## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
**CHARITY NO: 1148335**
**PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
## CONTENTS
||Page|
|---|---|
|Reference and Administrative Information|2|
|Foreword from the Chair|3|
|Trustees’ Report|4|
|Independent Auditor’s Report|11|
|Statement of Financial Activities|14|
|Balance Sheet|15|
|Notes to the Financial Statements|16|
1
## **PHARMACY RESEARCH UK**
# **TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
# **FOR THE YEAR ENDED 31 DECEMBER 2020**
REFERENCE AND ADMINISTRATIVE INFORMATION
## **Registered Charity Number**
1148335
## **Governing Instrument**
Pharmacy Research UK is governed by its Charitable Trust Deed dated 5 July 2012
## **Principal Address**
66-68 East Smithfield, London, E1W 1AW
## **Trustees**
Mr Raymond Anderson Mrs Sue Ashelby Mr Martin Astbury Mr Peter Curphey (until 23 July 2020) Professor Brian Edwards Mr Malcolm Harrison Dr Victoria King Professor Anthony Smith (Chair) Dr Dimitri Varsamis
## **Chief Executive**
Mr Guy Parckar
## **Research Manager**
Mr Ardeshier Mofidi
## **Independent Auditor**
Knox Cropper LLP, 65 Leadenhall Street, London, EC3A 2AD
## **Solicitors**
Boyes Turner LLP, Abbots House, Abbey Street, Reading RG1 3BD
## **Investment Manager**
Investec Wealth & Investment Ltd, 30 Gresham Street, London EC2V 7QN
## **Bankers**
Clydesdale Bank PLC, 91 Gresham Street, London EC2V 7BL
2
## **PHARMACY RESEARCH UK**
## **FOREWORD FROM THE CHAIR**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
In a year like no other for so many people Pharmacy Research UK (PRUK) faced a number of unique challenges over the course of 2020, but we have come through strongly and can look to continue to develop in the coming years.
The COVID-19 pandemic that dominated the year has thrown up a range of issues both for PRUK as an organisation, and of course for the researchers that we support, but we have been able to have a full and productive 2020 nonetheless.
For our researchers challenges ranged from being called back from research into active clinical work because of the pandemic, to issues with remote working, attempting to develop studies without faceto-face contact, the need to support family and friends and the delays caused by the many changes to working practice.
This has meant that we have offered a number of extensions to existing research projects, providing additional time for researchers to complete their studies, and also extended several funding calls in order to ensure potential applicants had the opportunity to get involved. This has meant a slightly slower year than normal overall in terms of new and completed projects, but we have still been able to fund some excellent new work and support more pharmacists to get involved in research.
For our team, we saw a move to working from home for the majority of the year, as well as the need to ensure our programmes and funding calls were responsive to the needs of our researchers during such an unprecedented time.
Organisationally, as a charity that relies primarily on a managed investment for making our awards the market turmoil of 2020 has also provided an extra challenge, but as we take a prudent approach to our finances we have been as well insulated as possible from the ups and downs in investment returns. The huge falls in market values that followed on from the first sets of lockdowns in the spring have continued to recover and build back since, meaning we remain in a solid financial position, and can continue our development and growth.
We have continued with our planned partnership approach, looking to bring more resources into pharmacy research by partnering with interested and relevant organisations, and this has worked well given the challenging financial climate.
We remain extremely positive about PRUK’s future, and want to thank all the researchers, partner organisations, staff team, trustees, advisers and supporters who have helped us through such an extraordinary year.
In a year of unprecedented change and challenge, PRUK has seen steady progress, and continues to offer hugely important support to pharmacy researchers across the UK.
## **Professor Anthony Smith, Chair of Trustees**
3
## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **OBJECTS**
The object of Pharmacy Research UK, as set out in its Charitable Trust Deed, is: “To advance the education of the public in general (and particularly amongst scientists) on the subject of pharmacy and to promote research for the public benefit in all aspects of that subject and to publish the useful results.”
## **VISION AND PURPOSE**
Our vision of improving the health of the public through excellence in pharmacy research is a longterm challenge. The following purpose statements outline how we address this challenge:
- To promote research into the practice of pharmacy (particularly in the UK) and to publish the useful results of such research to:
- Support the production of timely evidence that informs policy and practice relating to pharmacy's contribution to the health of the public, medicines and their use.
