## **Guts UK Charity**
## **Annual Report and Financial Statements**
31 December 2020
Charity Registration Number 1137029 Company Limited by Guarantee Registration Number 07274105 (England and Wales)
## **Contents**
|**Reports**||
|---|---|
|Reference and administrative information|1|
|Trustees’ report|3|
|Independent auditor’s report|32|
|**Financial statements**||
|Statement of financial activities|38|
|Balance sheet|39|
|Statement of cash flows|40|
|Principal accounting policies|41|
|Notes to the financial statements|46|
Guts UK Charity
**Reference and administrative information**
|**Royal Patron**|HRH Princess Alexandra|
|---|---|
|**Trustees**|Professor D AdamsMD FRCP FMedSci|
||Professor R Arasaradnam*MB BcH, C Clin Ed, PhD, FRCP, FEBGH|
||(EU)|
||Mrs K AuBSc(Resigned 4thMarch 2021)|
||Dr L Bradley (Appointed 29thApril 2020)|
||Mr G Christian-LimBSc|
||Professor A FordMBChB, MD, FRCP|
||Professor C HawkeyDM FRCP FMedsci– President|
||Dr M LomerMBE PhD|
||Professor J McLaughlinMBChB PhD FRCP– Deputy Chair|
||Ms S Murray (Renewed 2ndDecember 2020)|
||Professor J RhodesMD FRCP FMedSci- Chair|
||Dr P SmithBMedSci BMBS MRCP MSc– Medical Director|
||(Renewed 2ndDecember 2020)|
||Mr H TranBSc FCA– Honorary Treasurer (Resigned 30thApril|
||2020)|
||Mr S WilliamsBA ACA(Appointed 13thMarch 2020, Honorary|
||Treasurer from 1stMay 2020)|
||* nominee of the British Society of Gastroenterology (BSG)|
|**Chief Executive**|Ms J Harrington|
|**Principal** **office**|3 St Andrews Place|
||Regent’s Park|
||London|
||NW1 4LB|
|Telephone|0207 486 0341|
|Website|www.gutscharity.org.uk|
|E-mail|info@gutscharity.org.uk|
|**Company registration number**|07274105 (England and Wales)|
|**Charity registration number**|1137029|
Guts UK Charity **1**
**Reference and administrative information**
**Auditor** Buzzacott LLP 130 Wood Street London EC2V 6DL **Bankers** National Westminster Bank plc 1 Cavendish Square London W1A 4NU **Investment managers** Cazenove Capital Management 12 Moorgate London EC2R 6DA **Solicitors** Hempsons 40 Villiers Street London WC2N 6NJ
Guts UK Charity **2**
## **Trustees’ Report** 31 December 2020
The trustees present their report together with the financial statements of Guts UK Charity (“Guts UK”) for the year ended 31 December 2020. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of company legislation.
The financial statements have been prepared in accordance with the accounting policies set out on pages 41 to 45 and comply with the charitable company’s memorandum and articles of association, applicable laws and 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 United Kingdom and Republic of Ireland (FRS 102).
## **Structure, governance and management**
Guts UK is a charitable company limited by guarantee. Its governing document is its Memorandum and Articles of Association.
The trustees have overall responsibility for setting the strategic direction of the charitable company. The trustees delegate specific responsibility to several committees as follows:
- a) Audit, Risk and Compliance Committee (“ARC”) whose purpose is to oversee the operational activities of the charity covering finance, investment, audit, legal compliance, HR and risk management;
- b) Research Awards Committee (“RAC”) whose purpose is to ensure the integrity of Guts UK’s research awards and that they align with the charity’s stated objectives. The RAC is responsible for assessing, approving and monitoring applications for research funding. The RAC’s processes are governed by the Terms of Reference and committee members (including those co-opted for specific awards) are required to sign a declaration of conflicts of interests form;
- c) Funding, Communication and Industry Committee whose purpose is to deliver on Guts UK’s fund-raising programmes, ensuring engagement with patients, public, the medical profession and industry alike; and
- d) Research Strategy Committee whose purpose is to recommend areas of focus for Guts UK’s research priorities.
The policies of the charity are determined by its board of trustees whose membership is listed on page 1. The research policy of the charity is decided by the trustees in consultation with the Research Committee of the British Society of Gastroenterology (BSG). Guts UK is a member of the Association of Medical Research Charities.
Guts UK advertises for new trustees as required. Prospective trustees are interviewed by the Chairman or other fellow trustees and are asked to submit a CV for review by the trustees. Candidates must be approved by a majority of trustees and the usual term of office is three years, renewable on approval by the board up to a maximum of 9 years total.
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## **Structure, governance and management** (continued)
New trustees are provided with information concerning the finances, fundraising activities, grant-making and research policies of the charity. Those who are not familiar with the legal obligations and responsibilities of a trustee are provided with information published by organisations such as the Charity Commission. Training opportunities are offered to trustees on an ongoing basis.
Guts UK continues to work closely with the BSG to provide strong links with the main professional community and to improve its ability to disseminate research and patient information. The Chairman of the BSG’s Research Committee is a member of the board.
The day-to-day operation of Guts UK is delegated to the Chief Executive who is supported by a team of staff.
## _**Key management personnel**_
The key management personnel are those involved in managing the organisation, fundraising, communications, research and finance. These comprise the trustees, the Chief Executive and the Finance and Research Managers.
The pay of all staff members, including members of key management, is reviewed annually by the trustees. Remuneration details in relation to key management personnel are provided in Note 10 to the financial statements.
## **Risk management**
Guts UK maintain a risk register covering the major risks to which the charity is exposed. This covers governance and compliance, operational and administration, financial and investment and reputational risks.
Guts UK rates potential risks by likelihood and impact. The risk register is reviewed regularly by the trustees and the key risks together with the policies to mitigate them have been identified as:
## _**Failure to comply with GDPR regulations**_
Policies and procedures have been developed and communicated to all staff. Ongoing training is provided. Data protection is a standing item on the ARC Committee and trustee meeting agendas to ensure trustees are kept up to date with actions taken to ensure compliance with the regulations. There will be ongoing monitoring of compliance with regulations.
## _**Failure to meet strategy to increase donations**_
Management accounts are prepared and regularly reviewed by the ARC Committee to monitor fundraising performance. The fundraising strategy has been reviewed by the Chief Executive and trustees with a view to increasing the number of individual supporters and donors alongside developing different income sources to include approaching former funded researchers and gastroenterologists and industry/pharma for support. The trustees review income generation, reserves and strategy at each Board meeting to ensure the strategy is still the right one and that the charity has sufficient funds to meet it.
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**Trustees’ Report** 31 December 2020
## **Risk management** (continued)
## _**Impact of COVID-19**_
The COVID-19 Pandemic has led to some increased risks. Financial risks have increased as a result of the decline in the value of the charity’s assets and income from investments and fundraising which will affect future spending plans. The trustees will continue to monitor income and expenditure and adjust as required. Changes in operational practices which have been required, such as the move for staff to work from home, has created risks. Guts UK has taken measures to support staff working from home, including weekly virtual staff meetings held via MS Teams. No staff have been furloughed to-date. There is also the risk that the charity will not be able to hold any Science of Digestion or other public awareness events. This will affect the charity’s ability to fulfill its charitable objectives of raising awareness as well as impact on the recruitment of new supporters and fundraisers. As far as possible the public awareness programme will be converted to a digital format.
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**Trustees’ Report** 31 December 2020
## **WHO WE ARE**
Guts UK is the charity for the digestive system.
**“People are suffering. People are dying. All because of a lack of knowledge about our guts. Guts UK exists to change that. Our guts have been underfunded, understaffed and undervalued for decades. Together, we will join forces and bring about important change in this misunderstood area of health.”**
Guts UK is the only UK charity funding research into the digestive system from top to tail: the gut, liver and pancreas. Since 1971 we have funded almost 300 projects and invested nearly £16 million pounds into medical research that leads to better diagnoses and treatments for the millions of people who do not have the luxury of taking their guts for granted.
**“With new knowledge, we will end the pain and suffering for the millions affected by digestive diseases.”**
## **OUR VISION**
**A world where digestive disorders are better understood, better treated and everyone who lives with one gets the support they need.**
## **OUR MISSION**
- **Provide expert information**
- **Raise awareness of digestive diseases**
- **Fund life-changing and life-saving research**
- _**“WE’RE GETTING TO GRIPS WITH GUTS!”**_
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**Trustees’ Report** 31 December 2020
## **Objectives and activities**
Guts UK’s charitable objectives are:
- The advancement of the science and practice of medicine and surgery for the benefit of the public with particular reference to the field of gastroenterology, which includes the study of the physiology and pathology of the digestive system;
- To promote the study of and research into medicine and surgery with particular reference to the physiology and pathology of the digestive system and to ensure dissemination where appropriate of the results of such study and research;
- To provide educational material, information and advice to the general public on gastrointestinal diseases.
To achieve these objectives, Guts UK works across six areas:
- Providing evidence-based information to patients and carers that enables people to take proactive decisions and control of their lives;
- Supporting medical research that increases our understanding of digestive diseases, leading to better diagnosis and treatment and improved outcomes for patients;
- Funding research training fellowships for clinicians and scientists to allow them to pursue academic gastroenterology and to enable the development of future researchers;
- Hosting scientific research symposia as part of the BSG Annual Meeting;
- Giving general advice and signposting to other organisations;
- Raising awareness of digestive health and the science surrounding it to increase public understanding.
When setting the objectives and planning the work of Guts UK for the year, the trustees give careful consideration to the Charity Commission’s general guidance on public benefit.
The trustees always ensure that the activities undertaken are in line with the charitable objectives and aims of Guts UK. As highlighted in this report, we are continuing to develop our information provision and public education programme thereby helping the general population to better understand digestive diseases.
Digestive diseases include diseases and disorders of the oesophagus, stomach and intestines, colon and rectum, liver, gall bladder, bile ducts, and pancreas; including inflammatory, neoplastic and functional disorders.
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## **Achievements and performance**
## _**A) Research strategy**_
In 2020 we updated our research strategy with the main aim being to support research that can make a difference to patients affected by digestive disorders.
## WHY IS RESEARCH IMPORTANT?
We renewed our commitment to focus on areas we believe are less well-resourced than other gastrointestinal (GI) disease areas and where our funding can make a meaningful difference for patients.
## **Priority areas**
- Upper gastrointestinal disease such as GastroOesophageal Reflux Disease (GORD) and Barrett’s oesophagus
- Diverticular disease
- Pancreatitis
- Irritable Bowel Syndrome (IBS)
- Childhood gut, liver and pancreatic diseases
- Gut microbiome and nutrition
- Less survivable digestive cancers: stomach, oesophageal, pancreatic and liver.
We will continue to support the development of future leaders in academic gastroenterology and research training for the next generation of clinical and non-clinical science professionals.
Investment in medical research keeps doctors, nurses, surgeons, dietitians and health care professionals at the top of their game enabling them to deliver the best healthcare they can and every patient benefits from this.
Research is everyone’s business. We need a dramatic shift in perception and levels of research in this hugely important area. We want to start a national conversation about our guts and engage all ages with the fascinating facts, ignite interest, raise awareness and help the UK get to grips with guts by giving digestive disorders their time in the spotlight.
We will prioritise funding of junior doctors at the start of their career by working in partnership with the British Society of Gastroenterology (BSG) to support more research in the specialty of gastroenterology, including hepatology and pancreatic disease.
We will encourage research that draws on innovation and achievements of other fields to speed up progress in gastroenterology and hepatology, and develop joint collaborations with other organisations that can help us meet our aims sooner.
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## **Achievements and performance** (continued)
## _**A) Research strategy**_ (continued)
We will continue to campaign for better survival rates for digestive cancers as an active founder member of the Less Survivable Cancers Taskforce http://lesssurvivablecancers.org.uk/.
