2023-07-31-accounts

The Trustees Child Health Research CIO Finance Department UCL Institute of Child Health 30 Guilford Street London WC1N 1EH

9 May 2024

Our ref CHR001/CB/RU

Dear Trustees

Post-Audit Report – Year ended 31 July 2023

The purpose of this letter is to bring to the attention of the Board as those charged with governance and management the findings from our recent audit of the financial statements of Child Health Research CIO, for the year ended 31 July 2023, for your consideration and to enable you to address matters arising where appropriate. Throughout this letter, “you” and “your” refer to the Board. “We” and “our” refer to Buzzacott LLP. We appreciate that you will already be aware of some of the matters contained in this letter. However, in accordance with International Standards on Auditing (UK) (ISAs) we are communicating them to you formally.

1. Purpose of the audit

As auditor, we are responsible for performing the audit in accordance with ISAs (UK), which is directed towards forming and expressing an opinion on the financial statements for the year ended 31 July 2023 that have been prepared by management with the oversight of those charged with governance, and other matters required by legislation.

Our work has been carried out in accordance with our audit planning letter dated 20 October 2023.

Our audit work included consideration of the internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of your system of internal control.

The matters being reported are limited to those that were identified during the audit and that we conclude are of sufficient importance to merit being reported to those charged with governance.

Buzzacott LLP is a limited liability partnership and is registered in England and Wales with registered number OC329687 A list of LLP members is available at our registered office address as above. Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales.

2. Audit progress

The audit progressed within the agreed timetable however, due to the change in Finance Manager during the year, some delays in receiving supporting documentation for multi-year grants awarded in previous years were noted.

There is one area of the accounts that we would like to bring to your attention:

• Review of un-paid grants. During our audit work we noted that there were grants within creditors totalling £316,380 (breakdown below) where there have been no movements for a number of years. These were reviewed by the Finance Manager and it was established that £169,770 of the total balance relates to valid creditor balances, £55,620 relates to amounts already paid and therefore will be written back and £90,990 relates to balances that are yet to be investigated. An adjustment to write back £55,620 has been set out in Appendix 1.

Project Number/Reference	Carried forward	Valid balance	To be written back	To be reviewed
2x Lecturerships - PPP and GGM FOS™~—COOCC“‘(SLNNNC:CNUNNN’N’“‘“‘é‘X/!stststé<~iStttS*	55,402 FOS™~—COOCC“‘(SLNNNC:CNUNNN’N’“‘“‘é‘X/!stststé<~iStttS*	FOS™~—COOCC“‘(SLNNNC:CNUNNN’N’“‘“‘é‘X/!stststé<~iStttS*	FOS™~—COOCC“‘(SLNNNC:CNUNNN’N’“‘“‘é‘X/!stststé<~iStttS*	55,402 FOS™~—COOCC“‘(SLNNNC:CNUNNN’N’“‘“‘é‘X/!stststé<~iStttS*
Laboratory refurbishment ~~a~~	33,214		33,214
Postgraduate Support for Tuition Fees ~~On~~	12,000 ~~On~~	~~On~~	~~On~~	12,000 ~~On~~
2015-16/STU 5 (535685) ~~a~~	14,257		14,257
Persis Amrolia (546618) ~~a~~	104,015	95,866	8,149
Bill Marshall Memorial Fund - Jimba Jatsho ~~a~~ ~~a~~	5,500 ~~SO~~ ~~ee~~	~~SO~~ ~~ee~~	~~ee~~	5,500
Bill Marshall Memorial Fund - Nickson Boon Khean Tai ~~ee~~ ~~a~~	5,500 ~~ee~~ ~~ee~~	~~ee~~ ~~ee~~	~~ee~~ ~~ee~~	5,500 ~~ee~~
Strategic initiatives - Paula Alexandre ~~a~~	14,099 ~~ee ~~ ~~Oe~~	14,099 ~~ee ~~ ~~Oe~~	~~ee~~
Strategic initiatives - Jonathan Clayden ~~a~~	3,000	3,000
Strategic initiatives - Jeanne Wolstencroft ~~a~~	29,620	29,620
Strategic initiatives - Gabriel Galea ~~a~~	27,185 ~~Oe~~	27,185 ~~Oe~~
Sum of individual balances < £2,000 ~~a~~	12,587 ~~Oe~~	~~Oe~~		12,587
	316,380 ~~es~~	169,770 ~~es~~	55,620 ~~es~~	90,990 ~~es~~

We would like to take this opportunity to thank all those with whom we dealt during the audit for their assistance and co-operation, in particular Mr Jon Burt.

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The Trustees Child Health Research CIO

9 May 2024

Buzzacott

3. Annual report and financial statements’ format

The financial statements have been prepared, as last year, in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP FRS 102).

There are no significant changes to the format of the financial statements this year.

4. Auditor’s report

We do not propose any modifications to our audit opinion and, therefore, we intend to issue an unqualified opinion in our auditor’s report.

5. Adjustments made during the audit

A list of the adjustments which have been made to the figures presented to us for audit is attached as Appendix A. These have all been discussed and agreed with Jon Burt.

We will obtain written representations from you, as trustees, that you concur with these adjustments.

6. Unadjusted misstatements

A list of misstatements identified during our audit which remain unadjusted is attached in Appendix A. The list does not include items which are considered to be clearly trivial. We will obtain written representations from you, as trustees, that these are not to be adjusted, due to their lack of significance to the overall result portrayed by the financial statements.

7. Accounting policies, accounting estimates and disclosures

The accounting policies used in preparing the financial statements are unchanged from the previous year.

Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the charity. We found the disclosed accounting policies, significant accounting estimates and the overall disclosure and presentation to be appropriate for the charity.

8. Letter of representation

We enclose the draft letter of representation which we will request management and the trustees to approve and sign at the same time as the financial statements. This includes acknowledgement of the trustees’ responsibility for the design and implementation of internal controls to prevent and detect fraud.

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The Trustees Child Health Research CIO

9 May 2024

Buzzacott

As set out in our planning letter, we understand the following applied to the year ended 31 July 2023:

• Trustees exercised effective oversight of management's processes for identifying and responding to the risks of fraud in the charity and a system of internal controls was in place to mitigate these fraud risks.

• Trustees were not aware of any instances of actual, suspected, or alleged fraud, including misconduct or unethical behaviour related to financial reporting or misappropriation of assets.

• There have not been any out of the ordinary transactions.

• If the above information is no longer correct, please contact Catherine Biscoe or Ruby Umfreville.

9. Accounting and internal control systems

Our work during the audit included an examination of some of the charity’s transactions, procedures and controls with a view to expressing an opinion on the financial statements for the year ended 31 July 2023.

This work was not directed primarily towards discovering weaknesses, other than those that would affect our audit opinion, or towards the detection of fraud. We have included in this report only matters that have come to our attention as a result of our normal audit procedures and consequently our comments should not be regarded as a comprehensive record of all weaknesses that may exist or of all improvements that might be made.

We found no significant deficiencies in the accounting and internal control systems during our audit. However, we have made some recommendations for improvements, which are detailed in the section below.

10. Observations and recommendations on the accounting system and financial reporting function

The table below provides a summary of any observations made concerning weaknesses in the charity’s accounting and internal control systems.

Observations included in the “A” grade (red) banding indicate that, in our opinion, there is a risk of significant financial impact on the charity that must be addressed immediately.

“B” grade (orange) banding recommendations relate to those issues where there is a risk of moderate financial

impact on the charity such as a control failure or the absence of a control in an area of moderate risk. These items should be addressed shortly.

Observations included in the “C” grade (yellow) banding indicates that the matter, although important, does not warrant urgent attention and should be addressed within an agreed timeframe.

