## **Annual report and financial statements**
**For the year ended 31 March 2023**
**Charity registration number: 1140679 Company number: 7543237**
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**Moorfields Eye Charity**
## **Annual report and financial statements Year ended 31 March 2023**
|**Moorfields Eye Charity**
**Annual report and financial statements**
**Year ended 31 March 2023**|**Moorfields Eye Charity**
**Annual report and financial statements**
**Year ended 31 March 2023**|
|---|---|
|_______________________________________________________________________________________||
|**Contents**|**Page**|
|Trustees, reference and administrative details of the charity|2|
|Welcome from the Chair|3|
|Introduction from the Chief Executive|4|
|Strategic report||
|Our strategy|5|
|Performance and activities in the year|6|
|Our achievements|7 – 9|
|Fundraising activities|10|
|Communications activities|11|
|Investment activities|11|
|Reserves|12|
|Going concern|13|
|Acknowledgements (including our supporter promise)|13 - 15|
|Governance||
|Constitution|16|
|Objects and mission|16|
|Structure, governance and management|17 – 18|
|Charity governance code|19|
|Process for awarding grants|19|
|Our fundraising approach|20|
|Fundraising regulation and complaints|21|
|Risks and uncertainties|21|
|Environment, social, community and human rights issues and employees|22|
|Remuneration|23|
|Statement of Trustees’ responsibilities|25|
|Independent Auditors’ report|26 - 28|
|Financial statements||
|Statement of financial activities|29|
|Income and expenditure account|30|
|Balance sheet|31|
|Cashflow statement|32|
|Notes to the financial statements|33 - 53|
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## **Moorfields Eye Charity Annual report and financial statements Year ended 31 March 2023**
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## **Trustees**
Mervyn Walker (elected), Chair Andrew Ballheimer (elected) – retired 24 February 2023
Shachi Blakemore (elected) – elected 13 March 2023
Tony Briam (elected) – retired 24 February 2023 Noland Carter (elected) Dr Lee-Ann Coleman (elected) Vicky Hastings (elected) Michael Izza (elected), Vice-chair Dr Robert Jones (appointed)
Dr Martin Kuper (appointed ex-officio)
Professor Carrie MacEwen (elected)
Colin Maclean OBE (elected) – retired 11 July 2022
Kevin McGrath (elected) – elected 5 December 2022
Johanna Moss (appointed ex officio) – resigned 13 October 2023
Professor Sir Eric Thomas (elected)
Dr Jyotsna Vohra (elected) – elected 5 December 2022
Miss Louisa Wickham (appointed ex-officio)
**Management group** Robert Dufton Chief executive and Gordon Burns Director of finance and Company secretary resources Rachel Jones Director of development Dr Ailish Murray Director of grants and research **Company registered number** 7543237 **Charity registered number** 1140679 **Registered office** 162 City Road, London, EC1V 2PD **Principal office** 27 Provost Street, London, N1 7NH **Auditors** Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG **Bankers** Barclays Bank, 1 Churchill Place, Canary Wharf, London, E14 5HP The Co-operative Bank, 2nd Floor, St Paul's House, 10 Warwick Lane, London, EC4M 7BP **Solicitors** Stone King LLP, Boundary House, 91 Charterhouse Street, London, EC1M 6HR **Lead investment managers** J P Morgan International Bank Ltd, 60 Victoria Embankment, London, EC4Y 0JP
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**Moorfields Eye Charity Annual report and financial statements Year ended 31 March 2023**
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## **Welcome from the Chair**
Welcome and thank you for reading our Annual Report for the year ended 31 March 2023.
Moorfields Eye Charity continues to provide support to Moorfields Eye Hospital NHS Foundation Trust (Moorfields) and its academic partner UCL. We are able to do so thanks to the generosity of our donors and supporters, many of whom are patients of Moorfields, the hard work of our charity team and the commitment of the staff of Moorfields and UCL who support our work through their professional roles and in many instances also by taking part in our fundraising activities. We thank everyone who supports our work.
Our objectives are the relief of sickness or suffering and the advancement of health. We directly meet these objectives by improving eye health by funding innovation in research, education and care to benefit Moorfields’ patients. This annual report and our separately published annual Impact Report describe in a compelling way how we are meeting these objectives to benefit patients at Moorfields and globally through our support for research, education and innovation in care.
As the reports describe, this year has seen impressive further developments in our fundraising and our grant-making programmes, and major progress in Oriel, the programme to create a new advanced centre for eye health, which is crucial to the future of Moorfields and its work with UCL. We will continue to increase the scale and scope of the support we provide, investing in resources to meet our ambitious plans for the years ahead.
Our Charity was formed in March 2011, and merged with the former Special Trustees of Moorfields in December 2015, when we brought the two Trustee Boards together. Time has passed and we are now seeing planned changes in the make-up of our Board, as long-serving Trustees step down from their roles and new people join to take us forward.
In February 2023 both Tony Briam and Andrew Ballheimer stood down from the Board. Both Tony and Andrew were original trustees of Moorfields Eye Charity, joining the Board in 2011 and supporting us through the merger in 2015.
his dedication and commitment. Tony had been the chair of both the Audit and risk committee and the Oriel committee and has provided invaluable broader support on Oriel. He had also been a member of the Nominations committee. We are grateful to Andrew and Tony for all they have contributed and the support they have given to the charity. We are delighted that Andrew and Tony have agreed to stay on as members of the Fundraising and Oriel committees respectively.
I would also like to thank Johanna Moss, the former Moorfields Director of Strategy and Business Development, who stood down from the Trustee Board in October, when she left Moorfields to take up another senior role in the NHS. In her Moorfields role, Jo had led the Oriel programme and had been instrumental in the great progress that has been achieved, and in her Trustee role she made a major contribution to the Board’s work.
We were delighted to welcome three new Trustees during the year. In December, Kevin McGrath OBE, who has significant experience in fields including property development and philanthropy, and Dr Jyotsna Vohra, who has a strong background in health policy and research, joined the Trustee Board having earlier joined our Oriel and Grants committees respectively. In February, Shachi Blakemore, who has significant experience of accounting, governance and risk management for charities joined the Trustee Board having earlier joined our Audit and risk committee.
We have continued our trustee succession planning and we have appointed two further Trustees-designate, Professor Siddharthan Chandran and Ruth Keattch. Our new Trusteesdesignate will initially join our Grants committee and Investment committee, respectively, before joining the Board in 2024 when two more of our Trustees complete their terms of office and step down.
I would like to reiterate our thanks to the leadership team and all our charity staff and volunteers for their achievements in another year of significant progress for our charity.
## **Mervyn Walker Chair Moorfields Eye Charity**
During much of Andrew’s period as a Trustee and member of the Fundraising committee he had combined his role with a demanding full-time role at Allen & Overy as Managing Partner. This showed
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## **Moorfields Eye Charity**
## **Annual report and financial statements Year ended 31 March 2023**
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## **Introduction from the Chief Executive**
Our annual report sets out our work and our achievements in the financial year to 31 March 2023.
Moorfields and UCL are driving forward innovations in research and patient care which impact not just how eye health is delivered but other NHS services too, to tackle current health challenges and prepare for the future. We are proud to support and be part of this world-leading partnership. With Oriel, the new eye health centre, now a firm reality and the 2027 opening on the horizon, this is an exciting time for the partners as construction starts later this year.
Together with Moorfields and UCL, we achieved significant milestones with Oriel and agreed more philanthropic commitments which are making Oriel possible – we are so very grateful for the generosity being shown. The partnership secured final necessary approvals from the NHS and government; the contract was signed with developers Bouygues UK; and demolition at the site is underway.
We have now entered a period of significant change to our balance sheet. We have already seen our income increase as we began to receive funds from previously pledged donations. We also expect we will begin to make the philanthropic contributions to Oriel during the construction phase during the new financial year.
We continue to receive strong support towards the rest of our work. We have awarded over £6 million in grants to support research, innovation in patient care and training at Moorfields and UCL.
We continue to fund researchers at different stages of their careers. We’re very proud of their achievements: advancements in research and prestigious roles in the scientific community.
This year we are also very pleased to have received government funding which enables us to sustain our investment in early career researchers and help build strong foundations for their research.
This year has been the first year of our ambitious business plan and we have invested in additional staff and resources across all of our activities. Our new colleagues have made such a positive impact. We welcome them to Moorfields Eye Charity
The charity has previously occupied space in an office building owned by Moorfields adjacent to the City Road hospital. The space was provided free of charge for which we have always been very grateful. However, the current and planned future growth in our staff numbers, as well as the need for office space better suited to hybrid working, meant that we needed to relocate. Shortly after the year end we moved into our own dedicated offices, only a few minutes walk from the hospital. As we had intended, the move has improved the dynamics of our offices and how we work together.
Thank you to everyone who, through the charity, supports the work of researchers and clinicians, changing the lives of people with sight loss in the UK and globally.
I hope you enjoy reading our annual report.
## **Robert Dufton Chief Executive Moorfields Eye Charity**
Thanks to your support, we have seen advancements in research and we are funding such areas as corneal disease; how machine learning is transforming treatment of macular degeneration; changes to paediatric pathways; working with GPs in the community; and there is the impact of our innovation grants. We have also seen the difference our work makes to patients’ lives - many of whom are supporters of the charity.
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**Moorfields Eye Charity Strategic report Year ended 31 March 2023**
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The Trustees (who are also Directors for the purposes of Company law) present their annual report together with the audited financial statements of Moorfields Eye Charity (the charity) for the year ended 31 March 2023. This report incorporates the requirements of the Strategic Report as required by Company Law.
The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements; the requirements of the charitable company’s governing document; and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition, effective 1 January 2019).
## **Our strategy**
At Moorfields Eye Charity, we support pioneering eye health and the life-changing work at Moorfields Eye Hospital NHS Foundation Trust (Moorfields) and UCL Institute of Ophthalmology (UCL) – bringing early diagnoses and new treatments to people with sight loss. The number of people in the UK with sight loss is estimated to rise to 2.7 million by 2030. By 2050, the current figure will double to over 4 million. This is why we invest in research and innovation; the best patient care and world-class training; it is why we are a partner in realising Oriel, the centre for advancing eye health reaching people in the UK and worldwide; it is why we are motivated by the core belief shared with Moorfields that People’s Sight Matters.
## **Our strategy 2021-27**
Our six-year strategy outlines our ambitious objectives for the charity and our role supporting the work of Moorfields and UCL to benefit Moorfields’ patients. There is an emphasis on innovation in clinical care, staff wellbeing and staff development.
Our strategy presupposed the continued importance of philanthropic support to enable us to realise our ambitious plans. Key to this is the provision of a new world-class facility in London’s medical and scientific quarter, working in partnership with Moorfields and UCL. The facility will provide integrated clinical care, teaching and research in eye health to benefit millions of current and future patients in London, the UK and across the world. The new facility has a working title of Oriel and is referred to as such throughout this report.
We have set ourselves five main objectives, listed in order of priority:
1. Work in partnership with Moorfields and UCL to create a new world-class integrated clinical care, teaching and research facility;
2. Be the leading charity for research into eye health, supporting the pioneering work of Moorfields and UCL to make new discoveries and turn new knowledge into treatments to improve eye health and wellbeing outcomes for patients of Moorfields and around the world;
3. Support Moorfields staff in the delivery of outstanding and safe patient care and patient experience;
4. Support Moorfields to share its knowledge and to inspire and develop tomorrow’s experts;
5. Work with Moorfields to shape national policy to increase resources allocated to eye health.
We have two further supporting objectives:
6. Maximise sustainable and flexible support for Moorfields and UCL;
7. Attract, retain and develop talented and innovative people.
## **Business model**
The charity supports research work at Moorfields and UCL which will lead to improved understanding of eye conditions and development of treatments. This work is funded through our grant-making processes.
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**Moorfields Eye Charity Strategic report (continued) Year ended 31 March 2023**
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The income required to meet our objectives is raised through fundraising activities, seeking funds from donors with an interest and engagement in the work of Moorfields. The charity is also enabled under the Charity Commission Scheme to receive donations and legacies in the name of Moorfields.
To support these activities and to provide strong governance, the charity employs staff to carry out financial, information management and governance functions. These people support the wider staff groups, the Management group and the Trustees in their roles.
## **Performance and activities in the year**
A summary of our financial performance, before movements in the value of our investments, over the last five years is set out below.
|**Five-year financial summary**|**2019**
**2020**
**2021**
**2022**
**2023**|
|---|---|
||**£’000**
**£’000**
**£’000**
**£’000**
**£’000**|
|**Income**
Donations
Legacies
Events
Raffles, lotteries and other income
Investments
**Total Income**
**Expenditure**
Raising funds
Charitable activities
Support and other
**Total expenditure**
**Net surplus/(deficit) before investment**
**gains/(losses)**|3,440
4,896
6,342
3,602
10,683
3,044
1,439
1,004
4,193
2,207
255
181
135
182
145
57
82
103
418
689
288
292
240
242
325|
||**7,084 **
**6,890**
**7,824**
**8,637 **
**14,049**|
||1,250
1,418
1,299
1,462
1,742
2,253
4,472
4,376
5,631
6,425
596
684
576
563
657|
||**4,099**
**6,574**
**6,251 **
**7,656**
**8,824**|
||**2,985**
**316**
**1,573**
**981 **
**5,225**|
During the year, we approved grants totalling £6.9 million (2022: £6.4 million). This figure, and the comparative figure, are stated before commitments released in each year and before adjustments for net present values in the current and prior years. The section of this report on grant activities in the year, and notes 3 and 13 of the financial statements, give details of the range of activities funded by the charity. The level of grant awards in each year is dependent on the type, size and number of research or other projects being brought forward.
