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2022-12-31-accounts

Trustees Report & Financial Statements for the year ended December 31 2022

Registered Charity no. 1127115 Company Limited by Guarantee no. 05780068

Reducing the global burden of pulmonary hypertension

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Chair's statement 2 - 3
Trustees' report 4 - 10
Independent auditors' report on the financial statements 11 - 14
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18 - 41

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 December 2022

Trustees

Professor P A Corris, Chair Professor M Wilkins, Treasurer Professor P M Hassoun (appointed 22 June 2022) Professor A R Hemnes (appointed 22 June 2022) Professor A A A Patel (appointed 8 August 2022) Sir A W G Wylie Professor S Rich (resigned 17 November 2022) Sir D Melville (resigned 19 January 2022)

Company registered number

05780068

Charity registered number

1127115

Registered office

Work.Life, 5 Tanner Street, London, United Kingdom, SE1 3LE

Company secretary

Mrs S R Barwick (resigned 21 July 2022) Ms K Osborn (appointed 26 August 2022)

Chief executive officer

Mrs S R Barwick (resigned 21 July 2022) Ms K Osborn (appointed 17 August 2022)

Independent auditors

Kreston Reeves LLP, 37 St Margaret's Street, Canterbury, Kent, CT1 2TU

Bankers

HSBC Bank plc, 9 Rose Lane, Canterbury, Kent, CT1 2JP

Handelsbanken, Ground Floor, St Andrew's House, Station Road East, Canterbury, Kent, CT1 2BJ

President 2020-22

Professor Werner Seeger

President Elect

Professor Kurt Stenmark

Page 1

Pulmonary Vascular Research Institute

(A company limited by guarantee)

From the Chair and Chief Executive: Reflections on 2022 for the year ended 31 December 2022

We are delighted to introduce this report and share with you some of the successes of the last year, as well as have the opportunity to thank our global network of pulmonary hypertension clinicians, academics, regulators and Pharma partners.

As the world began to recover from the trials and challenges of the pandemic, one of the highlights of 2022 was our first post-COVID Congress in Athens in July. It was a joyous event, bringing together old friends and new contacts, and our grateful thanks go to President Werner Seeger and his committee for putting together a fantastic scientific programme that was widely appreciated and referenced in post-conference dispatches.

At the Congress we said goodbye to our long-serving CEO, Stephanie Barwick. Steph helped grow the charity into the vibrant global network it is today, and we thank her for her dedication, energy and commitment to the goals of PVRI. Stuart Rich also stepped down from the Board in September 2022. Stuart was one of the founding members of PVRI and instrumental to the success of this organisation from its early years. His immense experience and contributions will be sorely missed.

Sharing knowledge and insight is key to our mission of reducing the global burden of pulmonary hypertension. The webinars started during the pandemic proved so successful that they are now part of our core educational offer, and our sincere thanks go to Patricia Thistlethwaite for devising the fantastic programme that ran throughout 2022. During the year we were delighted to add a new monthly Community Call to our digital learning portfolio. The ‘Calls’ are informal interactive sessions where guest authors discuss their recently published research, and they already have a strong following in the PH community. Thanks go to Jason Weatherald, Katrina Barry and their team for making them an immediate success. The ethos of collaboration and inclusiveness runs throughout the PVRI, but it really shines though in this work. It’s impossible to name all the speakers, moderators, panellists and other volunteers who pull together to produce such a consistently high quality scientific contribution.

The PVRI’s unique strength is to pull together the skills, ambitions, knowledge and energy of a vast global network of individuals with a common interest in pulmonary hypertension. Nowhere is this seen more clearly than in our Task Forces and Innovative Drug Development Initiative (IDDI). We were delighted to see some of our nine regional Task Forces re-launch face-to-face scientific meetings in 2022 and were pleased to provide support where we could. More are planned for 2023, and we look forward to hearing about the impact of their work on the diagnosis and management of pulmonary hypertension across the globe. Our nine specialism Task Forces also continued to collaborate, meet, run webinars and publish papers on key issues in pulmonary vascular disease during the past year. Our IDDI workstreams published research and position papers, and two have developed global surveys which will launch in the coming year. Both surveys have the potential to add greatly to our understanding of access to pulmonary hypertension diagnosis and care and the life of patients with pulmonary hypertension. We look forward to sharing the findings with you and want to express our huge thanks to the IDDI leadership team of Raymond Benza, Peter Fernandes, Sylvia Nikkho and Mark Toshner; we are grateful for their expertise and their tireless work in leading the workstreams. We also owe a debt of thanks to the co-chairs and members of all our Task Forces and workstreams – too many to mention here, but without them much of our work simply could not happen – a thank you to all of you.

Our journal, Pulmonary Circulation , continued to flourish last year under the care of Chief Editors Jason Yuan and Anna Hemnes, supported by our Operations Director, Michael Brown. The world of academic publishing is undergoing major change: new marketing models have led to an exponential increase in the number of titles, and the growth of AI and bot-produced papers has brought new challenges for serious journals. Huge thanks go to Jason, Anna and the whole editorial team for steering us through these choppy waters with such skill and energy!