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The Trustees Child Health Research CIO

9 May 2024

Buzzacott

Priority	No of points	Relating to
A	2	Preparation of management accounts
		Declaration of interest forms
B	1	Retention of supporting documentation for grand awards

Further details in respect of the observations and recommendations as a result of our audit work are given in Appendix B.

The matters have all been discussed with Mr Jon Burt who has appropriate management authority.

11. Materiality

Materiality threshold £283,000

Reporting threshold: £14,100

Materiality refers to the relative significance of a particular matter in the context of the financial statements as a whole. An item would be considered material if its omission or its erroneous inclusion would reasonably influence the decisions of those using the financial statements.

We are required to report corrected audit misstatements, and uncorrected audit misstatements in excess of our reporting threshold which is set at 5% of overall materiality.

Our overall materiality threshold is based on 1.5% of total gross assets. A lower level of materiality based on 1.5% of expenditure has been selected for specific areas of the financial statements, including income, expenditure, current assets and liabilities. A threshold of £1,000 has been selected for disclosure items such as transactions and other financial arrangements with trustees and their connected persons.

When considering the impact of misstatements discovered during the course of our audit and considering the implications for our report of such misstatements, we will refer to this level amongst other things. Whether a misstatement is ‘material’ or not is ultimately down to the auditor’s judgement.

12. Professional ethics

In accordance with our profession’s ethical guidance and further to our letter to you dated 20 October 2023 confirming audit planning arrangements there are no further matters to bring to your attention in relation to Integrity, Objectivity and Independence.

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The Trustees Child Health Research CIO

9 May 2024

Buzzacott

13. Current developments

We have attached a summary of other recent and ongoing developments as Appendix C to this report. The matters included in this appendix may not all be directly relevant to the charity. However, we are aware that a lot of trustees are involved with more than one organisation, therefore we have included items for general information.

14. Updates, insights and seminars

As part of our commitment to the charity sector, during the year the Charity Team issues occasional Updates and Insights on matters of relevance to the sector and also holds a number of seminars free of charge throughout the year. We would be delighted to welcome representatives of your charity to our seminars or to add trustees and management to our email distribution lists if this would be welcome. News and Insights are also available on our website at News and insights (buzzacott.co.uk), where there is also an opportunity to sign up to our mailing list should you wish.

Conclusion

This letter has been prepared for your private use only. It has been prepared on the understanding that it will not be shared with any third party without our prior written consent and we can therefore assume no responsibility to any other party. Any recommendations contained herein are based on the information you have provided and UK law and judicial and administrative interpretation as of the date of this letter. Should the facts provided to us be incorrect or incomplete, or should they change, our recommendations may be inappropriate. Buzzacott LLP accepts no liability for losses arising from changes in UK law, interpretation or practice or in public policy that are first published after the date of this letter.

If you require any further information or assistance, we shall be very pleased to help you.

We would be pleased to receive your comments and reaction to this letter.

Yours faithfully

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The Trustees Child Health Research CIO

9 May 2024

Appendix A: Adjusted and unadjusted misstatements

Adjusted misstatements

		Statement of Financial Activities	Statement of Financial Activities	Balance Sheet	Balance Sheet
		Debit £	Credit £	Debit £	Credit £
1	DR Creditors due in less than one year CR Grant expenditure Being the write back of historic creditor balances		55,620	55,620
2	DR Grant expenditure CR Grants payable > 1 year Being an under accrual of the studentship grants awarded in 22/23	24,641			24,641

The above adjustments had the effect of decreasing the charity’s deficit by £30,979.

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The Trustees Child Health Research CIO

9 May 2024

Appendix B: Audit observations and recommendations

	Observation	Implication	Recommendation
A	Preparation of management accounts It was highlighted at the planning meeting that management accounts have not been prepared since the departure of the former UCL Finance Manager. A schedule reconciling grants falling due within one year and in excess of one year has not been maintained and therefore the CIO has relied on financial information provided by UCL. As a result, the Trustees have been unable to accurately monitor the CIO’s financial position and, more importantly, its liabilities.	There is a risk that the Trustees are unable to monitor the level of cash resources held by the CIO to meet its obligations from both restricted and unrestricted funds. In addition, there is a risk that the Trustees make decisions on the value and timing of future grant awards based on inaccurate financial information.	Werecommendthat management accounts are prepared on a regular basis, at least quarterly, and are presented to the Trustees for review and to assist them with future decision making. We understand that, following the audit fieldwork, the Trustees have made the decision to seek management accounts preparation assistance from an external contractor. A small number of contractors/firms have been approached by the Trustees with the proposal of preparing management accounts for the CIO for a period of at least one year.

The Trustees Child Health Research CIO

Page 8 of 15

9 May 2024

Buzzacott

	Observation	Implication	Recommendation
A	Declarations of interest forms During our testing of related party transactions, we were only able to obtain declaration of interest forms for 4 Trustees. We noted during our work on related party transactions that the charity does not require its trustees and key management personnel to document their close family members (defined in the Charities SORP FRS 102 as: children or spouse; the children, stepchildren or illegitimate children of spouse or domestic partner; dependants; or domestic partner who lives with them as husband or wife or in an equivalent same- sex relationship) and their pecuniary interests for the purposes of identifying transactions with related parties.	There is a risk that transactions with related parties are not identified by management or the Board of Trustees and therefore not disclosed within the financial statements. Without such a procedure in place, there is a risk, however slight, that the charity may unknowingly engage in transactions with close family members of trustees or management, organisations controlled by these individuals. It is important that such transactions are recognised and disclosed because: • related parties may enter into transactions that unrelated parties would not; • transactions between related parties may not be made at the same amounts or on the same terms as those between unrelated parties, i.e. they may not represent the best value for money for the charity; and • the existence of the relationship may be sufficient to affect the transactions of the charity with other parties. Furthermore, failure to disclose transactions with the individuals noted above may represent a material omission of required disclosure in the charity’s financial statements, since transactions with connected parties are generally considered to be material by nature.	Werecommendthat all trustees complete declarations of interest on an annual basis and that these also include details of close family members. Werecommendthat the charity expands its declaration of interests forms to include the close family members of trustees and management, as well as any business ventures controlled by close family members.

The Trustees Child Health Research CIO

Page 9 of 15

9 May 2024

Buzzacott

	Observation	Implication	Recommendation
B	Retention of supporting documentation for grant awards During our testing of grants payable, it was noted that award letters for grants approved in previous years could not be obtained. Therefore, we were unable to verify the total grant award for a sample of 2 balances.	There is a risk that the total grant award letters used to calculate the grant payable at year end is not accurate.	werecommendthat grant award letters be retained and filed digitally in an accessible location.

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The Trustees Child Health Research CIO

Appendix C

Child Health Research CIO Post-Audit Report

For the year ended 31 July 2023

Current developments

Revised Auditing Standard

Trustees’ Annual Report and Accounts

Changes to UK GAAP

In March 2024, the Financial Reporting Council published amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland .

The amendments encompass a number of changes including:

• a new model of revenue recognition designed to align UK GAAP with IFRS 15 Revenue from Contracts with Customers ;

• a new model of lease accounting which brings assets under operating leases on to the balance sheet, designed to align UK GAAP with IFRS 16 Leases ; and

• various other incremental improvements and clarifications.

The amendments will be effective for accounting periods beginning on or after 1 January 2026 and can be read at: https://media.frc.org.uk/documents/Amendments_to_FRS_102_and_other_FRSs.pdf

Development of new Charity Statement of Recommended Practice (SORP)

The new Charities Statement of Recommended Practice (SORP) had been expected to be published in August 2024 but a revised timeline for release is being considered. An update on this will be issued in due course.