The principal funding sources in 2023, and every year, are receipts from donations, £10.7 million (2022: £3.6 million), and legacies of £2.2 million (2022: £4.2 million).
Major donations from trusts and individuals play a significant part in our donated income; and the impact of our capital campaign for Oriel can be seen as our donation income for 2023, 2021 and 2020 include significant restricted donations towards the capital campaign.
The variability of legacy income each year is highlighted by the table above. In 2022 we saw the catch up after delays in probate grants and administration of estates. In our business planning we continue to assume an average annual income of £2 million from legacies.
Our expenditure levels have returned to the levels incurred before Covid, and further increased as this is the first year of five-year business plan, and we have recruited the staff to achieve our business plan aspirations. We continue to see success in our charitable activities, providing grant awards for research, education and welfare.
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**Moorfields Eye Charity Strategic report (continued) Year ended 31 March 2023**
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## **Our achievements**
Moorfields and its academic partner UCL have an international reputation for research into eye conditions, they are responsible for delivering some of the most important breakthroughs and discoveries in ophthalmology and for training eye specialists including clinicians from around the world. This research translates into the best care and treatments for patients with sight loss and the setting of the highest standards globally. Moorfields Eye Charity supports this unique partnership as the main fundraising and grant-making charity and is a partner with Moorfields and UCL in realising Oriel – the new integrated centre for advancing eye health opening in 2027.
Examples of our achievements can be found in our Impact Report, including testimonials from patients, researchers, staff and supporters.
## **Creating a world-class facility - Oriel**
Oriel, the new state-of-the-art eye centre is due to open in 2027. Oriel will harness the expertise of Moorfields and UCL under one roof and enable closer collaborative working between clinicians and researchers to speed up the delivery of the highest quality treatments for patients at Moorfields and worldwide. As noted earlier, it is a joint initiative between Moorfields Eye Hospital NHS Foundation Trust, the UCL Institute of Ophthalmology and Moorfields Eye Charity that will see activities move to a brand-new centre for eye health on part of the St Pancras Hospital site.
We are engaged in a joint fundraising campaign with UCL and are working in partnership with our generous donors because philanthropy is enabling the development of Oriel and is vital to achieve our ambitions.
## **Key milestones reached**
Significant programme milestones have been achieved over the last year. Following Camden Council granting full planning permission in August 2022, NHS and government gave final approval for the centre in November 2022. The two-acre site earmarked for Oriel owned by Camden and Islington NHS Foundation Trust (C&I) was acquired by Moorfields in February 2023 through an NHS-to-NHS transaction approved by the Secretary of State for Health. And a £300 million contract was awarded to Bouygues UK in February 2023 to build Oriel.
This is a moment of celebration for all the partners and everyone involved. We are particularly grateful for the generosity of philanthropists in supporting our vision to make this new centre a reality.
Bouygues UK are now on site and demolition is underway. There are plans for adding new pedestrian routes and changes to some traffic and cycle lanes through the former St Pancras Hospital site.
## **Philanthropy**
The charity, in partnership with UCL, is committed to raising over £100 million towards capital costs and in support of research. The campaign has raised over £71 million in capital commitments to date.
A huge thank you to everyone who is so generously supporting this centre which will transform people’s lives. Please get in touch with us to find out more about supporting and playing an important role in creating this global landmark.
## **Patient and community engagement**
This innovative building will be an exemplar for accessibility, tailored to the needs of its patients, and designed flexibly to meet their future needs. Designs are tested with patients and users every step of the way and we’ll have final floor plans to share soon.
The new centre will be located in the heart of the Knowledge Quarter, an internationally renowned hub for science and innovation. It is close to the UCL Bloomsbury campus and several of our NHS, commercial and charity partners.
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**Moorfields Eye Charity Strategic report (continued) Year ended 31 March 2023**
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We are engaging with local people throughout the process. The Oriel partners, Bouygues UK, Camden Council and the Knowledge Quarter are working together to unlock training and employment opportunities to create a lasting legacy in the community.
## **Be the leading charity for research into eye health**
Moorfields Eye Charity supports the pioneering work of Moorfields and UCL to make new discoveries and turn new knowledge into treatments to improve eye health and outcomes for patients of Moorfields and people globally. We collaborate with other funders to maximise research funding for eye health.
## **Categories of work**
All grant applications are classified according to their category of work. For the year in review, we have continued to include all grants awarded, while in previous years we would have excluded some programmes such as research travel grants.
||**No.**|**Total awarded**|
|---|---|---|
|Translational research|6|£3,342,215|
|Pre-clinical research|14|£1,911,994|
|Patient experience|4|£429,819|
|Technology and innovation|3|£177,678|
|Staff welfare|4|£137,500|
|Multi-user equipment|4|£365,522|
|Education and training|11|£24,884|
|**Grand total**|**46**|**£6,389,611**|
The number of grants warded to Moorfields and the Institute were:
||**No.**|
|---|---|
|Moorfields Eye Hospital NHS Foundation Trust|22|
|UCL Institute of Ophthalmology|21|
|UCL and other organisations|3|
|**Grand Total**|**46**|
## **Supporting patient care**
We support the development and wellbeing of Moorfields staff, the delivery of outstanding and safe patient care and the patient experience. We also fund innovative equipment, facilities and initiatives for improved diagnosis, treatment and patient wellbeing.
We awarded an innovation grant to the then Clinical Director of children’s services at Moorfields to find new and forward-looking ways to deliver eye care to children following the changes that resulted from the Covid-19 pandemic. The work has produced clear and widely endorsed treatment advice and pathways for GPs to follow and which have been made available in north-central London.
We are also supporting research that investigates whether smartphone apps that scan the eye and estimate the risks to the patient’s sight could help improve the monitoring of common chronic eye conditions.
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**Moorfields Eye Charity**
## **Strategic report (continued) Year ended 31 March 2023**
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## **Shaping national policy**
We work with Moorfields to shape national policy and increase resources allocated to eye health. We collaborate with other charities and funders. We use our knowledge and expertise to influence national policies, and we mobilise supporters and partners to raise awareness and contribute as influencers.
Moorfields Eye Charity successfully secured further government funding to support early career researchers. The scheme is an extension of last year’s support to reduce the impact of Covid-19 on charities fundraising for medical research, and to support capacity building in medical research.
The research that will benefit from this support is hugely varied, from data computation to shortsightedness, diabetic retinopathy to corneal disease. But as important are the people - PhD students, post-doctoral fellows and those just starting out on a career in research that will benefit from this support during what have been difficult times for patient research.
As a member of the Association of Medical Research Charities (AMRC), we work with other charities to stress the importance of the life sciences. The AMRC is an important national voice in medical research and we are proud to play a part in these conversations.
## **Supporting sharing of knowledge**
We support Moorfields and UCL to share their knowledge, and to educate and develop people’s expertise. Our funding provides support for future leaders through the early stages of their career. It can help them get started on their research training through to developing their own independent research programmes and teams.
We also have a strong track record of supporting the developing careers of researchers and sharing of knowledge. The demonstrable impact of our funding on the work of the researchers we support can contribute towards advancing our understanding of eye and vision problems, improving diagnoses and developing more treatments.
Researchers have built on our career development award funding programme to successfully apply for research grants for both them and members of their lab. Others have supported larger projects and so developed key new skills that have helped them get their next research position.
Our PhD studentship and research training fellowship schemes provide an opportunity for promising students to complete a high-quality PhD.
Our Career Development Award provides support to help establish an independent research career and build reputation and influence in the field.
Postdoctoral researchers are funded on our grants, allowing them to continue developing their research experience and building a portfolio of compelling data to underpin their own grant applications in the future.
Our springboard awards help researchers to develop novel ideas and generate preliminary data which can allow them to submit larger grant applications and work towards establishing their independence.
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**Moorfields Eye Charity Strategic report Year ended 31 March 2023**
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## **Fundraising activities**
We are extremely grateful for the generous support we receive from our patients, staff, friends, charitable trusts and foundations, and corporate partners. During the year we have received support through:
- Major gifts from individuals, trusts and foundations, and companies.
- Legacies, where individuals have made provision to remember Moorfields in their wills.
- Individual donations, often received in response to a specific appeal.
- Regular donations, usually received on a monthly basis.
- Our winter raffle and weekly lottery.
- Events included our bespoke sponsored walk, Eye to Eye.
- Community fundraising such as cake sales, music concerts and skydives.
- Challenge events including abseils, runs and bike rides.
- Organisational partnerships.
## **Review of fundraising performance against objectives**
Income raised by our fundraising team was £12.6 million (2022: £8.1 million). The table below compares performance against the budget for the year (target) and the performance for the prior year.
||**2023**|**Target**|**% Target**|**2022**|**% Change**|
|---|---|---|---|---|---|
||**£ million**|**£ million**||**£ million**||
|Donations|**£10.68**|£4.55|235%|**£3.60**|197%|
|Events|**£0.15**|£0.15|100%|**£0.18**|(17%)|
|Legacies|**£2.20**|£2.00|110%|**£4.19**|(47%)|
|Raffle and Lottery|**£0.08**|£0.12|67%|**£0.08**|-|
|**Total**|**£13.11**|£6.82|192%|**£8.05**|63%|
Donations this year include £7 million towards Oriel. We expect significant donations in the coming years as we achieve milestones for pledges to be paid.
Legacy income has not achieved the levels of the previous year. This source of income is always unpredictable, and we are unable to control the amounts notified or receivable in any one year. We saw an increase in the number of legacy notifications during the prior year, as the Courts and estate managers caught up on workload after the pandemic and office closures. At the year-end we have included an accrual of £4.1 million (2022: £3.6 million).
We continue to review and amend our fundraising practices and activities, ensuring that they consistently align with best practice in governance, regulation, stewardship and communications.
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**Moorfields Eye Charity Strategic report Year ended 31 March 2023**
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## **Communications activities**
We achieved strong results over the last year with 17% increase in website sessions and 76% increase in engagement on social media channels. We are producing new content including patient stories and films with an introduction to the charity film produced in-house – these are receiving high levels of engagement.
Our new digital agency Torchbox are managing our Google search accounts effectively. We saw donations increase through Google search as we invest more and run more targeted campaigns. We received 316 donations totalling £24,263 in revenue from google search accounts compared to 130 donations totalling £10,098 the year before.
We are planning a marketing campaign in the year ahead which will raise our profile ahead of the Oriel public fundraising campaign. We are issuing tenders to work with a creative agency. We are also running a strategic communications workshop ahead of updating our communications strategy which will incorporate all communications strategies online and offline, across teams, covering 2023-2028 - up to one year after Oriel opens.
We continue to work closely with Moorfields Eye Hospital, UCL and Friends of Moorfields Eye Hospital, and external partners such as Diabetes UK.
## **Investment activities**
JP Morgan Private Bank Limited are the custodians of our total investments of £71.9 million (2022: £69.1 million). Our investment strategy for the Long term portfolio and the Oriel portfolio is to seek a total return while accepting a moderate level of risk; the objective being to provide positive real returns for the funds we hold to support our research projects, both now and in the future. The short term portfolio is cash and term deposits needed to meet near term requirements; known obligations to our beneficiaries and working capital.
Our investment values and structure are summarised as follows:
|||**31 March 2023**|**31 March 2022**|
|---|---|---|---|
|||**£’000**|**£’000**|
|Long term portfolio|Investment funds|£48,286|£50,125|
|Oriel portfolio|Investment fund|£15,849|£16,262|
||Cash deposits|£7,010|-|
|Short term portfolio|Cash|£774|£2,754|
|**Total**||**£71,919**|**£69,141**|
The Investment Committee provides detailed oversight of the performance of our investments and performance against our investment objectives. As part of that process the Committee conducts a rolling programme of meetings with the charity’s fund managers.
## **Long term portfolio**
The long term portfolio is structured as separate elements, managed by different investment managers, under the custody of JP Morgan. Each element and manager have different investment objectives which, when combined, we consider can meet our long term investment objectives of CPI +3.5% per annum over rolling 3-year periods. In October 2020, following a review of our investment strategy, we decided to have our portfolio managed wherever possible on a basis that explicitly incorporates sustainability considerations.
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## **Moorfields Eye Charity Strategic report (continued) Year ended 31 March 2023**
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The values of the investments held at the year-end are summarised below:
|||**31 March 2023**|**31 March 2022**|
|---|---|---|---|
||**Investment Manager**|**£’000**|**£’000**|
|Real return/mixed asset|JPM (ESG-biased discretionary
portfolio)|£22,312|£24,513|
|Absolute return/mixed asset|Troy (Trojan Ethical Fund)|£12,915|£15,224|
|Global equities|Baillie Gifford (Positive Change Fund)|£5,116|£3,880|
|Global equities|SRI i-shares MSCI World|£6,923|£5,674|
|Global equities|SRI i-shares MSCI Emerging Markets|£650|£552|
|Cash||£370|£282|
|**Total**||**£48,286**|**£50,125**|
## **Oriel investment**
In 2020 it was agreed to place £10.0 million towards Oriel with Troy Asset Management Limited for a period up to five years, hoping to achieve better returns than cash and with limited volatility. Donations of £4 million towards Oriel were also invested over the course of 2021 and 2022.
