHAT IS THE CHARITY DOING TO COMBAT BOWEL CANCER AND BOWEL DISEASE?
Fundraising
During 2020 the Coronavirus pandemic led to many restrictions on day to day life which has led to the first decrease in our year on year growth. The new charity Bowel Research UK combines the expertise of the teams of both Bowel Disease Research Foundation and Bowel & Cancer Research.
During the year our fundraising income was £162,771 ( 2019 – £520,946 ). Costs of fundraising, including salaries, totalled £40,977 ( 2019 £78,023 ). As a charity we have limited overheads so that we can invest as much as possible in research and growing our charity.
The most significant drop in our income relates to Trust income £150,825 ( 2019- £441,026 ). Many Trusts diverted their funds to support the pandemic crisis and the majority of awards were given to charities supporting work in communities and the charity NHS together.
Following the launch of Bowel Research UK in September 2020 all fundraising activity is now directed via the parent company. All research will now be awarded by Bowel Research UK.
Fundraising note
Fundraising activities for the charity are carried out by charity staff with assistance from volunteers with the running of specific fundraising events. All fundraising activities are monitored by the Fundraising Committee, with oversight by members of the governing body.
No complaints relating to fundraising activities have been received by the charity during this financial period. However, the charity has in place procedures that would be followed in the event of a complaint being received with the initial response being the responsibility of the Chief Executive. Any continuing issues would then be passed to the governing body to determine what further action might be required.
We are registered with the Fundraising Regulator, demonstrating our commitment to good fundraising practice. We are committed to abide by the Fundraising Regulator’s Code of Fundraising Practice and to the Fundraising Promise and we are authorised to use the Fundraising Regulator badge on our fundraising materials.
We are very aware of our obligations to the public in this area and we are vigilant in our fundraising activities to ensure that there is no intrusion on people’s privacy or any undue pressure applied. All communications from the charity include details of how to be removed from any future mailing lists.
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BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
WHAT IS THE CHARITY DOING TO COMBAT BOWEL CANCER AND BOWEL DISEASE? (continued)
Collaborations
The charity welcomes and values opportunities to collaborate and partner with other charities and organisations who have similar aims and objectives. As Bowel Research UK we look forward to engaging with charities working in the area of bowel cancer and other bowel diseases including Pseudo Obstruction Research Trust (P.O.R.T), with whom we have a long standing relationship.
PLANS FOR FUTURE PERIODS
The launch of Bowel Research UK on the 29th September 2020 offered the opportunity to mark the important contribution the founding charities have made to improving the outlook for those diagnosed and living with bowel cancer and bowel disease alongside announcing our commitment to changing radically the landscape and ultimately the outlook for current and future generations. Bowel Research UK will take forward a cutting edge research programme which will include the launch of a new research strategy and significant investment in priority areas.
As part of these plan’s Bowel Disease Research Foundation annual accounts have not been prepared on a going concern basis.
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BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
FINANCIAL REVIEW AND RESERVES POLICY
Income
Voluntary income during the period totalled £162,771 ( 2019 - £520,946 ). With income from Government grants included, total incoming resources was £167,675 ( 2019 - £520,946 ).
Details of the charity’s sources of income for the year can be seen on page 6.
Reserves
On the 30[th] September 2020, the Trustees of Bowel & Cancer Research and Bowel Disease Research Foundation launched Bowel Research UK a CIO, charity number 1186061. The reserves of Bowel Disease Research Foundation were transferred to Bowel Research UK. The reserves policy of the new charity has been reviewed in light of market situation around the pandemic.
Sources of Funds
The charity relies upon voluntary income and receives no income from statutory contracts. Our fundraising strategy has been developed to deliver a broad base of voluntary income which is not over reliant on any single source of fundraising or any single donor. During the year the Charity signed up the Coronavirus Job Retention scheme.
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BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution
The charity is a Company Limited by Guarantee, its governing document is the Memorandum and Articles of Association, dated 21 June 2007, and it is a registered charity (No. 1120460). The company number is 06309182.
Bowel Research UK became a member 8[th] June 2020.
Structure
Bowel Research UK as the ultimate member of the charity has a new constitution and all governance procedures have been reviewed and amended as necessary. All sub committees operate as part of the parent charity, full details can be found within their annual accounts.