Background on the 15 topics for change that have been considered by the SORP Committee are available at: https://charitysorp.org/engage-briefings-to-inform-the-engagement-process-in-developing-the-next-sorp

Charities Act 2022

The phased implementation of the Charities Act 2022 is now complete with all changes now being applied. The key changes relate to how trusts and unincorporated associations make changes to governing documents, new rules around selling, leasing or disposing of land and new guidelines on how gifts to charities that are merging are treated.

Further information can be found at: https://www.gov.uk/guidance/charities-act-2022-guidance-for-charities

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The Trustees Child Health Research CIO

9 May 2024

Sustainability and reporting

Whilst many companies and organisations are including sustainability and climate change-related information in their annual reports, only the largest private and listed companies are required to provide such information. This disclosed information is not yet subject to any independent ‘checking’ which has resulted in the ‘greenwashing’ claims about some unverified information contained in annual reports.

June 2023 saw the issue of the first two international sustainability reporting standards aimed at improving trust and confidence in company disclosures about sustainability and climate change. The two IFRS Sustainability Disclosure Standards are internationally effective from 1 January 2024 although they have not yet been adopted by UK standard setters. However, it is likely that compliance will become mandatory in the near future. To begin with, the obligation may only be for large companies but, the ‘trickle down’ process is likely to require many organisations to ensure that they can provide adequate information to others in their supply chain who have the reporting obligation. As is usually the way, the reporting obligation will ultimately be extended to smaller and not-for-profit entities.

In anticipation of the above, it is advisable to start discussions around sustainability reporting and data early and more information can be found at: https://www.ifrs.org/issued-standards/ifrs-sustainability-standardsnavigator/.

Policy and Governance

Charity Commission 2024-2029 Strategy

The Charity Commission has published its new strategy with five key priorities:

• To be fair and proportionate in its work and clear about its role;

• To support charities to get it right but take robust action where they see wrongdoing and harm;

• To speak with authority and credibility, free from the influence of others;

• To embrace technological innovation and strengthen how its data is used; and

• To be the expert Commission - where its people are empowered and enabled to deliver excellence in regulation.

The regulator is in the process of identifying a set of strategic impact measures which will be published in mid2024. The Commission aims to report against those measures for the first time in the Annual Report for 2024-25, which will be published in July 2025.

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The Trustees Child Health Research CIO

9 May 2024

The full strategy can be read at: https://www.gov.uk/government/publications/charity-commission-strategy2024-2029/charity-commission-strategy-2024-2029

Charity Commission guidance on cost of living pressures

The Charity Commission has published guidance on managing financial difficulties as a result of the cost of living crisis covering key topics regarding trustee duty and decision-making, practical tips on what to do in situations where charities are in financial difficulty, what to do if the charity cannot continue to operate and a reminder on reporting serious incidents.

The detailed guidance can be seen at: https://www.gov.uk/guidance/manage-financial-difficulties-in-your-charityarising-from-cost-of-living-pressures

Charity Fraud Report 2023

The Fraud Advisory Panel issued its 2023 Charity Fraud Report in January 2024 following a survey of 121 charities, of which 62% generated income of over £10m, within the UK. The below key findings were noted:

• 36% of charities have experienced more instances of fraud than in the previous year;

• 50% of detected frauds were perpetrated internally (by staff, trustees or volunteers);

• 67% of charities agree that the cost-of living crisis has increased fraud risk; and

• 92% of charities who suffered a fraud experienced financial losses due to fraud (compared to 69% in 2022), with there being a shift to higher value frauds (over £10,000) taking place.

The report identifies that the most common frauds relate to misappropriation of cash or other assets, expenses, procurement, false beneficiaries or cyber matters with two-thirds of charities reporting that frauds were detected as a result of internal controls in place indicating the importance of designing a control environment with fraud risk at the centre.

Fraud prevention strategies include ensuring robust policies are in place (and are being followed) on cybersecurity, anti-fraud and conflicts of interest, whilst also ensuring adequate training is provided to those associated with the charity on a regular basis. A fraud response plan should also be devised and implement in case of any adverse event.

The full report, including the Panel’s top tips for preventing fraud (on page 22 and 23) can be read at: https://www.fraudadvisorypanel.org/document/2023-charity-fraud-report/

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The Trustees Child Health Research CIO

9 May 2024

Annual Return 2022 findings

The Charity Commission has recently released the Annual Return 2022, highlighting key trends across the sector for financial years ending in 2022. The key trends are as follows:

• Total gross income increased by 8.5% from 2021 figures to £90.3 billion;

• Gross expenditure increased by 9.2% totalling £87.4 billion;

• Decline in national and local government grants to £7 billion from £8.2 billion in 2021;

• 27,001 charities received a government grant in 2022 compared to 35,474 in 2021;

• Free reserves remained broadly consistent at £75 billion, compared to £73 billion in 2021; and

• Volunteer numbers reported an overall increase to just over 6 million people, though religious charities and those supporting armed forces personnel experienced a decline in volunteer participation from 2021.

For further detail please see: https://www.gov.uk/government/publications/charity-commission-annual-returndata/annual-return-data-january-to-december-2022

Additional questions on Charity Annual Returns

The questions posed in the Charity Commission’s Annual Return have been updated for financial years starting on or after 1 January 2023. The most significant changes relate to smaller charities where, depending on the level of income, the number of responses required may be reduced. Narrative changes to some questions have been made to improve clarity and improvements in the glossary and guidance have also been made to help charities answer questions quickly and accurately.

The detailed list of questions can be found at Appendix 8 at the following link: https://www.gov.uk/government/consultations/charity-commission-revisions-to-the-annual-return-2023-25

Guidance on internal controls

The government has updated their guidance (CC8) on internal financial controls for charities. The revised guidance includes updates on digital payment systems, fraud and cybercrime. The Charity Commission's internal control checklist, a tool available for trustees and charity management to check controls against the latest legal requirements has also been updated to reflect the latest guidance. The Charity Commission recommends that internal financial controls should be reviewed at least once a year. The updated guidance and checklist can be found at Internal financial controls for charities at https://www.gov.uk/government/publications/internalfinancial-controls-for-charities-cc8

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The Trustees Child Health Research CIO

9 May 2024

Trustee Quiz

The Charity Commission has released a new Trustee Quiz to enable trustees to test their knowledge of their roles and responsibilities. It is aimed to engage trustees with questions based on everyday scenarios in a bid to identify any knowledge gaps and to act as a refresher for all trustees. The quiz takes three minutes to complete with feedback provided for each question and a score out of 10.

The quiz can be found at: https://beingacharitytrustee.campaign.gov.uk/take-the-trustee-quiz/

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The Trustees Child Health Research CIO

9 May 2024

The Child Health Research Charitable Incorporated Organisation

Report and financial statements

31 July 2023

Charity Registration Number 1152623

Contents

Reports

Reference and administrative information	Reference and administrative information	1
Report of the Trustees		3
Independent		11
Accounts
Statement of financial
activities		15
Balance sheets		17
Statement of cash flows		18
Principal accounting policies		19
Notes to the financial statements		23

The Child Health Research Charitable Incorporated Organisation

Reference and administrative information 31 July 2023

Trustees	Mr A Clark (Chairman)
	Mr H Clarke (appointed 1 February 2023)
	Professor A J Copp
	Professor H Cross (appointed 1 September
	2022)
	Ms A David (resigned 31 October 2022)
	Ms L Gibson
	Professor D Goldblatt (resigned 31 May 2023)
	Mr H Snow
	Professor R Smyth (resigned 1 September
	2022)
	Dr Kiki Syrad (appointed 6 November 2023)
	Ms H Vinnicombe
Finance Committee	Mr A Clark (Chairman)
	Ms L Gibson
	Mr H Snow
	Professor H Cross
	Ms H Vinnicombe
Registered office	UCL GOS Institute of Child Health
	30 Guilford Street
	London
	WC1N 1EH
Charity registration number	1152623
Auditor	Buzzacott LLP
	130 Wood Street
	London
	EC2V 6DL
Bankers	The Royal Bank of Scotland plc
	280 Bishopgate
	London
	EC2M 4RB
Solicitors	Birketts LLP
	106 Leadenhall St
	London
	EC3A 4AA

The Child Health Research Charitable Incorporated Organisation 1

Reference and administrative information 31 July 2023

Investment managers Veritas Investment Management LLP 90 Long Acre London WC2E 9RA

The Child Health Research Charitable Incorporated Organisation 2

Report of the Trustees Year to 31 July 2023

The Trustees present their Annual Report together with the financial statements of the Child Health Research Charitable Incorporated Organisation ( the CHR CIO ) for the year ended 31 July 2023. The financial statements have been prepared in accordance with the accounting policies set out on pages 18 to 21 and comply with the ution, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The CHR CIO is a registered charity number 1152623 governed by its Constitution dated 11 May 2022.