In March 2023 we received donations of £7 million towards Oriel. In view of the potential timescales to drawdown, and the current volatility in the markets, it was agreed to place these funds as interest earning cash deposits. We expect to begin our planned grant making towards the costs of construction in the new financial year and to facilitate this, all new major donations received towards Oriel will be held as cash deposits.
## **Short term portfolio**
The short term portfolio is made up of cash and term deposit accounts held with JP Morgan. £2 million was withdrawn during the year (2022: Nil) to meet ongoing operational needs.
Cash is maintained, with JP Morgan and with both our relationship bankers, to ensure we maintain liquidity of funds to meet operational needs and grant commitments as they arise.
We have ambitious plans for making grant awards and commitments in the coming years and we anticipate the need to transfer funds from investments to cash to meet these liabilities.
## **Reserves**
The total funds of the charity at the end of the year were £67.2 million (2022: £64.3 million). Of these funds £7.1 million were unrestricted funds (2022: £7.5 million).
The Trustees have considered their policy in relation to reserves taking into consideration our business plan and our intentions to utilise funds to meet strategic objectives. We consider our Charity to be financially resilient and able to meet our obligations towards grant awards. We consider the free reserves we require to meet our business strategy, and in the short term to meet our obligations and commitments to the fulfilment of the Oriel development, to be £8.0 million. Actual reserves at the end of the year, being unrestricted funds less designated funds and intangible assets, were £7.1 million (2022: £7.3 million). The Trustees consider the current level of reserves to be acceptable, allowing for the volatility of investments, the ambitious plans we have in place for the next five years, and the aim to achieve the fundraising required for Oriel. The Trustees will continue to keep the amount of reserves under review.
12
**Moorfields Eye Charity Strategic report (continued) Year ended 31 March 2023**
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With the exception of our Oriel capital fund, we have seen reductions in value across all funds. The largest reason for this has been the reduction in value of our investments.
Following the charity’s merger with the Special Trustees in December 2015, funds which were formerly considered as unrestricted in the Special Trustees are now restricted, as their objects are narrower than those of the charity. Following advice received at the time of the merger we continue to place donations received for Moorfields Eye Hospital to the Special Trustees restricted fund. At 31 March 2023 the fund was £23.1 million (2022: £26.5 million).
## **Going concern**
When considering our business plans each year, we consider the impact of events such as major fluctuations in the investment markets and use this, along with other appropriate enquiries, to confirm we have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Our investment managers confirm our investments can be realised at short notice providing us with significant resources to meet our liabilities. Taking note of both our cash and investment position, we consider it is appropriate to continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies note.
## **Acknowledgements**
We would like to thank all of those people who have contributed to the charity’s continuing success:
- the staff of Moorfields and of UCL, including those who applied for grants, and those who successfully received grants.
- our charity engagement volunteers, Trustees, and committee members.
- the volunteer advisors who are members of board sub-committees and the scientific advisory panel.
- the staff of the charity, including those who left us during the year. We wish them all well in their new roles and thank them for their hard work and support during their time with us.
With all of your support we are able to ensure that Moorfields and the UCL remain at the forefront of eye care and research worldwide and have the greatest possible impact on the global eye health agenda.
## **Our supporters and our supporter promise**
The charity would like to thank the growing number of individuals and organisations who have generously supported our work over the last year. We are extremely grateful to those individuals who generously choose to support the charity by remembering Moorfields Eye Charity in their will. The support we receive is vital and has a significant impact on our work to support Moorfields and our academic partner UCL for the benefit of current and future patients of Moorfields.
Our relationship with our supporters is of the utmost importance to us and is reflected in our supporter promise:
## **We value your donations and will keep you informed**
- We value every gift we receive, large and small, and seek to acknowledge and send thanks for all donations in a timely manner unless you specifically ask us not to.
- We will be transparent about how we use your donations, and we will always put your gift to work as quickly as we can.
- We will share news about Moorfields and UCL, the hospital’s academic partner. We will also keep you informed about how charitable donations are benefitting patients and people with sight problems further afield.
13
## **Moorfields Eye Charity Strategic report (continued) Year ended 31 March 2023**
_______________________________________________________________________________________
## **We respect your right to privacy**
- We rely on legitimate interest to send marketing materials by post. In addition, in line with your preferences, we may communicate with you by post, email, text or telephone. If we phone you, we will always check first that you are happy to speak to us and that it is a convenient time to call.
- We will respect your wishes, so if you ask us not to contact you, we won’t, unless it’s a legal requirement.
- We only allow authorised agents who work on our behalf to access your personal data and will never exchange your details with, or sell or rent your data to, any other commercial or charitable organisations. We have a Data Protection Policy (DPP) in place, detailing the ways in which the charity may process your data and how you can manage this. Our DPP can be viewed on our website and information on how we process data is available on request.
## **We will take accountability for our actions**
- We will always take action if any external supplier acting on behalf of Moorfields Eye Charity fails to meet our standards.
- When we get things wrong, we will be up front about our mistakes, apologise and act quickly to fix them.
Our fundraising activity is focused on the following key areas:
- Major gifts from individuals (both from existing and new supporters (both from within and outside our current supporter and peer networks)), charitable trusts and foundations (through peer links, existing relationships, and through formal application procedures), and companies (through registered giving vehicles, via staff engagement, through formal application procedures and through peer links) with an interest in our work at a significant financial level.
- Legacies, through raising awareness around gifts in wills (both to existing supporters, visitors to the hospital and promoted to the wider public through our website and social media channels), keeping in touch with known legacy pledgers (with events such as the legacy afternoon tea and through our Visionaries circle, for legacy pledgers), and through the ongoing development of an engagement programme for those who have told us that they have, or intend to, remember Moorfields in their wills.
- Individual donations, often received in response to specific appeals (targeted at existing supporters and friends) or through awareness raising of the charity undertaken by Moorfields Eye Hospital to its patients, visitors and trust membership.
- Regular donations, usually received on a monthly basis.
- Our winter raffle (marketed to existing supporters, through the charity’s website, patients and staff and to the wider public through our social media channels) and weekly lottery.
- Eye to Eye, our flagship bespoke sponsored walk (marketed to existing supporters, through the charity’s website, patients and staff, and promoted to local schools and businesses, and to the wider public through our social media channels).
- Community fundraising, providing support, information and stewardship for people wishing to raise funds independently for the charity through events they organise themselves such as cake sales, music concerts and skydives.
- Challenge events including nationally organised runs and bike rides.
- Organisational partnerships including sponsorship and the donation of products for our fundraising events.
14
**Moorfields Eye Charity**
## **Strategic report (continued) Year ended 31 March 2023**
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We are particularly grateful to the individuals and organisations set out below, but also the many other supporters who would prefer to remain anonymous, who have supported us during the year:
The Cadogan Charity The estate of the late Alec John Custerson EBM Charitable Trust Evans Management Limited Laura Fietta The estate of the late Lucy Frances Frost The estate of the late Joanne Giles The estate of the late Richard Green The estate of the late Frank Alan Hart Hastings Talking Newspaper Mr Tim Henderson The Sir Joseph Hotung Charitable Settlement The estate of the late Rita Kemp Kusuma Trust UK Mr and Mrs Stefanos Lekanidis The estate of the late Lady Nicholas Gordon Lennox The estate of the late Monica Malone Masonic Charitable Foundation The Morris Family Marie-Louise von Motesiczky Charitable Trust NHS Charities Together Nolan Family Trust In memory of Mrs Rubab Sultanali Nurmohamed
The estate of the late Margaret Irene Olliffe The Alexander Pigott Wernher Memorial Trust The estate of the late Margaret Irene (Laing) Price
The estate of the late Valerie Rosalind Reuben Eleanor A Robbins Rogers Stirk Harbour & Partners Charitable Foundation Limited Sir Alan Rudge The Basil Samuel Charitable Trust The Schroder Foundation Sir Samuel Scott of Yews Trust Patricia Ann Smith St George's Hospital Charity Tim Tutton The Michael Uren Foundation Volcano Consulting Ltd The estate of the late Martyn James Werreitt Garfield Weston Foundation The estate of the late Kathleen Mary Wigmore The Miss Barbara Mary Wilmot Discretionary Trust Jill Wilshaw
The estate of the late John Reginald Wilton
Thanks to your help we are able to:
- Fund new equipment and pioneering research;
- Support the training of current and future researchers and healthcare professionals;
- Support the development of Moorfields’ staff to ensure the care they provide is outstanding;
- Support public education about eye health;
- Improve the experience for Moorfields’ patients and their families; and
- Support Moorfields’ ambitious capital plans to create Oriel, a world-class integrated care, teaching and research facility in central London with its academic partner, UCL. for the impact of our long-term support on research, patient wellbeing and education.
15
**Moorfields Eye Charity Governance Year ended 31 March 2023**
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## **Constitution**
The charity is a company limited by guarantee (No. 7543237) and a charity registered with the Charity Commission (No. 1140679) and was formed on 3 March 2011.
Under a Charity Commission Scheme dated 31 December 2015, the assets of Special Trustees of Moorfields Eye Hospital (Regd. Charity No. 228064) (‘Special Trustees’) and its linked charities were transferred to the charity. As at 31 December 2015 the Special Trustees ceased to exist and the newly merged charity also became independent of the Department of Health, it no longer being an NHS-linked charity.
## **Objects and mission**
The Objects of the charity as stated in its Articles of Association are as follows:
The relief of sickness or suffering, the advancement of health and the advancement of education and research in relation to health and health-related sciences by any charitable means for the public benefit in particular but without limitation by the support of charitable purposes relating to Moorfields Eye Hospital NHS Foundation Trust.
Our mission is improving eye health by funding innovation in research, education and care to benefit Moorfields’ patients. Our vision is that our support enables Moorfields and UCL to provide worldleading eye care, research and education benefiting patients across the UK and globally.
Charitable funds are typically used to support leading-edge research and education; purchase specialist equipment; develop better facilities for patients and the research infrastructure; fund specialist staff to care for patients, undertake research or carry out pioneering new roles; and fund the development and welfare of Moorfields staff.
## **Public benefit statement**
The Trustees confirm they have paid due regard to the Charity Commission’s general guidance on public benefit and have complied with their duty under section 17 of the Charities Act 2011.
Charitable activities undertaken by the charity are the award of grants, details of which are set out throughout this report. The Trustees are satisfied that all such activities provide a public benefit, given the relationship the charitable expenditure has to the enhancement of current and future healthcare for patients with eye problems. To give more information we now produce our Impact Report which can be found at www.moorfieldseyecharity.org
Moorfields is the leading NHS eye hospital in the UK, seeing several hundred thousand patients a year and the contributions made by the charity go to help these patients receive better treatment. We want to make a difference to the lives of people with sight loss because we know how much people value their sight. Over two million people across the UK live with sight loss – with that number expected to double over the next thirty years. This is why we invest in life-changing eye research, the best patient care and innovative training at Moorfields.
## **About Moorfields Eye Hospital**
Not only the leading provider of eye health services in the UK, but Moorfields is also a world-class centre of excellence for ophthalmic research and education. The trust’s reputation for providing the highest quality of ophthalmic care has developed over 200 years.
Moorfields plays a leading role in the training and education of eye care professionals, integrating with strategic partners across its network to teach the eye specialists of the future. With their partners at the UCL Institute of Ophthalmology, they are a national and international centre for research into eye conditions and treatments, leading one of the strongest and most extensive ophthalmic research programmes in the world. Moorfields and the Institute have one of the highest measures of scientific productivity and impact in the world for eye research activity.
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**Moorfields Eye Charity Governance (continued) Year ended 31 March 2023**
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## **Structure, governance and management**
## **Structure**
The Trustees who have served the charity during the year and since the year-end are set out on page 2. Moorfields has the right to appoint up to seven Trustees and there can be up to eleven further elected Trustees, provided always that the elected Trustees are in the majority. The Trustees appoint the Chair (who must be an elected Trustee) and a Vice-chair. Decisions are taken by a majority of Trustees present at regular meetings and procedures are in place to ensure that such decisions do not enable the appointed Trustees to exercise effective control.
Elected Trustees are recruited through open recruitment when vacancies arise, and nominations are agreed by all Trustees. On appointment, new Trustees undertake an induction process which includes the provision of necessary documentation, meetings with the Chief Executive, other senior charity staff and with senior members of Moorfields staff. The induction is designed to ensure that new Trustees understand the role of the charity and how it works to support Moorfields.
## **Committees**
The Trustees have established a committee structure to support the Trustees in the governance of the charity. Each Committee has agreed Terms of Reference setting out their areas of responsibility and the limits of their delegated powers. Any Trustee may attend any committee meeting as an observer.