## _**B) Research grant funding**_
Guts UK had research commitments at the start of the year totalling £1,721,855 (2019: £1,147,961). In 2020 the charity further awarded grants totalling £61,950 (2019: £790,566) with payments totalling £322,733 (2019: £211,498) and net commitments no longer required of £3,513 (2019: £5,174). Research commitments still to be paid at the end of the year were £1,454,984 (2019: £1,721,855).
As a result of the Coronavirus pandemic, many of Guts UK’s research projects were put on hold during 2020 as some of our funded researchers were called back to clinical duties and their projects were postponed. Some researchers have already requested no-cost extensions. Several projects that were due to start in 2020 will now be starting in 2021. This was a common experience across the sector and many charities cancelled their grant rounds in 2020. We did postpone some of the awards we had initially included in the budget for 2020 but were still able to award some grants to specialty trainee and foundation stage doctors as well as prizes to medical students, nurses and dietitians.
Guts UK Charity has awarded several new grants in 2020:
## _**Funding trainee doctors in gastroenterology research**_
To promote research amongst gastroenterology trainees and in particular support the development of trainee research networks Guts UK has partnered with the British Society of Gastroenterology (BSG) to award five grants of up to £10,000 each to trainee doctors:
- Dr Robin Dart, King's College London/Francis Crick Institute/Guy's and St Thomas Foundation Trust - The cellular architecture of the human colonic mucosa: a pilot and feasibility study to facilitate longitudinal multi-centre studies. £10,000.
- Dr James Ashton, University of Southampton - Establish a UK-wide Paediatric IBD Research network (PAIR-network) to answer clinical research questions and enable rapid decision making. £8,000.
- Dr John Thomas, Earlham Institute, Norwich - Transcriptomic profiling of patientderived colonic epithelial organoids exposed to Ulcerative Colitis-relevant cytokines - a novel approach to uncover IBD pathogenesis and inform precision medicine strategies. £9,950.
- Dr Rebecca Harris, University of Nottingham - Non-invasive risk stratification of patients with compensated advanced chronic liver disease: Results from a realworld cohort from the Nottingham Scarred Liver pathway. £10,000.
- Dr Roosey Sheth, West Middlesex University Hospital, London - A UK-wide Audit of the Management of Primary Biliary Cholangitis (PBC). £10,000.
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## **Achievements and performance** (continued)
- _**B) Research grant funding**_ (continued)
## _**Guts UK/Dr Falk Awards**_
Guts UK continues to work with Dr Falk Pharma UK to award prizes and grants to medical students, SpR trainees, F1/F2 clinicians, nurses and dietitians. These awards aim to acknowledge those who bring new insight into gastroenterology and hepatology through research or the improvement of patient care. They also provide the opportunity for foundation stage doctors to engage in research.
The Guts UK/Dr Falk 2020 award winners were:
- _Medical Student Essay Prize £1,000_
William Cambridge, University of Edinburgh Meta-analysis and Meta-regression of Survival After Liver Transplantation for Unresectable Perihilar Cholangiocarcinoma
- _Medical Student Prizes; 4 at £1,500 each_
Sarah Coleman, Royal Hallamshire Hospital, Sheffield
Assessment of Gluten-Free Diet adherence in adults with Coeliac Disease: The largest prospective study from the NHS England National Centre
Aaminah Mohammed, University College London Medical School Sex related differences in alcohol-related liver disease
Moksh Sharma, University College London A Genome-wide Association Study of Severe Alcoholic Hepatitis
Dylan McClurg, University of Cambridge
Characterising the heterogeneity of Barrett’s oesophagus and oesophageal adenocarcinoma using a panel of patient-derived organoid models for translational research and precision medicine
- _Dietitian Prize £1,000_
Cristian Costas Batlle, Bradford Teaching Hospitals Impact of a New Secondary Care Dietetic-Led Coeliac Service in Bradford
- _Nurse Prize £1,000_
Louise Downey, University Hospital of Southampton A Data Driven Service Evaluation of an IBD Help Line
- _F1/F2 Research Grants; 2 at £2,500 each_
Dr Maja Kopczynska, Salford Royal NHS Foundation Trust Psychosexual function and quality of life in Chronic Intestinal Failure
Dr Nicole Cianci, Nottingham Digestive Diseases, Biomedical Research Centre Biomarkers for all-cause mortality in Non-alcoholic fatty liver disease (NAFLD): A systematic review and meta-analysis
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## **Achievements and performance** (continued)
## _**C) Completed research projects: sharing some final reports**_
IBD: Professor David Wilson and his team at the University of Edinburgh have investigated a population of more than two million children born in Scotland between 1981 and 2017. This included almost 1,800 Paediatric Inflammatory bowel disease (PIBD) patients, diagnosed under 16 years of age. They have found a reassuring lack of relationship between perinatal factors, such as mode of delivery, gestational age or type of infant feeding and the risk for an infant to develop inflammatory bowel disease in the future. This means that whether children are born vaginally or via caesarean section, whether they are born prematurely or at term and whether they are breast fed or bottle fed does not appear to impact on their chance of being diagnosed with PIBD in the future. This is an important negative result given the suspected role of environmental factors in causing PIBD.
The team also investigated this population for further health risks. The risk of additional health problems (ischaemic heart disease, stroke, and cancer in early adult life) and mortality related to active IBD and its treatment is a major concern to both patients and families as well as clinicians, especially when IBD is diagnosed in childhood. The research team are currently analysing this data and will provide a further update when this is completed.
IBD: Dr Konstantinos Gerasimidis, based at the University of Glasgow, undertook a pilot study to assess the clinical efficacy of the novel CD-TREAT diet in patients with active Crohn’s disease (CD). The investigators have tested CD-TREAT in more than 20 children and adults with Crohn’s disease (CD) who needed treatment to help with their CD symptoms. They provided them with the CD-TREAT diet, as their only diet source, for a maximum period of 12 weeks. CD-TREAT meals were prepared and provided to the patients free, using a catering company for consistency. The preliminary results were very promising. Sixty-seven percent of the children who completed the CD-TREAT diet had reduced symptoms, while 60% had complete symptom resolution. In adults, 79% who took the CDTREAT diet had reduced symptoms, while 71% had complete resolution.
The researchers plan to extend this study to explore the efficacy of the CD-TREAT diet in a larger cohort of patients in many centres looking after patients with CD and in comparison to other mainstream therapies. In the future, if CD-TREAT is proven to be effective, it may be possible to control disease symptoms and prevent flares with dietary-treatment-only for some patients. Moreover, the researchers hope that clinical teams will be able to decrease
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## **Achievements and performance** (continued)
## _**C) Completed research projects: sharing some final reports**_ (continued)
or even replace drugs with the diet and potentially avoid drug side-effects or even surgery in some CD patients.
IBD: Dr Dipesh Vasant, based at the University of Manchester, conducted a cross-sectional survey of anorectal dysfunction in ulcerative colitis. This project aimed to raise awareness amongst health professionals, and to find out how many people with IBD without active inflammation are unable to control their bowels. The research showed that regardless of how inflamed the bowel is, two thirds of ulcerative colitis patients suffer with leakage of stools, even when they are in remission.
## _**No more poo taboo!**_
Controlling our bowels is something that we take for granted. People affected by inflammatory bowel disease (IBD) will have regular 'accidents' and are understandably worried about controlling the release of wind, liquid or solid stools from the bowel. These distressing symptoms lead to suffering, social embarrassment and reduced quality of life. Many will be too embarrassed to even tell their doctor. Some will not improve their bowel control even with the most effective anti-inflammatory medications. There is very little research in this area which is why we need to get to grips with guts and find better treatments for this group of often neglected patients.
IBD: Dr Polychronis Pavlidis, based at King’s College London led a multi-centre audit into the quality-of-care transition in adult IBD patients transferring between health care providers. Dr Pavlidis and GLINT research network reported that the commonest reason to transfer IBD patient to a new health care provider is due to moving and change of address. IBD care is predominantly provided in hospital as outpatient (secondary or tertiary care). Researchers showed with this investigation that general practitioners (GPs - primary care) perform most of these referrals. However, more complete and informative medical history data for each patient, are kept in secondary care. Therefore, medical history can be partially or totally lost changing doctors and hospitals. One possible explanation for this, is the lack of resources and the many technical barriers that are present in accessing healthcare records between primary and secondary-tertiary care. This study highlights the importance of good communication between patient, primary and secondary/tertiary care providers to facilitate a smooth transfer of care. The investigators suggest that patients should be empowered to be ‘in charge’ of their IBD by keeping their own, hard copy or digital, clinical records. Dr Pavlidis and GLINT propose the use of digital health and smartphone technologies (such as the use of ‘apps’). They also believe that
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## **Achievements and performance** (continued)
## _**C) Completed research projects: sharing some final reports**_ (continued)
gastroenterologists working in secondary care should take a proactive role in ensuring high-quality referral to the patient’s receiving team.
Microscopic Colitis: Dr Suneil Raju, based at the University of Sheffield, reviewed current diagnostic procedure and management of patients with microscopic colitis. Microscopic colitis is a common cause of long-term diarrhoea, faecal incontinence, arthralgia and abdominal pain; symptoms which have a significant impact on a patient’s quality of life. If microscopic colitis is diagnosed correctly, with effective management, symptoms can be controlled and the patients’ quality of life improved. The study found that the incidence of microscopic colitis is increasing over time, therefore doctors need to be aware of this diagnosis to assure that patients aren’t missed. Dr Raju also found that this condition can be more serious than initially thought as almost 8 in 100 patients with microscopic colitis were admitted to hospital because of the severity of their symptoms. They then stayed in hospital for on average 12 days which may have been preventable had they been diagnosed earlier and treatment initiated. This work has highlighted an important gap in the diagnostic work up for patients with diarrhoea and the first step to improving this is to increase the number of biopsies taken. Research into this condition needs to continue in order to find the best way to treat these patients to improve their symptoms.
## _**D) Public education and awareness**_
## • **Patient information**
We provide evidence-based information written by medical experts in the area of human digestive diseases in order to empower people to ask the right questions of the health professionals, to help get a timely diagnosis and the right treatment. Knowing more about what triggers a condition, learning about lifestyle factors or diet and nutrition can help people to better manage their condition and feel in control. This information is produced and co-branded with the BSG.
_**Our own research shows that 51% of people wait six months or longer with their digestive symptoms before seeking professional advice. People are suffering alone, due to embarrassment or stigma and don’t know where to go for help. For some, that waiting can prove deadly.**_
The recruitment of our first ever Information Manager in January 2020 has dramatically improved the service we are able to offer people suffering from digestive diseases, their families and friends. It is important to note we do not run a helpline, nor do we advertise or promote such a service. Yet people email and phone when they find our website. Requests for information in 2019 averaged 43 a month but this increased four-fold in 2020. The Information Manager sent over 1500 personal information support emails and responded to over 500 information phone calls. Our news posts online during the pandemic relating to COVID-19 and digestive conditions were particularly well received rising from an average of 300 readers to over 20,000 which reflects the concern felt by our community.
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## **Achievements and performance** (continued)
## _**D) Public education and awareness**_ (continued)
_**“Thank you so much for your supportive and helpful letter. It was such a relief to have someone actually take me seriously. … I feel empowered and positive (and a little overwhelmed, happy tear) Thank you again, keep up the good work (not thriving after GI surgery).”**_
As our profile and presence rises as a charity facing the public, the requests for information also rise. The demand for this service has continued to rise into 2021.
_**Imagine if we could resource and run a helpline? Imagine we could then afford to promote and advertise that helpline? How many more people suffering in silence could we reach?**_
During 2020, our new Information Manager undertook a thorough review of the charity’s patient information which included an update by experts in the field as well as input and feedback from lay readers and people affected by these conditions. The printed leaflet range has been redesigned to improve readability and to put people affected by digestive disorders at the centre of our work.
