2023-09-30-accounts

Ileostomy and Internal Pouch Association

Registered Charity No. 1172338 (England and Wales) and SC048658 (Scotland) A Company limited by guarantee in England and Wales No. 10375943

ANNUAL REPORT and ACCOUNTS 2023

Because we know, we care

Ileostomy and Internal Pouch Association

(Originally established 1956) Registered Charity No. 1172338 Registered Company No. 10375943

PRINCIPAL ADDRESS AND REGISTERED OFFICE

Danehurst Court, 35-37 West Street, Rochford, Essex SS4 1BE

PRESIDENT:

Professor Gordon Carlson CBE, BSc (Hons), MB ChB (Hons), MD, FRCS, FRCS (Gen), FRCSEd (Ad Hom)

BOARD OF TRUSTEES

Chair: Mr Stuart Hay Vice-chair: Ms Anna Rennie Finance sub-committee chair: Mr Amar Panchal Trustees: Mr Justin Bishop Ms Cepta Burke Mr Scott Clifford (appointed 18 November 2023) Mr David Drakeley Mrs Carol Katté RGN, DipN(Lond), NDNCert, ENB216 Mrs Jacqui Sibbald Ms Brigitte Siefken Mr John Smail Mr Neil Smart MBBS(Hons), MD, PhD, FRCSEd, MFMLM Ms Tracey Usher

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NATIONAL OFFICERS

Chief Executive Officer and National Treasurer: Mr Michael Bell National Office Manager: Ms Leann Lepley PR & Communications Manager/IA Journal Editor: Mrs Caroline Bramwell

HONORARY CONSULTANT ADVISERS

Medical adviser: Professor Christopher Probert MD, FRCP, ILTM Gynaecological adviser: Mr Olujimi Jibodu MRCOG Research advisers: Professor Sir Miles Irving DSc (Hon). MD, ChM, FRCS, FMedSci Professor Sir Norman S Williams FRCS, FRCP, FRCPE, FMedSci, FRCA Professor M G Dunlop MD, FRCS, FMedSci, FRSE Professor J R T Monson MD, FRCS, FRCSI, FACS, FRCPS Glas (Hon) Professor D G Morton MD, FRCS (Colorectal) Surgical advisers: Professor Neil Mortensen MBChB, MD, MA, FRCS Eng, FRCS Glas, FRCS Edin, FRCSI Mr Mike Thompson MD, FRCS Dermatological adviser: Dr Calum Lyon MA, MRCP Pharmaceutical adviser: Ms Anne Chetwood PROFESSIONAL ADVISERS Legal advisers: Bates Wells & Braithwaite LLP 10 Queen Street Place London EC4R 1BE Principal bankers: The Co-operative Bank PO Box 250, Delf House, Southway, Skelmersdale WN8 6WT Auditors: Sumer Audit Piper House, 4 Dukes Court, Bognor Road, Chichester PO19 8FX Investment manager: Rathbone Investment Management Limited George House, 50 George Square, Glasgow G2 1EH

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BOARD OF TRUSTEES REPORT (INCLUDING DIRECTORS’ REPORT)

The Board of Trustees has pleasure in presenting its report for the year ended 30 September 2023. This report represents a Directors’ Report as required by s417 of the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s governing document, the Companies Act 2006 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 UK and the Republic of Ireland (FRS102)” (as amended for accounting periods commencing from 1 January 2019).

LEGAL STATUS AND OBJECTS

Ileostomy and Internal Pouch Association is a Company Limited by Guarantee in England and Wales (10375943) and is a Charity registered in England and Wales no. 1172338 and in Scotland no. SC048658 with a working name of IA. The Charity is governed by its Articles of Association, last amended in August 2018. Although the Company was incorporated on 14 September 2016 it remained dormant until 30 September 2018, with the Charity operating until that date as an unincorporated association registered in England and Wales under charity number 234472 in the name of IA. The Charity’s principal address and registered office is Danehurst Court, 35-37 West Street, Rochford, Essex SS4 1BE.

In setting the Charity’s objectives and planning its activities the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on the relief of those in need by reason of ill-health. IA's objects are:

1. To help anyone whose colon has been, or is about to be, removed by surgical procedure or who has an ileostomy or an internal pouch;

2. To promote and co-ordinate research into bowel disease and other conditions leading to the removal of the colon, surgical procedures pertaining thereto, and related matters, and further to promote the dissemination of knowledge gained by such research;

3. To keep ileostomists and others informed of all matters of interest to the Charity by the periodic dissemination of information by way of publications, by arranging conferences, seminars and courses on topics of interest, and in any other manner which is charitable and which the trustees consider appropriate.