- Publish and disseminate results to ensure knowledge is translated into benefit for patients, the public and the profession of pharmacy.
- To promote the health of the public by educating pharmacists (particularly in the UK) in order to enhance the standard of healthcare available to the public to:
- Build pharmacy practice research capacity and capability through training bursaries, postgraduate research funding, fellowships and grants.
- Develop a new generation of academic and clinical experts who can lead the debate and inform thinking, particularly within pharmacy.
- To advance and promote knowledge and skill in relation to the practice of pharmacy (particularly in the UK) for the public good to:
- Provide a forum in which the research implications can be considered in the widest possible policy context.
- Engage stakeholders, stimulate debate and spread knowledge about medicines and their use to the wider healthcare community and the public.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
Pharmacy Research UK is the principal research charity supporting pharmacists and pharmacy to improve healthcare for the benefit of patients and the public. Our broad ambition is to improve the health of the public through supporting and promoting excellence in pharmacy research.
Pharmacy Research UK is a charitable trust established in 2012 and is registered under the Charities Act 2011 (registration number 1148335). Pharmacy Research UK's registered office is 66-68 East Smithfield Street, London, E1W 1AW. Pharmacy Research UK is governed by its Charitable Trust Deed of 5th July 2012.
Our Trustees bring with them a wealth of skills and experience relevant for the work of the charity, including pharmacy and the pharmaceutical sciences, medicine, education, finance, health services, research, business and policy.
4
## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
We consider each of the Trustees to be independent in character and judgments and that there are no relationships or circumstances which are likely to affect, or could appear to affect, the Trustees' judgment.
Apart from where specified in our trust deed, trustees are appointed for an initial term of up to three years by a resolution of the trustees passed at a special meeting. In selecting individuals for appointment as trustees, the trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity (either the pursuit of its objects or management of the charity).
A Trustee cannot resign unless there are enough trustees remaining in office when the notice of resignation takes effect to form a quorum for meetings (a third of trustees or two trustees, whichever is the greater).
The Board of Trustees sets strategy, decides priorities, establishes funding policies and allocates budgets. The Board of Trustees draws on the advice of the Scientific Advisory Panel in relation to grant making, project management and oversight. Pharmacy Research UK supports high quality pharmacy research across a range of disciplines (social and clinical). Grant making is done through a UK wide competitive process and supported by external expert peer review and overseen by our Scientific Advisory Panel. In the reporting year, Pharmacy Research UK has continued to follow the governance processes established by the AMRC to assure the quality and rigour of our grant review and award processes.
PRUK offers a comprehensive induction programme for all new Trustees, which includes materials relating to our charitable purposes and finances, the powers of the Trustees and information about day-to-day running of Pharmacy Research UK.
## **OBJECTIVES FOR THE REPORTING YEAR**
The global pandemic has undoubtedly had a significant impact on our work, as it has on almost everyone over the past year, but we are fortunate that our systems have been well able to adapt and respond to these new challenges. We did see a slow-down in some of our activity – for example, we extended our own funding call, and our partnership funding calls to give more time for responses, and we granted a number of extensions to existing projects where research could no longer be completed as originally anticipated. We are confident, however, that we have continued to deliver in line with our objectives, even while we have also had to adapt our work to fit with the changing environment created by COVID19. Below we set out some of the specific responses we made to the issues created by the pandemic, and then how we were able to continue to deliver to our set objectives.
## **Response to the pandemic**
As a result of the pandemic in 2020 we made a number of changes to our work, some of which are likely to be longer lasting, some more specific and immediate to the pandemic. These included:
- We operated some additional levels of scrutiny over our finances and investment, given the market turmoil created by the pandemic. We already had in place a series of protocols to respond to market changes, and these were enacted during the pandemic due to the unprecedented falls in stock markets early in 2020. These meant that we ensured that our finance and investment committee were involved at any point where our reserves fell below agreed levels, and that an action plan for monitoring and responding to this was agreed with the committee and put to trustees. We worked closely with our investment managers during this period, and thankfully early losses gradually built back as market confidence improved.