Another source of pride in 2022 was PVRI GoDeep: our deep phenotyping meta-registry, run from Justus-Liebig University in Germany by our immediate past President, Werner Seeger. GoDeep has grown steadily in the four years since inception, and we are now starting to see the power and utility of large datasets for informing real-life medicine. This is just one example of how the PVRI contributes new knowledge from a global and diverse constituency of people engaged with pulmonary hypertension in a way that few others can do. We congratulate Werner and his team, and look forward to the next phase.

Page 2

Pulmonary Vascular Research Institute

(A company limited by guarantee)

From the Chair and Chief Executive: Reflections on 2022 (continued) for the year ended 31 December 2022

In December 2022 Werner stood down as PVRI President after three years in the role. Werner not only launched GoDeep and delivered two great scientific meetings, but he showed inspirational leadership throughout the pandemic years, and we owe him a great debt of gratitude. And finally at the start of a new year, we are delighted to welcome our new President, Kurt Stenmark, who will lead our network of 10,000 members in the year ahead. We can’t wait!

Professor P A Corris (Chair) Date: 17 July 2023

Ms K Osborn (Chief Executive Officer)

Page 3

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Trustees' report for the year ended 31 December 2022

The Trustees present their Annual Report together with the audited financial statements of Pulmonary Vascular Research Institute for the year 1 January 2022 to 31 December 2022.

The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).

Since the charitable company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

Objectives and Activities

The PVRI’s objects are to promote knowledge and stimulate new ideas in the field of cardiopulmonary medicine by fostering multidisciplinary approaches, collaboration and communication across the science spectrum. Its aim is to reduce the global burden of pulmonary vascular disease within the next 20 years. Its impact will be measured in the benefit it brings to individuals living with pulmonary vascular disease, the clinicians who treat them, the scientists researching the disease, and whole country-wide healthcare systems.

When reviewing the Charity’s objectives and planning future activities, the Trustees refer to Charity Commission guidance on public benefit and confirm that all PVRI’s activities are undertaken to further our charitable purposes for public benefit, in accordance with Section 17 of the Charities Act 2011.

a. Policies and objectives

The policies and objectives adopted by the Charity are as follows -

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities.

The objectives of the Charity are set out above and all of these benefit the public in one way or another. The investigation into pulmonary vascular disease is aimed to benefit the public's health when struck with this disease. The improvement of knowledge, treatment and promotion of research worldwide will again provide a benefit to health care both nationally and worldwide.

Page 4

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 December 2022

b. Activities for achieving objectives

The Charity will address its objectives primarily by the establishment of focused Task Forces that will design and conduct projects across the broad spectrum of research, education and clinical care related to pulmonary vascular disease. The activities of the Charity include, but are not limited to, the following:

c. Grant making policies

The Trustees decide periodically how to apply the Charity's incoming resources in accordance with the terms of its constitution.

Achievements and performance

a. Review of activities

The PVRI’s mission is to promote knowledge and stimulate new ideas in the field of cardiopulmonary medicine by fostering multidisciplinary approaches, collaboration and communication across the science spectrum. Its aim is to reduce the global burden of pulmonary vascular disease within the next 20 years. To achieve these objectives, it carries out several activities.

International scientific meetings

When COVID restrictions began to ease in early 2022, we were delighted to be able to re-launch our face-to-face Annual Congress with a highly successful meeting in Athens in July 2022. The Congress was attended by 350 delegates from 30 countries and was a wonderful opportunity to meet up with old friends and build new relationships.

Future plans include the post-COVID re-launch of our Annual Drug Discovery and Development Symposia in summer 2023 with a meeting in Bethesda, USA. The Annual Congress will then revert to its previous January slot, with PVRI President Kurt Stenmark planning an exciting meeting in London in January 2024.

Page 5

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 December 2022

E-learning

The provision of accessible education in pulmonary hypertension is key to PVRI’s mission, and online learning is a low-cost way to deliver this on a global scale. Our webinars began in earnest during the pandemic and continued to grow and develop during 2022. A new monthly Community Call was started during the year, hosted by Jason Weatherald and Katrina Barry. Community Calls invite researchers in to discuss their recently published papers, followed by a panel discussion with Katrina and Jason, and PVRI champions Tatiana Kudryashova and Charifa Awada. We are very grateful to all four for their insightful leadership.

A series of webinars designed by Patricia Thistlethwaite and delivered by leading global experts also ran during 2022 and continue to be available on PVRI’s website.

Plans for 2023 include another webinar series deigned by Patricia Thistlethwaite, this time including four Young Investigator Symposia to encourage promising young scientists to get involved and share research. The monthly Community Calls will continue throughout the year, and our Infection Task Force group will host a new webinar series.

Pulmonary Circulation

Pulmonary Circulation is PVRI’s peer reviewed journal. Now fully digital, it provides open access to the latest in pulmonary hypertension research to a global audience. A move from Sage to the publisher John Wiley in summer 2021 has proved successful and produced a more sustainable funding model for the journal. We were delighted to see our readership continue to grow in 2022, and to ensure this continues we have engaged additional resource for the Editorial Office to assist the journal editors to attract papers. Plans for 2023 include recruitment of a PhD student to scan preprint servers (where completed manuscripts are posted by the authors but not yet accepted for publication in a journal) to identify potential papers of interest for review by our editors. We also aim to recruit a statistician or bioinformatician to join the team of associate editors and be our ‘in-house’ statistical editor.