The principal objects of the CHR CIO are to support the UCL Great Ormond Street Institute of Child Health ( GOS ICH ) in its mission to improve the health and wellbeing of children and the adults they will become through world-class research, education, and public engagement. GOS ICH is, with its clinical partner Great Ormond Street Hospital for Children NHS Foundation Trust ( GOSH ), Europe s leading centre for child health research and education.

The CHR CIO does not actively fundraise, relying mainly on its investments to meet its objectives.

Meetings of the Trustees are convened at least three occasions per annum. At these meetings, the Trustees agree the broad strategy and areas of activity for the CHR CIO, including consideration of grant making, investment, reserves and risk management policies and performance. The Trustees also consider reports on the outcomes of the CHR Trustees also receive verbal reports on selected programmes from PhD students supported by their supervisor.

The Finance Committee aims to meet twice per annum and reports regularly to the Trustees. The Finance Committee is responsible for reviewing the financial statements in detail before approval by the Board, as well as monitoring the external investment managers regarding the investment portfolio performance and giving advice regarding the cash flow of the CHR CIO.

Trustees are recruited by introductions from existing Trustees and others who are familiar with the work of the CHR CIO. Prospective Trustees are interviewed by the Chairman and Director of GOS ICH and asked to submit a CV for review at a Trustees' Meeting. Candidates must be elected by at least a 75% majority of Trustees.

New Trustees are provided with information concerning the finances, constitution, and grant-making policies of the CHR CIO. Those who are not familiar with the legal obligations and responsibilities of a Trustee are provided with information published by the Charity Commission. Further induction is given to new Trustees by meetings with key members of the GOS ICH staff.

The Child Health Research Charitable Incorporated Organisation 3

Report of the Trustees Year to 31 July 2023

KEY MANAGEMENT

The Trustees consider that they, together with the GOS ICH Finance Manager and Institute Manager, comprise the key management personnel of the charity in charge of directing and controlling, running, and operating the CHR CIO on a day-to-day basis.

None of the Trustees receive any remuneration in respect of their services as Trustees.

All staff, including the key management personnel, are employed by the GOS ICH and their remuneration is set by their employers.

The GOS ICH Finance Manager and the Institute Manager are employees of GOS ICH and their services are provided through a recharge agreement between GOS ICH and the CHR CIO. Every month an allocation of their salary is recharged to the CHR CIO (10% in the case of the Finance Manager and 7% of the Institute Manager).

OBJECTIVES AND ACTIVITES

The purposes (objects) of the CHR CIO are, in such ways as the Trustees think fit, to:

• 1) advance health in children and the adults they become by supporting research into chil , including pre-natal development and external factors impacting thereon; and

• 2) advance education by supporting teaching, training and public engagement in chi health, including by supporting the mission of the GOS ICH to the extent it is charitable.

The Trustees confirm that they have referred to the guidance contained in the Charity C s general guidance on public benefit when reviewing the CHR C and objectives and in planning future activities and setting the grant making policy for the year.

The CHR CIO carries out these objects by:

• Funding research into the causes and prevention of children funded is both pure and applied/translational with the aim of eliminating suffering of children everywhere. The CHR CIO funds salaries of several Professors, Senior Lecturers/Consultants, and other grades of staff where their research activity will further the objects of the charity.

• Providing funds to enable postgraduate studentships to be undertaken at the GOS ICH, focussing on a wide range of paediatric research and education.

By focusing on these areas, the charity can meet its strategic objectives and priorities.

The Child Health Research Charitable Incorporated Organisation 4

Report of the Trustees Year to 31 July 2023

OBJECTIVES AND ACTIVITES (continued)

The charity has the following restricted funds which support various academic research projects:

• Research into Eye Disease (Help a Child to See)

• oup Travelling Fellowship (Claude Worth Fund)

• Caring for Kids Fund for a Research Lecturer in kidney disease

• Genetics fund (Jeans for Genes)

• Dermatomyositis Research

• Chair of Childhood Epilepsy

• Simpson-Smith Travelling Fellowship

• Department of Paediatric Surgery

• Anne Hamilton Award

• Siemens Nuclear Medical Research

• Kidney Research Williams Bequest

• Simpson-Smith Memorial Lectureship

• Chair of Developmental Neurobiology

• Jim Seakins Travel Fund

• John Lipscombe Memorial Travel Award

• Bill Marshall Memorial Fund

• Roland Levinsky Studentship

• Wheeler Scholarship Fund

• Cystic Fibrosis Fund

ACHIEVEMENTS AND PERFORMANCE

During the year, the CHR CIO received generous donations from the Wheeler family and MSC Paediatrics in Child Health with Clinical Practice and support the travel costs of PhD students, respectively.

The Child Health Research Charitable Incorporated Organisation 5

Report of the Trustees Year to 31 July 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

The CHR CIO continues to support early career researchers at the GOS ICH through funding 3-year PhD studentships. The CIO also continues to provide funding for several senior academic positions at the GOS ICH to support their work on child health. The CIO also restarted its summer studentship programme, which in recent years had been halted by the COVID-19 pandemic. The studentships include a new international PhD project in collaboration with the University of Toronto/SickKids Hospital. The PhD student will spend up to 12 months on placement there as part of their second year PhD studies. In return, a University of Toronto student will also spend up to 12 months at the GOS ICH and GOSH.

The CHR CIO has continued to support the purchase of equipment at the GOS ICH supporting research which meets the strategic needs of GOS ICH and CHR CIO. The

A recurring grant was made this year as support for 8 bursaries for Postgraduate Students on courses run by the GOS ICH. This was aimed to encourage widening participation in postgraduate education. Each bursary was worth £3,000 to support the fees of each student.

GRANT MAKING POLICY

The charity has established a grant making policy to achieve its objects for the public benefit to improve the lives of children everywhere, namely finding better ways of diagnosing and treating sick children through research and then using those findings to improve health outcomes of those children throughout the world. The charit programmes support students, academic and academic related staff at the GOS ICH and GOSH to find new pioneering cures for many rare diseases which affect children. With new knowledge and und can be improved significantly.

The Director of the GOS ICH receives proposals for funding from members of the GOS ICH and GOSH. These are reviewed for scientific quality and to make sure they align with the strategic research objectives of both Institutions. Once endorsed by the Director these are submitted to the charity for consideration and approval. Any grant applications are considered by the Board of Trustees before award letters are issued on behalf of the charity. This applies to applications against both restricted and unrestricted funds.

The projects are often for pump-priming, initial ideas and data collection before a full application is made to an external awarding body. The charity sometimes provides funds for bridging and infrastructure support (including building projects, laboratory refurbishments and equipment).

INVESTMENT POLICY AND PERFORMANCE

Under its Constitution, the Trustees have absolute discretion to manage and organise the ch . The Trustees, through the Finance Committee, have appointed Veritas Investment Management LLP to manage (with discretionary powers) the Child Health Research CIO portfolio.