5
## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
- We moved to working from home early in the pandemic and adjusted our systems to ensure that we were able to continue our activity as usual. We were well set up to manage this, as almost all of our systems are cloud-based, but we supported staff to move to working from home, and dramatically increased our use of video-conferencing and remote working tools such as Microsoft Teams. We have managed to deliver a full funding call and several new partnerships, without returning to the office at all from the early part of 2020. We have run our trustee and SAP meetings remotely, conducted all our assessment and ongoing management of our research portfolio remotely, and while this has created some challenges our excellent team have risen to these brilliantly, as have our board and panel members.
- We extended our developmental awards and bursaries funding call to give extra time for researchers to respond, and we also extended our new partnership call with Diabetes UK. We offered extensions to a number of our existing projects, primarily where research could no longer be conducted as planned due to social distancing / lockdown restrictions, but also in some instances where researchers personal circumstances changed due to the pandemic.
## **Delivering our objectives**
We set a number of core objectives for the charity to deliver in 2020 (see below), and while the pandemic has slowed down activity across a few areas, we have still been able to deliver to these objectives throughout the year. This has in large part been thanks to the commitment and resilience of our team, our board and panel members, and of course the researchers that we support.
## - **Building the pharmacy research workforce by supporting the development of research skills among pharmacists**
Despite the issues posed by the pandemic we were able to run our developmental funding call in 2020. This call offered our usual balance of bursaries and developmental awards, as well as our partnership awards with the British Oncology Pharmacy Association (BOPA) and the College of Mental Health Pharmacy (CMHP). We chose to extend the funding call in order to ensure that applicants who might be facing additional work or family pressures due to COVID19 had additional time to complete their applications. In common with many other funders we did see a slight fall in the numbers of applications, even with the extended funding call, but still received some excellent responses. We agreed to fund £45,000 worth of new projects through this call.
## - **Supporting high quality research into the practice of pharmacy and the provision of pharmaceutical care that can develop policy and improvements in practice**
We continue to work with our excellent Scientific Advisory Panel (SAP) and use our research strategy to ensure that we focus on high quality research projects in areas where we can make a positive difference. In 2020 we reviewed and updated some of our processes to ensure that we were delivering the best possible practice for peer review and assessment in our funding calls. This meant tweaking our assessment process to draw out the maximum possible knowledge and insight from our panel, as well as looking at our peer review process, and the mechanisms for reporting and ongoing management for funded research. As a result we are confident that we offer as fair, robust and appropriate a process as possible, and continue to maintain our membership of the Association of Medical Research Charities (AMRC) accordingly. By ensuring that any research we fund meets these key standards, and helping to target our calls through our research strategy, and by ongoing monitoring of the outputs and impact of research, we are positive that we can continue to make a difference.
6
## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
- **Entering partnerships to amplify the value and reach of pharmacy research**
We ran a funding call with our long-standing partners BOPA and CMHP in 2020 as part of our developmental and bursary award round. Alongside this 2020 also saw us run a new partnership call with Diabetes UK, encouraging applications for funding exploring the role of pharmacy within diabetes diagnosis, care and management. As with all our funding awards we will only fund awards that meet the highest research standards, and with partnership awards we can only support the applications that are the top scorers in panel assessments both for PRUK and for our partner organisations. In our partnership with Diabetes UK, for example, this meant that, while we received a number of strong, fundable applications, the pharmacy-related applications were not the very top-scoring applications and so working with our partners we chose not to make an award. Applicants receive extensive feedback and advice, and we hope to run the partnership again, supporting applicants to make even stronger applications.
Additionally we are looking to create even more partnerships in the years ahead, and have already agreed to support joint awards with the National Institute for Health Research (NIHR), the Psoriasis Association, Research Capacity Building Collaboration Wales (RCBC) and Wellbeing of Women. Alongside our own developmental awards this will hopefully offer a suite of awards across different, targeted areas of research.
## - **Using and promoting research to highlight the important role of pharmacy and pharmacists in health provision**
We publish informative final reports for all of our research on our website, providing a unique and growing archive of pharmacy research, but crucially we also support researchers to publish and promote their research wherever possible. This includes through the AMRC’s Open Research platform, as well as in well-established journals. To help further with this process we are also developing an ‘Impact Fund’ designed to offer additional support with the promotion of pharmacy research. This will offer small awards to help researchers achieve additional impact with their research and will be piloted and developed further over the coming years.