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## **Trustees’ Report** 31 December 2020
## **Achievements and performance** (continued)
## _**D) Public education and awareness**_ (continued)
Getting our leaflets into clinics in the UK: Despite many clinics and endoscopy services not operating during the lockdown periods or operating only telephone clinics we have still distributed 112,240 (2019: 195,810) patient information leaflets covering 16 digestive conditions to 89 (2019: 108) hospitals around the UK and Ireland. There are some 230 plus clinics in total and we will promote Guts UK leaflets to these in 2021 to improve our reach.
The breadth and depth of the information available on the website has been increased. Three new subject areas have been added: anal fistulas (Mid December, 64 views), gastroparesis (October, 1991 views), how to increase your fibre intake (February, 4,494 views), plus 11 recipes (throughout the year 5,471 views).
The range of subjects we cover includes:
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## **Achievements and performance** (continued)
## _**D) Public education and awareness**_ (continued)
_**“So pleased to discover your website and updated advice about fibre and diverticulosis. In contrast to other older advice still there on the internet, I now know there is no need to avoid nuts, seed, skins etc. Hooray! Thanks also for directing us to NICE recommendations and other sources of research on this topic.” - Kirsty**_
We are committed to continuing to develop a digital platform so our patient facing information is accessible for all. We have improved our digital profile and visibility through a concerted effort to reach and serve people affected by digestive disease, growing and engaging our community with relevant content that our supporters share and channel.
## • **Public awareness**
It is worth remembering we have only been known as Guts UK Charity since June 2018; we are not yet three years old as a public facing charity.
We changed our name to Guts UK charity to say exactly who we are ‘on the tin’. And crucially because people had to find us when searching the internet. But we also knew that people didn’t search for digestive conditions – they don’t know what they have. People search their symptoms. Our task, through a Search Engine Optimisation (SEO) strategy was to bring those people searching digestive symptoms to Guts UK.
We have grown our online presence organically, writing content and delivering articles and information on digestive health that people wanted to hear about. They find our website and sign up for more via our newsletter. This is how we have grown our presence and profile.
In the last year we were Core we had just 30,000 users of the website in a whole year.
## **Web analytics**
- 1.1 million users to the website in 2020, 110,000 every month (2019: 518,000).
- Bounce rate 69% (2019: 84%) - we would like to reduce this further to 60% over the next two years. The reduction shows that more people are finding the information they want on our website.
- Average time on page 2min 36 sec (2019: 2min 07sec).
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## **Achievements and performance** (continued)
## _**D) Public education and awareness**_ (continued)
- E-news sign ups have nearly tripled over the last year to almost 500 a month.
_**“I came across Guts UK online after having my gallbladder removed. For a long time, I thought my symptoms were just life post-gallbladder removal, but I found Guts UK’s information online, printed it out, highlighted and took to my doctor. I was finally referred to gastroenterology and have been diagnosed with Bile Acid Malabsorption.” - Natalie**_
## **Social media activity**
- Reached 320,000 on Facebook in 2020 (320% increase from 2018, 42% from 2019)
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## **Achievements and performance** (continued)
_**D) Public education and awareness**_ (continued)
Reached 800,000 on Twitter in 2020 (190% increase from 2018, 44% from 2019)
_**“I was diagnosed with diverticular disease last May after presenting at A&E with a perforated bowel, resulting in life threatening peritonitis. It’s something I’m learning to live with at just 43. I cannot thank Guts UK enough for your literature & online support at what has been a very scary time for myself and my family. Thank you for sharing uplifting stories like this (William’s DD SkyDive on Facebook) and for all the important work your charity does” - Lucy.**_
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## **Achievements and performance** (continued)
## _**D) Public education and awareness**_ (continued)
We continue to take opportunities to provide information and articles for local media. A major success was coverage for less survivable cancers on World Cancer Day (4th February 2020) reaching a whopping 9,863,515 people.
Our hopes of delivering a public engagement programme were hampered by COVID-19 but we will be working on possible digital delivery of engaging presentations on digestive health until we are able to organise and attend public events again.
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## **Achievements and performance** (continued)
- _**D) Public education and awareness**_ (continued)
We continue to fund the only research fellowship focussed on pancreatitis in the UK. We first launched our Kranky Panky pancreatitis awareness campaign in November 2018. In 2019 we saw our Kranky Panky community grow even more and in 2020 we again shared a story a day, for the month of November, putting the patient voice at the heart of our awareness raising. Many families affected by this devastating condition have expressed relief in finding, via Guts UK, a community that truly understands them.
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## **Achievements and performance** (continued)
## **Fundraising Standards at Guts UK**
- Our donors are important to us and we seek to deliver the highest standards of donor care and support.
- Open and accountable fundraising – we regularly tell our supporters how they can easily change their preferences.
- Communicating with our supporters – we update our supporters through our twice-yearly newsletter for those who prefer a print option, and regular e- newsletters.
- Complying with laws, regulation and standards – we are a member of the Chartered Institute of Fundraising and are committed to working to a best practice framework actively complying with the Fundraising Code of Practice. We are registered with the Fundraising Regulator and signed up to The Fundraising Promise.
- Protecting vulnerable people – we do everything possible to meet the needs of potential supporters and protect vulnerable people. In particular, the charity confirms that it complies with all relevant data protection laws. No instances of non-compliance have been identified during the year and no suppression requests were received in 2020 in relation to the fundraising activities.
- Complaints and negative feedback – we treat all complaints seriously and aim to respond in a timely and fair manner. All complaints inform and influence the charity’s approach to fundraising. We use the feedback that we get from our supporters to improve the way we do things.
- Working with partner agencies – we may engage professional third parties to act on our behalf, for example, to produce and distribute direct mailings. To ensure that fundraising activities of third parties are compliant with regulation and the charity’s own internal standards, the charity approves all third-party communication prior to distribution and sets out clear guidelines in the agreements made with such parties. We also work with commercial participators, such as Amazon Smile, Everyclick, Give as you Live and Easy Fundraising to raise funds. Agreements with commercial participators are checked and activity monitored to ensure compliance with the Fundraising Code of Practice.
- We never swap, sell or share any data.
- We work hard to ensure we deliver value for money in all of our charitable activities.
Guts UK Charity **21**
**Trustees’ Report** 31 December 2020
## **Achievements and performance** (continued)
## _**Income generation**_
Growing our income through fundraising is vital to enabling us to fund more much needed research and provide information to improve the lives of people affected by digestive disorders. Increasing the number of donors and exploring the potential of all income streams will diversify income sources and in the longer term reduce dependency on investment income. To this end, in 2020, we spent time preparing our 50[th] year case for support to put people affected by digestive diseases at the heart of our fundraising.
Medical research into gastroenterology has been woefully underfunded for decades. Guts UK is a small charity with a huge ambition, to make a transformational change to the levels of research into our gut, liver and pancreas. To do this we need to grow our supporter base and grow our income.
Guts UK Charity **22**
**Trustees’ Report** 31 December 2020
## **Achievements and performance** (continued)
## _**Income generation** (continued)_
Just as we were building our brand as Guts UK and recruiting new audiences, along came COVID-19. As a team of 8 we had thankfully moved to Cloud based technology in 2019 so we were all able to revert to working from home from the start of lockdown. Like all other charities struggling due to the cancellation of mass participation fundraising events, Guts UK was not untouched. We had planned our biggest ever events year with 66 places in Ride London and our events income dropped through the floor. We had neither the resources nor skills to pivot to a home grown virtual event as many other charities with larger numbers of staff could do. This was a huge blow to our fundraising targets. However, our supporters continued to inspire us by coming up with innovative ways to raise money with their own virtual events. Such as James who got sponsored to grow his hair and Yasmin who climbed the equivalent of Mount Everest on the stairs in her home!
As we adapted to a whole new fundraising context, the sources of income from individual supporters grew in 2020.
Guts UK Charity **23**
**Trustees’ Report** 31 December 2020
## **Achievements and performance** (continued)
## _**Income generation**_ (continued)
Income from grant-making trusts dropped by 60% and totalled just £15,125 (2019: £40,443). Trusts and foundations have suffered investment losses, and many were not accepting applications or were only accepting applications for funding of COVID-19 related activities or local activities.
Despite the COVID-19 pandemic, voluntary income has increased by **£54K** in 2020
In December 2020 we tested paid-for digital advertising for the first time. This is part of the fundraising strategy to increase our profile and expand our supporter base. The adverts also help to raise awareness of the suffering experienced by people with digestive conditions. We reached 190,014 on Facebook and saw a **280%** increase in income via the website compared to 2019.
In addition, we had direct feedback from new supporters responding to the adverts;
_**“I suffer with pancreatitis myself and am aware of how much pain it causes. Unbearable for children”**_ **– new regular giver**
_**“It's Christmas and this is a good reminder that not all of us are fortunate with our health”**_ **- brand new supporter**
Guts UK Charity **24**
**Trustees’ Report** 31 December 2020
## **Achievements and performance** (continued)
## _**Income generation**_ (continued)
Following on from the Kranky Panky awareness campaign we took part in the Big Give Christmas Appeal which raised a total of £11,767 including gift aid and matched funding from Candis.
## **Plans for 2021**
## _**Research**_
Priority Setting Partnerships (PSP) for pancreatitis and Irritable Bowel Syndrome (IBS) research are scheduled to begin in April with the arrival of a new member of staff, a Patient and Public Involvement and Engagement Officer. The BSG have agreed to co-fund the IBS PSP and will contribute funding to the pancreatitis PSP for which we are also seeking further funding. The PSPs will be facilitated by the James Lind Alliance (JLA) and the aim is to find the top ten research priorities to support calls for research funding in these desperately underfunded areas.
## _**Proposed Grant Funding**_
- ➢ Guts UK/Dr Falk awards £24K
- ➢ Guts UK/forcrohns development grants 3x £25K
- ➢ Guts UK/British Society of Paediatric Gastroenterology, Hepatology and Nutrition (BSPGHAN) grant 1x £40K
- ➢ Guts UK/BSG trainee research awards 10x £5K
- ➢ Guts UK development grants 6x £15K
This year we will also advertise two fellowships:
- ➢ The Guts UK Derek Butler Fellowship for £210,000, a 3-year fellowship for research in upper gastrointestinal tract diseases and conditions.
- ➢ The Guts UK Amelie Waring Fellowship for £180,00 a 3-year fellowship for research into any aspect of pancreatic inflammation or injury.
## _**Fundraising, patient engagement and raising awareness**_
We will continue to develop new patient information material and resources in different media for different audiences such as introducing patient focused videos and spoken versions of the patient information leaflets. We will also be getting our leaflets translated into Urdu and other languages.
We will continue to raise public awareness through an enhanced digital presence, building our communities through all social media channels.
Guts UK Charity **25**
**Trustees’ Report** 31 December 2020
## **Plans for 2021** (continued)
## _**Fundraising, patient engagement and raising awareness**_ (continued)
When circumstances allow, we will restart our public Science of Digestion events adapting content for different audiences. We will also get Colin the Colon back on the road to fascinate children and adults alike.
Colin the Colon at the Piece Hall in Halifax.
For 2021, our 50[th] year, we have ambitious targets in place to further strengthen our financial supporter base:
- **Recruit new regular givers**
- The launch of a new Guts UK Foundation is a key vehicle/fundraising product for major gifts and philanthropy. We hope BSG members and previously funded researchers, our Guts UK Alumni community will be instrumental in assisting us with establishing the Foundation.
- **Increase active cash donors**
- This will include optimising our BBC Radio 4 Appeal in June, continuing our test and trial digital acquisition programme, an enhanced Christmas Appeal and presenting a fundraising ask in existing communications.
- **Inspire more fundraisers to support us through paid events** With 50 places in the Vitality Big Half due to take place in August, 5 physical places in the London Marathon and 25 additional places in the Virtual London Marathon in October.