The Child Health Research Charitable Incorporated Organisation 6

Report of the Trustees Year to 31 July 2023

INVESTMENT POLICY AND PERFORMANCE (continued)

The charity has a Statement of Investment Principles which has been approved by the Trustees, which includes the following stipulations regarding the specific investment objectives:

• Investments are to be held to create real returns over the investment horizon of a rolling 5-year period, whilst maintaining the ability to draw income and capital where necessary.

• A Primary Benchmark of UK CPI + 4% on a rolling 5-year basis (net of fees) will be applied.

• The Trustees anticipate withdrawals of up to £1.2m per annum, to be met through a mixture of capital returns and income.

• A mix of assets, as detailed in the investment management agreement, may be used by the investment managers to achieve the investment objectives.

• The investment managers must incorporate into their investment process consideration of issues of Socially Responsible Investment (SRI) as well as factors of Environmental, Social and Governance (ESG), alongside other elements which form such a process and which govern subsequent portfolio construction, stock selection and benchmark adoption.

• The Trustees accept a medium risk investment profile in the achievement of their objectives.

The Statement of Investment Principles includes the following Specific Investment Restrictions:

• No investments are permitted in either the debt or equity of manufacturers of armaments, milk powder, tobacco or fossil fuel producing companies.

• No investments are permitted in pooled funds without the prior approval of the Finance Committee.

• The investment managers should also carefully consider before making any investments that are indirectly associated with the above restrictions. If there is any doubt, the investment managers should seek the permission of the Finance Committee before any investment is made.

The Statement of Investment Principles will be subject to review as required by the Finance Committee and amendments will be advised in writing to the investment managers when applicable.

The Finance Committee aims to meet twice per annum to review the performance of the portfolio and the investment managers. The investment manager presents a report of the investment portfolio at each of these meetings.

The Child Health Research Charitable Incorporated Organisation 7

Report of the Trustees Year to 31 July 2023

INVESTMENT POLICY AND PERFORMANCE (continued)

The charity adopts a medium risk approach given the uncertainties in the bond and equity markets. Turning to equities, the charity places emphasis on those companies whose abiding characteristic is to generate sustainable and growing cash flows whatever the state of the world economy. There is a focus on long term structural and demographic changes that inform investment decisions.

The total return for the 12 months to 31 July 2023 was 0.8% (2022: 4.04%) which was below the CPI + 4% primary benchmark return of 10.9% (2022: 8.7%) and slightly ahead of the ARC (Asset Risk Consultants) Sterling Steady Growth at 0.3%. The total return of the FTSE All Share Index was an increase of 6.1% (2022: increase of 5.5%), the MSCI All Countries World Equity Index (£) 6.8% (2022: 2.3%) and BofA ML £ Corporates (1-10Y) - 4.2% (2022: -8.3%).

FINANCIAL REVIEW

The Statement of Financial Activities shows a deficit of £1,349,401 (2022: deficit of £989,918) after investment losses for the year ended 31 July 2023. The figure excluding net investment losses was a deficit of £1,296,485 (2022: deficit of £1,408,564). Grants payable for the year totalled £1,499,113 (2022: £1,547,803).

The net current liability position on the balance sheet of £1,285,678 (2022: net current liability of £1,034,180) is a reflection of the accounting policy that makes full provision for multi-year grants when they are committed. However, the charity maintains a strong cash position and has adequate funds to meet these liabilities as they fall due over the duration of the grants.

RESERVES POLICY AND FINANCIAL POSITION

As stated above, the c primary objective is providing funds for research at the GOS ICH. Research, by its very nature, requires a long term commitment to resources for success.

The Trustees believe that in normal circumstances, the charity needs between £1million to £2million of unrestricted reserves to take into account expenditure requirements and income fluctuation that may arise.

At 31 July 2023, the charity had total funds of £15,288,778 (2022: £16,638,179). Of these, £7,996,770 (2022: £8,797,150) were restricted and £4,518,842 (2022: 4,533,260) were endowment funds. Unrestricted funds, which constitute the c serves, were £2,773,166 (2022: £3,307,769).

The Trustees consider the level of general reserves (unrestricted funds of £2,773,166) are appropriate, taking into account their continuing commitments.

The charity has sufficient resources to meet its obligations both from the restricted and unrestricted funds. Cash requirements can be met by realising investment assets.

The Child Health Research Charitable Incorporated Organisation 8

Report of the Trustees Year to 31 July 2023

RISK MANAGEMENT

The charity has for many years adopted a risk assessment policy as part of its strategic plan in meeting its principal objectives. The major risks to which the charity is exposed have been evaluated and systems have been established to lessen and where possible, eliminate these risks.

The key risks for the charity, as identified by the Trustees, are described below together with the principal ways in which they are mitigated:

Conflict of interest Trustees may have a conflict of interest between their duties to the charity and their relationship with the GOS ICH. Such a conflict may arise in, for example, a decision in relation to a funding bid of which a Trustee s department would be a beneficiary. This is mitigated by keeping the conflicts of interest register up to date and following procedures for Trustees to abstain from certain decisions if this is deemed necessary.

Portfolio management There is a risk that there are unsatisfactory returns from the investment portfolio. This is mitigated by regular monitoring of the financial returns achieved during biannual Finance Committee meetings.

Monitoring of returns on investment There is a risk that once a grant is awarded, for example to a PhD student, that the outputs from the research may not be as expected. To mitigate this risk, the Trustees work closely with clinical experts to determine the most appropriate projects for grant funding.

FUNDRAISING

The charity does not actively fundraise but does receive funding from a variety of sources including donations and legacies.

FUTURE PLANS

The CHR CIO intends to continue to make regular research grants to the GOS ICH. These grants will be for PhD studentships and to support staff salaries. The CHR CIO will also continue to provide funding to support the purchase of equipment at GOS ICH.

The Child Health Research Charitable Incorporated Organisation 9

Report of the Trustees Year to 31 July 2023

STATEMENT OF

The Trustees are responsible for preparing the Tru stees’ R eport and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Principles).

The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and the group and of the income and expenditure of the group for that period. In preparing financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which 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 Constitution. The Trustees are responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 03/05/2024 and signed on their behalf by Adrian Clark

92F15EB3B92B4F8... Chairman

The Child Health Research Charitable Incorporated Organisation 10

Independent auditor report Year to 31 July 2023

Independent to the trustees of The Child Health Research Charitable Incorporated Organisation

Opinion

We have audited the accounts of The Child Health Research Charitable Incorporated Organisation (th ) for the year ended 31 July 2023 which comprise the statement of financial activities, the balance sheet ,the statements of cash flows, principal accounting policies and the notes to the accounts. 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 accounts:

• give a true and fair view of the state of the affairs as at 31 July 2023 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the 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 a for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FR 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

e of the going concern

basis of accounting in the preparation of the accounts 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 cha ability to continue as a going concern for a period of at least twelve months from when the accounts 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.

The Child Health Research Charitable Incorporated Organisation 11

Independent auditor report Year to 31 July 2023

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and accounts, other than the accounts and our auditor eport thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the t report is inconsistent in any material respect with the accounts; or

• sufficient accounting records have not been kept; or

• the accounts are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charit 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.

The Child Health Research Charitable Incorporated Organisation 12

Independent auditor report Year to 31 July 2023

esponsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an audito 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 accounts.

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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the Charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charity, including the Charities Act 2011, data protection legislation, anti-bribery, health and safety legislation.

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the charity statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

• To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

The Child Health Research Charitable Incorporated Organisation 13

Independent auditor ’s report Year to 31 July 2023

A uditor’s responsibilitie s for the audit of the accounts (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• reading the minutes of meetings of those charged with governance;

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims.