We continue to support the Health Services Research and Pharmacy Practice (HSRPP) conference each year, providing a forum for pharmacy researchers at all stages of their research journey to come together and share their work and build connections. As well as being an important opportunity for early-career researchers to showcase their work, this is a well-established event in the pharmacy research calendar. We work with different universities and a steering committee to oversee the conference, and despite the huge challenges of running an event during a global pandemic, we were able to support Cardiff University to run a successful online event in 2020.
7
## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **PLANS FOR THE FUTURE**
While throughout 2021 we will still be operating in the shadow of the pandemic, we have some clear goals and objectives for the year ahead, and expect to be able to deliver strongly again.
- **Building the pharmacy research workforce by supporting the development of research skills among pharmacists:**
- Delivering our developmental awards and bursaries funding call, including several partnership awards;
- Develop and pilot a new small ‘impact awards’ fund to offer low-level grants that might fall outside of our usual funding calls, but can help increase the impact of research.
## - **Supporting high quality research into the practice of pharmacy and the provision of pharmaceutical care that can develop policy and improvements in practice:**
- Using our research strategy to focus our research into key policy areas to deliver the maximum possible impact
- Working with our Scientific Advisory Panel (SAP) and trustee board to ensure that all of our research is delivered in line with best practice, including by maintaining our membership of the Association of Medical Research Charities (AMRC)
- **Entering partnerships to amplify the value and reach of pharmacy research:**
- Run joint funding rounds with our established partner organisations the British Oncology Pharmacy Association (BOPA) and the College of Mental Health Pharmacy (CMHP)
- Run new partnership calls with the National Institute for Health Research (NIHR), the Research Capacity Building Collaboration Wales (RCBC) and the Psoriasis Association, continuing to extend the reach of our work and draw in additional resources to pharmacy research.
## - **Using and promoting research to highlight the important role of pharmacy and pharmacists in health provision:**
- Support our grantees to achieve publications and promote their research, including through journals, through the AMRC’s Open Research platform, and through our own website and media channels;
- Support the delivery of the HSRPP conference hosted by the University of Reading;
- `o` Work with others in the sector to highlight the crucial role of pharmacists in health provision, and the crucial role of research within pharmacy, including through events, social and other media.
## **FINANCIAL REVIEW**
Full details of income and expenditure for the year are shown in the Statement of Financial Activities set out on page 14.
## **PUBLIC BENEFIT**
The trustees have referred to the Charity Commission’s guidance on public benefit when reviewing their aims and objectives and planning their future activities.
8
## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **RESERVES POLICY**
Total funds at the year-end were £3,366,410 (2019 £3,468,355) including endowment and restricted funds as set out on page 15.
Free reserves or unrestricted funds amounted to £2,897,206 (2019 £3,027,903). The unrestricted funds are mainly represented by a share of the investment portfolio which is held for the longer term to provide income to the charity out of which it pays for research and other project work.
## **INVESTMENT POLICY**
The charity has power to invest in such assets as it sees fit. The Trustees have appointed Investec as investment managers to manage the charity’s investment assets, with a brief to adopt a medium risk investment strategy whilst providing revenue for the charity’s current needs while enhancing income and capital growth over the long term.
The trustees have adopted an ethical investment and fundraising policy and in particular this makes clear that the trustees do not believe it would be appropriate for Pharmacy Research UK to receive income from the tobacco industry.
## **GOING CONCERN**
The Board of Trustees is of the opinion that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties regarding the Trust’s ability to do so.
## **KEY MANAGEMENT PERSONNEL**
The Trustees consider the board of trustees and the senior management team to comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day to day basis.
Details of trustees’ expenses are disclosed in note 5 to the financial statements.