The committees, members who served during the year and Chairs at the year end, are set out below:
|**Audit and Risk**|**Fundraising**|**Fundraising**|**Grants**|**Investment**|**Investment**|**Oriel**|**Oriel**|**Remuneration**
**and People**|
|---|---|---|---|---|---|---|---|---|
|Michael Izza
(Chair)|Professor Sir Eric
Thomas (Chair)||Dr Lee-Ann
Coleman (Chair)|Noland Carter
(Chair)||Kevin McGrath
(Chair)||Vicky Hastings
(Chair)|
|Tony Briam|Andrew Ballheimer||Dr Robert Jones|Vicky Hastings||Tony Briam||Sylvia Hamilton|
|Shachi
Blakemore|Alan Gosschalk||Professor Carrie
MacEwen|Ruth Keattch||Professor Sir
Eric Thomas||Dr Martin Kuper|
|Colin Maclean|Dr Martin Kuper||Jyotsna Vohra|Charles
Franklin||Marianne
Toghill||Colin Maclean|
|Mervyn Walker|Jo Moss||Miss Louisa
Wickham|Mervyn Walker||Mervyn Walker||Kathy Taylor|
||Owen Watkins|||||||Mervyn Walker|
|||**Nominations Committee**|||||||
|Mervyn Walker (Chair)||Tony Briam|||Noland Carter||Dr Lee-Ann Coleman||
|Vicky Hastings||Michael Izza|||Kevin McGrath||Professor Sir Eric Thomas||
Each Committee is enabled to appoint volunteer advisers as members to support our decision making and enhance the level of experience and knowledge within the membership.
The Grants Committee is supported by a Scientific Advisory Panel, who consider applications for research and innovation funding. This is explained further in our process for awarding grants, below.
17
**Moorfields Eye Charity**
**Governance (continued) Year ended 31 March 2023**
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At each Investment Committee meeting there is a presentation on investment performance by at least one of the three investment managers. Joint meetings with the Audit and Risk Committee can be held to consider the risks in the investment portfolios, or to consider investment proposals.
The Remuneration and People Committee considers matters relating to human resources including policies, procedures, benefits and pay awards for all staff employed by the charity.
The Oriel Committee meets to consider progress on the development of the new facility and to review any implications for the charity.
The Nominations Committee was established in the year to consider membership of the Board and committees and to plan and oversee Trustee recruitment. Members of this committee are the Vicechair and the Chairs of all other committees.
The Board is satisfied that the chairs and members of each committee have the competencies to ensure that the committees can discharge their responsibilities effectively.
Last year we noted the appointment of two Trustees-designate, Dr Jyotsna Vohra and Kevin McGrath, and we are pleased to report both Jyotsna and Kevin duly joined our Board. Shachi Blakemore has also been appointed as a Trustee after serving on the audit and risk committee since 2022. As a Partner in a leading accountancy firm specialising in not-for-profit organisations, she brings a wealth of experience working with medical and health charities. Shachi hopes to contribute to the charity's growth plans and provide support during a time of significant change.
We are delighted to welcome Professor Siddharthan Chandran, the Dean of medicine at the University of Edinburgh, who has joined the Grants and research committee. As a consultant neurologist specialising in regenerative neurology, Professor Chandran's research focuses on stem cell treatments for degenerative conditions such as motor neurone disease and multiple sclerosis. He felt it was an honour to contribute to the charity's mission and hopes to advance knowledge and practice to transform lives. It is anticipated that he will assume the role of chair and be appointed to the board of trustees in 2024.
Ruth Keattch has been appointed as a member of the Investment committee. Ruth will work closely with the committee to ensure effective management of our investments and is expected to assume the role of chair and join the board of trustees in 2024. Having witnessed the effects of sight loss on her family members and personally being a patient at Moorfields a few years ago, Ruth's appointment will enhance the charity's empathy and understanding of the challenges faced by individuals with sight loss.
## **Governance and management**
The Trustees have delegated day to day management of the charity to the management group comprised of the Chief executive, supported by three senior staff. The management group all attend meetings of the Board, presenting papers and participating in our discussions.
The Chief executive, who is also the Company secretary, reports to the Trustees on all administrative aspects of the charity’s operations and is also responsible for keeping the Trustees informed about charity and other relevant law and procedures. The Trustees and members of the management group attend relevant courses and seminars, to maintain the required skills for the proper governance and financial control of the charity.
## **Diversity**
The Board and management group at 31 March 2023 are made up as follows:
|**As at the date of this report**|**Total**|**Male**|**Female**|
|---|---|---|---|
|Trustees (Directors)|13|7|6|
|Senior managers|4|2|2|
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**Moorfields Eye Charity Governance (continued) Year ended 31 March 2023**
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## **Charity Governance Code**
In 2021, we asked Moore Kingston Smith (MKS) to help us review our governance with particular consideration of the extent to which we are compliant with the Charity Governance Code. The Board performed well across the seven key principles in the code, but we recognised the following areas for action:
- The size of the Board exceeds that recommended by the Code. Our Articles of Association provide for up to 18 Trustees, made up of elected and appointed Trustees, and there are currently 13 (2022: 14). When the charity merger took place in 2015, we wanted to ensure we retained the experience of the Trustees from both organisations and we expect over time there will be a reduction in the overall size of the Board to 12, whilst ensuring we retain a majority of elected Trustees.
We are developing our succession planning as our longest serving Trustees are nearing the end of their maximum terms in office. We have, as planned, appointed the two Trusteesdesignates and appointed a further new Trustee in March 2023. We have also appointed two new members to our Grants committee and our Investment committee in readiness for them to join the Board when the next vacancy arises.
- We recognised the need to broaden the diversity of our Board and this is a key principle in our succession planning for the Board and our Committees.
Recognising the importance of greater diversity amongst Trustees, we have set targets for greater diversity in terms of gender, ethnic background and lived experience of sight loss. The targets for diversity by 31 December 2024 are:
- >15% of the board would be from a BAME background (currently 2, 15%) (2022:0%)
- >15% of the board would be visually impaired or have a close family or personal experience of visual impairment (currently 2, 15%) (2022: 1, 7%)
- >45% of the board would be women (currently 6, 46%) (2022: 5, 36%)
We have agreed an additional aim to appoint younger Trustees, to be under 40 at the time of appointment. We currently have no trustees under the age of 40 (2022: 1; 7%).
- We established a Nominations Committee who are overseeing our Trustee succession planning.
We continue to work through the recommendations included in the governance review carried out in 2021 by Moore Kingston Smith.
## **Process for awarding grants**
Research, innovation and equipment grants, up to £400,000, are awarded by the Grants committee using its delegated powers. Awards are made after applications have been processed through the applicable framework. This will include assessment for remit and eligibility by the charity’s research and grants team, then as necessary; review by external peer reviewers, the charity’s Scientific Advisory Panel or agreed scientific advisers.
Other grant-making activities include patient welfare and staff support grants which are considered and approved for funding by the Grants committee or, under delegated authority, by the Chief executive or Chair of Trustees.
Where grant applications are funded from donations that are restricted to the purpose(s) outlined in an agreement with a donor, the applications are managed through a review and decision making process based on the level of funding and purpose requested. This process involves, as appropriate, external peer review, the Scientific Advisory Panel, the Grants committee and the Chief executive. The Director of the UCL Institute of Ophthalmology and Director of Research and Development, Moorfields Eye Hospital provide strategic and institutional review but are not part of the decision making process.
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**Moorfields Eye Charity Governance (continued) Year ended 31 March 2023**
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The Panel is chaired by Professor Miles Stanford and the other independent Panel members serving during the year were:
|Dr Julie Albon
(Cardiff University)|Dr Tom MacGillivray
(University of Edinburgh)
(joined 27/05/2022)|Professor Enrica Strettoi
(Institute of Neuroscience, Pisa)|
|---|---|---|
|Professor Matthew Campbell
(Trinity College Dublin)|Professor Michael Paques
(Institut de la Vision, Paris)|Professor Margaret Veruki
(University of Bergen) (joined
27/05/2022)|
|Professor Chris Dickinson
(Manchester University)|Professor Thomas Ritter
(University of Galway) (joined
27/05/2022)|Professor Robin Walker
(Royal Holloway)|
|Professor Lynda Erskine
(University of Aberdeen)
(joined 27/05/2022)|Mrs Janet Sheard OBE (joined
27/05/2022)|Professor Chris Watkins
(Royal Holloway)|
|Professor Breandán Kennedy
(UniversityCollege Dublin)|||
External peer review is normally carried out on applications over £50,000. The Trustees retain the right to request external independent review of any application.
All funding decisions are formally recorded at a Grants Committee meeting.
The Panel meets three times a year and considers applications in order to provide funding recommendations to the Grants Committee. The Panel also considers innovation grants on a rolling basis.
## **Our fundraising approach**
We are extremely grateful for the generous support we receive from our supporters, patients, staff, friends, charitable trusts and foundations, and corporate partners. This support enables the funding of new equipment and pioneering research. It also supports the training of current and future researchers and healthcare professionals, development of Moorfields’ staff to ensure the care they provide is outstanding, public education about eye health, and improving the experience for Moorfields’ patients and their families. In addition, it supports our key strategic priority to work in partnership with Moorfields and UCL to create Oriel, a new world-class integrated centre for advancing clinical care, teaching and research in 2027.
We are committed to providing our supporters with the very best donor care. We want our supporters to feel that their support is recognised and valued and that they are kept updated on how charitable support is helping to shape the future of eye care. Our supporters are critical to our success. We are fully committed to being transparent and accountable to them. We actively ask our supporters how they would like to hear from us and what they would like to hear about, ensuring that our communications are targeted and of interest.
Our activities, and the processes which underpin them, are conducted under the legal basis of either consent or legitimate interest, as outlined in our data protection and fair processing policies.
We are committed to continually developing and enhancing our supporters’ engagement and experience with Moorfields Eye Charity and to exploring new and innovative ways of generating funds, so that together, we can continue to support Moorfields to discover, develop and deliver the best eye care.
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**Moorfields Eye Charity Governance (continued) Year ended 31 March 2023**
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## **Fundraising regulation and complaints**
We hold ourselves to the highest standards and best practice in all the activity we undertake to both raise funds and communicate with supporters. We are aware of the need to protect vulnerable persons in any fundraising we undertake and are continually taking steps to ensure our fundraising approach takes this into account. We continually review our methods of fundraising and communications to ensure that our approaches are appropriate, that we provide our supporters with the very best donor care and that we are compliant with both best practice and legislation.
We are a member of the Fundraising Regulator and fully comply with all relevant laws including the Data Protection Act 1998, the General Data Protection Regulation, and the Privacy and Communications Regulations 2003. We also screen against the Fundraising Preference Service.
We always strive for best practice in our fundraising and take complaints very seriously. Between 1 April 2022 and 31 March 2023, we received no complaint about fundraising activity we undertook (2022: one). Each complaint is investigated and answered in an appropriate and timely manner in line with the charity’s complaints policy. All our complaints are reported to the charity’s fundraising committee and in summary to the audit and risk committee.
## **Risks and uncertainties**
The Trustees consider the major strategic, business and operational risks that the charity faces. During the year the Trustees have continued to review the Risk Policy and the methodology for recording and assessing risks faced by the charity. Regular reports are produced so that all necessary steps can be taken promptly to raise awareness and to manage any risks.
Like many other organisations impacted by the coronavirus pandemic we adapted our working practices to allow a hybrid approach to working from both our offices and from home. To retain and develop hybrid working we have adapted our processes and procedures of internal control and we have not seen any instances of weakness or malpractice.
Our commitment to the development of Oriel is subject to many potential development, financial and political risks. The progress made in the financial year towards the creation of the new facility is testament to the quality of work to date. A key factor in how we plan our finances and our investment management, will be the date that construction commences. This date is a key trigger for the receipt of some of our major pledges and will allow us to meet our fundraising challenge. We continue to monitor the risks and provide support to our partners as they focus on developing a fitfor-purpose, truly integrated new facility. It will enable the impact of new technologies and advances in research, bringing quicker diagnoses and new treatments to patients in the UK and around the world.
Our income is subject to the risk of volatility. We rely on the generosity and philanthropy of individuals and organisations for our fundraising; and our legacy income can never be predictable by its very nature. We work hard to engage with our supporters and explain our work to show how their generosity has a positive impact for people’s eye health. In this way we aim to maintain and grow our levels of support. We are always grateful where people have told us they wish to remember us in their will and, when the time comes, we are careful to recognise as income only those amounts that we can be sure will be received.
Inflation risk has become more acute in the past two years, particularly in the most recent financial year. Working within the hospital has shielded the charity from increasing fuel costs but we face inflationary pressure through our staff costs, this being our most significant expenditure incurred each year. Salaries are set at the start of each year and where practical the price of other supplies is agreed in advance through the use of supplier quotations and tendering.
The major assets of the charity are the fixed asset investments. We accept a moderate degree of risk to achieve the levels of return we look to achieve but increasing levels of inflation make our return targets less achievable. Market conditions for our investment portfolio remain volatile and uncertain but the Investment Committee works with our investment advisors and investment managers to ensure that we are able to react to significant unforeseen events.
21
**Moorfields Eye Charity Governance (continued) Year ended 31 March 2023**
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The charity monitors the fundraising and data protection regulatory environment and continues to review and revise policies to ensure we meet any new requirements and to minimise the impact of changes on our operating activities.
## **Environment, social, community and human rights issues and employees.**
The charity follows the Moorfields policies on the environment, employees and social, community and human rights issues. With the help of all our staff we have developed and produced a full range of human resources policies and our own staff handbook.