Workstreams and Task Forces

The PVRI’s unique strength is to pull together the skills, ambitions, knowledge and energy of a vast global network of academics, clinicians, regulators, patients and pharma, with a common interest in pulmonary hypertension and nowhere is this more evident than in our regional and specialist work groups. Our Regional Task Forces come together to define and address the relevant most pressing issues in their regions, and we look forward to learning from them, sharing their knowledge and strengthening our global network in the coming year.

A number of specialist pulmonary vascular disease Task Forces and Innovative Drug Development Initiative (IDDI) workstreams also held meetings, published papers, and delivered e-learning during 2022, and we look forward to supporting and sharing this work in the year ahead.

Next year will see the launch of two IDDI global surveys, developed by the Patient Engagement and Access to Care workstreams. Both surveys have the potential to add greatly to our understanding of access to diagnosis and care for patients with pulmonary hypertension and a life lived with this condition in all its clinical presentations. To help with this and other work in 2023, PVRI will recruit a new staff member to provide coordination, administration and project management support to the workstreams and Task Forces.

In 2022 we laid plans for introducing a new Task Force led by Reda Girgis devoted to understanding progress and opportunities in the field of lung transplantation. This will come together in 2023 to start to address some of the key challenges in this field.

Finally, we will revisit the viability of launching PVRI India. The development of this subsidiary charity was mooted by our Indian membership as a way of securing support and increasing educational and research activity in India. In 2021, PVRI secured funds from CMREF to take this work forward, but investigations were halted for 12 months in summer 2022 due to staffing changes and the complexity of the project.

Page 6

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 December 2022

Research Grants

We are indebted to our supporters for funding vital research into pulmonary hypertension in the last 12 months. Huge thanks go to the CMREF for their support of GoDeep, which aims to expand our knowledge of pulmonary hypertension on a global scale.

We are also grateful to The Dinosaur Trust for funding a bespoke research project into the role of BMPR2 gene mutation in the development of pulmonary arterial hypertension, based on ongoing studies at Justus-Liebig University.

Other plans for 2023

Following a strategic review in early 2023, the Charity aims to develop a Medical and Scientific Committee that will provide operational and scientific direction to PVRI, freeing up time for the Trustees to focus on governance issues. We will also take feedback from that review to improve our governance and systems to ensure we have a robust and resilient organisation for the immediate years ahead.

Financial review

a. Going concern

In assessing the charity's status as a going concern, the Trustees have considered a range of information in relation to the financial year ahead, including the impact of the global political and financial environment, and the charity’s own resources and known liabilities.

The Trustees consider that the Charity has adequate resources to continue operating effectively for at least 12 months, and to meet its obligations as they fall due. The financial statements have therefore been prepared on a going concern basis.

b. Reserves policy

At 31 December 2022, the Charity has reserves of £2,389,471 of which £660,867 is restricted.

In line with Charity Commission guidance (CC19), the Trustees consider it prudent to hold reserves to ensure the Charity can continue to deliver planned services, meet contractual obligations, manage unforeseen risks, and take advantage of unexpected opportunities in the year ahead.

As a global charity, the Trustees acknowledge the unpredictable nature of currency markets, and understand the potential impact of widespread political instability, the energy crisis and inflation on its income. The Trustees also acknowledge the lack of diversification in the Charity’s income streams, and its historical reliance on support from the CMREF. The CMREF are long-term supporters of the PVRI, but this US charity is coming towards the end of its funding life, having run down its capital with the planned aim of ceasing activity in the next 2 – 3 years. Moreover, global markets have affected its income, and this may challenge ongoing funding from the CMREF in 2023 and 2024. Plans are in place to diversify income streams, but in the interim, the Trustees have taken a conservative approach to reserves and feel that the current unrestricted reserves of £1.7million is appropriate to current circumstances.

Page 7

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 December 2022

c. Financial review of the year

Income and expenditure

During the year ended 31 December 2022, the Charity generated income of £199,268 (2021: £1,362,526) none of which was restricted (2021: £387,475). The charity incurred expenditure of £821,148 (2021: 1,062,495) of which £109,043 was restricted (2021: £75,665).

Towards the end of the year, it was confirmed that the 2023 and 2024 grant payments from CMREF would be reduced from $500k to $250k per year due to a fall in the funder’s investment performance. The 2023 and 2024 grants are the final two years of a 6-year award. As the grant had been recognised in full when agreed in 2019, this resulted in a correction to income of £375,564 in the year ended 31 December 2022.

Spending during 2022 was broadly in line with previous years, but appears lower due mainly to an exchange rate correction, decreasing costs by £477,439 (2021: decrease £3,020). This movement occurs as most of the charity’s cash balances are held in USD bank accounts.

The Charity ended the year in a healthy financial position, and the Trustees would like to thank our donors for their support during 2022. Our particular thanks go to the Cardiovascular Medical Research and Education Fund (CMREF) for their tremendous support during this and previous years – both for PVRI activity and for a major GoDeep research grant.

We would also like to thank The Dinosaur Trust for their support of vital research into pulmonary hypertension, and our many corporate pharmaceutical partners, who support vital activity across our network and workstreams.

d. Investment approach

The Trustees are aware that uncertainty in relation to inflation and economic growth will continue for the foreseeable future and this has been considered in the investment approach for 2023.