## **RISK MANAGEMENT**
The Trustees have assessed the major risks to which the charity is exposed, in particular those risks related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate exposure to the major risks, although it is recognized that systems can only provide reasonable, and not absolute, assurance. These systems are reviewed at least once every year. The Trustees’ have identified the following risks:
|**Risk identified**|**Action taken to mitigate the risk**|
|---|---|
|Investments will drop in value|Trustees have appointed investment advisors to|
||manage the investments|
|Donations made will not be spent how the|Trustees actively review donations and ask for|
|Trustees would like|updates and reports|
9
## **PHARMACY RESEARCH UK**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **TRUSTEES’ RESPONSIBILITIES STATEMENT**
The Trustees 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). The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these statements the Trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees and signed on behalf of the Trustees by:
Dated: 21 October 2021
10
## **Independent auditor’s report to the trustees of Pharmacy Research UK**
## **Opinion**
We have audited the financial statements of Pharmacy Research UK (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet 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 charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities Act 2011.
## **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 charity’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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
11
## **Independent auditor’s report to the trustees of Pharmacy Research UK (continued)**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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:
- The Charity is required to comply with charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance.
- We gained an understanding of how the charity complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures and controls.
- The audit team, which is experienced in the audit of charities, considered the charity’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override.
- Our approach was to check that all restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions.
12
## **Independent auditor’s report to the trustees of Pharmacy Research UK (continued)**
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 charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report or for the opinions we have formed.
28 October 2021
Knox Cropper LLP Statutory Auditor 65 Leadenhall Street London EC3A 2AD
Knox Cropper is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
13
## **PHARMACY RESEARCH UK**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**Income from:**
Investments
2
Charitable Activities
Other income
**Total Income**
**Expenditure on:**
Raising funds
3
Charitable activities
3
**Total Expenditure**
**Net (Expenditure) before**
**gains on investments**
Net (Losses)/Gains on
Investments
**Net income/(expenditure)**
Transfers between funds
**Net Movement in Funds**
**Total Funds Brought**
**Forward**
**Total Funds Carried Forward**|**Unrestricted**
**Restricted**
**Endowment**
**Total**
**Total**
**Funds**
**Funds**
**Funds**
**2020**
**2019**
£
£
£
£
£
79,114
7,817
-
86,931
114,526
-
23,258
-
23,258
90,315
-
-
-
-
-|
|---|---|
||79,114
31,075
-
110,189
204,841|
||19,733
1,952
-
21,685
23,970
125,891
16,001
-
141,892
281,421|
||145,624
17,953
-
163,577
305,391|
||(66,510)
13,122
-
(53,388)
(100,550)
(44,187)
(971)
(3,399)
(48,557)
345,313|
||(110,697)
12,151
(3,399)
(101,945)
244,763
(20,000)
20,000
-
-
-|
||(130,697)
32,151
(3,399)
(101,945)
244,763
3,027,903
189,082
251,370
3,468,355
3,223,592|
||2,897,206
221,233
247,971
3,366,410
3,468,355|
14
## **PHARMACY RESEARCH UK**
## **BALANCE SHEET AS AT 31 DECEMBER 2020**
|**Note**
**FIXED ASSETS**
Investments
7
**CURRENT ASSETS**
Debtors
8
Cash at Bank
**CURRENT LIABILITIES**
Creditors: amounts falling due within
one year
9
**NET CURRENT ASSETS**
**/(LIABILITIES)**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
Creditors : amounts falling due after
more than one year
10
**NET ASSETS**
**REPRESENTED BY**
Endowment funds
Restricted funds
Unrestricted funds
**TOTAL FUNDS**
11|**2020**
£
£
3,455,324
5,220
45,331
50,551
(121,665)
(71,114)
3,384,210
(17,800)
3,366,410
247,971
221,233
2,897,206
3,366,410|**2020**
£
£
3,455,324
5,220
45,331
50,551
(121,665)
(71,114)
3,384,210
(17,800)
3,366,410
247,971
221,233
2,897,206
3,366,410|**2019**
£
£
3,573,662
5,913
75,984
81,897
(151,086)
(69,189)
3,504,473
(36,118)
3,468,355
251,370
189,082
3,027,903
3,468,355|**2019**
£
£
3,573,662
5,913
75,984
81,897
(151,086)
(69,189)
3,504,473
(36,118)
3,468,355
251,370
189,082
3,027,903
3,468,355|
|---|---|---|---|---|
||50,551
(121,665)||81,897
(151,086)||
||||||
|||3,384,210
(17,800)||3,504,473
(36,118)|
|||3,366,410||3,468,355|
|||247,971
221,233
2,897,206||251,370
189,082
3,027,903|
|||3,366,410||3,468,355|
Approved by the Trustees and signed on behalf of the Trustees by:
Dated: 21 October 2021
15
## **PHARMACY RESEARCH UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. Accounting Policies**
## **1.1 Basis of preparation of Financial statements**
The financial statements are prepared under the historical cost convention with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102 second edition – effective 1 January 2019)) and applicable UK accounting standards.