As a result of our procedures we did not identify any key audit matters relating to irregularities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reportin g Council's website a t www.frc.org.uk/auditorsresponsibilities. This description forms part of our audito r’sre port.

Use of our report

This report is made solely to the charity ’s tr ustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the c harity’s trus tees 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 tru stees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date 9 May 2024

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Child Health Research Charitable Incorporated Organisation 14

Statement of financial activities 31 July 2023

Notes	Un- restricted funds £	Restricted funds £	Endowment funds £	Total funds 2023 £	Total funds 2022 £
Income from: Donations and legacies 1 Investments 2 Total income Expenditure on: Raising funds 3 Charitable activities . Grants payable 4 Total expenditure Net expenditure for the year before transfers and gains on investments Net (losses)/ gains on investment assets 7 Net expenditure and net movement in funds Reconciliation of funds: Total fund balances brought forward at 1 August Total fund balances carried **forward at 31 July **	108 65,800	32,334 265,172		32,442 330,972	28,171 285,292
	65,98	297,506		363,414	313,463
	32,360 557,632	128,426 941,481		160,786 1,499,113	174,224 1,547,803
	589,992	1,069,907		1,659,899	1,722,027
	(524,084) (10,519)	(772,401) (27,979)	(14,418)	(1,296,485) (52,916)	(1,408,564) 418,646
	(534,603) 3,307,769	(800,380) 8,797,150	(14,418) 4,533,260	(1,349,401) 16,638,179	(989,918) 17,628,097
	2,773,166	7,996,770	4,158,842	15,288,778	16,638,179

All of the cha activities were from continuing operations in the above two financial periods.

The charity has no recognised gains or losses other than those included in the Statement of Financial Activities.

The notes on pages 23 to 31 form an integral part of these financial statements.

The Child Health Research Charitable Incorporated Organisation 15

Statement of financial activities 31 July 2022

Notes	Un- restricted funds £	Restricted funds £	Endowment funds £	Total funds 2022 £
Income from: Donations and legacies 1 Investments 2 Total income Expenditure on: Raising funds 3 Charitable activities . Grants payable 4 Total expenditure Net (expenditure) for the year before transfers and gains on investments Net gains on investment assets 7 Net (expenditure) income and net movement in funds Reconciliation of funds: Total fund balances brought forwardat 1 August . As previously stated . Prior year adjustment (note 18) . As restated Total fund balances carried forward at 31 July	1,320 69,100	26,851 216,192		28,171 285,292
	70,420	243,043		313,463
	39,964 994,137	134,260 553,666		174,224 1,547,803
	1,034,101	687,926		1,722,027
	(963,681) 101,400	(444,883) 219,344	97,902	(1,408,564) 418,646
	(862,281)	_(225,539) _	97,902	(989,918)
	2,507,289 1,662,761	10,820,576 (1,797,887)	4,300,232 135,126	17,628,097
	4,170,050	9,022,689	4,435,358	17,628,097
	3,307,769	8,797,150	4,533,260	16.638,179

The Child Health Research Charitable Incorporated Organisation 16

Balance sheet 31 July 2023

		2023	2022
	Notes	£	£
Fixed assets
Investments	7	717,525,169	18,725,125
Current assets
Debtors	8	26,485	23,704
Cash at bank		1,330,967	1,080,273
		1,357,452	1,103,977
Liabilities
Creditors: amounts falling due within one year	9	(2,643,130)	(2,138,157)
Net current (liabilities)		(1,341,298)	(1,034,180)
Total assets less current liabilities		16,239,491	17,690,945
Creditors: amounts falling due after more than one year	10	(950,713)	(1,052,766)
Net assets		15,288,778	16,638,179
The funds of the charity:
Unrestricted funds	11	2,773,166	3,307,769
Restricted funds	12	7,996,770	8,797,150
Endowment funds	13	4,518,842	4,533,260
Total charity funds		15,288,778	16,638,179

Approved by the Trustees on and signed on their behalf by

Chairman

The notes on pages 22 to 31 form an integral part of these financial statements.

The Child Health Research Charitable Incorporated Organisation 17

Statement of cash flows 31 July 2023

Notes	2023 £	2022 £
Cash flows from operating activities: Net cash used in operating activities A Cash flows from investing activities: Investment income Proceeds from the disposal of investments Purchase of investments Net cash (used in) provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 August B Cash and cash equivalents at 31 July B	(1,227,318)	(1,347,671)
	330,972 2,691,557 (3,311,904)	285,292 3,881,595 (1,612,867)
	(289,375)	2,554,020
	(1,516,693) 3,319,766	1,206,349 2,113,417
	1,803,073	3,319,766

Notes to the statement of cash flows for the year to 31 July

A Reconciliation of net movement in funds to net cash (used in) operating activities

----- Start of picture text -----
2023 2022
£ £
Net movement in funds (as per the statement of financial activities) (1,349,401) (989,918)
Adjustments for:
Losses / (gains) on investments 52,916 (418,646)
Investment income (330,972) (285,292)
(Increase) in debtors (2,781) (5,091)
Increase in creditors 402,920 351,276
Net cash used in operating activities (1,227,318) (1,347,671)
----- End of picture text -----

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
	2023 £	2022 £
Cash at bank and in hand Cash held by investment managers Total cash and cash equivalents	1,330,967 472,106	1,080,273 2,239,493
	1,803,073	3,319,766

The Child Health Research Charitable Incorporated Organisation 18

Principal accounting policies 31 July 2023

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 July 2023.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

estimating the liability for multi-year grant commitments; and

the apportionment of investment income, gains and losses between funds.

Assessment of 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.

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. The most significant areas of judgement that affect items in the financial statements are detailed above. With regard to the next accounting period, the year ending 31 July 2024, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Truste for more information).

The Child Health Research Charitable Incorporated Organisation 19

Principal accounting policies 31 July 2023

Assessment of going concern (continued)

The net current liability position on the balance sheet of £1,285,678 (2022: net current liability of £1,034,180) is a reflection of the accounting policy that makes full provision for grants when they are committed. However, the charity maintains a strong cash position and has adequate funds to meet these liabilities as they fall due over the duration of the grants.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably, and it is probable that the income will be received.

Income comprises donations, investment income and other income.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

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

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

• Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes investment management fees and administration costs.

• Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include charitable grants and support costs, including governance costs.

The Child Health Research Charitable Incorporated Organisation 20

Principal accounting policies 31 July 2023

Expenditure recognition (continued)

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued for but are disclosed as financial commitments in the notes to the financial statements.

The provision of a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payments and settlement is probable.

All expenditure is stated inclusive of irrecoverable VAT.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The charity does not acquire put options, derivatives or other complex financial instruments.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

The Child Health Research Charitable Incorporated Organisation 21

Principal accounting policies 31 July 2023

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Funds

Unrestricted funds are those available for the general purposes of the Charity and their use is set out in the Constitution.

Restricted funds are those funds whose purposes have been restricted by the donor to specific areas of research as set out in note 12.

Endowment funds are those funds whose purposes have been endowed by the donor to a specific area of research and where the capital is not expendable as set out in note 13.

Income from investments, expenditure on administration fees, investment management fees and gains and losses on investments are apportioned to the active restricted and unrestricted funds on the basis of the average value of each fund during the year.