During the first two quarters of 2023, the emphasis will be on streamlining banking arrangements and bedding down new financial systems and controls. The accuracy of new budgeting and cashflow forecasting processes will also be tested during this time, and foreign exchange fluctuations will be monitored. At mid-year, if cash balances and cashflow forecast suggest the Charity has sufficient funds for medium to long-term investment, the Trustees will look at a range of charity-specific investment vehicles and adopt a revised Investment Policy to reflect this new approach.

Structure, governance and management

a. Constitution

The Charity is registered as a charitable company limited by guarantee and does not have any share capital. The company is constituted under the Memorandum of Association dated 12 April 2006, as amended on 31 October 2008. The company number is 05780068.

The registered charity number 1127115.

As the PVRI is both a charity and a company limited by guarantee, all Board members are directors for the purposes of company law, and Trustees for the purposes of charity law.

The objects of the charity are defined by its Articles of Association, which also set out Trustees’ powers and the permitted activities of the charity. The principal object of the Charity is the promotion and protection of good health by promoting knowledge and stimulating new ideas in the field of cardiopulmonary medicine, fostering multidisciplinary approaches, collaboration and communication across the science spectrum.

Page 8

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 December 2022

b. Method of appointment or election of Trustees

When appointing new Board members, the Trustees consider the skills or knowledge gaps and seek candidates to meet those needs. We strive to ensure that we are inclusive and diverse and represent the global communities it serves, but we are aware that this is a work in progress. Induction is provided for new Trustees, and ongoing training is offered. A Trustee Handbook is in development, which will reference Charity Commission guidance, set out Trustee roles and responsibilities and committee terms of reference, and provide background to the charity and its work.

c. Organisational structure and decision making

The Board currently comprises 6 Trustees, including world leaders in the field of pulmonary vascular disease and people with exceptional business and finance skills.

During 2022 we created a new Board sub-committee – the Remuneration Committee - which will meet on a needs-led basis. It met in December to assess the results of a staff pay review and agree a future approach to salaries: moving away from a historic bonus system towards a more transparent system of salary scales and annual cost of living reviews. A new Remuneration Policy is in development and will be introduced early in 2023.

Day to day responsibility for achieving strategic and financial aims is delegated to the Chief Executive Officer.

d. Risk Management

Overall responsibility for risk management lies with the Board of Trustees. A Risk Register is in place and is regularly reviewed by the Board. The Register identifies and ranks current and potential future risks and sets out appropriate controls and mitigations. In 2022, the main risks were a lack of income diversity, and cyber security.

To mitigate risks associated with a reliance on relatively few funding streams, income is monitored via monthly management accounts and cash flow forecasts. Reserve funds are held to cover medium and longer-term income shortfalls, and staff are pursuing opportunities to diversify income streams in the coming year.

Cyber security risk is sadly acknowledged to be part of all companies’ operating environment in the light of a general increase in UK cybercrime, with the need for vigilance and a tightly regulated data protection environment. In mitigation, we have active system backup, a support contract that includes system monitoring, appropriate policies that are regularly reviewed, staff training, and cyber insurance, including support for postincident management.

e. Related parties and connected charities

The PVRI has no related parties or connected charities.

Page 9

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 December 2022

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Approved by order of the members of the board of Trustees on 17 July 2023 and signed on their behalf by:

Professor M Wilkins Hon Treasurer

Page 10

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Independent auditors' report to the Members of Pulmonary Vascular Research Institute

Opinion

We have audited the financial statements of Pulmonary Vascular Research Institute (the 'charity') for the year ended 31 December 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 11

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Independent auditors' report to the Members of Pulmonary Vascular Research Institute (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 12

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Independent auditors' report to the Members of Pulmonary Vascular Research Institute (continued)

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety and employment law. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Statement of Recommended Practice, and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the calculation of discounted grant income. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material 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.

Page 13

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Independent auditors' report to the Members of Pulmonary Vascular Research Institute (continued)

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

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

Samantha Rouse FCCA DChA (Senior statutory auditor)

for and on behalf of Kreston Reeves LLP

Chartered Accountants Statutory Auditor

Canterbury

18 July 2023

Page 14

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) for the year ended 31 December 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
9
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
(137,894)
324,563
11,725
874
199,268
10,451
701,654
712,105
(512,837)
2,241,441
(512,837)
1,728,604		 Restricted
funds
2022
£
-
-
-
-
-
-
109,043
109,043
(109,043)
769,910
(109,043)
660,867		 Total
funds
2022
£
(137,894)
324,563
11,725
874
199,268
10,451
810,697
821,148
(621,880)
3,011,351
(621,880)
2,389,471		 Total
funds
2021 As
restated
£
1,061,100
269,761
30,204
1,461
1,362,526
8,405
1,054,090
1,062,495
300,031
2,711,320
300,031
3,011,351

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 18 to 41 form part of these financial statements.

Page 15

Pulmonary Vascular Research Institute

(A company limited by guarantee) Registered number: 05780068

Balance sheet as at 31 December 2022

2022 2021
Note £ £
Fixed assets
Tangible assets 13 58,611 75,656
Current assets
Debtors: amounts falling due after more than
one year 14 207,328 598,520
Debtors: amounts falling due within one year 14 633,458 635,274
Cash at bank and in hand 1,909,682 1,985,441
2,750,468 3,219,235
Creditors: amounts falling due within one
year 15 (419,608) (283,540)
Net current assets 2,330,860 2,935,695
Total net assets 2,389,471 3,011,351
Charity funds
Restricted funds 16 660,867 769,910
Unrestricted funds 16 1,728,604 2,241,441
Total funds 2,389,471 3,011,351

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees on 17 July 2023 and signed on their behalf by:

Professor M Wilkins

Hon Treasurer

The notes on pages 18 to 41 form part of these financial statements.