Organisational Management
During 2020 all members of staff moved over to Bowel Research UK by way of Transfer of Undertaking (Protection of Employment) Regulations 2006.
Risk Management
The charity risk management is managed by the Trustees of Bowel Research UK.
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BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
OBJECTS, AIMS AND PUBLIC BENEFIT
OBJECTS
The general charitable objects as stated in the Memorandum and Articles of Association:
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a) The relief of patients suffering from bowel disease
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b) The promotion of research into the causes, prevention and treatment of diseases of the ileum, colon and rectum
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c) The advancement of studies of biological clinical problems, research, education and treatment
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d) The promotion and advancement of education of the general public relating to bowel disease
AIMS
Bowel Research UK is funding life changing research into bowel cancer and other bowel diseases. Every year over 16,000 people die from bowel cancer in the UK and over a million suffer from bowel disease. By researching cutting edge treatments and investing in the best science, we’re saving and improving people’s lives. Let’s end bowel cancer and bowel disease.
PUBLIC BENEFIT
In November 2019 the Trustees announced their intention to join forces with the charity Bowel & Cancer Research. With a shared commitment to investing in our scientific and medical communities and combining expertise whilst reducing overheads and operating costs, we believe that the public will benefit from enhanced research programmes and that a cure for bowel cancer and effective treatments to mitigate, or entirely eradicate, other bowel diseases are entirely possible in the future. The Trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011.
RELATED PARTIES
Relationships and transactions with related parties are recorded as they occur. A register of declared interests is maintained by the Board and reviewed at each meeting. Please see note 17 of these financial statements for details of relationships and transactions with related parties during the year.
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BOWEL DISEASE RESEARCH FOUNDATION
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees (who are also Directors of Bowel Disease Research Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the Trustees on 26 October 2021 and signed on its behalf by
Asha Senapati (Chair of Trustees)
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BOWEL DISEASE RESEARCH FOUNDATION
INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
Independent examiner's report to the trustees of Bowel Disease Research Foundation
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2020, which are set out on pages 14 to 34.
This report is made solely to the charitable company’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the charitable company’s trustees as a body in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the charitable company’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The financial statements have been prepared on a basis other than going concern as the trade and assets were transferred to Bowel Research UK on 30 September 2020.
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BOWEL DISEASE RESEARCH FOUNDATION
INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
Independent examiner's report to the trustees of Bowel Disease Research Foundation (continued)
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Tara Westcott FCCA Crowe U.K. LLP 4[th] Floor St James House St James’ Square Cheltenham Gloucestershire GL50 3PR Date: 27 October 2021
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BOWEL DISEASE RESEARCH FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2020
| Year ended | Year ended | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | 31 December | 31 December 2019 | ||
| funds | funds | 2020 | (restated) | ||
| Total | Total | ||||
| Note | £ | £ | £ | £ | |
| INCOME FROM: | |||||
| Donations and legacies | 4 | 159,571 | 3,200 | 162,771 | 520,946 |
| Government Grants | 5 | 4,904 | - | 4,904 | - |
| Total | 164,475 | 3,200 | 167,675 | 520,946 | |
| EXPENDITURE ON: | |||||
| Raising funds | 6 | 40,977 | - | 40,977 | 78,023 |
| Charitable activities | 6 | 253,421 | - | 253,421 | 563,756 |
| Total | 294,398 | - | 294,398 | 641,779 | |
| Net income / | (129,923) | 3,200 | (126,723) | (120,833) | |
| (expenditure) | |||||
| Transfer between funds | 14B | 3,200 | (3,200) | - | **- ** |
| Transfer to Bowel | |||||
| Research UK | (139,410) | (22,930) | (162,340) | - | |
| Net movement in funds | (266,133) | (22,930) | (289,063) | (120,833) | |
| total | |||||
| Reconciliation of funds | |||||
| Total funds brought | 14B/C/D | 266,133 | 22,930 | 289,063 | 409,896 |
| forward | |||||
| Total funds carried | 14B/C/D | - | - | - | 289,063 |
| forward |
The notes on pages 18 to 34 form part of these financial statements.