We have been based and have operated in the hospital, receiving environmental and estates services from Moorfields under a service level agreement. Moorfields is working to measure and reduce the carbon footprint of the buildings we have occupied, the aim being to achieve a sustainable, low carbon organisation that is managed effectively and efficiently, achieving value for money with a reduced environmental impact. This ambition is in support of the wider ambition of the NHS to reduce their carbon footprint.
Our investment portfolio is structured to incorporate a greater and more integrated focus on sustainability, because we believe that this will be both financially beneficial and align with the charity’s purpose.
The Trustees aim to ensure investments are managed in a responsible manner, looking to integrate environmental, social and governance issues into investment decision making, including the appointment of suitable third-party managers, and prioritising managers who engage in ongoing stewardship with their investee companies. The Trustees believe that well-run companies which promote sustainable environmental, social and governance policies will ultimately deliver aboveaverage long term returns to their investors and therefore consider that this approach is consistent with maximising its long-term investment performance.
The Trustees, working with the investment managers and advisers, established a structure for the long term portfolio that:
- Includes negative screening of companies that generate revenues from tobacco and other ethically/socially unacceptable areas of activity;
- Includes portfolios that are biased towards companies with good environmental, social and governance policies and practices or providing solutions for society’s problems;
- Considers impact investments focussing on companies providing solutions for society’s problems, with emphasis on social impact rather than financial return.
We are proud to be amongst those charities achieving social as well as financial returns from investments.
In March 2023 we undertook our sixth annual survey of our employees. We again used Birdsong, and the same survey questions, to enable comparison of our results with those of previous years, of all charities and the results of the top performing charities. We asked for the wellbeing and pandemic related questions to be repeated to allow us to understand any changes.
We use outcomes and learning from these surveys to develop and implement plans to meet key areas of concern that are raised.
In their findings report, Birdsong tell us:
“Moorfields Eye Charity continues to have a strongly engaged workforce and to perform well in many areas of staff satisfaction, holding up well against the Charity Pulse sector benchmark. Two ‘overall barometer’ key-indicator questions – ‘My morale at work is high’ and ‘This charity’s leaders are committed to making it a great place to work’ – outperform the benchmark, showing that Moorfields Eye Charity is still doing well in terms of overall staff engagement and retains a healthy organisational culture in general.”
22
**Moorfields Eye Charity Governance (continued) Year ended 31 March 2023**
_______________________________________________________________________________________
As previously, we have some areas to look at and we will work on these in the coming months. We will be considering the full results at our meeting in July 2023, but we are very proud of how we compare against the benchmarks.
One area of dissatisfaction each year has been our office accommodation, something that has been of increasing concern since lockdown and then our increasing staff numbers. We have always been grateful to Moorfields for providing us with office space, but it became clear that we needed to find more space. We tried to meet the short term need by renting additional space near to the City Road site, but this meant our staff were trying to work from the main office, the additional space and from home as we have developed our hybrid working. After the year end we moved into new premises, still very close to Moorfields, and we have already seen an improvement in morale, desire to work in the office and increased collaboration. Our move is also facilitating improvements for Moorfields staff in our old office space which is an additional benefit to everyone.
## **Remuneration**
The Remuneration and People Committee has responsibility for considering all aspects of remuneration for the charity, providing recommendations to the Board where necessary. Under our remuneration policy we aim to pay our staff fairly for the work they carry out with reference to their skills and experience and to pay competitive market-median salaries in the charity sector for staff who are fully competent performers.
The policy specifies that every three years we will aim to carry out a formal and substantive benchmarking of remuneration. The first benchmarking exercise was carried out in 2019-2020. This exercise was again carried out during the year by independent consultants but before it commenced, we asked the consultants to review our existing remuneration policy and remuneration schemes. The resulting recommendations for changes to our policy and schemes were approved prior to the benchmarking exercise, the results of which were considered at our Board meeting in March 2023.
We continue to operate a competency pay progression scheme, enabling appropriate pay for staff who progress in their specific role from entry level to experienced and fully competent performers.
The decision to award any overall increase in salaries is made by the committee on behalf of the Board taking account of a wide range of different factors including affordability; overall financial viability and any financial constraints influencing the charity; our performance as an organisation; and the external market, including inflation, wider economic conditions and pay awards. We ensured all of our staff received an uplift in their pay in April 2022 and again in April 2023, to reflect current inflationary pressures.
Decisions on the salary of members of the Management group are taken by the committee on the recommendation of the Chief executive, other than in respect of his own salary.
We aim to operate a fair and transparent pay system based on objective criteria and free from gender bias. As part of our commitment, we believe it is appropriate to show ratios relating to salary fairness each year, despite having no requirement to do so because of the size of our workforce. The small number of employees means we can see volatility in our ratios, with small changes in a year creating wide variations in the results.
We are not a service delivery charity, and we employ a relatively higher number of medium/higher paid specialist staff, which gives us a relatively high median compared with the charity sector as a whole. The highest full-time salary in the year (which was paid to the Chief executive) was £118,361 (2022: £113,809) and remuneration ratios, based on full time salaries at 31 March each year, are set out overleaf.
23
## **Moorfields Eye Charity Governance (continued) Year ended 31 March 2023**
_______________________________________________________________________________________
**Remuneration statistics** 2023 2022 Remuneration ratio Multiple of highest to median salary 2.89:1 2.82:1 High to low salary ratios Mean of highest 10% compared to mean 4.03:1 3.97:1 of lowest 10% Highest to lowest salary 5.38:1 4.97:1 Gender pay ratio Mean of male to mean of female salaries 1.21:1 0.94:1 ~~===~~ The proportion of women employed in each salary quartile is as follows: **Women as percentage of all staff** 2023 2022 Top quartile (highest salaries) 78% 67% Upper middle 67% 89% Lower middle 67% 60% Lower quartile (lowest salaries) 90% 83% All staff 76% 77% ~~oo~~ **Appointment of auditors** ln accordance with the Companies Act 2006 a resolution proposing the reappointment of Haysmacintyre LLP as auditors for the year ended 31 March 2024 will be put to the Trustees.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware, and
- that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.
In signing this report Trustees are approving the strategic report in their capacity as company directors.
Approved by the Trustees on **17 July 2023** and signed on their behalf by:
## **Mervyn Walker**
**Chairman**
24
**Moorfields Eye Charity Statement of Trustees responsibilities Year ended 31 March 2023**
_______________________________________________________________________________________
The Trustees (who are also directors of Moorfields Eye Charity for the purposes of company law) are responsible for preparing the Trustees' report and the 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are also responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
25
## **Moorfields Eye Charity**
**Independent Auditor’s report to the members and trustees of Moorfields Eye Charity Year ended 31 March 2023**
_______________________________________________________________________________________
## **Opinion**
We have audited the financial statements of Moorfields Eye Charity for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Account, Balance Sheet, Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 March 2023 and of the charitable company’s net movement in funds, including the 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In 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.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Welcome from the Chair, Introduction from the Chief Executive, and the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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.
26
## **Moorfields Eye Charity**
**Independent Auditor’s report to the members and trustees of Moorfields Eye Charity Year ended 31 March 2023**
_______________________________________________________________________________________
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).
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:
- adequate accounting records have not been kept by the charitable company; or
- the charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement set out on page 25, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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:
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006 and the Charities Act 2011, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the
27
**Moorfields Eye Charity**
**Independent Auditor’s report to the members and trustees of Moorfields Eye Charity Year ended 31 March 2023**
_______________________________________________________________________________________
Companies Act 2006 and the Charities Act 2011, and other factors such as compliance with legislation in relation to payroll tax and fundraising regulations.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates, including reviewing the accuracy of income recognition in the year, and accruals made for legacies receivable at 31 March 2023.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
## **Kathryn Burton (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor**
10 Queen Street Place London EC4R 1AG
**Date:** 20th July 2023
28
**Moorfields Eye Charity**
## **Statement of financial activities Year ended 31 March 2023**
|__________________________________
Note
**Income and endowments from:**
Donations
2
Legacies
2
Events
2
Other trading activities:
2
Raffles and lottery
Grants receivable
Royalties and other income
Investment income
2
**Total income and endowments**
2
**Expenditure on:**
Raising funds:
Fundraising
3
Investment management
3
3
Charitable activities
3
Governance and support costs
3
**Total expenditure**
**Net income/(expenditure)**
**before investment gains and**
**losses**
Net gains/(losses) on
investments
8
**Net income/(expenditure)**
Transfers between funds
**Net movement in funds**
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14|_____________________________________________________
Unrestricted
Restricted
Endowment
**2023**
2022
funds
funds
funds
**total**
total
£’000
£’000
£’000
**£’000**
£’000
489
10,194
-
**10,683**
**3,602**
800
1,407
-
**2,207**
**4,193**
145
-
-
**145**
**182**
78
-
-
**78**
**77**
-
560
45
**605**
**341**
6
-
-
**6**
**4**
35
244
46
**325**
**238**
**1,553**
**12,405**
**91**
**14,049**
**8,637**
929
591
-
**1,520**
**1,231**
28
151
43
**222**
**231**
957
742
43
**1,742**
**1,462**
238
6,180
6
**6,424**
**5,631**
485
173
-
**658**
**563**
723
6,353
6
**7,082**
**6,194**
**1,680**
**7,095**
**49**
**8,824**
**7,656**
(127)
5,310
42
**5,225**
**981**
(334)
(1,458)
(528)
**(2,320)**
**5,241**
**(461)**
**3,852**
**(486)**
**2,905**
**6,222**
-
-
-
**-**
**-**
**(461)**
**3,852**
**(486)**
**2,905**
**6,222**
7,517
49,673
7,077
**64,267**
**58,045**
**7,056**
**53,525**
**6,591**
**67,172**
**64,267**|
|---|---|
The accounting policies and notes on pages 33 to 53 form part of these financial statements.
Full comparatives for the year ended 31 March 2022 are included at Note 17.
29
## **Moorfields Eye Charity**
## **Income and expenditure account Year ended 31 March 2023**
_______________________________________________________________________________________
|**All Income Funds**
Note
**Income**
Donations
Legacies
Events
Other trading activities:
2
Raffles and lottery
Grants receivable
Royalties and other income
Interest and Investment income
2
Gains on investments
8
**Gross income in the year**
2
**Expenditure on**
Raising funds
3
Charitable activities
3
Losses on investments
**Total expenditure in the year**
**Net income for the financial**
**year**|**2023**
**Total**
**£’000**
**10,683**
**2,207**
**145**
**78**
**560**
**6**
**279**
**-**
**13,958**
**1,699**
**7,076**
**1,792**
**10,567**
**3,391**|**2022**
**Total**
**£’000**|
|---|---|---|
||||
|||**3,601**|
|||**3,964**|
|||**182**|
||||
||||
|||**77**|
|||**310**|
|||**4**|
||||
|||**197**|
||||
|||**4,951**|
|||**13,286**|
||||
||||
||||
|||**1,414**|
|||**6,189**|
|||**-**|
||||
|||**7,603**|
||||
|||**5,683**|
All income funds represent Unrestricted and Restricted funds but exclude Endowment funds.
The accounting policies and notes on pages 33 to 53 form part of these financial statements.
30
**company number: 7543237**
## **Moorfields Eye Charity**
## **Balance sheet Year ended 31 March 2023**
|_______________________________________________________________________________________|_______________________________________________________________________________________|_______________________________________________________________________________________|_______________________________________________________________________________________|_______________________________________________________________________________________|_______________________________________________________________________________________|_______________________________________________________________________________________|
|---|---|---|---|---|---|---|
|||Unrestricted|Restricted|Endowment|**2023**|2022|
|||funds|funds|funds|**total**|total|
||Note|£’000|£’000|£’000|**£’000**|£’000|
|**Fixed assets**|||||||
|Investments|8|3,324|54,310|6,500|**64,134**|**66,387**|
|Intangible assets|9|-|-|-|**-**|**21**|
|||3,324|54,310|6,500|**64,134**|**66,408**|
|**Current assets**|||||||
|Debtors|10|1,222|3,154|195|**4,571**|**3,817**|
|Cash held in investment portfolio|8|774|7,010|-|**7,784**|**2,754**|
|Cash at bank and in hand||2,053|1,115|7|**3,175**|**3,048**|
|**Total current assets**||4,049|11,279|202|**15,530**|**9,619**|
|**Liabilities**|||||||
|Creditors: Amounts falling due
within 1 year|11|(178)|(7,482)|(88)|**(7,748)**|**(7,858)**|
|**Net current assets/(liabilities)**||3,871|3,797|114|**7,782**|**1,761**|
|Creditors: Amounts falling due
after more than 1 year|12|(139)|(4,582)|(23)|**(4,744)**|**(3,902)**|
|**Total net assets**||**7,056**|**53,525**|**6,591 **|**67,172**|**64,267**|
|**Funds**|||||||
|**Total funds**|14|**7,056**|**53,525**|**6,591 **|**67,172**|**64,267 **|
The accounting policies and notes on pages 33 to 53 form part of these financial statements.
Full comparatives for the year ended 31 March 2022 are included at Note 18.
The financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf by:
## **Mervyn Walker Chairman**
## **17 July 2023**
31
**Moorfields Eye Charity**
## **Cashflow statement Year ended 31 March 2023**
_______________________________________________________________________________________
|Cash flows from operating activities
Net cash (used in)/ provided by operating activities
Cash flows from investing activities
Dividends and interest from investments
Net movement of assets within investment portfolio
Development of fixed assets
Purchase of long term investments
Net cash (used in)/ provided by investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
**Cash and cash equivalents at the end of the accounting**
**period**
**Reconciliation of cash flows from operating activities**
Net income for the period as per SOFA
Adjustments for:
Losses/(gains) on investments
Dividends and interest from investments
Amortisation
Increase in debtors
Increase in creditors
**Net cash (used in)/ provided by operating activities**
**Analysis of cash and cash equivalents**
Cash in hand
Cash held as part of the investment portfolio
**Total cash and cash equivalents**|**Total funds**
**2023**
**£000**
**4,899**
**325**
**(67)**
**-**
**-**
**258**
**5,157**
**5,802**
**10,959**
**Total funds**
**2023**
**£000**
**2,905**
**2,320**
**(325)**
**21**
**(754)**
**732**
**4,899**
**Total funds**
**2023**
**£000**
**3,175**
**7,784 **
**10,959**|Total funds|
|---|---|---|
|||2022
£000|
||||
|||**(555)**|
||||
||||
|||**238**|
|||**(182)**|
|||**-**|
|||**(4,231)**|
||||
|||**(4,175)**|
||||
|||**(4,730)**|
||||
|||**10,532**|
|||**5,802**|
||||
||||
|||Total funds|
|||2022
£000|
|||6,222|
||||
|||(5,241)|
|||(238)|
|||59|
|||(2,846)|
|||1,489|
|||(555)|
||||
|||Total funds|
|||2022
£000|
||||
|||**3,048**|
|||**2,754**|
||||
|||**5,802**|
The accounting policies and notes on pages 33 to 53 form part of these financial statements.
32
**Moorfields Eye Charity**
## **Notes to the financial statements Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **1 Accounting policies**
## **a) Basis of preparation**
The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments at market value, and in accordance the Statement of Recommended Practice for Charities (SORP 2019) (Second Edition, effective 1 January 2019) and applicable accounting standards (FRS 102). Moorfields Eye Charity meets the definition of a public benefit entity under FRS102.
The accounts are prepared in pounds sterling rounded to the nearest thousand.
## **b) Going concern**
The Trustees consider that there are no material uncertainties regarding the charity’s ability to continue as a going concern. Using cash flow projections, based on monthly cash flows in the budget for 2023/24, the Trustees consider current assets are sufficient to meet the cash flows required to meet current liabilities. In addition, the charity investments are sufficiently liquid to meet future challenges and commitments.
## **c) Critical accounting judgements and estimates**
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Judgements have been made in respect of the valuation of legacy income accrued at the year end; and the rate used to discount the value of grant liabilities due in more than one year. These judgements are explained fully at (i) and (k) below.
## **d) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **e) Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.
## **f) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
## **g) Foreign currency translation**
The charity’s functional and presentation currency is pounds sterling. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised in the Statement of financial activities.
## **h) Income**
Income is included in the Statement of financial activities as soon as all conditions for receipt have been met – including entitlement, probability of receipt and measurement of the amount.
33
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
_______________________________________________________________________________________________________________________________
## **1 Accounting policies (continued)**
## **i) Gifts in kind**
In line with our income policy, gifts in kind are only included in the financial statements where the value of the gift can be measured and ascertained easily and accurately.
## **j) Legacies**
In line with our income policy, legacy income is accrued at the balance sheet date if it can be shown there is an entitlement to the funds, if there is probability of receipt and the amount can be fairly measured. Only where all three of these factors can be satisfied is an amount included for the year. Legacy notifications and receipts are reviewed up to the date of the approval of the accounts and the results are adjusted if the likely receipt is considered material and there is evidence that we were entitled to the income at the year end.
## **k) Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefit will be required in settlement and the amount of the obligation can be measured reliably.
## **l) Grants payable and reserves**
Grants payable are recognised in the financial statements, on an accruals basis, when the charity has incurred a constructive or legal obligation to make a grant. The charity makes multi-year grants, often dependent on multi-year income pledges. This sometimes results in restricted funds being in deficit pending the receipt of pledged income.
Following guidance in SORP 2019, grant liabilities accounted for as creditors falling due after more than one year from the balance sheet date have been discounted to their net present value. A discount rate of 5.4% (2022: 5.4%) was used, being the rate of total return expected on the charity’s long term investment portfolio, adjusted for equity risk, and included in the budget for 2023/24.
The amount spent on grants in any year is related to the reserves policy of the Trustees, which seeks to maintain a maximum level of unrestricted funds. This allows the charity to maintain its working capital, which provides a regular flow of investment income for grants in future periods. As required by FRS 102, long term liabilities have been discounted to present value as the impact of discounting is material.
## **m) Governance and Support Costs**
This includes all expenditure, including salaries, relating to activities that are not directly related to fundraising or the management of grants and research.
## **n) Investments**
Investments are shown at market value. Changes in value during the year, whether realised or unrealised, are included in the Statement of financial activities. Investment managers are appointed to manage the portfolios as common investment funds on a discretionary basis. The Trustees do not dictate changes to individual funds within the portfolios. The Trustees choose to disclose investments or withdrawals in relation to the portfolios but not individual acquisitions and disposals within the common investment funds. Investment management costs are shown as a cost of generating funds.
## **o) Tangible fixed assets and depreciation**
Assets costing more than £5,000 are capitalised. Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.
Depreciation is provided at rates calculated to write off the cost of the assets, less any residual value, over their expected useful lives.
34
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **1 Accounting policies (continued)**
## **p) Intangible fixed assets and amortisation**
Intangible fixed assets are carried at cost, net of amortisation and any provision for impairment.
Amortisation is provided at rates calculated to write off the cost of the assets, less any residual value, over their expected useful lives. The intangible assets of the charity are the costs of developing the grants management and fundraising database and software. These are amortised over the period of the initial licence period, being four years, from July 2018 when the system became operational. Assets in the course of construction or development
## **r) General information**
Moorfields Eye Charity is a company registered in England and Wales (company number 7543237). Its registered address is set out on page 2. Its objects are set out on page 16.
Where tangible or intangible assets are in the course of construction or development at the year end, the costs incurred to the balance sheet date are shown as fixed assets.
## **q) Fund structure and objects**
All funds are used for the main Objects of the charity. The main categories of funds are:
Restricted – trusts created by donors with specific objects or linked charities;
Expendable endowment – unrestricted incoming resources exceeding £500,000 received by the Special Trustees prior to December 2015 and which were not expected to be spent within one year. This was a reporting concession allowed for NHS charities at that time;
Unrestricted – resources that can be used by the Trustees at their discretion; and
Designated – unrestricted funds for which the Trustees have set a specific purpose.
35
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
|**2**
**Income and**
**endowments from**
Donations
Individual giving
Major gifts
Major gifts – Oriel
Legacies
Events
Raffles and lottery
Grants receivable
Royalties and other
income
Investment portfolio
Interest
on
bank
accounts|**Unrestricted**
**Restricted**
**Endowment**
**2023**
**Unrestricted**
**Restricted**
**Endowment**
**2022**
**funds**
**funds**
**funds**
**total**
**funds**
**funds**
**funds**
**total**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
436
435
-
**871**
458
428
-
**886**
53
2,272
-
**2,325**
319
2,243
1
**2,563**
-
7,487
-
**7,487**
-
153
-
**153**|
|---|---|
||489
10,194
-
**10,683**
777
2,824
1
**3,602**
800
1,407
-
**2,207**
1,002
2,962
229
**4,193**
145
-
-
**145**
167
15
-
**182**
78
-
-
**78**
77
-
-
**77**
-
560
45
**605**
-
310
31
**341**
6
-
-
**6**
4
-
-
**4**|
||1,518
12,161
45
**13,724**
2,027
6,111
261
**8,399**
29
244
46
**319**
26
170
41
**237**
6
-
-
**6**
1
-
-
**1**|
||**1,553**
**12,405**
**91**
**14,049**
**2,054**
**6,281**
**302**
**8,637**|
Additional analysis for both years has been provided in relation to major gift income received in support of Oriel.
36
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
|**3**
**Expenditure by activity**
**Grant commitments:**
Research
Equipment
Patient and staff welfare
Education
Innovation
Grant commitments (Note 13)
**Expenditure**
Oriel
Audit fees
Amortisation
Insurance
Trustee expenditure
Staff costs (Note 4)
Other direct costs
Investment management
**Total expenditure**|**Cost of**
**Charitable**
**Raising**
**activities**
**funds**
**£’000**
**£’000**
5,243
-
366
-
474
-
25
-
48
-|**Governance**
**and support**
**costs**
**£’000**
-
-
-
-
-|**2023**
**total**
**£’000**
**5,243**
**366**
**474**
**25**
**48**||**Cost of**
**Governance**|
|---|---|---|---|---|---|
|||||**Charitable**|**Raising**
**and support**
**2022**|
|||||**activities**|**funds**
**costs**
**total**|
|||||**£’000**|**£’000**
**£’000**
**£’000**|
|||||||
|||||4,763|-
-
**4,763**|
|||||436|-
-
**436**|
|||||126|-
-
**126**|
|||||64|-
-
**64**|
|||||19|-
-
**19**|
||**6,156**
**-**
20
-
-
-
-
21
-
-
-
-
209
953
39
546
-
222|**-**
-
22
-
12
35
434
155
-|**6,156**
**20**
**22**
**21**
**12**
**35**
**1,596**
**740**
**222**|**5,408**|**-**
**-**
**5,408**|
|||||||
|||||21|-
-
**21**|
|||||-|-
18
**18**|
|||||-|59
-
**59**|
|||||-|-
6
**6**|
|||||-|-
47
**47**|
|||||171|775
408
**1,354**|
|||||31|396
84
**511**|
|||||-|232
-
**232**|
||**6,424**
**1,742**|**658**|**8,824**|**5,631**|**1,462**
**563**
**7,656**|
Grant commitments are net of commitments unused and released in the year as well as net present value adjustments for the current and prior year. More details are shown in Note 13. As grant commitments are the charity’s main charitable activity, governance and support costs have not been allocated to grant commitments but are shown separately in the Statement of financial activities.
The cost of time spent by governance and support staff on fundraising is allocated to the cost of raising funds based on an assessment of time spent on that activity. Fundraising, governance and support costs are allocated to the charity’s unrestricted, Oriel and Special Trustees funds based on an assessment of time spent on that activity.
37
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **4 Staff costs**
The total cost for the year was £1,596,000 (2022: £1,354,000) made up as follows:
|Salary cost
Employer NI contributions
Pension contributions
**Cost of staff employed by the**
**charity**
Cost of services provided by
Moorfields and other suppliers
**Total staff costs**(Note 3)|**Cost of**
**Governance**
**Cost of**
**Governance**
**Charitable**
**Raising**
**and support**
**2023**
**Charitable**
**Raising**
**and support**
**2022**
**activities**
**funds**
**costs**
**total**
**activities**
**funds**
**costs**
**total**
**£000**
**£000**
**£000**
**£000**
**£000**
**£000**
**£000**
**£000**
175
806
350
**1,331**
141
658
349
**1,148**
19
90
43
**152**
15
69
37
**121**
15
57
21
**93**
15
48
20
**83**|
|---|---|
||**209**
**953**
**414**
**1,576**
**171**
**775**
**406**
**1,352**
-
-
20
**20**
-
-
2
**2**|
||**209**
**953**
**434**
**1,596**
**171**
**775**
**408**
**1,354**|
## **Staff numbers**
|**taff numbers**||
|---|---|
|Staff employed by the charity
Staff provided by Moorfields and other
suppliers|**Average FTE**
**for year**
**Average**
**for year**
**As at 31**
**March 2023**
**Average FTE**
**for year**
**Average**
**for year**
**As at 31**
**March 2022**
**29**
**32**
**41**
**26**
**28**
**26**
**-**
**-**
**1**
**-**
**-**
**-**|
||**29**
**32**
**42**
**26**
**28**
**26**|
38
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **5 Staff costs (continued)**
## **Salary bandings**
The number of employees of the charity receiving emoluments of more than £60,000 (excluding employer pension costs) during the year were as follows:
|**Banding**|**2023**|**2022**|
|---|---|---|
|£60,001 - £70,000|**2**|**2**|
|£70,001 – £80,000|**-**|**1**|
|£80,001 - £90,000|**2**|**1**|
|£100,001 - £110,000|**-**|**-**|
|£110,001 - £120,000|**1**|**1**|
## **Key management personnel**
The key management personnel during the year were the Trustees and the management group. The Trustees received no remuneration for their positions. The management group is made up of the Chief Executive, the Director of development, the Director of grants and research, and the Director of finance and resources. All of the management group are employed by the charity.
The total cost to the charity of all people who performed the work of the management group during the year was £436,280 (2022: £419,760).
There were no redundancy or termination payments made in the year (2022: none).
## **6 Pensions**
The charity participates in the NHS pension scheme for those staff that transferred to the charity from employment with Moorfields. It is not possible to separately identify the assets of the scheme relating to the charity. The pension cost charge represents contributions payable by the charity to the fund and amounted to £29,344 (2022: £28,838). Contributions totalling £2,445 (2022: £2,351) were payable to the fund at the balance sheet date and are included in creditors. The charity pays the standard NHS rate of contribution to the scheme and no historic deficits are being funded through additional contributions.