Page 16

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Statement of cash flows
for the year ended 31 December 2022
Note
Cash flows from operating activities
Net cash used in operating activities
19
Cash flows from investing activities
Bank interest received
Purchase of tangible fixed assets
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
20
The notes on pages 18 to 41 form part of these financial statements		 2022
£
(86,410)
11,725
(1,074)
10,651
(75,759)
1,985,441
1,909,682		 2021
£
754,434
30,204
(2,391)
27,813
782,247
1,203,194
1,985,441

Page 17

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

1. General information

Pulmonary Vascular Research Institute is a charitable company, limited by guarantee, incorporated in England and Wales.

The Charity's registered office is Work.Life, 7 Tanner Street, London, SE1 3LE.

The charitable activities of the charity continues to be to bring the best medical professionals in the world together in order to carry out research on pulmonary vascular disease.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS102) published on 16 July 2014 rather than the accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Pulmonary Vascular Research Institute meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Charity's functional and presentational currency is Pounds Sterling.

The Charity's financial statements are presented to the nearest pound.

2.2 Company status

The Charity is a company limited by guarantee and does not have a share capital. The members of the company are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

Page 18

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

2. Accounting policies (continued)

2.3 Going concern

The Charity's main source of income is from its charitable objectives being the receipt of donations and grants.

In order to meet its day to day working capital requirements the Charity is dependent upon these donations and grants, the nature of which can have considerable unpredictable variation in the timing of cash inflows.

After making enquires, the Trustees have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

However, the Trustees acknowledge that the Cardiovascular Medical Research and Education Fund (CMREF) has been the Charity’s main source of income since 2014. The Trustees are also aware that this fund is being wound down. Therefore, the Trustees must spend considerable efforts in identifying other sources of income which will eventually replace the income from the CMREF to ensure sufficient funds are available that allow the Charity to continue as a going concern into the future. In the year ended 31 December 2022, it was confirmed that for the 2023 and 2024, being the last 2 years of a multi year grant from CMREF, payments would be decreased from $500k to $250k per year.

2.4 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

2.5 Deferred income

Where income for membership fees in future accounting periods is reviewed in advance, it is recognised as deferred income. The amounts shown in the balance sheet in respect of the deferred income represent the amounts deferred to future accounting periods.

2.6 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support costs

Support costs include expenditures which are not directly related to project areas.

Fundraising costs

Fundraising costs are allocated based on time spent on fundraising activities.

Governance costs

Governance costs include costs relating to governance, including independent examination fees, trustee expenses, compliance fees and legal and professional fees.

Page 19

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

2. Accounting policies (continued)

2.6 Expenditure (continued)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.7 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.

2.8 Operating leases

Rentals under operating leases are charged to the Statement of financial activities incorporating income and expenditure account on a straight line basis over the lease term.

2.9 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Office equipment - 4 years straight line
Computer equipment - 3 years straight line
Other fixed assets - 10 years straight line

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 Cash at bank and in hand

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

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

Page 20

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

2. Accounting policies (continued)

2.13 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of financial activities incorporating income and expenditure account.

2.15 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 21

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

3. Income from donations and legacies

Unrestricted
funds
2022
£
Grants
Grants from CMREF and Merck
(341,645)
(341,645)
Donations from pharmaceutical industry and others
203,751
203,751
Total 2022
(137,894)		 Restricted
funds
2022
£
-
-
-
-
-		 Total
funds
2022
£
(341,645)
(341,645)
203,751
203,751
(137,894)

Grant income is a debit balance for the year ended 31 December 2022 due to the correction of a multi year grant from CMREF, for which $500k per year was initially expected to be received for the next two years, but this is now expected to be $250k per year.

£2,219,391 was recognised in the year ended 31 December 2019 in respect of the total amount of the grant.

Grants
Grants from CMREF and Merck
Donations from pharmaceutical industry and others
Donated services		 Unrestricted
funds
2021
£
110,713
110,713
521,785
41,127
562,912
673,625		 Restricted
funds
2021
£
387,475
387,475
-
-
-
387,475		 Total
funds
2021
£
498,188
498,188
521,785
41,127
562,912
1,061,100

Page 22

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

4. Income from charitable activities

Unrestricted
funds
2022
£
Registration fees of scientific meetings
142,413
Research journal
148,244
Membership income
33,906
Total 2022
324,563
Unrestricted
funds
2021
£
Registration fees of scientific meetings
9,252
Research journal
214,482
Membership income
46,027
Total 2021
269,761		 Total
funds
2022
£
142,413
148,244
33,906
324,563
Total
funds
2021
£
9,252
214,482
46,027
269,761

5. Investment income

Unrestricted
funds
2022
£
Interest received
11,725
Unrestricted
funds
2021
£
Interest received
30,204		 Total
funds
2022
£
11,725
Total
funds
2021
£
30,204