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BOWEL DISEASE RESEARCH FOUNDATION
BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2020
| Note 31 December 2020 FIXED ASSETS £ £ Intangible Assets 10A Tangible Assets 10B CURRENT ASSETS Debtors 11 - Cash at bank and in hand - - CREDITORS: amounts falling due within one year 12 -- NET CURRENT ASSETS - TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: amounts falling due after more than one year 13 TOTAL NET ASSETS FUNDS OF THE CHARITY Restricted funds 14B Unrestricted funds Designated Funds 14C 14D |
31 December 2019 (restated) £ £ - 1,885 - - 1,026 2,911 89,252 804,625 893,877 (527,634) - 366,243 - 369,154 - (80,091) - 289,063 - 22,930 - - - 257,018 9,115 289,063 |
|---|---|
The charity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordance with section 476 of The Companies Act 2006. The Trustees acknowledge their responsibilities for complying with the requirements of the act with respect to accounting records and the preparation of financial statements. The financial statements have been prepared in accordance with provisions applicable to companies subject to the small companies’ regime.
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BOWEL DISEASE RESEARCH FOUNDATION
BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2020
Balance Sheet (continued)
The financial statements were approved and authorised for issue by the Trustees and were signed on 26 October 2021 on their behalf by
Asha Senapati, (Chair of Trustees)
Company Number: 06309182
The notes on pages 18 to 34 form part of these financial statements.
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BOWEL DISEASE RESEARCH FOUNDATION
STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2020
| Year ended | Year ended | ||
|---|---|---|---|
| 31 December | 31 December | ||
| 2020 | 2019 (restated) | ||
| Note | Total | Total | |
| £ | £ | ||
| Cash flows from operating activities: | |||
| Net cash provided by operating activities | 15 | (371,492) | 166,199 |
| Cash flows from investing activities | |||
| Purchase of tangible fixed assets | - | (2,154) | |
| Fixed Assets transferred to Bowel Research UK | 1,026 | - | |
| Transfer of net assets to Bowel Research UK | (434,159) | - | |
| Net cash used in investing activities | (433,133) | (2,154) | |
| Change in cash and cash equivalents in the | |||
| reporting period | 16 | (804,625) | 164,045 |
| Cash and cash equivalents at the beginning of the | |||
| reporting period | 16 | 804,625 | 640,580 |
| Cash and cash equivalents at the end of the | |||
| reporting period | 16 | - | 804,625 |
The notes on pages 18 to 34 form part of these financial statements
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. CHARITY INFORMATION
Bowel Disease Research Foundation is registered in England as an incorporated charity limited by guarantee with Companies House (registered no. 06309182) and Charity Commission (registered no. 1120460). The address of its registered office is 35-43 Lincoln’s Inn Fields, London, WC2A 3PE.
2. ACCOUNTING POLICIES
(a) Basis of accounting
The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019 - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Companies Act 2006 and Charities Act 2011.
Bowel Disease Research Foundation meet the definition of a public benefit entity under FRS 102.
(b) Going concern
We draw attention to note 19 to the financial statements which explains that the Trustees intend to liquidate the Charity and therefore do not consider it to be appropriate to adopt the going concern basis for accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern.
(c) Income
Income received by way of donations and legacies is recognised in the Statement of Financial Activities once the charity has entitlement to the resources and once the Trustees have probability that the resource will be received and when the monetary value can be measured with sufficient reliability.
Grants from government bodies are received for specific projects/costs and are recognised in accordance with their individual terms and conditions. Income is recognised when the Charity has entitlement to the funds which is when any performance conditions are met, it is probable that the income will be received and the amount can be reliably measured. Grant income will be deferred if received in advance of meeting performance conditions or if the funder specifically states that the income may be spent in a future accounting period.
(d) Expenditure
Expenditure is recognised in the year which it is incurred.
Expenditure on raising funds are those incurred in seeking voluntary contributions and raising investment income.
Charitable activities are those costs incurred in funding research posts, by way of reimbursement of salary, other employment costs, materials and laboratory costs.
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. ACCOUNTING POLICIES (continued)
(d) Expenditure (continued)
Governance costs are those incurred in connection with constitutional and statutory requirements of the charity and are included within support costs.
Expenditure is allocated to the category to which they relate or where relevant are apportioned based on time spent.
Termination payments are calculated based on contractual basis and reflect length of service of the employee.
Irrecoverable VAT is charged against the category of expenditure for which it was incurred.