Pharmacy Research UK meets the definition of a public benefit entity under FRS 102.
## **1.2 Going concern**
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.
Taking into account the impact of the Covid-19 pandemic, the trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.
## **1.3 Incoming recognition**
All incoming resources are included in the Statement of Financial Activities when the charity has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
Costs borne by the Royal Pharmaceutical Society on behalf of Pharmacy Research UK are reflected as income, classified as donations and as expenditure in the appropriate categories where the gift in kind to the charity can be appropriately valued.
Grants have been accounted for when receivable by the charity.
## **1.4 Expenditure recognition**
Grants payable to further charitable objectives are outflows of resources in respect of grants for training and research.
Research costs relate to the charity’s costs associated with pharmacy research plus an allocation of support costs.
Governance costs are costs associated with constitutional and statutory requirements, eg the costs of trustee meetings and in connection with the statutory accounts. These and other support costs are allocated across the charitable activities
## **1.5 Investments**
Investments are a form of basic financial instrument and are shown in the financial statements at market value. Movements in the market values of investments are shown as investment gains and losses in the Statement of Financial Activities.
16
## **PHARMACY RESEARCH UK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.6 Funds**
Unrestricted funds represent unrestricted income which is expendable at the discretion of the Trustees in furtherance of the objects of the Charity.
Restricted funds are subject to specific conditions imposed by the donor or by the specific terms of a trust deed or other legal measures.
Expendable endowment funds represent assets which have the restriction that the revenue generated by holding the asset is available to spend but the capital itself cannot be spent. Income generated from endowment funds is applied to restricted funds as appropriate.
## **1.7 Estimates and judgements**
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. Although these estimates are based on the trustee’s best knowledge of the amount, events or actions, actual results may ultimately differ from these estimates. The Trustees do not consider there to be any material estimates and judgements.
## **1.8 Financial instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including debtors and creditors, are initially recognized at transaction value and subsequently measured at their settlement value.
## **2. INVESTMENT INCOME**
|Income from
listed
investments
Interest
receivable|**Unrestricted**
**Funds**
£
79,040
74
79,114|**Restricted**
**Funds**
£
7,817
-
7,817|**Endowment**
**Funds**
£
-
-
-|**Total**
**2020**
£
86,857
74
86,931|**Total**
**2019**
£
114,021
505|
|---|---|---|---|---|---|
||||||114,526|
17
## **PHARMACY RESEARCH UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **3. EXPENDITURE**
CURRENT YEAR
|**Direct costs**
£
**Raising funds**
Investment
managers
21,685
**Charitable**
**activities**
**Research**
**Funding**
Staff costs
61,980
Other costs
8,061
70,041
91,726
RIOR YEAR
**Direct costs**
£
**Raising funds**
Investment
managers
23,970
**Charitable**
**activities**
**Research**
**Funding**
Staff costs
60,072
Other costs
8,201
68,273
92,243
**UPPORT COSTS**
Staff costs
Governance (note 6)
Other support costs|**Grants**
£
-
-
16,001
16,001
16,001
**Grants**
£
-
-
153,613
153,613
153,613|**Support**
**Costs**
£
-||**Total**
**2020**
£
21,685||**Total**
**2019**
£
23,970|
|---|---|---|---|---|---|---|
|||47,555
8,295||109,535
32,357||107,658
173,763|
|||55,850||141,892||281,421|
|||55,850||163,577||305,391|
|||**Support**
**Costs**
£
-||**Total**
**2019**
£
23,970||**Total**
**2019**
£
47,586
10,820
1,129
59,535|
|||47,586
11,589||107,658
173,763|||
|||59,535||281,421|||
|||59,535||305,391|||
|||||**Total**
**2020**
£
47,555
8,295
-
55,850|||
||||||||
PRIOR YEAR
## **4. SUPPORT COSTS**
18
## **PHARMACY RESEARCH UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **5. STAFF COSTS**
|**AFF COSTS**|||
|---|---|---|
|The staff costs are analysed as follows:
Wages and salaries
Social security
Pension costs|**Total**
**2020**
£
94,307
9,724
5,504
109,535|**Total**
**2019**
£
94,843
9,544
3,271|
|||107,658|
No employee earned total emoluments in excess of £60,000 per annum during the year under review.