The charity participates in the People’s Pension, ensuring all staff are able to participate in an auto-enrolment pension scheme. The scheme is a defined contribution scheme where the assets are held separately from the charity in an independently managed fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £63,585 (2022: £54,236). Contributions totalling £5,917 (2022: £4,774) were payable to the fund at the balance sheet date and are included in creditors. Employees make contributions matched by the charity at 4% or 8% of salary.
## **7 Taxation**
No tax charge has arisen in the year as the registered charity falls within Chapter 3 of the Corporation Taxes Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992, and is therefore potentially exempt from taxation of income and gains to the extent that they are applied to its charitable purposes. The Charity is not registered for VAT. Expenditure is shown inclusive of VAT.
39
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **8 Fixed asset investments**
|**ixed asset investments**||
|---|---|
|**Common investment funds**
Market value at 1 April
Net investments/(withdrawals)
Income and distributions
Management fees
Net movements in valuation
**Market value at 31 March**
**Cash held as part of the long term portfolio**
**Cash held as part of the Oriel investment**
**Total investments at 31 March**|**2023**
**total**
**2022**
**total**
**£’000**
**£’000**
**69,141**
63,894
**5,000**
-
**319**
237
**(222)**
(231)
**(2,320)**
5,241|
||**71,918**
**69,141**|
||**(774)**
(2,754)
**(7,010)**
-|
||**64,134**
**66,387**|
## **Withdrawals / further investment**
The Trustees choose not to show investments or withdrawals in relation to these common investment funds as the investment managers make all changes within the portfolios at their own discretion. Performance is measured on a total return and details of changes during the year are not disclosed.
The Trustees have decided to place new major donations received towards the Oriel campaign with JP Morgan as treasury deposits. During the year the charity received £7,000,001 (2022: Nil) as donations towards the Oriel campaign.
## **Historic cost of investment**
The original investment portfolio was acquired by the charity as part of the merger with the former Special Trustees of Moorfields on 31 December 2015. At 31 December 2015, the date of the merger, the value of the portfolio was £41.4 million, being investments of £40.9 million and cash of £0.5 million.
40
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
- **9 Fixed assets – intangible assets**
|**assets – intangible assets**||
|---|---|
|**Cost**
At 1 April
Additions
Transfers
**At 31 March**
**Amortisation**
At 1 April
Charge for the year
**At 31 March**
**Net book value at 31 March**|**Software**
**Assets in**
**development**
**2023**
**total**
**Software**
**Assets in**
**development**
**2022**
**total**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
235
-
**235**
235
-
**235**
-
-
**-**
-
-
**-**
-
-
**-**
-
-
**-**|
||**235**
**-**
**235**
**235**
**-**
**235**|
||**(214)**
**-**
**(214)**
(155)
-
(155)
**(21)**
**-**
**921)**
(59)
-
(59)|
||**(235)**
**-**
**(235)**
**(214)**
**-**
**(214)**|
||**-**
**-**
**-**
**21**
**-**
**21**|
Intangible assets are represented by our customer relationship management system developed over the period January 2018 to July 2018. Amortisation has been charged from August 2018 when the fundraising functionality of the system became operational. Additions from that date relate to the development of our grants management module of the system which became operational in April 2019.
Intangible assets are funded from unrestricted funds. Amortisation is treated as unrestricted expenditure.
41
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
|**10**
**Debtors**
HMRC Gift Aid accrual
Other debtors
Accrued income
Prepayments|**Unrestricted**
**Restricted**
**Endowment**
**2023**
**Unrestricted**
**Restricted**
**Endowment**
**2022**
**funds**
**funds**
**funds**
**total**
**funds**
**funds**
**funds**
**total**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
24
43
-
**67**
64
117
-
**181**
-
327
45
**372**
-
-
-
**-**
1,125
2,784
150
**4,059**
942
2,479
155
**3,576**
73
-
-
**73**
60
-
-
**60**|
|---|---|
||**1,222**
**3,154**
**195**
**4,571**
1,066
2,596
155
**3,817**|
- **11 Creditors: amounts falling due within one year**
|Grants payable (note 13)
Other creditors|**Unrestricted**
**funds**
**Restricted**
**funds**
**£’000**
**£’000**
125
6,148
53
1,334|**Endowment**
**funds**
**£’000**
77
11|**2023**
**total**
**£’000**
**6,350**
**1,398**|**Unrestricted**
**funds**|**Restricted**
**funds**
**Endowment**
**funds**
**2022**
**Total**|
|---|---|---|---|---|---|
|||||**£’000**|**£’000**
**£’000**
**£’000**|
|||||108|6,052
86
**6,246**|
|||||146|1,358
108
**1,612**|
||**178**
**7,482**|**88**|**7,748**|**254**|**7,410**
**194**
**7,858**|
**12 Creditors: amounts falling due after one year**
|Grants payable (note 13)|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**2023**
**Total**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**2022**
**total**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**139**
**4,582**
**23**
**4,744**
**9**
**3,849**
**44**
**3,902**|
|---|---|
42
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
|**13**
**Grants payable**
Grant commitments at
start of year
NPV adjustment prior year
Grant commitments made
during the year
Grant commitments
released in year
Grant commitments paid
in year
**Grant commitments**
NPV adjustment current
year
**Grant commitments at**
**end of year**
Within one year (note 11)
After more than one year
(note 12)
**Grant commitments at**
**end of year**|**Unrestricted**
**Restricted**
**Funds**
**funds**
**£’000**
**£’000**
117
9,901
1
267
215
6,658
-
(546)
(52)
(5,121)|**Endowment**
**2023**
**funds**
**total**
**£’000**
**£’000**
131
**10,149**
2
**270**
7
**6,880**
-
**(546)**
(38)
**(5,211)**|**Unrestricted**
**Restricted**|**Endowment**
**2022**|
|---|---|---|---|---|
||||**funds**
**funds**|**funds**
**total**|
||||**£’000**
**£’000**|**£’000**
**£’000**|
||||115
9,180|188
**9,483**|
||||1
222|6
**229**|
||||8
6,375|1
**6,384**|
||||-
(935)|-
**(935)**|
||||(6)
(4,674)|(62)
**(4,741)**|
||**281**
**11,159**
(17)
(429)|**102**
**11,542**
(2)
**(448)**|**118**
**10,168**|**133**
**10,419**|
||||(1)
(267)|(2)
**(270)**|
||**264**
**10,730**|**100**
**11,094**|**117**
**9,901**|**131**
**10,149**|
||125
6,148
139
4,582|77
**6,350**
23
**4,744**|||
||||108
6,052|86
**6,246**|
||||9
3,849|44
**3,902**|
||**264**
**9,901**|**100**
**11,094**|**117**
**9,901**|**131**
**10,149**|
Most of our grant commitments are made to Moorfields or UCL. Grants to UCL relate mainly for work by the UCL Institute of Ophthalmology. Details of grants made in the year are set out in the Trustees’ annual report.
43
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **14 Funds**
|**Total funds summary (current**
**year):**
Restricted funds
14a
Linked charities
14b
Total restricted funds
Endowed funds
14c
Unrestricted funds
14d
**Total Funds**|Balance
1 April 2022
Income
Expenditure
Transfers
between funds
Gains and
losses
**Balance 31**
**March 2023**
£’000
£’000
£’000
£’000
£’000
**£’000**
22,701
10,854
(3,146)
(197)
(413)
**29,799**
26,972
1,551
(3,949)
197
(1,045)
**23,726**|
|---|---|
||49,673
12,405
(7,095)
-
(1,458)
**53,525**
7,077
91
(49)
-
(528)
**6,591**
7,517
1,553
(1,680)
-
(334)
**7,056**|
||**64,267**
**14,049**
**(8,824)**
**-**
**(2,320)**
**67,172**|
|**Total funds summary (prior year):**
Restricted funds
14a
Linked charities
14b
Total restricted funds
Endowed funds
14c
Unrestricted funds
**Total Funds**|Balance
1 April 2021
Income
Expenditure
Transfers
between funds
Gains and
losses
**Balance 31**
**March 2022**|
|---|---|
||£’000
£’000
£’000
£’000
£’000
**£’000**|
||20,767
3,977
(3,535)
(6)
1,498
**22,701**|
||24,260
2,304
(2,829)
(33)
3,270
**26,972**|
||45,027
6,281
(6,364)
(39)
4,768
**49,673**|
||6,538
302
(53)
-
290
**7,077**|
||6,480
2,054
(1,239)
39
183
**7,517**|
||**58,045**
**8,637 **
**(7,656)**
**-**
**5,241**
**64,267 **|
## **Funds in deficit**
The charity enters multi-year gift agreements with donors to fund projects or equipment, but accounting rules prevent the charity from accruing the future income. Multi-year grant awards are also made, and accounting rules require the long-term liability to be recognised fully on award. This can have the effect of creating funds in deficit. At 31 March 2023 there were three funds in deficit (2022: seven funds) amounting to £375k (2022: £545k). The Trustees are satisfied that sufficient funds will be raised in future accounting periods to reverse the deficits in full.
44
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **14a Restricted funds**
|**tricted funds**||
|---|---|
|**Buildings**
Oriel capital
Other building funds
**Equipment**
**Patient and staff welfare**
**Research**
General research
London project
Other research funds
**Total Funds**
**Buildings**
Oriel capital
Other building funds
**Equipment**
**Patient and staff welfare**
**Research**
General research
London project
Other research funds
**Total Funds**|Balance
1 April 2022
Income
Expenditure
Transfers
between funds
Gains and
losses
**Balance 31**
**March 2023**
£’000
£’000
£’000
£’000
£’000
**£’000**
17,742
7,487
(94)
14
(413)
**24,236**
32
-
-
-
-
**32**
(289)
134
(141)
(10)
-
**(306)**
(79)
147
(45)
-
-
**23**
3,029
801
(280)
(200)
-
**3,350**
1,203
1,376
(2,389)
-
-
**190**
1,563
909
(197)
(1)
-
**2,274**|
||**22,701 **
**10,854 **
**(3,146)**
**(197)**
**(413)**
**29,799**|
|||
||Balance
1 April 2021
Income
Expenditure
Transfers
between funds
Gains and
losses
**Balance 31**
**March 2022**|
||£’000
£’000
£’000
£’000
£’000
**£’000**|
||15,632
158
(79)
33
1,498
**17,742**|
||32
-
-
-
-
**32**|
||(282)
40
(47)
-
-
**(289)**|
||(19)
165
(186)
(39)
-
**(79)**|
|||
||2,918
1,460
(1,349)
-
-
**3,029**|
||1,155
1,017
(969)
-
-
**1,203**|
||1,331
1,137
(905)
-
-
**1,563**|
||**20,767 **
**3,977**
**(3,535)**
**(6)**
**1,498**
**22,701 **|
45
## **Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **14a Restricted funds (continued)**
The restricted funds held are explained below:
|**Building**||
|---|---|
|General BuildingFund|Restricted donations given forthemaintenance andrepairoftheMoorfieldsEstate.|
|RDCEC Building|Restricted donations given forthemaintenance andrepairoftheRichardDesmond Children’sEye Centre.|
|Oriel Capital|Restricted donations given for Moorfields’ long-term redevelopment project.|
|**Equipment**||
|General Equipment|Restricted donations given for the purchase of specialist equipment for either research or clinical services.|
|Summer 2014 Equipment
Appeal|Restricted donations to replace a broken stem cell incubator at Moorfields; any surplus donations will be used to support
stemcelltherapyresearch.|
|**Patient Welfare**||
|RDCEC Non-Research|Restricted donations given fortheworkcarried outintheRichardDesmond Children’sEye Centre.|
|General Patient Care|Restricted donations given for the general welfare of Moorfields’patients.|
|Prof Khaw|Restricted donation given for Prof Khaw to support those with glaucoma who may struggle to access the relevant care they
require.|
|**Research**||
|General Research|Restricted donations given for researchpurposes.|
|Adnexal Research|Restricted donations given for research into the causes and treatment of diseases involving tissues surrounding the eyeball,
including the eyelids, extra-ocular muscles, socket and tearsystem.|
|AMD Research|Restricted donations given for research into the causes and treatment of Age-Relatedmaculardegeneration.|
|Aniridia Research|Restricted donations given for research into the causes and treatment of Aniridia.|
|Cataract Research|Restricted donations given for research into the causes and treatment ofCataracts.|
|Corneal Research|Restricted donations given for research into the causes and treatment ofdiseases ofor involving the cornea.|
|Diabetes Related Research|Restricted donations given for research into the causes and treatment ofeye diseaselinked to diabetes.|
|Eye Cancer Research|Restricted donations given for research into the causes and treatment of ocular cancers.|
|Gene TherapyResearch|Restricted donations given for research into using ordeveloping GeneTherapyforeye diseases.|
|Genetic Research|Restricted donations given for research into the genetic background to eye disease.|
|Glaucoma Research|Restricted donations given for research into the causes and treatment ofglaucoma.|
|John Dart Research|Restricted donations given for research led byProfessorJohn Dart andhis team.|
46
## **Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **14a Restricted funds (continued)**
|**Research (continued)**||
|---|---|
|London Project|Restricted donations given for research related to the London Project which aims to use Stem Cell technology to restore
sight, prevent progression and ultimately improve the quality of life for patients with Age-Related Macular Degeneration
(AMD) and other retinal and macular disorders, led by Prof Pete Coffey and Mr Lyndon da Cruz and their teams.|
|Macular Degeneration|Restricted donations given for research into the causes and treatment of maculardegeneration.|
|Ocular Prosthetics|Restricted donations givento support the development ofandresearch into ocularprosthetics.|
|Ocular repair/regeneration|Restricted donations given for research into ocular repairandregeneration mechanisms and treatments.|
|PaediatricResearch|Restricted donations given for research into the causes and treatment ofeye conditionsinchildren.|
|Retinal Research|Restricted donations given for research into the causes and treatment of retinaldiseases.|
|RPand UsherSyndrome|Restricted donations given for research into the causes and treatment of retinitis pigmentosa and Ushersyndrome.|
|Stargardt Research|Restricted donations given for research into the causes and treatment of Stargardt disease.|
|StemCell Research|Restricted donations given for research into utilising StemCellsinthe treatment ofeye disease.|
|UveitisResearch|Restricted donations given for research into the causes and treatment ofuveitis.|
|V R Research|Restricted donations given for research into the causes and treatment of vitreoretinalconditions.|
|DF-AMD Research|Restricted donations given for research into the causes and treatment ofage-relatedmaculardegeneration.|
|Sir Jules Thorn Unit|Restricted donations given in support of the development of, and research carried out in the Sir Jules Thorn Unit.|
|UNITE|Restricted donations given for research related to the UNITE international consortium which aims to advance the education
ofandresearch into ocular inflammationandimmune-mediated disease ofthe eye.|
|**NetworkSites**|Restricted donations given foruse byMoorfields operationalteams at other hospitals.|
47
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
**14b Restricted funds – linked charities**
|**tricted funds – linked charities**||
|---|---|
|**Special purpose**
**Patient welfare**
**Staff welfare and amenities**
**Research**
General research
Former Special Trustees
Other research funds
**Total Funds**
**Special purpose**
**Patient welfare**
**Staff welfare and amenities**
**Research**
General research
Former Special Trustees
Other research funds
**Total Funds**|Balance
1 April 2022
Income
Expenditure
Transfers
between funds
Gains and
losses
**Balance 31**
**March 2023**
£’000
£’000
£’000
£’000
£’000
**£’000**
35
30
(62)
-
-
**3**
26
-
-
-
-
**26**
140
1
(5)
-
-
**136**
(92)
68
129
-
-
**105**
26,522
1,443
(4,012)
197
(1,045)
**23,105**
341
9
1
-
-
**351**|
||**26,972**
**1,551 **
**(3,949)**
**197 **
**(1,045)**
**23,726**|
|||
||Balance
1 April 2021
Income
Expenditure
Transfers
between funds
Gains and
losses
**Balance 31**
**March 2022**|
||£’000
£’000
£’000
£’000
£’000
**£’000**|
||15
-
20
-
-
**35**|
||26
-
-
-
-
**26**|
||141
-
(1)
-
-
**140**|
|||
||46
105
(243)
-
-
**(92)**|
||23,872
2,053
(2,640)
(33)
3,270
**26,522**|
||160
146
35
-
-
**341**|
||**24,260**
**2,304 **
**(2,829)**
**(33)**
**3,270**
**26,972**|
## **Linked charities**
Under a Linking Directive from the Charity Commission, following the merger at 31 December 2015, the former Special Trustees of Moorfields Eye Hospital and its linked charities become Linked Charities of the charity. The objects of the former Special Trustees meant the unrestricted funds of that charity became restricted funds within Moorfields Eye Charity.