(e) Grants
Expenditure on all grants is recognised once the charity has made an unconditional commitment to pay the grant and this is communicated to the beneficiary. The maximum period that grants are given over is 5 years.
(f) Debtors
Other debtors and accrued income are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
(g) Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions.
(h) Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
(i) Funds
The restricted funds comprise donations and grants given by the donors for specific purposes.
Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the charity. The details of the restrictions can be found in note 14B.
Designated funds are ring-fenced funds set aside by the Trustees for specific purposes.
j) Taxation
As a registered charity, the entity is entitled to taxation exemptions on all its income and gains, properly applied for its charitable purposes.
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. ACCOUNTING POLICIES (continued)
(k) Pensions
Bowel Disease Research Foundation was a participating employer in the Superannuation Arrangements of the University of London (SAUL) and accounts for its participation in SAUL as if it were a defined contribution scheme and pension costs are based on the amounts actually paid (i.e. cash amounts) in accordance with paragraphs 28.11 of FRS102. During 2020 the Trustees executed the right to terminate membership of the scheme as the staff were transferred to Bowel Research UK. See note 18 for further details).
(l) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Investments are recognised at fair value.
(m) Intangible Fixed Assets
Intangible fixed assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:
Website Development – 25% on cost.
(n) Fixed Assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. No depreciation is charged in the year of acquisition, and is allocated based on the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis: Computer Equipment – 33% straight line.
(o) Significant estimates and judgements
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
- Impairment of debtors
The charity makes an estimate of other debtors. When assessing the impairment other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
- Accounting for legacies
Please refer to accounting policy (c)
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
3. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2019 (restated)
| Unrestricted | Restricted | 2019 Total | ||
|---|---|---|---|---|
| funds | funds | funds | ||
| Note | £ | £ | £ | |
| INCOME FROM: | ||||
| Donations and legacies | 4 | 276,608 | 244,338 | 520,946 |
| Total | 276,608 | 244,338 | 520,946 | |
| EXPENDITURE ON: | ||||
| Raising funds | 6 | 78,023 | - | 78,023 |
| Charitable activities | 6 | 301,298 | 262,458 | 563,756 |
| Total | 379,321 | 262,458 | 641,779 | |
| Net (expenditure)/income for the | (102,713) | (18,120) | (120,833) | |
| year | ||||
| Reconciliation of funds: | ||||
| Total funds brought forward | 14B/C/D | 368,846 | 41,050 | 409,896 |
| Total funds carried forward | 14B/C/D | 266,133 | 22,930 | 289,063 |
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 4. | DONATIONS AND LEGACIES | Year ended | Year ended |
|---|---|---|---|
| 31 December | 31 December | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Donations | 162,504 | 520,283 | |
| Legacies | 267 | 663 | |
| 162,771 | 520,946 | ||
| 5. | INCOME FROM GOVERNMENT GRANTS | ||
| Year ended | Year ended | ||
| 31 December | 31 December | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Coronavirus Job retention Scheme | 4,904 | - | |
| 4,904 | - |
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
6. ANALYSIS OF TOTAL EXPENDITURE
| Raising Funds Charitable Expenditure Funding of research Governance |
Year ended 31 December 2020 £ Year ended 31 December 2019 (restated) £ Staff Other Direct Support Costs Costs Costs Grants Total Total £ £ £ £ £ £ 38,635 2,342 - - 40,977 78,023 67,686 - 92,186 (351) 159,521 556,636 - - 93,900 - 93,900 7,120 106,321 2,342 186,086 (351) 294,398 641,779 |
|---|---|
ANALYSIS OF GOVERNANCE COSTS
| Year ended | Year ended | |
|---|---|---|
| 31 December | 31 December | |
| 2020 | 2019 | |