## _**Staff, Resources and Capacity building**_
In 2020 the charity employed an Information Manager to focus on providing an enhanced programme in outreach, patient engagement and information. This appointment has been incredibly successful, greatly improving the service we offer to people affected by digestive disorders. The role has been made full time from February 2021. We have had considerable success with various graduate placements and have encouraged several young graduates to continue in the charity sector. We have employed an Individual Giving Manager who has already made a significant impact on income generation and raising our profile. In 2021 we will appoint a Public and Patient Involvement and Engagement Officer who will be responsible for delivering the Priority Setting Partnerships.
Guts UK Charity **26**
**Trustees’ Report** 31 December 2020
## **Plans for 2021** (continued)
## _**Office space**_
Guts UK occupies a small office located within the premises occupied by the BSG, the current leaseholder of 3 St Andrews Place. The existing lease expires in December 2021 and earlier this year we negotiated, directly with the Royal College of Physicians, a new 5- year tenancy agreement with a break clause at 3 years. Whilst this will mean an increase in costs, it gives us security in the medium term, is good value for an office in a prime location, allows us to retain our registered office address and continue to work alongside the BSG.
To maintain our status as a national charity we continue to occupy office space in the Media Centre in Huddersfield which provides a northern base in addition to our base in the capital.
## _**Impact of COVID-19**_
Like all charities, we have experienced a fall in the value of our investments and investment income. The ongoing impact of the pandemic along with the as-yet unknown long-term effects of BREXIT may mean investments continue to fall and dividend income is increasingly uncertain. The trustees are currently reviewing investment strategy to mitigate this risk. Our services are in demand more than ever as we serve the community of people affected by digestive disorders with relevant information. Income generation may continue to be affected by the cancellation and postponement of fundraising events. In addition, the economic situation may mean people have less disposable income to donate to charity or are worried about losing their jobs so do not want to commit to regular giving. However, we will continue to sail out our 50 year campaign to support people with digestive conditions by getting to grips with guts.
Guts UK Charity **27**
**Trustees’ Report** 31 December 2020
## **Financial review**
The charity recorded income for the year of £550,019 (2019: £921,532) and expenditure of £583,135 (2019: £1,219,712). This resulted in net expenditure, before investment losses, of £33,116 (2019: £298,180). The deficit is due to the loss of fundraising event income and reduced investment income.
## **Income**
During a year of tough fundraising conditions, total voluntary income increased by 21%. Total voluntary income was £308,435 (2019 £254,447). We receive no government funding so continue to depend on donations for everything we do.
We are grateful to those who so generously include us in their wills enabling us to continue to support people with digestive disorders and fund essential research. Our increased profile has meant that people are more easily able to find us which is particularly important for those who have recently lost a loved one. In memoriam donations have more than doubled over the last year; families and friends often find consolation in the thought that their fundraising may go some way to alleviating the suffering of others in the future.
The number of people regularly giving to our work has grown and continues to do so despite these turbulent economic times. We finished the year on a high with our Big Give Christmas campaign raising nearly £12,000 and digital advertising resulting in increased website donations. We were pleasantly surprised when one of our supporters donated a painting that raised an incredible £19,520 at auction. Community fundraising increased by 58% as our supporters went to incredible lengths with their virtual challenges.
Research partner funding came from Dr Falk Pharma (UK) Ltd and the BSG. We also received funding from forCrohn’s for a research grant round in 2021. The Parabola funding for Professor Rees colorectal cancer research was put on hold for the year but will resume in 2021. We will continue our current partnerships alongside building new partnerships to fund more research in the future.
As many hospitals and clinics were closed or went virtual during the pandemic sales of leaflets to hospitals were reduced and income from this source was just over half that of last year.
**----- Start of picture text -----**
Total Income 2020
£39,000
Legacies and in
memoriam
£148,430
Voluntary donations
£163,694
Public education
Investment income
Partner research
£38,890
£160,005 funding
**----- End of picture text -----**
Guts UK Charity **28**
**Trustees’ Report** 31 December 2020
## **Financial review** (continued)
**----- Start of picture text -----**
Total Income 2019
£113,902 Legacies and in
memoriam
Voluntary donations
£408,966 £140,545
Public education
£54,364 Investment income
Partner research
£203,755 funding
**----- End of picture text -----**
## **Expenditure**
We have worked hard to keep costs under budget whilst continuing to improve service provision for people with digestive disorders. Our salary costs increased to £297,321 (2019: £226,204) due to building the capacity of the team to 8 FTE (2019: 6.5 FTE). Operational costs and overheads were slightly less than last year despite the expansion of activities. During the year, we spent £325,732 on charitable activities, which represents 56% of total expenditure in the year. This is significantly lower than 2019 when we invested heavily in research. This year, whilst medical research was on hold, it was decided to focus on investment into income generation and raising awareness, reaching and recruiting new supporters to build a sustainable future for the charity hence the increase in fundraising costs.
**----- Start of picture text -----**
Total Expenditure 2020
£154,802
£257,403
Cost of raising funds
Research
Public education
£170,930
**----- End of picture text -----**
Guts UK Charity **29**
**Trustees’ Report** 31 December 2020
## **Financial review** (continued)
**----- Start of picture text -----**
Total Expenditure 2019
£136,681
£170,379
Cost of raising funds
Research
Public education
£912,652
**----- End of picture text -----**
## **Balance Sheet**
In line with the performance of investments globally the investment portfolio contributed unrealised losses of £76,009 and realised losses of £210,087 (2019: unrealised gains of £548,718 and realised gains of £73,504). Of this amount, total realised and unrealised losses of £117,933 (2019: £297,132 total realised and unrealised losses) related to the endowment fund.
As at 31 December 2020, Guts UK had net assets of £5,645,054 (2019: £5,964,266) a decrease of £319,212 with £5,992,360 held in listed investments. These include the Derek Butler endowment fund for research into upper gastrointestinal conditions of £3,039,127. The income from this fund will continue to finance the three-year fellowship awarded in 2017 to be completed in 2021. A new fellowship will be advertised in 2021 to be awarded and begin in 2022.
Unrestricted funds which can be spent at the discretion of the trustees were £2,706,357 of which £1,609,369 has been designated to contribute to research grants awarded by the charity. In March 2020, the trustees agreed that half of the value of the designated investments should be designated specifically towards research in pancreatitis (the Amelie Waring fund) with the remaining half to be designated to more general gastrointestinal research.
General funds amounted to £1,096,988. More details of the disposition of Guts UK net assets can be found in the financial statements on page 39.
The principal liability of Guts UK Charity is to complete the research programme it has committed to of £1,454,984 at 31 December 2020 as set out in detail in note 18. Of these commitments, £222,205 is covered by endowed or designated funds, £280,066 is due from funding partners and £952,713 is to be funded from Guts UK’s general unrestricted fund.
Guts UK Charity **30**
**Trustees’ Report** 31 December 2020
## **Financial review** (continued)
## _**Reserves policy**_
Guts UK has reviewed the amount of reserves it regards as a minimum prudent requirement and has concluded that provision for twelve months administration, public education and fundraising costs is sufficient. This would allow time to manage cost reductions or fund appeals as required whilst minimising the impact on service provision. Based on the forecast for 2021, the desired minimum reserve is £600,000. Currently general unrestricted funds total £1,096,988 less amounts held as fixed assets of £3,520 i.e. £1,093,468. Additional funds are to be utilised for research expenditure, building capacity and expanding the public information programme going forward.
## _**Investment policy and performance**_
The charity’s listed investments are managed by Cazenove. Investment in tobacco companies is not permitted. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s advice on the market prospects in the medium term. Guts UK’s investment objectives are to achieve a balance of capital growth and income.
The performance of the portfolio is regularly monitored by the trustees and an annual meeting is held where the performance against benchmarks and the overall investment policy is reviewed.
The performance of the portfolio has been satisfactory in the tough market conditions of 2020 and within the agreed risk profile. In March 2021 the trustees reviewed the current investment strategy and agreed with the advice from Cazenove that investments should be moved to a Responsible Multi-Asset Fund. This fund adopts a total return approach and has the advantage of providing an even distribution payment as well as an ethically responsible investment policy.
## **Going concern**
There is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees believe that there are no material uncertainties that call into doubt the charity’s ability to continue operating as a going concern. In making this decision, the trustees have taken into consideration the risks and uncertainties arising from the Coronavirus pandemic including the potential impact on fundraising and return on investments, and conclude that the charity can sustain its operations for a period of at least twelve months from the date of signing these accounts. Consequently, the financial statements have therefore been prepared on the basis that the charity remains a going concern.
Guts UK Charity **31**
**Trustees’ Report** 31 December 2020
## **Statement of trustees’ responsibilities**
The trustees (who are also directors of Guts UK for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of Guts UK and the income and expenditure of Guts UK for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Report Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that Guts UK will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of Guts UK and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of Guts UK and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the trustees confirms that:
- so far as the trustee is aware, there is no relevant audit information of which Guts UK’s auditor is unaware; and
- the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
Guts UK Charity **32**
**Trustees’ Report** 31 December 2020
## **Statement of trustees’ responsibilities** (continued)
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
The trustees are responsible for the maintenance and integrity of corporate and financial information included on Guts UK’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees and signed on their behalf by:
Professor J Rhodes
Trustee
Approved by the trustees on: 10 June 2021
Guts UK Charity **33**
**Independent Auditor’s Report** 31 December 2020
## **Independent auditor’s report to the trustees of Guts UK Charity**
## **Opinion**
We have audited the financial statements of Guts UK Charity (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and the related notes to the financial statements, including a summary of 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We 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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these. 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.
Guts UK Charity **34**
**Independent Auditor’s Report** 31 December 2020
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report and performance review 2020, and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- the information given in the trustees’ annual report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees 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.
Guts UK Charity **35**
**Independent Auditor’s Report** 31 December 2020
## **Auditor’s responsibilities for the audit of the financial statements** (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and
- we obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006).
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
Guts UK Charity **36**
**Independent Auditor’s Report** 31 December 2020
## **Auditor’s responsibilities for the audit of the financial statements** (continued)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Shachi Blakemore (Senior Statutory Auditor) For and on behalf of Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL
Dated: 29 July 2021
Guts UK Charity **37**
**Statement of financial activities** Year ended 31 December 2020 (including the income and expenditure account)
||Unrestricted
funds
£
Restricted
funds
£|Endow-
ment
funds
£|**2020**
**Total**
**funds**
**£**|2019
Total
funds
£|
|---|---|---|---|---|
|**Income and expenditure**
**Income**
Donations and legacies
1
Other trading activities
2
Investment income
3
Charitable activities
4
. Grants for research
**Total income**
**Expenditure**
Cost of raising funds
5
Expenditure on charitable activities
6
. Grants for research
. Public education and Science of Digestion
**Total expenditure**
8
**Net expenditure before transfers**
9
Transfers between funds
19
**Net (expenditure) / income after transfers**
Net (losses) / gains on investments
14
. Realised
. Unrealised
**Net (expenditure) / income and net movement in**
**funds for the year**
**Reconciliation of funds:**
**Funds balances brought forward**
**Fund balances carried forward**|**290,459**
**17,976**
**—**
**38,890**
**—**
**—**
**86,493**
**77,201**
**—**
**—**
**39,000**
**—**||**308,435**
**38,890**
**163,694**
**39,000**|
254,447
54,364
203,755
408,966|
||**415,842**
**134,177**
**—**||**550,019**|
921,532|
||
**244,883**
**—**
**12.520**
**103,980**
**66,950**
**—**
**154,802**
**—**
**—**||**257,403**
**170,930**
**154,802**|
170,379
912,652
136,681|
||**503,665**
**66,950**
**12,520**||**583,135**|
1,219,712|
||
**(87,823)**
**67,227**
**(12,520)**
**(20,588) **
**62,018**
**(41,430**||**(33,116)**
)
**—**|
(298,180)
_—_|
||**(108,411)**
**129,245**
**(53,950)**
**(162,987)**
**—**
**(47,100)**
**(5,176)**
**—**
**(70,833)**
||**(33,116)**
**(210,087)**
**(76,009)**|
(298,180)
73,504
548,718|
||**(276,574)**
**129,245**
**(171,883)**
**2,982,931**
**126,037**
**2,855,298**
||**(319,212)**
**5,964,266**|
324,042
5,640,224|
||**2,706,357**
**255,282**
**2,683,415**||**5,645,054**|
5,964,266|
All of the charity's activities derived from continuing operations during the above two financial periods.