|Number of employees|**2020**
Number
3|**2019**
Number
3|
|---|---|---|
The charity’s key management personnel comprise the chief executive and the trustees who were unpaid. The costs of key management personnel for the year was £48,894 (2019: £45,821).
The Trustees did not receive any remuneration during the year, however 2 trustees were reimbursed expenses amounting to £185 (2019: 5 Trustees were reimbursed £1,708) covering the costs of travel during the year.
## **6. GOVERNANCE COSTS**
|Trustee expenses
Legal & Professional fees
Bank charges
Auditor’s remuneration
Current year
Other services|**Total**
**2020**
£
185
-
10
7,020
1,080
8,295|**Total**
**2019**
£
1,708
892
120
7,020
1,080|
|---|---|---|
|||10,820|
## **7. INVESTMENTS**
|**Listed investments**
Market value at 1 January 2020
Acquisitions at cost
Proceeds from disposals
Investment gains and losses
Market value at 31 December 2020
Cash held by investment managers for
reinvestment|**Total**
**2020**
£
3,546,237
347,899
(496,397)
(48,557)
3,349,182
106,142
3,455,324|**Total**
**2019**
£
3,134,355
348,183
(281,614)
345,313|
|---|---|---|
|||3,546,237|
|||27,426|
|||3,573,663|
Investments mainly comprise listed investments on international stock exchanges at market value within an investment portfolio managed by Investec Wealth & Investment.
19
## **PHARMACY RESEARCH UK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **8. DEBTORS**
|Prepayments and accrued income
**9.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Accruals and deferred income
Grant commitments
**10.**
**GRANT COMMITMENTS**
Grants falling due in less than one year
Grants falling due in more than one year
**11. STATEMENT OF FUNDS**
**Balance at**
**1 January**
**Income**
**Expenditure**
**2020**
£
£
£
**Endowment**
Galen Trust
251,370
-
-
**Restricted funds**
Leverhulme Bursary
-
23,258
(16,001)
Galen Trust
155,199
7,817
(2,923)
Leverhulme Award
24,256
-
-
HSRPP
27,315
-
-
BOPA
(7,497)
-
-
CMHP
(10,191)
-
-
189,082
31,075
(18,924)
General fund
3,027,903
79,114
(145,624)
3,468,355
110,189
(164,548)||**Total**
**2020**
£
5,220
**Total**
**2020**
£
20,144
101,521
121,665
**Total**
**2020**
£
101,521
17,800
119,321
**Investment**
**Gains/(losses)**
**and transfers**
£
(3,399)
-
-
-
-
10,000
10,000
20,000
(64,187)
(47,586)||**Total**
**2019**
£
5,913|
|---|---|---|---|---|
|||||**Total**
**2019**
£
20,798
130,288|
|||||151,086|
|||||**Total**
**2019**
£
130,288
36,118|
|||||166,406|
|||||**Balance at**
**31 December**
**2020**
£
247,971
7,257
160,093
24,256
27,315
2,503
(191)
221,233
2,897,206
3,366,410|
||||||
||||||
||||||
20
## **PHARMACY RESEARCH UK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **11. STATEMENT OF FUNDS (continued)**
## **Leverhulme Bursary**
Bursaries are made annually to develop individual community pharmacists’ skills and careers in research.
## **Galen Trust**
Awards are made annually to individual pharmacist researchers. This is funded by the Galen Endowment through the Galen Trust.
## **Leverhulme Award**
Awards are made annually for research that is of benefit to community pharmacy.