| £ | £ | |
| Audit and accountancy | 1,500 | 7,120 |
| Pension Costs | 92,400 | - |
| Other costs | **- ** | - |
| 93,900 | 7,120 |
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 7. GRANTS COMMITTED IN THE YEAR | Year ended | Year ended |
|---|---|---|
| 31 December | 31 December | |
| 2020 | 2019 (restated) | |
| £ | ||
| £ | ||
| Grants to Institutions | ||
| CovidSurg | 10,000 | - |
| ReCaP Project | 5,249 | - |
| Colombia University Medical Centre | - | 4,230 |
| St James’s Hospital, Leeds | - | 3,000 |
| Cambridge University Hospitals | - | 14,554 |
| University of Oxford | - | 45,000 |
| University of Newcastle | - | 72,862 |
| Countess of Chester | - | 40,000 |
| Birkbeck College, University of London | - | 31,442 |
| University of Birmingham | - | 85,484 |
| University of Sheffield | - | 9,863 |
| University of Edinburgh | - | 11,480 |
| NHS Lothian | - | 10,000 |
| University of Southampton | - | 29,899 |
| University of Warwick | - | 28,944 |
| University of the Highlands and Islands | - | 71,331 |
| University Hospitals of Leicester | - | 25,000 |
| Projects cancelled by Grant Holder | (15,600) | (7,942) |
| Total | (351) | 475,147 |
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2020 | 2019 (restated) | |
| £ | £ | |
| Reconciliation of grants payable | ||
| Commitments at 1 January 2020 | 598,921 | 240,680 |
| Commitments made in the period | 15,249 | 483,089 |
| Grants paid during the period | (122,961) | (116,906) |
| Grants withdrawn in year | (15,600) | (7,942) |
| Grant Commitments transferred to Bowel Research UK | (475,609) | - |
| Commitments at 31 December 2020 | - | 598,921 |
Full details regarding grants payable are available on our website www.bowelresearchuk.org.
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
8. ANALYSIS OF STAFF COSTS
| ALYSIS OF STAFF COSTS | ||
|---|---|---|
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2020 | 2019 | |
| £ | £ | |
| Wages and salaries | 93,036 | 81,829 |
| Social security costs | 10,546 | 6,223 |
| Other costs – pension costs | 2,739 | 19,151 |
| 106,321 | 107,203 | |
| The average headcount of persons employed by the | ||
| charitable company during the year was as follows: | ||
| Management/Fundraising/Research | 2 | 2 |
| The number of employees whose remuneration exceeded | ||
| £60,000 was | ||
| £60,000- £70,000 | 1 | 1 |
Robert Arnott, a Trustee received payment of £425 during the year as reimbursement for expenses.
| Year ended | Year ended | |
|---|---|---|
| 31 December | 31 December | |
| 2020 | 2019 | |
| £ | £ | |
| The remuneration of the key management personnel | 80,424 | 88,052 |
| was: | ||
| This includes the salaries of the CEO and the Director | ||
| of Fundraising |
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
9. NET (INCOME) / EXPENDITURE FOR THE FINANCIAL PERIOD
Net (income)/expenditure are stated after charging:
| Year ended | Year ended | |
|---|---|---|
| 31 December | 31 December | |
| 2020 | 2019 | |
| £ | £ | |
| Auditor’s remuneration | 1,250 | 3,500 |
| Accountancy | - | 3,620 |
| Depreciation | - | 734 |
| 10A. INTANGIBLE FIXED ASSET | 2020 | |
| £ | ||
| Cost | ||
| At 1 January 2020 | 2,154 | |
| Additions | - | |
| Impairment | (2,154) | |
| At 31 December 2020 | - | |
| Amortisation | ||
| At 1 January 2020 | 269 | |
| Charge for the year | - | |
| Impairment | (269) | |
| At 31 December 2020 | - | |
| Net Book Value | ||
| 31 December 2020 | - | |
| 31 December 2019 | 1,885 |
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 10B. TANGIBLE FIXED ASSET Cost At 1 January 2020 Additions Transferred to Bowel Research UK At 31 December 2020 Depreciation At 1 January 2020 Charge for the year Transferred to Bowel Research UK At 31 December 2020 Net Book Value 31 December 2020 31 December 2019 |
2020 £ 6,642 - (6,642) - 5,616 - (5,616) - - 1,026 |
|---|---|
11. DEBTORS
| Year ended | Year ended | |
|---|---|---|
| 31 December | 31 December | |
| 2020 | 2019 | |
| £ | £ | |
| Other debtors | - | 83,982 |
| Accrued income | - | 5,270 |
| - | 89,252 |
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
12. CREDITORS : amounts falling due within one year
| Year ended | Year ended | ||
|---|---|---|---|
| 31 December | 31 December | ||