All recognised gains or losses are included in the above statement of financial activities.
A full comparative Statement of Financial Activities for the year ended 31 December 2019 is shown in note 28 to the financial statements.
Guts UK Charity **38**
**Balance sheet** 31 December 2020
|Notes|
**2020**
**£**|
**2020**
**£**|2019
£|
2019
£|
|---|---|---|---|---|
|**Fixed assets**
Tangible fixed assets
13
Investments
14
**Current assets**
Debtors: due within one year
15
Short term cash deposits
Cash at bank and in hand
**Liabilities:**
Creditors: amounts falling due
within one year
16
Net current assets
**Total assets less current**
**liabilities**
**Liabilities:**
Creditors: amounts falling due
after one year
17
**Total net assets**
**The funds of the charity**
Unrestricted income funds
. General
. Designated funds
20
Restricted funds
19
Endowment fund
21|
**358,480**
**526,860**
**332,599**|**3,520**
**5,992,360**|
532,275
690,003
180,107|1,984
6,318,604|
|||**5,995,880**
**81,487**||6,320,588
257,351|
||**1,217,939**
**(1,136,452)**||1,402,385
(1,145,034)||
||
||
||
|||**6,077,367**
**(432,313)**
||6,577,939
(613,673)|
|||**5,645,054**||5,964,266|
|||
**1,096,988**
**1,609,369**
**255,282**
**2,683,415**||1,286,865
1,696,066
126,037
2,855,298|
|||**5,645,054**||5,964,266|
Approved by the trustees and signed on their behalf by:
Professor J Rhodes
Trustee
Approved on: 10 June 2021
Guts UK Charity
Registered Company Number: 07274105 (England and Wales)
Guts UK Charity **39**
**Statement of cash flows** 31 December 2020
|Notes|
**2020**
**£**|2019
£|
|---|---|---|
|**Cash inflow used in operating activities:**
Net cash used in operating activities
A
**Cash inflow from investing activities:**
Dividends and interest from investments
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Purchase of investments
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 January**
B
**Cash and cash equivalents at 31 December**
B|
**(211,571) **|(245,648)|
||
**163,694**
**(2,921)**
**1,390,982**
**(1,454,396) **|203,755
(2,301)
1,128,341
(987,808)|
||**97,358**|341,987|
||
**(114,213)**
**1,436,190**|96,339
1,339,851|
||
**1,321,977**|1,436,190|
## **Notes to the statement of cash flows for the year to 31 December**
## **A Reconciliation of net movement in funds to net cash (used in) provided by operating activities**
||**2020**
**£**|2019
£|
|---|---|---|
|**Net movement in funds (as per the statement of financial activities)**
**Adjustments for:**
Depreciation charge
Losses / (gains) on investments
Dividends and interest from investments
Decrease / (increase) in debtors
(Decrease) / increase in creditors
**Net cash used in operating activities**|**(319,212)**
**1,386**
**286,096**
**(163,694)**
**173,795**
**(189,942)**|324,042
488
(622,222)
(203,755)
(327,354)
583,153|
||**(211,571)**|(245,648)|
## **B Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2020**
**£**|2019
£|
|Cash at bank and in hand
Short term cash deposits
Cash held by investment managers
**Total cash and cash equivalents**|**332,599**
**526,860**
**462,518**|180,107
690,003
566,080|
||**1,321,977**|1,436,190|
Guts UK Charity **40**
**Principal accounting policies** Year ended 31 December 2020
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.
## **Basis of preparation**
These financial statements have been prepared for the year to 31 December 2020 and are presented in sterling and are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.
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 United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
## **Critical accounting estimates and areas of judgement**
Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.
The full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy. Estimates used in the accounts, particularly with respect to the value of listed investments (see note 14) are subject to a greater degree of uncertainty and volatility. As set out in these accounting policies under “going concern”, the trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its financial statements on the going concern basis.
The items in the financial statements where these judgements and estimates have been made include:
- estimating the useful economic lives of tangible fixed assets for the purpose of determining the annual depreciation charge;
- assessing the probability of the receipt of legacy income;
- allocation of support costs between activities on the basis of staff time;
- estimating future cash flows for the purpose of determining going concern.
Guts UK Charity **41**
**Principal accounting policies** Year ended 31 December 2020
## **Assessment of going concern**
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements and have made this assessment in respect to a period of one year from the date of approval of these financial statements. They have taken into consideration the potential uncertainty in relation to COVID-19 on the charity’s operations and finances. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.
The trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are confident that the charity has sufficient funds to cover its existing liabilities.
With regard to the next accounting period, the year ending 31 December 2021, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information).
## **Income recognition**
Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is probable.
Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Guts UK Charity **42**
**Principal accounting policies** Year ended 31 December 2020
## **Income recognition** (continued)
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.
Research funding income is recognised in the period in which the charity receives a written commitment from the funder. Research funding is deferred only when the charity has to fulfil conditions before becoming entitled to it or the donor has specified that the income has to be spent in a future period.
## **Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment 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.
All expenditure is accounted for on an accruals basis and is stated inclusive of irrecoverable VAT. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:
- a) Cost of raising funds which includes direct fundraising costs and investment manager’s fees.
- b) Expenditure on charitable activities comprises expenditure on the charity’s primary charitable purposes as described in the trustees’ report. Such costs include grants payable, other direct costs and support costs, which are apportioned based on the level of activity in each area.
Research grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant, and has satisfied all relevant conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is payable are not accrued for but are noted as financial commitments in the notes to the financial statements.
The provision of a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payments, settlement is probable and the effect of the discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the charity.
Guts UK Charity **43**
**Principal accounting policies** Year ended 31 December 2020
## **Allocation of support costs and governance costs**
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of financial procedures, provision of office services and equipment and a suitable working environment.
Governance costs comprise the costs directly attributable to the governance of the charity, including audit costs and the necessary legal procedures for compliance with statutory requirements. Support costs and governance costs are allocated between activities with the allocation based on staff time.
## **Fixed asset investments**
Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.
The charity does not acquire put options, derivatives or other complex financial instruments.
Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.
## **Debtors**
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
## **Cash at bank and in hand and short term deposits**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.
## **Creditors and provisions**
Creditors and provisions 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. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
Guts UK Charity **44**
**Principal accounting policies** Year ended 31 December 2020
## **Tangible fixed assets**
Depreciation of fixed assets is calculated on cost at rates estimated to write off the assets, by equal instalments, over their expected working lives.
- Office furniture, fittings and equipment - 5 years IT equipment - 3 years
Items used in the day to day running of the charity and with a cost in excess of £500 are capitalised, and are stated at cost less accumulated depreciation.
## **Financial instruments**
The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:
_Financial assets_ – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Listed investments are a basic financial instrument as detailed above. Prepayments are not financial instruments.
_Cash at bank_ – classified as a basic financial instrument and is measured at face value.
_Financial liabilities_ – accruals and other creditors are financial instruments, and are measured at amortised cost.
## **Fund structure**
The charity has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:
## _**General funds**_
Funds which are expendable at the discretion of the trustees in furtherance of the objects of the charity.
## _**Designated funds**_
Funds which are set aside as part of the charity’s unrestricted funds for particular purposes in the future as determined by the trustees from time to time.
## _**Restricted funds**_
Funds raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.
## _**Endowment funds**_
Funds which must be held indefinitely as capital. Income therefore is credited to general funds and applied for general purposes unless under the terms of the endowments such income must be used for specific purposes in which cases it is credited to restricted funds.
## **Pension costs**
The charity operates a defined contribution scheme on behalf of its employees. The assets are held in separately administered funds. Costs are charged to the statement of financial activities in the period to which they relate.
Guts UK Charity **45**
**Notes to the financial statements** 31 December 2020
## **1. Donations and legacies**
|**Donations and legacies**||||
|---|---|---|---|
||Unrestricted
funds
£|Restricted
funds
£|**2020**
**Total**
**funds**
**£**|
|Donations
Legacies & In Memoriam donations
**2020 Total funds**|143,636
146,823|16,369
1,607|**160,005**
**148,430**|
||290,459|17,976|**308,435**|
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_|_2019_
_Total_
_funds_
_£_|
|_Donations_
_Legacies & In Memoriam donations_
_2019 Total funds_|_125,139_
_110,530_|_15,406_
_3,372_|_140,545_
_113,902_|
||_235,669_|_18,778_|_254,447_|
## **2. Other trading activities**
|**Other trading activities**||||
|---|---|---|---|
||Unrestricted
funds
£|Restricted
funds
£|**2020**
**Total**
**funds**
**£**|
|Public education
Science of Digestion
Public Education – one off donation
**2020 Total funds**|28,890
—
10,000|—
—
—|**28,890**
**—**
**10,000**|
||38,890|—|**38,890**|
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_|_2019_
_Total_
_funds_
_£_|
|_Public education_
_Science of Digestion_
_Public Education – leaflet sponsorship_
_2019 Total funds_|_50,364_
_2,500_
_1,500_|_—_
_—_
_—_|_50,364_
_2,500_
_1,500_|
||_54,364_|_—_|_54,364_|
## **3. Investment income**
|**Investment income**||||
|---|---|---|---|
||Unrestricted
funds
£
187
38,743
20,898
14,937
6,103
3,303
2,322
86,493|
Restricted
funds
£|**2020**
**Total**
**funds**
**£**|
|Interest – fixed interest securities
Dividends - UK and international equities
Bonds - UK and international
Multi asset funds
Charities property fund
Other funds
Interest on cash deposits
**2020 Total funds**||486
36,558
18,683
12,936
4,775
3,763
—|**673**
**75,301**
**39,581**
**27,873**
**10,878**
**7,066**
**2,322**|
|||77,201|**163,694**|
Guts UK Charity **46**
**Notes to the financial statements** 31 December 2020
## **3. Investment income** (continued)
|**Investment income**(continued)||||
|---|---|---|---|
||_Unrestricted_
_funds_
_£_|
_Restricted_
_funds_
_£_|_2019_
_Total_
_funds_
_£_|
|_Interest – fixed interest securities_
_Dividends - UK and international equities_
_Bonds - UK and international_
_Multi asset funds_
_Charities property fund_
_Other funds_
_Interest on cash deposits_
_2019 Total funds_|_624_
_65,651_
_12,590_
_19,975_
_6,862_
_3,376_
_2,537_|_1,546_
_55,674_
_8,482_
_18,719_
_5,369_
_2,350_
_—_|_2,170_
_121,325_
_21,072_
_38,694_
_12,231_
_5,726_
_2,537_|
||_111,615_|_92,140_|_203,755_|
## **4. Income from charitable activities**
|**Income from charitable activities**||||
|---|---|---|---|
||Unrestricted
funds
£|Restricted
funds
£|**2020**
**Total**
**funds**
**£**|
|New grants for research
**2020 Total funds**|—|39,000|**39,000**|
||—|39,000|**39,000**|
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_|_2019_
_Total_
_funds_
_£_|
|_New grants for research_
_2019 Total funds_|_—_|_408,966_|_408,966_|
||_—_|_408,966_|_408,966_|
Guts UK Charity **47**
**Notes to the financial statements** 31 December 2020
## **5. Cost of raising funds**
|**Cost of raising funds**||||
|---|---|---|---|
||Unrestricted
funds
£|Restricted
funds
£
—
12,520
—
12,520|**2020**
**Total**
**funds**
**£**
**48,040**
**26,364**
**182,999**
**257,403**|
|Fundraising costs
Investment manager’s fees
Support costs (note 8)
**2020 Total funds**|48,040
13,844
182,999|||
||244,883|||
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_
_—_
_13,155_
_—_
_13,155_|_2019_
_Total_
_funds_
_£_
_16,744_
_27,807_
_125,828_
_170,379_|
|---|---|---|---|
|_Fundraising costs_
_Investment manager’s fees_
_Support costs (note 8)_
_2019 Total funds_|_16,744_
_14,652_
_125,828_|||
||_157,224_|||
## **6. Expenditure on charitable activities**
|**Expenditure on charitable activities**|||||
|---|---|---|---|---|
||Direct
costs
£|Research
grants
awarded
(note 7)
£|Support
costs
(note 8)
£|**2020**
**Total**
**funds**
**£**|
|Gastroenterology research
Public Education
**2020 Total funds**|1,893
48,204|58,437
—|110,600
106,598|**170,930**
**154,802**|
||50,097|58,437|217,198|**325,732**|
||_Direct_
_costs_
_£_|_Research_
_grants_
_awarded_
_(note 7)_
_£_|_Support_
_costs_
_(note 8)_
_£_|_2019_
_Total_
_funds_
_£_|
|_Gastroenterology research_
_Public Education_
_2019 Total funds_|_3,564_
_44,977_|_785,392_
_—_|_123,696_
_91,704_|_912,652_
_136,681_|
||_48,541_|_785,392_|_215,400_|_1,049,333_|
## **7. Research grants awarded**
|New research grants
Less grants no longer required – research commitments
**Researchgrants awarded(note 6)**|**2020**
**Total**
**funds**
**£**
2019
Total
funds
£
**61,950**
**(3,513)**
790,566
(5,174)
**58,437**
785,392|
|---|---|
Research grants awarded represent commitments made for research, and are set out in detail in note 18.