ORGANISATIONAL STRUCTURE

This charity was originally founded in 1956 and operated as a charitable unincorporated association registered under charity number 234472 until 30 September 2018. Local groups, known as member organisations, located throughout the United Kingdom and Ireland operated as independent charities but under the IA umbrella, with the national charity providing support to the local groups and operating as the governing body of IA through its National Council, which consisted of the honorary president, the national officers and one representative from each member organisation. The National Council elected the president and the other trustees, who operated as the executive committee, which was responsible for the overall and day-to-day administration of the association. Policy matters were referred to the annual meeting of the National Council for consideration and decision.

In 2017 the National Council voted in favour of transferring its undertakings, including all activities, employees and assets subject to all its liabilities in its entirety to a charitable Company Limited by Guarantee, Ileostomy and Internal Pouch Association, company number 10375943 (England and Wales). As part of this organisational restructure, member organisations were given the option of either merging into the national charity and becoming an Integrated Branch (hereinafter termed

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“Branch”) of the national charity or remaining as a separate charity and becoming an Affiliated Member Organisation (hereinafter termed “Affiliate”) of the national charity, with the relationship between the Affiliate and the national charity being governed by an Affiliation Agreement. The Branch option was offered to allow a reduction in the administrative workload placed on the committees of local member organisations, this in turn hopefully alleviating the difficulties in identifying suitable volunteers to sit on the committees of local member organisations. Of the 45 member organisations that existed at the point the transfer to the charitable Company took place at midnight on 30 September 2018, 33 opted to become Branches and 12 became Affiliates. Since that date, three Affiliates opted to change their status and become Branches in previous financial years and during the year under review, one further Affiliate decided to change its status and became a Branch, leaving 8 Affiliates and 37 Branches in total as at year end.

The trustees, who are also the directors for the purposes of company law, who served during the year, are listed on page 2. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The members of the Company consist of the board of trustees and one representative from each member organisation, thereby closely replicating the arrangements that existed under the unincorporated predecessor charity and ensuring that member organisations continue to be central to the charity’s governance and policy setting. There are generally four board meetings a year which, prior to the Covid pandemic, took place in London. During the pandemic these meetings were held online instead and this situation has continued since Covid restrictions were eased and then removed, with all four board meetings in the year under review taking place online. The Trustees believe that this was both more economic and a more efficient use of time and resources, and that this did not affect their ability to discuss important issues and make decisions where appropriate.

Applications for elected trustee positions are invited from member organisations when a position becomes available and any applications are dealt with by the Trustee Recruitment and Selection sub-committee, who carry out an interview and selection process with the successful candidate(s) being put forward for election, subject to board approval. Trustees are elected at a general meeting of the company for an initial period of three years, following which they are eligible for re-election for two further terms of three years. Once elected, they receive an induction which includes visiting the charity’s national office where possible and receiving training as and when required.

Authority for the day to day management of the charity is delegated to the Chief Executive Officer, Mr. Michael Bell, as per the charity’s governing document. Remuneration for all staff including key management personnel is agreed by the remuneration sub-committee. Salaries are reviewed annually by the committee and are benchmarked against similar charities using independent data to ensure that salary levels are appropriate and competitive, whilst taking into account performance, the past year’s achievements and other relevant factors.

The unincorporated association IA (charity registration number 234472 (England & Wales)) remains in existence as a dormant shell charity in order to safeguard any future legacies in its name that might otherwise have failed due to the manner in which a particular will was written and therefore might have been distributed instead to another charity or beneficiary. The Company holds £100 on trust for the unincorporated association and is one of the two trustees of this shell charity, the other being the chair of the Company.

ACHIEVEMENT OF OBJECTIVES

To help anyone whose colon has been, or is about to be, removed by surgical procedure or who has an ileostomy or an internal pouch.

During the year 2022/23, the total number of enquiries received at IA national office from members of the public, healthcare professionals and others with a professional interest in the work of IA showed a significant increase of over 30% compared to the previous year. Membership enquiries

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resulted in 267 joining as new members, 226 (85%) of whom joined on-line, in keeping with recent years where the majority of applications are made via our website.

Each new member received an information pack containing booklets and leaflets on a wide range of relevant subjects covering many aspects of life with an ileostomy or internal pouch. This literature has been specially written by IA’s honorary consultant advisers and by members with particular experiences and expertise upon which they can draw. A total of 283 requests for literature and publications were received from a combination of healthcare professionals, members and member organisations this year.

Enquiries regarding travel continue to be received although at a lower level than in recent years and there is still a demand our popular travel certificates which, in a range of languages, explain the conditions of ileostomy and internal pouch.

Promotional items were made available to local groups and members for distribution at exhibitions, meetings and open days to further publicise the support that is available from IA.