| 2020 | 2019 (restated) | ||
| £ | £ | ||
| Trade creditors | - | 231 | |
| Accruals | - | 6,594 | |
| Social Security and other taxes | - | 1,979 | |
| Grants payable | - | 518,830 | |
| - | 527,634 | ||
| 13. | CREDITORS : amounts falling due after more than one | ||
| year | |||
| Year ended | Year ended | ||
| 31 December | 31 December | ||
| 2020 | 2019 (restated) | ||
| £ | £ | ||
| Grants payable | - | 80,091 |
13. CREDITORS : amounts falling due after more than one year
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
14A. NET ASSETS OF THE FUNDS OF THE CHARITY
The charity’s net assets belong to the various funds as follows:
| Fixed Assets Net As at 31 December 2020 £ Restricted funds Designated funds Unrestricted funds - - - Total - As at 31 December 2019 (restated) Restricted funds Designated funds Unrestricted funds - - 2,911 Total 2,911 4B. RESTRICTED FUNDS: MOVEMENTS IN THE PERIOD For the year ended 31 December 2020 1 January 2020 (restated) Income £ £ Robin Charitable Trust 11,000 - Nasbo Project Funding 1,880 - David and Ruth Lewis CT 3,000 - Ileostomy Association & Kingston Trust Elf Study – Miscellaneous Trusts Miscellaneous Trusts 50 7,000 - - - 3,200 Total 22,930 3,200 |
Current Assets Long Term Liabilities Fund Balances £ £ £ - - - - - - - - - - - - 59,922 9,115 297,206 (36,992) - (43,099) 22,930 9,115 257,018 366,243 ( 80,091) 289,063 Expenditure Transfers 31 December 2020 £ £ £ - (11,000) - - (1,880) - - (3,000) - - - - (50) (7,000) (3,200) - - - - (26,130) - |
|---|---|
14B. RESTRICTED FUNDS: MOVEMENTS IN THE PERIOD
The Transfer of miscellaneous trusts for £3,200 were funds donated to grants that had previously been approved. The remainder of the transfers represent the funds being transferred to Bowel Research UK, the restricted fund transfers relate to income raised against existing grant commitments.
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
14B. RESTRICTED FUNDS: MOVEMENTS IN THE YEAR (continued)
| For the year ended 31 December 2019 (restated) 1 January 2019 £ Robin Charitable Trust 11,000 David and Ruth Lewis CT 23,000 Illostemy and Kingston Trust 50 Miscellaneous Trusts – ELF Study 7,000 Intuitive - Steel CT Kilpatrick Fraser CT - - Benesco CT Royal College of Surgeons - - Whitwam Family CT - Total 41,050 |
Income Expenditure Transfers 31 December 2019 £ £ £ £ - - - 11,000 25,000 - (45,000) 3,000 141,862 - (141,862) 50 - - - 7,000 41,279 - (41,279) - 10,000 4.050 - - (10,000) (4,050) - - 10,000 2,500 - - (10,000) (620) - 1,880 9,647 - (9,647) - 244,338 - (262,458) 22,930 |
|---|---|
Donors of the above funds directed the income specifically to the grants within the funding requests sent out by BDRF. Where funds are carried forward these will be directed as to their specific requests next year.
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
14C. UNRESTRICTED FUNDS: MOVEMENTS IN THE PERIOD
| For the year ended 31 December 2020 1 January 2020 (restated) £ General funds 257,018 |
Income Expenditure £ £ 164,475 (294,398) |
Transfer 31 December 2020 £ £ (127,095) - |
|---|---|---|
General funds comprise those funds which the Trustees are free to use in accordance with the charitable objects. The transfer represents the funds being transferred to Bowel research UK.
| For the year ended 31 December 2019 (restated) 1 General funds |
January 2019 £ 359,731 |
Income Expenditure £ £ 276,608 (379,321) |
Transfer 31 December 2019 £ £ - 257,018 |
|---|---|---|---|
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
14D. DESIGNATED FUNDS: MOVEMENTS IN THE PERIOD
| For the year ended 31 December 2020 1 January 2020 £ Vision 2020 9,115 ds have been transferred to Bowel Research For the year ended 31 December 2019 1 January 2019 £ Vision 2020 9,115 |
Income Expenditure Transfer 31 December 2020 £ £ £ £ - - (9,115) - UK at the time of the balance sheet hive up. Income Expenditure Transfer 31 December 2019 £ £ £ £ - - - 9,115 |
Income Expenditure Transfer 31 December 2020 £ £ £ £ - - (9,115) - UK at the time of the balance sheet hive up. Income Expenditure Transfer 31 December 2019 £ £ £ £ - - - 9,115 |
|---|---|---|
The funds have been transferred to Bowel Research UK at the time of the balance sheet hive up.