Guts UK Charity **48**
**Notes to the financial statements** 31 December 2020
## **8. Total expenditure**
|**Total expenditure**|||||
|---|---|---|---|---|
||Cost of
raising
funds
£|Charitable|activities|**2020**
**Total**
**funds**
**£**|
|||Gastro-
enterology
research
£|Public
education
and
Science
of
Digestion
£||
|**Directly incurred**
Grants payable (see note 7)
Research administration
Fundraising costs
Public education
Investment management fees
**Support costs**
Staff costs (see note 10)
Premises and donated facilities
Postage
Telephone
Stationery, printing, design and marketing
Insurance
Bank charges
Meeting costs
Subscriptions/publications
Equipment/maintenance and website
development
Depreciation
Training and recruitment
Governance costs:
. Audit & Accountancy
. Professional fees
. Bookkeeping costs
Brand development
**2020 Total funds**|_—_
_—_
48,040
_—_
26,364|58,437
1,893
_—_
_—_
_—_|_—_
_—_
_—_
48,204
_—_|**58,437**
**1,893**
**48,040**
**48,204**
**26,364**|
||74,404|60,330|48,204|**182,938**|
||135,957
5,101
183
1,694
1,632
529
1,597
2,210
3,073
8,760
634
7,084
3,833
956
2,281
7,475|82,169
3,083
111
1,024
986
320
965
1,336
1,857
5,294
383
4,282
2,316
578
1,378
4,518|79,195
2,971
107
987
951
308
930
1,288
1,790
5,103
369
4,127
2,233
557
1,328
4,354|**297,321**
**11,155**
**401**
**3,705**
**3,569**
**1,157**
**3,492**
**4,834**
**6,720**
**19,157**
**1,386**
**15,493**
**8,382**
**2,091**
**4,987**
**16,347**|
||182,999|110,600|106,598|**400,197**|
||||||
||257,403|170,930|154,802|**583,135**|
Guts UK Charity **49**
**Notes to the financial statements** 31 December 2020
## **8. Total expenditure** (continued)
||_Cost of_
_raising_
_funds_
_£_|_Charitable_|_activities_|_2019_
_Total_
_funds_
_£_|
|---|---|---|---|---|
|||_Gastro-_
_enterology_
_research_
_£_|_Public_
_education_
_and_
_Science_
_of_
_Digestion_
_£_||
|_Directly incurred_
_Grants payable (see note 7)_
_Research administration_
_Fundraising costs_
_Public education_
_Investment management fees_
_Support costs_
_Staff costs (see note 10)_
_Premises and donated facilities_
_Postage_
_Telephone_
_Stationery, printing, design and marketing_
_Insurance_
_Bank charges_
_Meeting costs_
_Subscriptions/publications_
_Equipment/maintenance and website_
_development_
_Depreciation_
_Training and recruitment_
_Governance costs:_
_. Auditor’s remuneration_
_. Professional fees_
_. Bookkeeping costs_
_Brand development_
_2019 Total funds_|_—_
_—_
_16,744_
_—_
_27,807_|_785,392_
_3,564_
_—_
_—_
_—_|_—_
_—_
_—_
_44,977_
_—_|_785,392_
_3,564_
_16,744_
_44,977_
_27,807_|
||_44,551_|_788,956_|_44,977_|_878,484_|
||_83,413_
_7,528_
_250_
_1,211_
_1,497_
_429_
_939_
_5,050_
_1,543_
_7,973_
_180_
_5,557_
_3,492_
_1,844_
_3,719_
_1,203_|_81,999_
_7,401_
_246_
_1,191_
_1,472_
_421_
_922_
_4,964_
_1,517_
_7,838_
_177_
_5,463_
_3,433_
_1,813_
_3,656_
_1,183_|_60,792_
_5,487_
_182_
_883_
_1,091_
_312_
_684_
_3,680_
_1,125_
_5,811_
_131_
_4,050_
_2,545_
_1,344_
_2,710_
_877_|_226,204_
_20,416_
_678_
_3,285_
_4,060_
_1,162_
_2,545_
_13,694_
_4,185_
_21,622_
_488_
_15,070_
_9,470_
_5,001_
_10,085_
_3,263_|
||_125,828_|_123,696_|_91,704_|_341,228_|
||||||
||_170,379_|_912,652_|_136,681_|_1,219,712_|
## **9. Net income before transfers**
This is stated after charging:
||**2020**|2019|
|---|---|---|
||**Total**|Total|
||**funds**|funds|
||**£**|£|
|Staff costs (note 10)|**297,321**|226,204|
|Depreciation|**1,386**|488|
|Auditor’s remuneration (including VAT)|||
|. Statutoryaudit services – currentyear|**8,000**|7,464|
Guts UK Charity **50**
**Notes to the financial statements** 31 December 2020
## **10. Staff costs and remuneration of key management personnel**
|**Staff costs and remuneration of key management personnel**||
|---|---|
||**2020**
**Total**
**funds**
**£**
2019
Total
funds
£
**266,856**
203,129
**22,508**
16,584
**7,957**
6,491
**297,321**
226,204|
|Salaries and wages
Social security
Pension costs||
The average number of employees during the period was 8 (2019: 6.5). One employee earned between £60,001 and £70,000 during the year (2019: one employee earned between £60,001 and £70,000).
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees, the CEO, the Finance and Research Managers. The total remuneration (including taxable benefits and employer’s pension contributions) of the key management personnel for the year was £159,857 (2019: £148,276).
## **11. Trustees’ remuneration and expenses**
£nil remuneration (2019: £nil) was paid or payable, directly or indirectly, out of the funds of the charity for the period to any trustee, or to any person or persons known to be connected with any of them.
Two trustees were reimbursed for travel expenses of £258 during the period (2019: six trustees: £1,687).
## **12. Taxation**
Guts UK is a registered charity and is potentially exempt from taxation in respect of income and capital gains received within the categories covered by Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.
## **13. Tangible fixed assets**
|**angible fixed assets**|||
|---|---|---|
|||**Computer**
**equipment**
**£**|
|**Cost**
At 1 January 2020
Additions in the year
At 31 December 2020
**Depreciation**
At 1 January 2020
Charge for the year
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 December 2019||**6,642**
**2,922**|
|||**9,564**|
|||**4,658**
**1,386**|
|||**6,044**|
|||**3,520**|
|||1,984|
Guts UK Charity **51**
**Notes to the financial statements** 31 December 2020
## **14. Investments**
|**Investments**|||||
|---|---|---|---|---|
||Endowment
portfolio
£|Unrestricted
portfolio
£|**2020**
**£**|2019
£|
|**At valuation**
Balance brought forward at 1 January
Additions
Disposal proceeds
Investment gains
. Realised (losses)/gains
. Unrealised (losses)/gains
Total investment (losses)/ gains
Balance carried forward at 31 December
Cash held by investment managers
Total investments
**Analysis by Type**
Listed investments at market value
. UK Equities
. Overseas Equities
. UK Bonds
. Overseas bonds
. Multi-asset funds
. Property funds
. Other
Total investments
Historic cost of listed investments (all are
listed in the UK) - excluding cash held by
investment managers|2,734,531
667,910
(621,291)|3,017,993
786,486
(769,691)|**5,752,524**
**1,454,396**
**(1,390,982)**|5,270,835
987,808
(1,128,341)|
||(47,100)
(70,833)|
(162,987)
(5,176)|**(210,087)**
**(76,009)**|73,504
548,718|
||(117,933)|
(168,163)|**(286,096)**|622,222|
||2,663,217
375,910|2,866,625
86,608|**5,529,842**
**462,518**|5,752,524
566,080|
||3,039,127|2,953,233|**5,992,360**|6,318,604|
||987,441
882,080
207,163
106,633
174,507
124,754
180,639|1,162,937
784,626
264,918
118,228
196,319
159,444
180,153|**2,150,378**
**1,666,706**
**472,081**
**224,861**
**370,826**
**284,198**
**360,792**|3,009,441
1,071,659
594,058
87,772
403,391
294,814
291,389|
||2,663,217|2,866,625|**5,529,842**|5,752,524|
||
2,388,768|2,820,378|**5,209,146**|5,042,868|
At 31 December the charity had the following material investment holdings:
||Endowment
£|Unrestricted
£|**Market**
**value**
**£**|Percentage
of portfolio
%|
|---|---|---|---|---|
|**Listed investments within the portfolio are:**
M&G Equities Investment Fund for charities
The Charity Equity Income Fund
Trojan Income Fund Class S
Fidelity Global Equity Income Fund Class D
LF Majede UK Equity Fund
Trojan Investment Funds – Trojan Fund
The Charity Equity Value Fund|259,416
250,372
233,844
216,876
126,567
174,507
117,244|274,514
228,295
269,820
220,558
237,664
196,319
152,641|**533,930**
**478,667**
**503,664**
**437,434**
**364,231**
**370,826**
**269,885**|10%
9%
9%
8%
7%
7%
5%|
Guts UK Charity **52**
**Notes to the financial statements** 31 December 2020
## **14** . **Investments** (continued)
The total unrealised gains as at 31 December 2020 constitute movements on revaluation and are as follows:
||**2020**
**£**|2019
£|
|---|---|---|
|**Unrealised gains included above:**
On investments
**Total unrealised gains at 31 December**
**Reconciliation of movements in unrealised gains:**
Unrealised gains at 1 January
(Losses) in respect to disposals in the year
Add: net (losses)/gains arising on revaluation in the year
**Total unrealisedgains at 31 December**|**320,696**|709,656|
||**320,696**|709,656|
||**709,656**
**(312,951)**|320,028
(159,090)|
||**396,705**
**(76,009)**|160,938
548,718|
||**320,696**|709,656|
## **15. Debtors**
||**2020**
**£**|2019
£|
|---|---|---|
|Prepayments, accrued income and sundry debtors
Commitments due from funding partners|**78,414**
**280,066**|119,751
412,524|
||**358,480**|532,275|
Included within debtors under commitments due from funding partners is £70,000 (2019: £30,067) which is due after one year
## **16. Creditors: amounts falling due within one year**
||**2020**
**£**|2019
£|
|---|---|---|
|Other creditors
Accruals and deferred income
Research grants payable (see note 18)|**8,722**
**105,059**
**1,022,671**|5,693
31,159
1,108,182|
||**1,136,452**|1,145,034|
## **17. Creditors: amounts falling due after more than one year**
||**2020**
**£**|2019
£|
|---|---|---|
|Researchgrantspayable(see note 18)|**432,313**|613,673|
Guts UK Charity **53**
**Notes to the financial statements** 31 December 2020
## **18. Research grants payable**
|**Research grants payable**|||
|---|---|---|
||**2020**
**Total**
**funds**
**£**|2019
Total
funds
£|
|At 1 January
Research grants awarded in the year
Research grants no longer required
Paid during the year
At 31 December
Research grants at 31 December are payable as follows:
Within one year (see note 16)
After more than one year (see note 17)|**1,721,855**
**61,950**
**(3,513)**
**(325,308)**|1,147,961
790,566
(5,174)
(211,498)|
||**1,454,984**|1,721,855|
||**1,022,671**
**432,313**|1,108,182
613,673|
||**1,454,984**|1,721,855|
Details of research grants payable are provided overleaf.