The Child Health Research Charitable Incorporated Organisation 22

Notes to the financial statements 31 July 2023

----- Start of picture text -----
1 Donations
2023 2022
£ £
Donations and legacies
. Unrestricted funds 108 1,320
. Restricted funds 32,334 26,851
32,442 28,171
2 Investment income
2023 2022
£ £
Dividends and interest receivable
. Unrestricted funds 65,800 69,100
. Restricted funds 265,172 216,192
330,972 285,292
3 Expenditure on raising funds
2023 2022
£ £
Investment management fees
. Unrestricted funds 28,945 36,207
. Restricted funds 117,314 122,998
Administration
. Unrestricted funds 3,251 3,757
. Restricted funds 11,276 11,262
160,786 174,224
----- End of picture text -----

4 Expenditure on charitable activities Unrestricted funds

----- Start of picture text -----
2023 2022
£ £
Grants payable
. Postgraduate studentships 441,388 808,774
. Other 161,031 163,846
Grants no longer required (55,620)
Governance costs (note 5) 10,833 21,517
Total unrestricted funds 557,632 994,138
----- End of picture text -----

The Child Health Research Charitable Incorporated Organisation 23

Notes to the financial statements 31 July 2023

4 Expenditure on charitable activities (continued)

Restricted funds

----- Start of picture text -----
2023 2022
£ £
Grants payable
. Chair of Developmental Neurobiology 81,048 62,351
. Chair of Childhood Epilepsy 214,256 135,090
. Help a Child to See 78,642 59,913
. Genetics fund 450,743 232,000
. Jim Seakins travel 2,521 1,000
. Chair of Cancer Biology 2,511
. Medical Molecular Biology 60,800
. John Lipscombe Memorial travel award 3,605
. Wheeler Scholarship 83,226
Governance costs (note 5) 27,440
Total restricted funds 941,481 553,666
Total funds 1,499,113 1,547,803
----- End of picture text -----

The grants included above were all payable to the UCL GOS Institute of Child Health.

5 Governance costs

Governance costs
	2023 £	2022 £
ion . Audit fees current year . Non-audit fees Legal and bank fees	11,700 10,228 16,345	8,025 2,045 11,447
	38,273	21,517

6 Staff costs and numbers and remuneration of key management personnel

The average number of persons working for the charity during the year was as follows:

	2023	2022
Administration(part-time)	2	2

The aggregate amount of salaries, wages and related costs of employees is comprised as follows:

	2023 £	2022 £
Salaries and wages Social security costs Other pension costs	9,621 1,104 3,332	9,740 1,170 3,665
	14,057	14,575

This is a recharge of salary costs from the UCL GOS Institute of Child Health to the Child Health Research CIO as no staff are actually employed by the Child Health Research CIO.

The Child Health Research Charitable Incorporated Organisation 24

Notes to the financial statements 31 July 2023

• 6 Staff costs and numbers and remuneration of key management personnel (continued)

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees and the ICH Finance Manager and ICH Executive Officer. The total remuneration (including taxable benefits and employer's pension contributions) of the key management personnel for the year was £14,057 (2022: £14,575).

No trustee received any form of emoluments from the charity during the year (2022: £nil). No trustee has been reimbursed for expenses incurred during the year (2022: £nil).

7 Investments

The investments of the Child Health Research CIO are managed by Veritas Investment Management LLP.

Analysis by type

----- Start of picture text -----
2023 2022
Market Market
At cost value At cost value
£ £ £ £
UK fixed interest 4,035,339 4,099,938 2,939,282 3,081,023
UK equities 7,521,375 12,444,243 7,256,578 12,941,945
UK funds 256,536 295,200 256,536 260,000
Other 184,643 213,682 184,643 202,664
Listed investments total 11,997,893 17,053,063 10,637,039 16,485,632
Cash with brokers 472,106 472,106 2,239,493 2,239,493
Total investments 12,469,999 17,525,169 12,876,532 18,725,125
----- End of picture text -----

Movement in listed investments

----- Start of picture text -----
2023 2022
£ £
Balance brought forward 16,485,632 18,335,711
Additions during the year 3,311,904 1,612,867
Opening market value of disposals (proceeds: £2,691,557, realised
loss: £20,177) (2,711,734) (3,992,017)
Unrealised (losses)/ gains (32,739) 225,750
Balance carried forward 17,053,063 16,485,632
----- End of picture text -----

8 Debtors

Debtors
	2023 £	2022 £
Other debtors	26,485 26,485	23,704 23,704

The Child Health Research Charitable Incorporated Organisation 25

Notes to the financial statements 31 July 2023

9 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
	2023 £	2022 £
Grants payable Other creditors	2,594,050 49,080 2,643,130	2,099,840 38,317 2,138,157

10 Creditors: amounts falling due after more than one year

----- Start of picture text -----
2023 2022
£ £
Grants payable 950,713 1,052,766
950,713 1,052,766
11 Unrestricted funds
Balance
as at Balance
1 August as at
2022 Gains / 31 July
Restated Income Expenditure losses Transfers 2023
£ £ £ £ £ £
Unrestricted funds 3,307,769 65,908 (589,992) (10,519) 2,773,166
3,307,769 65,908 (589,992) (10,519) 2,773,166
Balance
as at Balance
1 August as at
2021 Gains / 31 July
Restated Income Expenditure losses Transfers 2022
£ £ £ £ £ £
Unrestricted funds 4,170,050 70,420 (1,034,101) 101,400 3,307,769
4,170,050 70,420 (1,034,101) 101,400 3,307,769
----- End of picture text -----

The Child Health Research Charitable Incorporated Organisation 26

Notes to the financial statements 31 July 2023

12 Restricted funds

----- Start of picture text -----
Balance
as at Balance
1 August Grants as at
2022 Investment (approved) Other Gains 31 July
Restated Donations income released costs Transfers (losses) 2023
£ £ £ £ £ £ £ £
Help a Child to See 190,332 3,438 (78,642) (2,126) (550) 112,452
Chil up
Travelling Fellowship
(Claude Worth Fund) 274,200 274,200
Caring for Kids 70,186 70,186
Genetics fund 3,729,754 79,779 (450,743) (65,612) (12,688) 3,280,490
Dermatomyositis
Research 64,208 64,208
Chair of Childhood
Epilepsy 3,684,537 81,441 (214,256) (50,368) (13,021) 3,488,333
Simpson-Smith
Travelling Fellowship 233,880 5,324 (3,293) (852) 235,059
Department of
Paediatric Surgery 103,693 103,693
Anne Hamilton Award
Prize Studentship 17,743 17,743
Siemens Nuclear
Medical Research 34,347 34,347
Kidney Research
William Bequest 43,936 43,936
Simpson-Smith
Memorial Lectureship 42,329 964 (596) (154) 42,543
Chair of
Developmental
Neurobiology 22,398 89,764 (81,048) (31,114)
Jim Seakins Travel
Fund 26,746 580 (2,521) (358) (92) 24,355
John Lipscombe
Memorial Travel
Award 37,802 5,000 876 (3,605) (541) (140) 39,392
Bill Marshall Memorial 36
Fellowship 364 8 (4) (2) 6
Roland Levinsky
Studentship 131,690 2,998 (1,854) (480) 132,354
Wheeler Scholarship 84,828 27,334 (83,226) 28,936
Cystic Fibrosis 4,177 4,177
8,797,150 32,334 265,172 (914,041) (155,866) (27,979) 7,996,770
----- End of picture text -----

The following restricted funds support salary costs of Principal Investigators at the UCL GOS Institute of Child Health:

• Chair of Developmental Neurobiology (income derived from Glaxo Wellcome endowment fund)

• Chair of Childhood Epilepsy

The following restricted funds support travel, research and subsistence costs for students awarded grants from the CIO:

• Jim Seakins Travel Fund

• John Lipscombe Memorial Travel Award

• Bill Marshall Memorial Fellowship

The Child Health Research Charitable Incorporated Organisation 27

Notes to the financial statements 31 July 2023

12 Restricted funds (continued)

The following restricted funds support travelling fellowships and memorial lectures where the UCL GOS Institute of Child Health attracts high-quality speakers and researchers to work with the department on a temporary basis:

Children s Eye Group Travelling Fellowship (Claude Worth Fund)

Simpson-Smith Travelling Fellowship

Simpson-Smith Memorial Lectureship

The Genetics fund is an historic award. Jeans for Genes would perform annual fundraising which was allocated to GOSHCC and then subsequently transferred over to the CIO. There is no new income into this fund as the partnership between Jeans for Genes and GOSH has been dissolved.