Vision 2020 Vision is a research prioritisation exercise being run by colorectal surgeons, members of the pubic and patients across Britain, Europe, America, Australia and New Zealand. BDRF has allocated a £10,000 budget toward facilitating this project.
15. RECONCILIATION OF NET INCOME/ (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITES
| Year ended | Year ended | |
|---|---|---|
| 31 December | 31 December | |
| 2020 | 2019 (restated) | |
| £ | £ | |
| Net income for the reporting period (as per | (285,683) | (120,833) |
| statement of financial activities) | ||
| Depreciation/Amortisation charges | 1,885 | 734 |
| Decrease/(Increase) in debtors | 10,608 | (72,340) |
| (Decrease)/Increase in creditors | (98,302) | 358,638 |
| Net cash provided by operating activities | (371,492) | 166,199 |
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
16. ANALYSIS OF NET FUNDS
| 1 Cash at Bank and in Hand |
January 2020 £ 804,625 |
Cash 31 December Flows 2020 £ £ (804,625) - |
|---|---|---|
17. RELATED PARTY TRANSACTIONS
Paul Reynolds, Asha Senapati and Richard Pertwee are also Trustees of Bowel Research UK and Bowel & Cancer Research. During the year £424.86 was paid as reimbursement of expenses to Robert Arnott who was a Trustee before resigning.
18. PENSION
The Trustees of BDRF reviewed the outstanding liability on the SAUL pension scheme. The section 75 debt (debt on withdrawal) was estimated by Mercer to be £84,000. On the back of this, the Trustees decided to remove the Charity’s open liability. This decision was taken on the back of specialist advice provided by a financial adviser and accountant who carried out the due diligence report on BDRF. The two active members of staff in the scheme were provided alternative pension arrangements. Taking this action enabled a much easier transition into the new organisation. It also worth noting that the Trustees negotiated a reduced fee (legal and actuarial) which came in a £7,000 plus VAT (versus the total cost of nearly £14,000 plus VAT).
19. TRANSFER OF ASSETS
On 30 September 2020 the trade and assets were transferred to Bowel Research UK. The net transfer of £162,340 comprised tangible fixed assets £1,026, debtors £78,644, cash at bank £592,062, creditors £33,783 and grant commitments of £475,609.
20. ULTIMATE CONTROLLING PARTY
From 8[th] June 2020 Bowel Research UK acquired control of the Charity by virtue of a signed Hive Up agreement. Bowel Research UK is a Charitable Incorporated Organisation registered in England and Wales with Charity Commission number 1186061. Consolidated financial statements are available from the registered office address; C/O Royal College of Surgeons, Lincoln’s Inn Fields, London, WC2A 3PE.
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BOWEL DISEASE RESEARCH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
21. PRIOR YEAR ADJUSTMENT
It was identified that grant commitments were not being recognised as a balance sheet liability at the point the commitment existed. There is a number of multi year grants which the charity had committed to, but only the payments falling due within one year had been recognised. No conditions exist which would limit the existence of the commitment. As a result a prior year adjustment has been recognised to ensure the grant creditors are recognised in full, in the period they were committed.
Grant commitments brought forward at 1 January 2019 have increased by £36,104.
Grant commitments made during 2019 have increased by £43,987. Grant commitments made during 2020 have reduced by £80,091.
Reconciliation of reserves
Restricted funds (as previously stated) Recognise grants committed Restricted funds (as restated) Unrestricted funds (as previously stated) Recognise grants committed Unrestricted funds (as restated) |
At 1 January 2018 At 31 December 2018 At 31 December 2019 6,425 63,488 59,922 (5,075) (22,438) (36,992) 1,350 41,050 22,930 228,858 373,397 300,117 (31,029) (13,666) (43,099) 197,829 359,731 257,018 |
|---|---|
This is in line with the charity’s accounting policy for recognising grants, as explained in note 1(e).
34