We currently have 45 member organisations located throughout the United Kingdom. These continue to provide information, advice and assistance to existing, new and potential members. We also continue to offer valuable support via our One2One Support offering, further details of which are provided below.

To promote and co-ordinate research into bowel disease and other conditions leading to the removal of the colon, surgical procedures pertaining thereto, and related matters, and further to promote the dissemination of knowledge gained by such research.

It was noted in last year’s report that there continued to be an impact from the Covid pandemic on research, although there were some signs that some of the projects that had been delayed due to the pandemic were now beginning to be picked up again and restarted. However, last year’s report also noted that there had been no new funding applications received during the year, and the dearth of new funding applications continued during the year under review, with only one new project being funded via our branch South Wales IA. We would encourage potential applicants to consider applying for grant funding as we continue to look for high quality research to assist with and have funds available to do so.

The South Wales IA funding was granted for Cardiff & Vale University Health Board’s IBD surveillance project. The main purpose of this project was to check the standard of the IBD surveillance program against national guidelines to ensure the right patients are getting the right procedure at the right time, looking at the proportion of patients having index surveillance colonoscopy, adherence to surveillance interval as per BSG risk grades and the quality of surveillance colonoscopy (use of chromoendoscopy, quiescent nature of disease, quality of bowel prep, quality of reporting and management of dysplasia).

In addition to funded research, IA continues to assist with a variety of research projects involving members’ participation covering a wide range of subjects. In the year under review this included -

• Stoma support study – supporting management of psychological distress in young people with IBD: Following our support of an application for funding for this project in a previous year and also the provision of a representative to participate on the project’s steering group, this year work continued on this study with evidence being pulled together to design a detailed specification for a Stoma Support intervention which would aim to address mental health needs of young people with IBD following stoma surgery. The aim will be to ultimately produce a grant application to build, user test, evaluate and implement the intervention.

• Is mesh still a four letter word? – This project, led by a senior clinical lecturer and honorary consultant surgeon at the University of Aberdeen, looked at the use of mesh in the abdominal wall and asked patients and surgeons their perceptions and concerns around

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• undertaking trials in this field, as well as aiming to identify outcomes that are more important for patients in order for future studies to be genuinely of benefit those suffering from colorectal conditions.

• Pre-operative Education Experiences of Patients Prior to Stoma Formation: A Qualitative Study - The aim of the research was to explore individuals’ experiences of information giving prior to stoma forming surgery through semi-structured interviews, with a view to further understanding how pre-operative education could be improved by identifying and interpreting themes that arise from the interviews. This knowledge could then be used to inform future practice and improve the preoperative education that individuals receive which should benefit individuals with all forms of intestinal stoma, including ileostomies.

To keep ileostomists and others informed of all matters of interest to the Charity by the periodic dissemination of information by way of publications, by arranging conferences, seminars and courses on topics of interest, and in any other manner which is charitable and which the trustees consider appropriate.

The quarterly IA Journal continues to be the primary form of communication between the Charity and members, providing updates with the latest developments in products and services along with human interest stories and other articles of interest, such as readers’ letters, medical articles and news items. The regular article from an exercise expert continues to be well received by readers, as does the regular article on diet from a qualified dietician. The current Journal Editor will continue to incorporate new ideas into the Journal moving forward.

Although the IA Journal remains the primary form of communication with a lot of our members, social media channels also play an increasingly important role in communicating with members and the wider stoma community. These channels include Facebook, Instagram, X (formerly Twitter) and YouTube. Campaigns run during the year included Ileostomy Awareness Month in April, IA Big Bake around the same period and Internal Pouch Awareness Month in October. In addition to public social media channels, our private Facebook group IA Pouch Pals, which is there to help support those with internal pouches and offer them a private safe space to interact, continues to attract new members. All who have an interest in internal pouches are welcome, whether they are IA members or not.

This year also saw the launch of a new website aimed at medical professionals called IA Professional. This resource is designed to provide GPs and others in primary care with a better understanding of the issues that may be presented to them by patients with an internal pouch or an ileostomy. There is also an area for downloadable documentation. As part of this launch, IA has also been accredited as a provider of continuing professional development (CPD) training and in this regard has produced a number of videos which will earn CPD points to those who view them, as well as a workshop run by IA at Best Practice, which is a two day event attracting over 4,000 GPs, practice managers and those in primary care.

Our One2One Support service, which replaced our previous visiting service, continues to go from strength to strength. One2One gives high quality support to patients by volunteers who have lived experience with an ileostomy or internal pouch. IA Support Volunteers work in conjunction with stoma care nurses to offer a unique non-medical perspective which can be invaluable in recovery from surgery and at the start of a new life with an ileostomy or an internal pouch. Anyone can request support from the volunteers – there is no requirement to be an IA member to use One2One Support. Over the past year we continued to identify and train more volunteers using our new ASCN endorsed online training course. We continue to further develop and actively promote One2One Support going forward.