Page 23

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

6. Other incoming resources

Donations
Donations		 Unrestricted
funds
2022
£
874
Unrestricted
funds
2021
£
1,461		 Total
funds
2022
£
874
Total
funds
2021
£
1,461

7. Expenditure on raising funds Costs of raising voluntary income

Unrestricted
funds
2022
£
Wages and salaries
5,245
Contribution to defined contribution pension schemes
52
Social security costs
516
Depreciation
444
Other accountancy fees
650
Telephone, computer and internet charges
630
Printing and stationery costs
22
Office rent, service charges and office costs
1,031
Business consultancy
784
Staff training
443
Travelling and accommodation
205
Insurance
106
Bank charges
302
Repairs and renewals
21
10,451		 Total
funds
2022
£
5,245
52
516
444
650
630
22
1,031
784
443
205
106
302
21
10,451

Page 24

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

7. Expenditure on raising funds (continued)

Costs of raising voluntary income (continued)

Wages and salaries
Contribution to defined contribution pension schemes
Social security costs
Depreciation
Other accountancy fees
Telephone, computer and internet charges
Printing and stationery costs
Office rent, service charges and office costs
Staff training
Travelling and accommodation
Insurance
Bank charges		 Unrestricted
funds
2021 As
restated
£
4,566
33
424
511
361
576
41
798
619
271
105
100
8,405		 Total
funds
2021 As
restated
£
4,566
33
424
511
361
576
41
798
619
271
105
100
8,405

Expenditure has been restated in 2021 to reflect the costs being allocated based on time spent on each activity. This is a change in allocation and not total cost.

8. Analysis of grants

Travel
Grants to Grants to Total
Institutions Individuals funds
2022 2022 2022
£ £ £
Grants 388,353 12,325 400,678

Of this £4,355 of travel grants to individuals is restricted.

Page 25

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

8. Analysis of grants (continued)

Grants
Of this £1,000 of travel grants to individuals is restricted.		 Grants
2021 As
restated
£
332,629		 Travel
Grants to
Individuals
2021 As
restated
£
3,528		 Total
funds
2021 As
restated
£
336,157

9. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted
funds
2022
£
E-Learning
-
Scientific meetings, publications and other charitable
activities
237,908
Taskforce projects
21,860
Grants
396,323
Governance costs
45,563
Total 2022
701,654
Unrestricted
funds
2021 As
restated
£
E-Learning
-
Scientific meetings, publications and other charitable
activities
607,799
Grants
335,157
Governance costs
35,469
978,425		 Restricted
funds
2022
£
25,915
78,773
-
4,355
-
109,043
Restricted
funds
2021 As
restated
£
61,504
13,161
1,000
-
75,665		 Total
2022
£
25,915
316,681
21,860
400,678
45,563
810,697
Total
2021 As
restated
£
61,504
620,960
336,157
35,469
1,054,090

Page 26

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

9. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type

E-Learning
Scientific meetings, publications and other
charitable activities
Taskforce projects
Grants
Governance costs
Total 2022
E-Learning
Scientific meetings, publications and other
charitable activities
Grants
Governance costs		 Staff costs
2022
Depreciation
2022
£
£
9,991
-
200,626
16,082
-
-
-
-
20,840
1,591
231,457
17,673
Staff costs
2021 As
restated
Depreciation
2021 As
restated
£
£
-
-
181,997
18,511
-
-
18,009
1,832
200,006
20,343		 Other costs
2022
£
15,924
99,973
21,860
400,678
23,132
561,567
Other costs
2021 As
restated
£
61,504
420,452
336,157
15,628
833,741		 Total
2022
£
25,915
316,681
21,860
400,678
45,563
810,697
Total
2021 As
restated
£
61,504
620,960
336,157
35,469
1,054,090

Page 27

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

10. Analysis of expenditure by activities

E-Learning
Scientific meetings, publications and other
charitable activities
Taskforce projects
Grants
Governance costs
Total 2022
E-Learning
Scientific meetings, publications and other
charitable activities
Grants
Governance costs		 Activities
undertaken
directly
2022
£
25,915
294,076
21,860
-
-
341,851
Activities
undertaken
directly
2021 As
restated
£
61,504
602,781
-
-
664,285		 Grant
funding of
activities
2022
£
-
-
-
400,678
-
400,678
Grant
funding of
activities
2021 As
restated
£
-
-
336,157
-
336,157		 Support
costs
2022
£
-
22,605
-
-
45,563
68,168
Support
costs
2021 As
restated
£
-
18,179
-
35,469
53,648		 Total
funds
2022
£
25,915
316,681
21,860
400,678
45,563
810,697
Total
funds
2021 As
restated
£
61,504
620,960
336,157
35,469
1,054,090

Page 28

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Other accountancy fees
Telephone, computer and internet charges
Printing and stationery costs
Office rent, service charges and office costs
Legal and professional fees
Business consultancy
Staff training
Travelling and accommodation
Advertising and marketing
Insurance
Bank charges
E-learning
Exchange rate variance
Journal costs
PVRI India
Repairs and renewals
Scientific meetings
Taskforce
Total 2022		 E-learning
2022
Scientific
meetings,
publications
and other
charitable
activities
2022
£
£
9,991
188,052
-
15,122
-
22,153
-
59,957
-
733
-
35,124
6,351
130,735
-
26,709
-
15,087
-
42,328
-
21,690
-
3,887
-
10,278
9,573
-
-
(477,439)
-
14,883
-
4,886
-
699
-
179,192
-
-
25,915
294,076		 Taskforce
projects
2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,860
21,860		 Total
funds
2022
£
198,043
15,122
22,153
59,957
733
35,124
137,086
26,709
15,087
42,328
21,690
3,887
10,278
9,573
(477,439)
14,883
4,886
699
179,192
21,860
341,851