## **Health Services Research & Pharmacy Practice (HSRPP)**
An annual conference to support novice pharmacist researchers and showcase pharmacy research.
## **BOPA**
A collaborative project with the British Oncology Pharmacy Association (BOPA) – A registered charity promoting excellence in the pharmaceutical care of patients with cancer through education, communication and research
## **CMHP**
A partnership with the College of Mental Health Pharmacy, a charity which aims to benefit individual care through advancing education and research in the practice of mental health pharmacy.
Transfers represent the charity’s contributions towards the funding partnerships with BOPA and CMHP.
|Prior year movements in funds
**Balance at**
**1 January**
**2019**
£
**Endowment**
Galen Trust
215,921
**Restricted funds**
Leverhulme Bursary
(25,377)
Galen Trust
179,144
Leverhulme Award
71,529
HSRPP
28,087
BOPA
(5,000)
CMHP
-
248,383
General fund
2,759,288
3,223,592|**Income**
£
-
47,192
10,262
25,733
248
7,497
9,645
100,577
104,264
204,841|**Expenditure**
£
-
(69,088)
(27,604)
(25,733)
(1,020)
(9,994)
(19,836)
(153,275)
(152,116)
(305,391)|**Investment**
**Gains/(losses)**
**and transfers**
£
35,449
47,273
(6,603)
(47,273)
-
-
-
(6,603)
316,467
345,313|**Balance at**
**31 December**
**2019**
£
251,370|
|---|---|---|---|---|
|||||-
155,199
24,256
27,315
(7,497)
(10,191)|
|||||189,082
3,027,903|
|||||3,468,355|
21
## **PHARMACY RESEARCH UK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **12. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Current year
|Investments
Net current
assets/(liabilities)
Long term
liabilities
Prior year
Investments
Net current
assets/(liabilities)
Long term
liabilities|**Unrestricted**
**Funds**
£
3,189,845
(292,639)
-
2,897,206
**Unrestricted**
**Funds**
£
3,252,033
(224,130)
-
3,027,903|**Restricted**
**Funds**
£
58,995
180,038
(17,800)
221,233
**Restricted**
**Funds**
£
71,473
153,727
(36,118)
189,082|**Endowment**
**Funds**
£
206,484
41,487
-
247,971
**Endowment**
**Funds**
£
250,156
1,214
-
251,370|**Total**
**2020**
£
3,455,324
(71,114)
(17,800)|
|---|---|---|---|---|
|||||3,366,410|
|||||**Total**
**2019**
£
3,573,662
(69,189)
(36,118)|
|||||3,468,355|
## **13. TRANSACTIONS WITH RELATED PARTIES**
Pharmacy Research UK is hosted by the Royal Pharmaceutical Society which during the year provided office accommodation without charge to Pharmacy Research UK. The charity is unable to put a reliable value on the office accommodation provided for free and so this is not reflected in Pharmacy Research UK’s financial statements.
There were no other related party transactions in the year (2019: none).
22
**PHARMACY RESEARCH UK**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**Income from:**
Investments
Charitable Activities
Other income
**Total Income**
**Expenditure on:**
Raising funds
Charitable activities
**Total Expenditure**
**Net (Expenditure) before**
**gains on investments**
Net Losses on Investments
**Net income/(expenditure)**
Transfers between funds
**Net Movement in Funds**
**Total Funds Brought**
**Forward**
**Total Funds Carried Forward**|**Unrestricted**
**Restricted**
**Endowment**
**Total**
**Funds**
**Funds**
**Funds**
**2019**
£
£
£
£
104,264
10,262
-
114,526
-
90,315
-
90,315
-
-
-
-|
|---|---|
||104,264
100,577
-
204,841|
||21,813
2,157
-
23,970
130,303
151,118
-
281,421|
||152,116
153,275
-
305,391|
||(47,852)
(52,698)
-
(100,550)
314,235
6,906
24,172
345,313|
||266,383
(45,792)
24,172
244,763
2,232
(13,509)
11,277
-|
||268,615
(59,301)
35,449
244,763|
||2,759,288
248,383
215,921
3,223,592|
||3,027,903
189,082
251,370
3,468,355|
23