48
## **Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **14b Restricted funds – linked charities (continued)**
The restricted funds held are explained below:
|The restricted funds held are explained below:|The restricted funds held are explained below:|
|---|---|
|**Restricted**||
|Children’s Centre
/PaediatricResearch|Restricted donations given for research into and treatment ofchildren’s eye conditions.|
|Arthur Luck Oncology/Eye
Cancer|A fund createdfroma single donation for research into tumoursinany part ofthevisualsystem.|
|Francis and Renee Hock
Fund|A fund created from a single donation to further the research into the treatment of medical and surgical conditions of the vitreous
andretina.|
|**Restricted –Special Purpose**||
|**Patient Welfare**||
|Chapel Fund (Helen
Brooker)|Funds held for the maintenance and refurbishment of the Multi-Faith Centre.|
|**Research **||
|General Research|Restricted donations given for researchpurposes.|
|Optical Department|Restricted donations given foruse by the opticaldepartment.|
|ResearchScholarshipFund|Restricted donations givento create a scholarshipfundforthe publicationof research.|
|Glaucoma Research|Restricted donations given for research into the treatment and cure of glaucoma.|
|Retinal Research|Restricted donations given for research intoretinalconditions.|
|FormerSpecial Trustees|TheformerUnrestrictedFund ofSpecial Trusteeswhosefundswererestrictedforusewholly or mainlyinsupport of Moorfields.|
|**Staff Welfare and**
**Amenities**||
|Nurses|Restricted donations given forgeneral improvementsforthe comfort of nursing staff.|
|Retinal Diagnostic
Education Fund|Restricted donations given for educational purposes for full-time medical members of the retinal diagnostic department.|
|Staff BenevolentFund|Restricted donations given for the relief of those staff facing hardship and to assist with removal, temporary housing, childcare,
set-up costs andlanguage training especiallyforoverseas staffbut otherwise staffgenerally.|
49
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **14c Endowment funds**
|**General endowment funds**
**Other endowment funds**
**Total Funds**
**General endowment funds**
**Other endowment funds**
**Total Funds**|**General endowment funds**
**Other endowment funds**
**Total Funds**
**General endowment funds**
**Other endowment funds**
**Total Funds**|Balance
1 April 2022
Income
£’000
£’000
6,420
45
657
46|Expenditure
£’000
(43)
(6)|Transfers
between funds
£’000
-
-|Gains and
losses
**Balance 31**
**March 2023**
£’000
**£’000**
(528)
**5,894**
-
**697**
**(528)**
**6,591 **
Gains and
losses
**Balance 31**
**March 2022**
£’000
**£’000**
290
**6,420**
-
**657**
**290**
**7,077**|
|---|---|---|---|---|---|
|||**7,077**
**91 **|**(49)**|**-**||
|||||||
|||Balance
1 April 2021
Income|Expenditure|Transfers
between funds||
|||
£’000
£’000|
£’000|£’000||
|||5,902
271|(48)|7||
|||636
31|(5)|(7)||
|||**6,538**
**302**|**(53)**|**-**||
|**Endowment Funds: **||||||
|Samaritan Endowment
Funds|Restricted funds given to relieve in cases of need persons leaving Moorfields Eye Hospital in such ways conducive to their
recovery orbetterment.|||||
|Children’s Endowment
Funds|Anendowmentfundformerly part ofthe Samaritan Fund on which incomeis usedforthe specificwelfare ofchild patients.|||||
|James and Edmonds
Funds|An endowment fund formerly part of the Samaritan Fund on which income earned is used for the purposes of the Samaritan
Fund.|||||
|Children’s OphthalmicFund|Incomeis usedforthe specificwelfare ofchild patients.|||||
|General Endowment Fund|Established as an expendable endowment by the Special Trustees in 2016, general donations in excess of £0.5 million
received in one year; for expenditure over a number of years. Income each year is donations intended for the Special
Trustees generalendowmentfund.|||||
|Sutor Research Fund|Anexpendable endowmentfund created by alegacyfor researchexcluding the use ofanimals.|||||
50
## **Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
______________________________________________________________________________________________________________________________
## **15 Commitments**
During the year ended 31 March 2020 the Trustees formally committed to provide £10,000,000 to be utilised for the construction costs of Oriel. As the funds were not considered required until at least 2024, an equivalent amount of cash was placed with Troy Asset Management as a separate investment from the long term portfolio, where they remain at 31 March 2023.
To reflect the capital commitment, the Trustees transferred £10,000,000 from the former Special Trustees restricted reserve to the restricted Oriel capital reserve in March 2020. The Trustees consider this reflects the intentions of the former Special Trustees and an appropriate use of the former Special Trustees reserve, as these funds are to be used wholly or mainly in support of Moorfields.
In December 2021, the Trustees agreed to further support the development by agreeing to provide up to £5,000,000 of further funds.
In the coming year it is the intention of the Trustees to formalise the commitment by way of a grant agreement with Moorfields. This formal commitment will have a significant impact on the results for the new financial year and the value of grant awards payable in more than one year.
During March 2023 we received £7,000,001 of donations towards the construction cost of Oriel. We anticipate further significant donations during the coming year, based on the philanthropic pledges we have from major donors. We have indicated to Moorfields that we are likely to begin making grant awards from these donations towards the costs of construction. It is anticipated that up to £14,000,000 will be paid as a grant during the coming year. Grants will only be awarded, and payments made, when costs of construction have been incurred. No provision has been made for grant awards at 31 March 2023 as construction costs have not yet been incurred.
## **16 Transactions with directors and connected persons**
Dr Martin Kuper and Miss Louisa Wickham are directors of Moorfields Eye Hospital NHS Foundation Trust (‘Moorfields’). Johanna Moss was a director of that trust. Dr Robert Jones is the Vice-chair of the membership council of that trust.
None of the Trustees received any remuneration during the year (2022: £Nil).
Three Trustees (2022: none) were reimbursed for their travel and other related expenses, £654 (2022: £Nil).
None of the Trustees or members of key management staff of Moorfields or parties related to them has undertaken any material transactions with the charity or with connected persons during the year.
During the year the charity received human resources, payroll management, facilities management and information systems services from Moorfields. These services were provided on an arms-length basis without charge. No value has been attributed to these services in line with our accounting policy.
The charity makes grants to Moorfields as set out in Note 13 above and explained further in the Trustees Report. There were no other related party transactions in the current or previous year.
51
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
_______________________________________________________________________________________
## **17 Comparatives: statement of financial activities for the year ended 31 March 2022**
|**Income and endowments from:**
Donations
Legacies
Events
Other trading activities:
Raffles and lottery
Grants receivable
Royalties and other income
Investment income
**Total income and endowments**
**Expenditure on:**
Raising funds:
Fundraising
Investment management
Charitable activities
Governance and support costs
**Total expenditure**
**Net income/(expenditure)**
**before investment gains and**
**losses**
Net gains/(losses) on
investments
**Net income/(expenditure)**
Transfers between funds
**Net movement in funds**
Reconciliation of funds:
Total funds brought forward
Total funds carried forward|Unrestricted
Restricted
Endowment
**2022**
2021
funds
funds
funds
**total**
total
£’000
£’000
£’000
**£’000**
£’000
777
2,824
1
**3,602**
**6,342**
1,002
2,962
229
**4,193**
**1,004**
167
15
-
**182**
**135**
77
-
-
**77**
**79**
-
310
31
**341**
**-**
4
-
-
**4**
**24**
27
170
41
**238**
**240**|
|---|---|
||**2,054**
**6,281**
**302**
**8,637**
**7,824**|
||778
453
-
**1,231**
**1,094**
31
152
48
**231**
**205**|
||809
605
48
**1,462**
**1,299**|
||39
5,587
5
**5,631**
**4,376**
391
172
-
**563**
**576**|
||430
5,759
5
**6,194**
**4,952**|
||**1,239**
**6,364**
**53**
**7,656**
**6,251**|
||815
(83)
249
**981**
**1,573**
183
4,768
290
**5,241**
**8,488**|
||**998**
**4,685**
**539**
**6,222**
**10,061**
39
(39)
-
**-**
**-**|
||**1,037**
**4,646**
**539**
**6,222**
**10,061**
6,480
45,027
6,538
**58,045**
**47,984**|
||**7,517**
**49,673**
**7,077**
**64,267**
**58,045**|
52
**Moorfields Eye Charity**
## **Notes to the financial statements (continued) Year ended 31 March 2023**
_______________________________________________________________________________________
## **18 Comparatives: Balance Sheet as at 31 March 2022**
|**Fixed assets**
Investments
Intangible assets
**Current assets**
Debtors
Cash held in investment portfolio
Cash at bank and in hand
**Total current assets**
**Liabilities**
Creditors: Amounts falling due
within 1 year
**Net current assets/(liabilities)**
Creditors: Amounts falling due
after more than 1 year
**Total net assets**
**Funds**
**Total funds**|Unrestricted
Restricted
Endowment
**2022**
funds
funds
funds
**total**
£’000
£’000
£’000
**£’000**
4,148
55,314
6,925
**66,387**
21
-
-
**21**|2021|
|---|---|---|
|||total|
|||£’000|
||||
||||
|||**56,723**|
|||**80**|
||4,169
55,314
6,925
**66,408**|**56,803**|
||1,066
2,596
155
**3,817**
1,063
1,502
189
**2,754**
1,482
1,520
46
**3,048**||
||||
||||
|||**971**|
|||**7,171**|
|||**3,361**|
||3,611
5,618
390
**9,619**
(254)
(7,410)
(194)
**(7,858)**||
|||**11,503**|
||||
||||
|||**(6,084)**|
||3,357
(1,792)
196
**1,761**
(9)
(3,849)
(44)
**(3,902)**||
|||**5,419**|
||||
|||**(4,177)**|
||**7,517**
**49,673**
**7,077**
**64,267 **||
||||
|||**58,045**|
||**7,517**
**49,673**
**7,077**
**64,267 **||
||||
||||
||||
|||**58,045**|
53
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54