Page 29

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

10. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Staff costs
Depreciation
Other accountancy fees
Telephone, computer and internet charges
Printing and stationery costs
Office rent, service charges and office costs
Legal and professional fees
Staff training
Travelling and accommodation
Advertising and marketing
Insurance
Bank charges
E-learning
Exchange rate variance
Journal costs
Scientific meetings		 E-learning
2021 As
restated
£
-
-
-
-
-
-
-
-
-
-
-
-
61,504
-
-
-
61,504		 Scientific
meetings,
publications
and other
charitable
activities
2021 As
restated
£
171,131
17,406
12,295
19,609
1,373
27,173
132,274
21,086
19,848
60,768
3,864
3,417
-
(2,705)
13,010
102,232
602,781		 Taskforce
projects
2021 As
restated
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
funds
2021 As
restated
£
171,131
17,406
12,295
19,609
1,373
27,173
132,274
21,086
19,848
60,768
3,864
3,417
61,504
(2,705)
13,010
102,232
664,285

Expenditure has been restated in 2021 to reflect the costs being allocated based on time spent on each activity. This is a change in allocation and not total cost.

Page 30

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Scientific
meetings,
publications
and other
charitable
activities
2022
£
Staff costs
12,574
Depreciation
960
Audit
-
Other accountancy fees
1,407
Telephone, computer and internet charges
1,363
Printing and stationery costs
47
Office rent, service charges and office costs
2,230
Business consultancy
1,696
Staff training
958
Travelling and accommodation
443
Insurance
230
Bank charges
653
Repairs and renewals
44
Total 2022
22,605		 Governance
costs
2022
£
20,840
1,591
8,100
2,331
2,258
77
3,696
2,811
1,588
735
380
1,082
74
45,563		 Total
funds
2022
£
33,414
2,551
8,100
3,738
3,621
124
5,926
4,507
2,546
1,178
610
1,735
118
68,168

Page 31

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

10. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Audit
Other accountancy fees
Telephone, computer and internet charges
Printing and stationery costs
Office rent, service charges and office costs
Staff training
Travelling and accommodation
Insurance
Bank charges		 Scientific
meetings,
publications
and other
charitable
activities
2021 As
restated
£
10,866
1,105
-
781
1,245
87
1,725
1,339
587
227
217
18,179		 Governance
costs
2021 As
restated
£
18,009
1,832
5,340
1,294
2,063
144
2,859
2,219
973
376
360
35,469		 Total
funds
2021 As
restated
£
28,875
2,937
5,340
2,075
3,308
231
4,584
3,558
1,560
603
577
53,648

Expenditure has been restated in 2021 to reflect the costs being allocated based on time spent on each activity. This is a change in allocation and not total cost.

Page 32

Pulmonary Vascular Research Institute (A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

11. Net income/(expenditure)

This is stated after charging/(crediting):

2022 2021
£ £
Depreciation of tangible fixed assets:
- owned by the charity 18,119 20,854
Auditors' remuneration - audit 8,100 5,340
Auditors' remuneration - other services 26,541 14,730
Exchange rate variance (477,439) (2,705)
Operating lease rentals:- other operating leases 35,705 7,012

During the year ended 31 December 2021, P Corris, a Trustee, received consultancy fees amounting to £15,000 for his role as Chief Medical Scientific Officer. No such fee was incurred in the year ended 31 December 2022.

During the year, no Trustees received any benefits in kind (2021 - £NIL).

During the year, 7 Trustees received reimbursement of expenses totalling £23,290 (2021 - £NIL).

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
214,089
21,048
2,133
237,270		 2021
£
186,370
17,302
1,357
205,029

The average number of persons employed by the Charity during the year was as follows:

2022 2021
No. No.
Staff 4 4

Page 33

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

12. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £70,001 - £80,000 1 -
In the band £80,001 - £90,000 - 1

During the year, the total amount of employees benefits received by key management personnel for their services to the Charity is £101,301 remuneration, £13,636 in national insurance, and £440 in pension contributions (2021: £85,770 in remuneration, £10,618 in national insurance with no pension contributions).

13. Tangible fixed assets

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Office
equipment
£
6,752
-
6,752
5,466
1,286
6,752
-
1,286		 Computer
equipment
£
30,377
1,074
31,451
27,569
1,613
29,182
2,269
2,808		 Website
£
152,210
-
152,210
80,648
15,220
95,868
56,342
71,562		 Total
£
189,339
1,074
190,413
113,683
18,119
131,802
58,611
75,656

Page 34

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

14. Debtors

Due after more than one year
Grants receivable
Due within one year
Prepayments
Grants receivable
Creditors: Amounts falling due within one year
Other taxation and social security
Accruals		 2022
£
207,328
2022
£
28,503
604,955
633,458
2022
£
5,350
414,258
419,608		 2021
£
598,520
2021
£
63,732
571,542
635,274
2021
£
10,728
272,812
283,540