Guts UK Charity **54**
## **Notes to the financial statements** 31 December 2020
## **18. Research grants payable** (continued)
|**8. Research grants payable**(continued)||||||
|---|---|---|---|---|---|
|**Ongoing research**
Professor Laurence
Lovat
Development award
Salivary EpigeNetics to Stratify Oesophageal Cancer
Risk (SENSOR)
Dr Wadiamu Gashau
Core-BSG Trainee
Research Network Award
RISE NoW (Regional IBD Surveillance Endoscopy
North West) study: A real world experience of
dysplasia and colorectal cancer surveillance in
Inflammatory Bowel Disease (IBD)
Dr Conor McCann
Core-Derek Butler
Fellowship
Enteric neural stem cell therapy for Oesophageal
Achalasia and Diabetic Gastroparesis
Mr James O'Kelly
Guts UK/Amelie Waring
Research Fellowship
Single cell definition of the mechanistic role of
kynurenine monooxygenase at the innate immune
interface in acute pancreatitis
Dr Sara Jamel
Olympus Guts UK
Endoscopy Fellowship
Profiling of Dysplastic Changes in Barrett's Oesophagus
and Early Oesophageal Cancer Using Non-Invasive
Volatile Organic Compound Analysis of Exhaled Breath
Professor Colin Rees
Parabola-Guts UK
Colorectal Cancer
Research Grant
COLO-COHORT Colorectal Cancer Cohort Study
Dr Marc-Emmanuel
Dumas
Guts UK Development
Award
Precision medicine through integrative metagenomics
and phenomics in a human NAFLD cohort
Dr Varinder Athwal
Guts UK Development
Award
Investigating fibrosis pathobiology in cystic fibrosis
related liver disease to improve clinical detection and
management
Dr Dipesh Vasant
Guts UK-Dr Falk SpR
Trainee Audit/Quality
Improvement Award
Anorectal dysfunction in ulcerative colitis: a cross
sectional survey
**Balance carried forward**|At
1 January
2020
£
35,876
2,500
94,618
179,423
180,244
500,000
49,797
25,351
1,300
**1,069,109**|Research grants
awarded
£
—
—
—
—
—
—
—
—
—
—|Grants
no longer
required
£
(835)
—
—
—
—
—
—
—
—
**(835)**|Grants
paid in
the year
£
—
—
(19,714)
(32,122)
(60,122)
(95,955)
—
(21,061)
—
**(228,974)**|**At 31**
**December**
**2020**
**£**|
||||||**35,041**
**2,500**
**74,904**
**147,301**
**120,122**
**404,045**
**49,797**
**4,290**
**1,300**|
||||||**839,300**|
Guts UK Charity **55**
## **Notes to the financial statements** 31 December 2020
## **18. Research grants payable** (continued)
|**Ongoing research cont’d**
**Balance brought forward**
Dr Gwo-tzer Ho
Guts UK Development
Award
Resolving Inflammation in IBD: Developing a new
therapeutic approach by targeting pro-inflammatory
mitochondrial formylated peptides on neutrophil FPR1-
pathway
Dr Michael Fitzpatrick
Guts UK-BSG Trainee
Research Network Award
Effect of diet, nutritional status, and body composition on
biologic therapy in IBD: The Oxford and Thames Valley
Young Gastroenterologists Network (OxYGEN)
Dr Polychronis Pavlidis
Guts UK-BSG Trainee
Research Network Award
Quality of care transition in adult IBD patients
transferring between healthcare providers: a multicentre
audit
Dr Nick Powell
For Crohns
TNFα responsive transcriptional networks in the human
intestinal epithelium - the key to predicting therapeutic
response to antic-TNFα in Crohn's disease
Dr Louise China
Guts UK-BSG Trainee
Research Award
Exploring Periodontitis in Cirrhosis (EPIC): a single arm
feasibility study to explore the relationship between
periodontitis and infection in patients with liver cirrhosis.
Dr Srivathsan Ravindran
Guts UK-BSG Trainee
Research Award
Developing a patient-reported safety incident tool in
endoscopy
Dr Mike Davies
Guts UK-BSG Trainee
Research Network Award
Getting to the bottom of acute Lower Gastrointestinal
Bleeding: Improving quality of care for patients with acute
lower gastrointestinal bleeding and assessing resource
implications of adherence to national guidelines
Dr Samuel Smith
Guts UK-BSG Trainee
Research Network Award
Improving key performance measures in inflammatory
bowel disease surveillance
**Balance carried forward**||At
1 January
2020
£
**1,069,109**
19,525
2,000
2,499
48,737
4,980
3,775
3,000
5,000||Research grants
awarded
£
—
—
—
—
—
—
—
—
—||Grants
no longer
required
£
**(835)**
—
—
—
—
—
—
—
—||Grants
paid in
the year
£
**(228,974)**
(5,695)
—
—
—
—
(1,888)
—
—||**At 31**
**December**
**2020**
**£**
**839,300**
**13,830**
**2,000**
**2,499**
**48,737**
**4,980**
**1,887**
**3,000**
**5,000**|
|---|---|---|---|---|---|---|---|---|---|---|
||||||||||||
|||**1,158,625**||—||**(835)**||**(236,557)**||**921,233**|
Guts UK Charity **56**
## **Notes to the financial statements** 31 December 2020
## **18. Research grants payable** (continued)
|**Ongoing research cont’d**
**Balance brought forward**
Professor Jonathan
Fallowfield
Development Grant
A molecular phenomic approach to define the high risk
NAFLD population
Dr Salvatore Papa
Development Grant
Starving livers of glucose for HCC prevention and
treatment
Professor Chris Probert
Development Grant
Evaluation of the gut metabolome, micro and myco biome
in ulcerative colitis patients undergoing anti-fungal
therapy: can we predict response to therapy?
Dr James Pritchett
Development Grant
Decoding Yes Associated Protein 1 driven hepatic
stellate cell activation
Dr Marnix Jenson
Development Grant
The TARGET study (TArgeted biopsies to Risk Stratify
Gastric cancer precursors for tailored Endoscopic
surveillance and Treatment)
Dr Catherine Williamson
Nutrition Development
Grant
Impact of cold exposure in conjunction with dietary
modification on metabolic regulation in children with non-
alcoholic fatty liver disease
Professor Christer Hogstrand Nutrition Development
Grant
Targeting “Leaky Gut“ with combined dietary zinc and
plant derived Aryl Hydrocarbon Receptor agonists
Dr Paul Henderson
Guts UK - BSPGHAN
Development Grant
The PINPOINT study – The Prospective Incidence of
Paediatric – Onset Inflammatory bowel disease in the
United Kingdom
Dr Matthias Zilbauer
Guts UK - BSPGHAN
Development Grant
Stratification of inflammatory bowel disease treatment in
children using human intestinal organoid derived
epigenetic signatures
**Balance carried forward**|At
1 January
2020
£
**1,158,625**
49,623
50,000
48,099
29,138
49,560
48,283
50,000
39,936
40,000
**1,563,264**|Research grants
awarded
£
—
—
—
—
—
—
—
—
—
—
—|Grants
no longer
required
£
**(835)**
—
—
—
—
—
—
—
—
—
**(835)**|Grants
paid in
the year
£
**(236,557)**
—
—
—
—
—
—
—
—
(25,229)
**(261,786)**|**At 31**
**December**
**2020**
**£**|
|---|---|---|---|---|---|
||||||**921,233**
**49,623**
**50,000**
**48,099**
**29,138**
**49,560**
**48,283**
**50,000**
**39,936**
**14,771**|
||||||**1,300,643**|
Guts UK Charity **57**
## **Notes to the financial statements** 31 December 2020
## **18. Research grants payable** (continued)
|**Ongoing research cont’d**
**Balance brought forward**
Professor Graham Lord
For Crohn’s Development
Grant
Modulation of the effector/regulatory T-cell balance by
targeting a causal genetic variant as a novel therapeutic
paradigm in Crohn’s disease
Dr Jorge Gutierrez-Merino
For Crohn’s Development
Grant
Understanding how gut bacteria induce beneficial type 1
interferon responses|At
1 January
2020
£
1,563,264
43,336
49,055
**1,655,655**|Research grants
awarded
£
—
—
—
—|Grants
no longer
required
£
(835)
—
—
**(835)**|Grants
paid in
the year
£
(261,786)
—
—
**(261,786)**|**At 31**
**December**
**2020**
**£**|
|---|---|---|---|---|---|
||||||**1,300,643**
**43,336**
**49,055**|
||||||**1,393,034**|
Guts UK Charity **58**
## **Notes to the financial statements** 31 December 2020
## **18. Research grants payable** (continued)
|**18. Research grants payable**(continued)||||||
|---|---|---|---|---|---|
|**New commitments**
Dr Robin Dart
Guts UK-BSG Trainee
Research Award
The cellular architecture of the human colonic mucosa
: a pilot and feasibility study to facilitate longitudinal
multi-centre studies
Dr James Ashton
Guts UK-BSG Trainee
Research Award
To establish a UK wide Paediatric IBD Research
network (PAIR network) to answer clinical research
questions and enable rapid decision making
Dr John Thomas
Guts UK-BSG Trainee
Research Award
Transcriptomic profiling of patient derived colonic
epithelial organoids exposed to Ulcerative Colitis-
relevant cytokines – a novel approach to uncover IBD
pathogenesis and inform precision medicine
strategies.
Dr Rebecca Harris
Guts UK-BSG Trainee
Research Award
Non-invasive risk stratification of patients with
compensated advanced chronic liver disease :
Results from a real world cohort from the Nottingham
Scarred Liver pathway
Dr Roosey Sheth
Guts UK-BSG Trainee
Research Network Award
A UK wide Audit of the Management of Primary
Biliary Cholangitis (PBC)
Falk Pharma 2020
awards - various
Guts UK-Dr Falk awards 2020
**New commitments total**|At
1 January
2020
£
—
—
—
—
—
—
—|Research grants
awarded
£
10,000
8,000
9,950
10,000
10,000
14,000
61,950|Grants
no longer
required
£
—
—
—
—
—
—
—|Grants
paid in
the year
£
—
—
—
—
—
—
—|**At 31**
**December**
**2020**
**£**|
||||||**10,000**
**8,000**
**9,950**
**10,000**
**10,000**
**14,000**|
||||||**61,950**|
Guts UK Charity **59**
## **Notes to the financial statements** 31 December 2020
## **18. Research grants payable** (continued)
|**Research completed in during the year**
Professor David
Wilson
BSPGHAN Award
Health informatics research in paediatric
gastroenterology: nationwide data-linkage exploration of
perinatal risk factors for and consequences of paediatric-
onset Inflammatory Bowel Disease
Professor Chris
Probert
Core-BSPGHAN
Development Grant
Characterisation of the gut mycobiome in an inception
cohort of paediatric inflammatory bowel disease patients
Professor Sarah Ennis Core-BSPGHAN
Development Grant
Metabolo-genomic interactions in paediatric Crohn's
Disease (CD)
Dr Misha Kabir
Guts UK-Dr Falk SpR
Trainee Audit/Quality
Improvement Award
Developing a personalised patient decision aid to improve
the quality of shared decision-making between Ulcerative
Colitis patients diagnosed with dysplasia and their
clinicians
Dr Suneil Raju
Guts UK-BSG Trainee
Research Award
Review of current diagnostic procedure and management
of patients with microscopic colitis: Are we getting it right?