Other restricted funds are legacy funds that the CIO intends to engage with original donors (where possible) to see if the money can be used more widely than their original intended purpose.

The Child Health Research Charitable Incorporated Organisation 28

Notes to the financial statements 31 July 2023

12 Restricted funds (continued)

----- Start of picture text -----
Balance
as at Balance
1 August Grants as at
2021 Investment (approved) Other Gains 31 July
Restated Donations income released costs Transfers (losses) 2022
£ £ £ £ £ £ £ £
Help a Child to See 242,777 3,955 (59,913) (2,290) 5,803 190,332
Chil up
Travelling Fellowship
(Claude Worth Fund) 274,200 274,200
Caring for Kids 70,186 70,186
Genetics fund 3,831,370 69,042 (232,000) (39,973) 101,315 3,729,754
Dermatomyositis
Research 64,208 64,208
Chair of Childhood
Epilepsy 3,692,420 67,360 (135,090) (38,999) 98,846 3,684,537
Simpson-Smith
Travelling Fellowship 225,951 4,199 (2,431) 6,161 233,880
Department of
Paediatric Surgery 103,693 103,693
Anne Hamilton Award
Prize Studentship 17,743 17,743
Siemens Nuclear
Medical Research 34,347 34,347
Kidney Research
William Bequest 43,936 43,936
Simpson-Smith
Memorial Lectureship 40,894 760 (440) 1,115 42,329
Chair of
Developmental
Biology -
Chair of
Developmental
Neurobiology 64,579 67,337 (62,351) (48,078) 911 22,398
Gertrude Marshall
Atkins -
Jim Seakins Travel
Fund 26,822 489 (1,000) (283) 718 26,746
Chair of Cancer
Biology 2,511 (2,511)
Medical Molecular
Biology Fund 60,801 (60,801)
John Lipscombe
Memorial Travel
Award 36,520 679 (393) 996 37,802
Bill Marshall Memorial
Fellowship 351 7 (3) 9 364
Roland Levinsky
Studentship 127,226 2,364 (1,370) 3,470 131,690
Wheeler Scholarship 57,977 26,851 84,828
Cystic Fibrosis 4,177 4,177
9,022,689 26,851 216,192 (553,666) (134,260) 219,344 8,797,150
----- End of picture text -----

The Child Health Research Charitable Incorporated Organisation 29

Notes to the financial statements 31 July 2023

13 Endowment funds

Endowment funds
	2023 Total £	2022 Total £
Glaxo Wellcome Chair of Developmental Neurobiology Balance brought forward 1 August 2022 Realised/unrealised gains Balance carried forward 31 July 2023	4,533,260 (14,418) 4,518,842	4,435,358 97,902 4,533,260

This endowment was established in 1996 to create a new academic unit of Developmental Neurobiology including a Chair of Developmental Neurobiology. Under the terms of the donation the fund is to be held in perpetuity.

14 Analysis of group net assets between funds

----- Start of picture text -----
2022
Current 2023 Total
Investments assets Liabilities Total Restated
£ £ £ £ £
Endowment funds 4,518,842 4,518,842 4,533,260
Restricted funds 10,228,754 (2,231,984) 7,996,770 8,797,150
General funds 2,777,573 1,357,452 (1,361,859) 2,773,166 3,307,769
17,525,169 1,357,452 (3,593,843) 15,288,778 16,971,951
Current 2022 2021
Investments assets Liabilities Total Total
Restated Restated Restated Restated Restated
£ £ £ £ £
Endowment funds 4,533,260 4,533,260 4,435,358
Restricted funds 10,620,427 (1,823,277) 8,797,150 9,022,689
General funds 3,571,438 1,103,977 (1,367,646) 3,307,769 4,170,050
18,725,125 1,103,977 (3,190,923) 16,971,951 17,628,097
----- End of picture text -----

The total unrealised gains as at 31 July 2023 constitutes movements on revaluation and are as follows:

----- Start of picture text -----
2023 2022
£ £
Unrealised gains included above:
On investments 5,055,170 5,848,594
Total unrealised gains at 31 July 5,055,170 5,848,594
Reconciliation of movements in unrealised gains
Unrealised gains at 1 August 5,848,594 6,437,617
Less: in respect to disposals in the year (760,685) (814,773)
5,087,909 5,622,844
Add: net (losses)/ gains arising on revaluation arising in the year (32,739) 225,750
Total unrealised gains at 31 July 5,055,170 5,848,594
----- End of picture text -----

The Child Health Research Charitable Incorporated Organisation 30

Notes to the financial statements 31 July 2023

15 Connected charities

Professor Andrew Copp and Helen Cross, who are Trustees of the Charity, are also Trustees of the following organisation:

UCL GOS Institute of Child Health An Institute of University College London (UCL). Its primary objective is the provision of education and medical research.

During the year, grants totalling £1,491,819 (2022: £1,526,286) were awarded to UCL GOS Institute of Child Health. At 31 July 2023, grants totalling £3,575,742 (2022: £3,152,606) were payable to UCL GOS Institute of Child Health.

In addition, these charities share common administrative facilities and hence involve cross charges of expenditure. The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees and the ICH Finance Manager and ICH Institute Manager. The total remuneration (including taxable benefits and employer's pension contributions) of the key management personnel for the year was £14,057 (2022: £14,575).

16 Taxation

The Child Health Research Charitable Incorporated Organisation is a registered charity and is exempt under Part 11 of the Corporation Tax Act 2010 on its income and S256 Taxation of Chargeable Gains Act 1992 on its capital gains.

The Trust is not registered for VAT and the expenditure includes VAT where applicable.

17 Related parties

Professor Andrew Copp, who is a Trustee of the Charity, has a portion of his salary at the UCL GOS Institute of Child Health funded by the Chair of Developmental Neurobiology (Glaxo Wellcome) endowment fund (note 13).

Professor Helen Cross, who is a Trustee of the Charity, has a portion of her salary at the UCL GOS Institute of Child Health funded by the Chair of Childhood Epilepsy fund (note 12).

Other than the transactions referenced above and in note 15, there have been no other related party transactions.

The Child Health Research Charitable Incorporated Organisation 31

Notes to the financial statements 31 July 2023

18 Prior year adjustment

The above prior year adjustment reflects a detailed analysis of grants payable that were previously classified as unrestricted. The analysis identified that a certain number of the grants met the requirements of restricted funds. A prior year adjustment has been made to reflect this. The apportionment of investment management fees, investment income and unrealised and realised gains/loss has also been reallocated as they are apportioned between the funds based on an average of the opening and closing balances.

----- Start of picture text -----
Unrestricted Restricted Endowment Total
Funds funds funds funds
Reconciliation of reported funds £ £ £ £
Total funds as 1 August 2020
(as previously stated) 2,812,566 9,044,075 3,637,429 15,494,070
Prior year adjustment
. Reclassification of income and expenditure
1,065,575 (1,064,033) (1,542)
Total funds at 1 August 2020 (as restated)
3,878,141 7,980,042 3,635,887 15,494,070
Movement in the year to 31 July 2021
. As previously stated (305,277) 1,776,502 662,803 2,134,028
. Reclassification of income and expenditure
597,186 (733,855) 136,668
. As restated 291,909 1,042,647 799,471 2,134,028
Total funds as at 31 July 2021 (as restated)
4,170,050 9,022,689 4,435,358 17,628,097
----- End of picture text -----

The Child Health Research Charitable Incorporated Organisation 32