15. Creditors: Amounts falling due within one year

Page 35

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

16. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Rupert Swift Award fund
General funds
General Funds
Total Unrestricted funds
Restricted funds
e-learning
PC Journal
WHO-PVRI Symposium 2023
PVRI India
Total of funds		 Balance at 1
January
2022
£
53,550
2,187,891
2,241,441
38,901
417,467
168,912
144,630
769,910
3,011,351		 Income
£
5,000
194,268
199,268
-
-
-
-
-
199,268		 Expenditure
£
(4,355)
(707,750)
(712,105)
(25,915)
(68,401)
-
(14,727)
(109,043)
(821,148)		 Balance at
31
December
2022
£
54,195
1,674,409
1,728,604
12,986
349,066
168,912
129,903
660,867
2,389,471

Page 36

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

16. Statement of funds (continued)

Rupert Swift Award fund

The Rupert Swift Award Fund has been designated by the Trustees as the income represents money received by Pulmonary Vascular Research Institute in memory of Rupert Swift. The fund will be used to establish an ongoing annual award for a young and upcoming researcher to present a lecture at the Annual Congress in Rupert's memory.

e-learning

The GSK e-learning fund represents amounts received from GlaxoSmithKline for the development of online educational modules on Pulmonary Vascular Disease.

PC Journal

This is the scientific journal of Pulmonary Vascular Research institute published by the Sage publications. To support the PC journal the CMREF is providing grants to support it until it reached financial sustainability , which is projected to be in 2024.

WHO-PVRI Symposium 2023

Symposium Fund which is being conducted to increase the awareness on Pulmonary diseases and it is being conducted yearly by the PVRI.

PVRI India

A fund to create a subsidiary for PVRI in India, to increase the awareness of pulmonary vascular diseases

Page 37

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Rupert Swift Award fund
General funds
General Funds
Total Unrestricted funds
Restricted funds
e-learning
PC Journal
WHO-PVRI Symposium 2023
PVRI India
Total of funds		 Balance at
1 January
2021
£
48,550
2,204,670
2,253,220
28,086
430,014
-
-
458,100
2,711,320		 Income
£
5,000
970,051
975,051
72,319
-
168,912
146,244
387,475
1,362,526		 Expenditure
£
-
(986,830)
(986,830)
(61,504)
(12,547)
-
(1,614)
(75,665)
(1,062,495)		 Balance at
31
December
2021
£
53,550
2,187,891
2,241,441
38,901
417,467
168,912
144,630
769,910
3,011,351

Page 38

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

17. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds
Summary of funds - prior year
Designated funds
General funds
Restricted funds		 Balance at 1
January
2022
£
53,550
2,187,891
769,910
3,011,351
Balance at
1 January
2021
£
48,550
2,204,670
458,100
2,711,320		 Income
£
5,000
194,268
-
199,268
Income
£
5,000
970,051
387,475
1,362,526		 Expenditure
£
(4,355)
(707,750)
(109,043)
(821,148)
Expenditure
£
-
(986,830)
(75,665)
(1,062,495)		 Balance at
31
December
2022
£
54,195
1,674,409
660,867
2,389,471
Balance at
31
December
2021
£
53,550
2,187,891
769,910
3,011,351

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
58,611
Debtors due after more than one year
207,328
Current assets
1,882,273
Creditors due within one year
(419,608)
Total
1,728,604		 Restricted
funds
2022
£
-
-
660,867
-
660,867		 Total
funds
2022
£
58,611
207,328
2,543,140
(419,608)
2,389,471

Page 39

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

18. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year
Unrestricted
funds
2021
Restricted
funds
2021
£
£
Tangible fixed assets
75,656
-
Debtors due after more than one year
598,520
-
Current assets
1,850,805
769,910
Creditors due within one year
(283,540)
-
Total
2,241,441
769,910
19.
Reconciliation of net movement in funds to net cash flow from operating activities
2022
£
Net income/expenditure for the year (as per Statement of Financial
Activities)
(621,880)
Adjustments for:
Depreciation charges
18,119
Bank interest received
(11,725)
Decrease in debtors
393,008
Increase in creditors
136,068
Net cash provided by/(used in) operating activities
(86,410)
20.
Analysis of cash and cash equivalents
2022
£
Cash in hand
1,909,682
Total cash and cash equivalents
1,909,682		 Total
funds
2021
£
75,656
598,520
2,620,715
(283,540)
3,011,351
2021
£
300,031
20,854
(30,204)
251,217
212,536
754,434
2021
£
1,985,441
1,985,441

Page 40

Pulmonary Vascular Research Institute

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 December 2022

21. Analysis of changes in net debt

Cash at bank and in hand At 1
January
2022
£
1,985,441
1,985,441		 Cash flows
£
(75,759)
(75,759)		 At 31
December
2022
£
1,909,682
1,909,682

22. Operating lease commitments

At 31 December 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2022 2021
£ £
Not later than 1 year 5,904 -

23. Related party transactions

Consultancy fees were paid to P Corris, a Trustee, in the year ended 31 December 2021 of £15,000 for his role as Chief Medical Scientific Officer. No such fees were incurred during the year ended 31 December 2022

There were no other related party transactions other than disclosed within these financial statements.

24. Controlling party

The Charity is controlled by the Board of Trustees.

Page 41