Dr Konstantinos
Gerasimidis
For Crohns
A pilot study to assess the clinical efficacy of the novel
CD-TREAT diet in patients with active Crohn's disease
Dr Rishi Fofaria
Guts UK-Dr Falk SpR
Trainee Audit/Quality
Improvement Award
Prospective observational study to investigate the role of
pre-procedure faecal calprotectin before scheduled IBD
surveillance colonoscopy to improve quality of care
**Total grants for the year**||At
1 January
2020
£
**23,694**
**993**
**12,898**
**1,400**
**2,500**
**19,566**
**5,149**|Research grants
awarded
£
—
—
—
—
—
—
—
—|Research grants
awarded
£
—
—
—
—
—
—
—
—||Grants
no longer
required
£
—
—
—
—
—
(104)
(2,574)||Grants
paid in
the year
£
(23,694)
(993)
(12,898)
(1,400)
(2,500)
(19,462)
(2,575)||**At 31**
**December**
**2020**
**£**
—
—
—
—
—
—
—|
|---|---|---|---|---|---|---|---|---|---|---|
||||||||||||
|||**66,200**||—||**(2,679)**||**(63,522)**||—|
||||||||||||
|||**1,721,855**||**61,950**||**(3,513)**||**(325,308)**||**1,454,984**|
Guts UK Charity **60**
**Notes to the financial statements** 31 December 2020
## **19. Restricted Funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust to be applied for specific purposes:
|urposes:||||||
|---|---|---|---|---|---|
||At 1
January
2020
£|Income
£|Expenditure
£|Transfers
£|**At 31**
**December**
**2020**
**£**|
|Research grants
Restricted research grants
Restricted – Pancreatitis
Restricted – Stomach Cancer
Trust Application Donations
Derek
Butler
Endowment
Income fund|—
—
—
—
—
126,037|
14,000
28,000
8,114
1,362
5,500
77,201|(14,000)
(47,950)
**—**
(2,000)
(3,000)
**—**|
**—**
19,950
**—**
638
**—**
41,430|**—**
**—**
**8,114**
**—**
**2,500**
**244,668**|
||126,037|
134,177|(66,950)|62,018|**255,282**|
||_At 1_
_January_
_2019_
_£_|_Income_
_£_|_Expenditure_
_£_|_Transfers_
_£_|_At 31_
_December_
_2019_
_£_|
|---|---|---|---|---|---|
|_Research grants_
_Restricted research grants_
_Restricted - Pancreatitis_
_Derek_
_Butler_
_Endowment_
_Income fund_|_—_
_—_
_8,938_
_57,699_|
_16,575_
_407,466_
_3,703_
_92,140_|_(19,149)_
_(439,102)_
_(12,641)_
_(20,786)_|
_2,574_
_31,636_
_—_
_(3,016)_|
_—_
_—_
_—_
_126,037_|
||_66,637_|
_519,884_|_(491,678)_|_31,194_|
_126,037_|
The transfer represents the contribution from general funds towards the research grants.
The purposes of Guts UK’s restricted funds are as follows:
- Research grants: grants for research into a range of digestive disorders.
- Restricted research grants: grants for specific research schemes.
- Derek Butler Endowment Income Fund: this represents the income received from the endowment fund and expenditure on research into the diseases of the upper gastrointestinal tract.
Guts UK Charity **61**
**Notes to the financial statements** 31 December 2020
## **20. Designated Funds – Amelie Waring**
||At 1
January
2020
£
1,875,489
(179,423)
1,696,066|Income
£
46,448
**_—_**
46,448|Expenditure
£
Transfers
£|
Investment
(losses)
£
(147,900)
**_—_**
(147,900)|**At 31**
**December**
**2020**
**£**|
|---|---|---|---|---|---|
|Investments
Research
Commitments
**Total Amelie**
**Waring Fund**|||
(74,219)
(810,601)
32,123
**_—_**||**889,217**
**(147,300)**|
||||
(42,096)
(810,601)||**741,917**|
## **Designated Funds – GI Research**
|Income
£
4,715
**_—_**
4,715|Expenditure
£
Transfers
£|Expenditure
£
Transfers
£|
Investment
gains
£
51,624
**_—_**
51,624|**At 31**
**December**
**2020**
**£**|
|---|---|---|---|---|
||
20,462
810,601
(19,950)
**_—_**|||**887,402**
**(19,950)**|
||
512|
810,601||**867,452**|
## **Total Designated Funds**
|**Total**
**Funds**|**Designated**
|**1,696,066**|**51,163 **|**(41,584)**|**—**|**(96,276)**|**1,609,369**|
|---|---|---|---|---|---|---|---|
||At 1
January
2019
£
_1,685,450_
_(179,423)_
_1,506,027_|Income
£
_77,847_
_—_
_77,847_|Expenditure
£
Transfers
£|
Investment
(losses)
£
_195,747_
_—_
_195,747_|At 31
December
2019
£|
|---|---|---|---|---|---|
|Investments
Research
Commitments
**Total Amelie**
**Waring Fund**|||
_(83,555)_
_—_
_—_
_—_||_1,875,489_
_(179,423)_|
||||
_(83,555)_
_—_||_1,696,066_|
The Amelie Waring fund was initially established in memory of Amelie Waring to fund pancreatitis research, although the original bequest has been fully expended the trustees continue to designate funds to pancreatitis research in recognition of their ongoing commitment to funding research in this area.
The GI Research Fund is designated to general gastrointestinal research. During the year, the trustees designated £810,601 to this fund.
Guts UK Charity **62**
**Notes to the financial statements** 31 December 2020
## **21. Endowment fund**
|**Endowment fund**||||||
|---|---|---|---|---|---|
||At 1
January
2020
£|Income
£|Expenditure/
transfers
£|Investment
losses
£|**At 31**
**December**
**2020**
**£**|
|Derek Butler Endowment|2,855,298|**_—_**|(53,950)|(117,933)|**2,683,415**|
||_At 1_
_January_
_2019_
_£_|_Income_
_£_|_Expenditure_
_£_|_Investment_
_losses_
_£_|_At 31_
_December_
_2019_
_£_|
|_Derek Butler Endowment_|_2,558,166_|_—_|_—_|_297,132_|_2,855,298_|
Income from the Derek Butler Endowment fund is credited to restricted funds and is to be spent on research into diseases of the upper gastrointestinal tract.
## **22. Analysis of net assets between funds**
||Fixed assets
£|Investments
£|Net current
(liabilities) /
assets
£|Long-term
Liabilities
£|**2020**
**Total**
**£**|
|---|---|---|---|---|---|
|Unrestricted funds
. General
. Designated funds – AW
. Designated funds – GI
Restricted funds
Endowment funds|3,520
**_—_**
**_—_**
**_—_**|1,287,659
889,217
887,402
244,667
2,683,415|37,273
(102,480)
**_—_**
146,694
**_—_**|(231,464)
(44,820)
(19,950)
(136,079)
**_—_**|**1,096,988**
**741,917**
**867,452**
**255,282**
**2,683,415**|
||3,520|5,992,360|81,487|(432,313)|**5,645,054**|
||_Fixed assets_
_£_|_Investments_
_£_|_Net current_
_(liabilities) /_
_assets_
_£_|_Long-term_
_Liabilities_
_£_|_2019_
_Total_
_£_|
|---|---|---|---|---|---|
|_Unrestricted funds_
_. General_
_. Designated funds_
_Restricted funds_
_Endowment funds_|_1,984_
_—_
_—_
_—_|_1,461,786_
_1,875,489_
_126,037_
_2,855,298_|_(15,016)_
_(70,950)_
_343,311_
_—_|_(161,889)_
_(108,473)_
_(343,311)_
_—_|_1,286,865_
_1,696,066_
_126,037_
_2,855,298_|
||_1,984_|_6,318,604_|_257,351_|_(613,673)_|_5,964,266_|
Guts UK Charity **63**
**Notes to the financial statements** 31 December 2020
## **23. British Society of Gastroenterology**
Guts UK works closely with the British Society of Gastroenterology (BSG) (Charity Registration No. 1149074 and Company Registration No. 08124892 (England and Wales)) to provide strong links with the main professional community and to improve its ability to disseminate research and patient information. The Chair of the Research Committee of BSG is a member of Guts UK’s Board of Trustees. The Chair of Guts UK is an _ex-officio_ member of BSG’s Council.
Transactions between the two charities during the period were as follows:
The BSG provided a grant of £25,000 (2019: £10,000) to support trainee research grants.
## **24. Contingent asset and liability**
In 2018 the charity secured provisional funding amounting to £1,250,000 for the colorectal cancer research grant of which £250,000 has been received to date.
Up to £250,000 is receivable on an annual basis contingent on a satisfactory annual report being approved by the funding partner. Guts UK was therefore not entitled to these funds in the year ended 31 December 2020. Should the next stages of funding be received, Guts UK has agreed to distribute and monitor use of this funding as a sub-grant. As at 31 December 2020, £1,000,000 remains receivable, of which up to £250,000 is receivable and payable within one year.
## **25. Related party transactions**
During the year the charity received donations of £1,680 from trustees (2019: £665). Transactions with the British Society of Gastroenterology are detailed in note 23.
There were no further related party transactions during the period requiring disclosure (2019: none).
## **26. Liability of members**
The charity is constituted as a company limited by guarantee. In the event of the charity being wound up, members are required to contribute an amount not exceeding £1.
## **27. Commitments Under Operating Leases**
At 31 December the charity had future minimum commitments under non-cancellable operating leases as set out below:
|Payments which fall due:|**2020**
**£**
2019
£
**772**
772
**1,932**
2,704
**2,704**
3,476|
|---|---|
|Within one year
Within 2 to 5 years||
Guts UK Charity **64**
**Notes to the financial statements** 31 December 2020
## **28. Comparative Statement of Financial Activities for the year ended 31 December 2019**
||Unrestricted
funds
£|Restricted
funds
£|
Endow-
ment
funds
£|**2019**
**Total**
**funds**
**£**|
|---|---|---|---|---|
|**Income and expenditure**
**Income**
Donations and legacies
1
Other trading activities
2
Investment income
3
Charitable activities
4
. Grants for research
**Total income**
**Expenditure**
Cost of raising funds
5
Expenditure on charitable activities
6
. Grants for research
. Public education and Science of Digestion
**Total expenditure**
8
**Net expenditure before transfers**
9
Transfers between funds
19
**Net (expenditure) / income after transfers**
Net gains on investments
14
. Realised
. Unrealised
**Net (expenditure) / income and net movement in**
**funds for the year**
**Reconciliation of funds:**
**Funds balances brought forward**
**Fund balances carried forward**|
235,669
54,364
111,615
_—_|18,778
_—_
92,140
408,966|
_—_
_—_
_—_
_—_|**254,447**
**54,364**
**203,755**
**408,966**|
||401,648|519,884|
_—_|**921,532**|
||
157,224
434,129
136,681|13,155
478,523
_—_|
_—_
_—_
_—_|**170,379**
**912,652**
**136,681**|
||
728,034|491,678|
_—_|**1,219,712**|
||
(326,386)
(31,194)|28,206
31,194|
_—_
_—_|**(298,180)**
_—_|
||(357,580)
42,071
283,019|59,400
_—_
_—_|
_—_
31,433
265,699|**(298,180)**
**73,504**
**548,718**|
||(32,490)
3,015,421|59,400
66,637|
297,132
2,558,166|**324,042**
**5,640,224**|
||**2,982,931**|**126,037**|
**2,855,298**|**5,964,266**|
Guts UK Charity **65**