We were thrilled to hold a Pouch Information Day in January 2023 in Birmingham, where nearly 50 delegates attended to hear pouch related presentations from both medical professionals in the form of a colorectal surgeon and senior specialist nurse and also from members of the pouch community, who shared their experiences about ileoanal and Kock pouches.

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A very successful Annual Information Day was held in April 2023, the first time we have been able to run this annual event in full and in person since 2019. The event allowed both members and non-members the opportunity to meet together in both formal and informal settings to discuss issues of common interest, share personal experiences and enjoy talks from healthcare professionals.

Other online events have been held throughout the year, including monthly Coffee and Chat online session run by the Internal Pouch sub-committee.

The Charity’s website continues to be further developed and improved to ensure it remains relevant and informative for all its users.

SERVICES FOR MEMBERS

Services for members and potential members continued, as did the work of the association under the appropriate national officers as listed on pages 2 and 3. At national office, enquiries of a general nature came from potential and existing members, healthcare professionals and commercial companies and working relationships continued with member organisations, Government bodies and associated patient support organisations.

IA's website remains a popular resource for information to those looking for guidance on living with

an ileostomy and internal pouch.

There was one application for a welfare grant this year which led to a goodwill payment of £160 from the Welfare Fund. However, the number of new applications for grants is disappointing given there are funds available for members to apply for in cases of hardship. Further consideration will need to be given to how we might improve take up of the funds held for welfare purposes. As noted earlier in this report, the number of enquiries increased last year with enquiries being received on wide range of welfare issues such as access to toilet cards and keys and disability benefits, and these were handled by national office, with a number of these being referred to other organisations for further information where relevant.

Matched funding continued to assist member organisations to support local projects such as equipment for hospitals and healthcare professionals. This year grants totalling £2,853 were paid out under this scheme (see Note 8 on page 32), compared to £3,556 last year.

As noted above, for the first time since the Covid pandemic we managed to hold both Annual Information and Internal Pouch Information Days, both of which were well received. In addition, we continued to run other events using online channels, such as the monthly Internal Pouch Coffee & Chat meetings.

Our Specialist Core Rehabilitation Program, launched last year in association with clinical exercise specialist Sarah Russel and funded by the Robert Wainwright fund, continued to provide free online core rehabilitation classes for any member with an ileotomy or internal pouch, as well as those who have reversal surgery or a parastomal hernia. We would encourage members to apply for funding for these classes which have proved very useful for attendees to date.

During the year, the decision was taken to broaden the reach of the Young IA offering to those over the age of 40, and the service was rebranded as IA Together as a result. This change was in line with our strategic cross cutting theme of inclusivity. The aim is to run a number of events under the IA Together banner both locally and nationally, with many local groups having their own IA Together Co-ordinator to contribute to this aim.

We were pleased to be able to offer assistance to those internal pouch members who were impacted by the decision by the company producing the Medena catheter to cease their supply. An emergency supply of the catheters was held at National Office which were then made available to

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members free of charge on request until a new supplier eventually took over the supply of this product.

GRANT MAKING POLICY

Members of IA benefit from a number of grants which enable them to apply for funding to attend events and purchase essential items.

• Bryan N Brooke IA Overseas Travel Fund: Professor Bryan Brooke, IA’s national founding President, wanted to enable ordinary IA members to attend international meetings, which they otherwise might not consider. Therefore, the Bryan N Brooke (IA) Overseas Travel Fund (BBOTF) was set up to assist IA members with their travel costs for overseas meetings and events. The fund was established as Bryan Brooke’s retirement gift from IA and in memory of his contribution as President for over 20 years.

• Victoria Wills (IA) Internal Pouch Bursary: This bursary is available for members with an internal pouch to assist with their travel costs to relevant IA meetings and events.

• Welfare Fund: This fund has been set up to assist IA members who are experiencing financial hardship to:

•  Purchase essential item(s) where ileostomy or internal pouch surgery has directly affected the need for the item(s).

•  Provide towards a convalescent break immediately following ileostomy or internal pouch surgery.

•  Purchase essential medical equipment which is not covered by a state grant or benefit.

• YIA Bursary Fund: The Young IA Bursary Fund has been set up to fund IA members under the age of 40 to attend events in circumstances whereby the IA member may not be able to attend the event through financial hardship.

• Research Fund: This fund supports research being carried out throughout the UK. This support can take the form of financial assistance, or promoting awareness of research being carried out that may be of benefit to members.

Each fund has its own set of grant making guidelines which must be adhered to and all applications are assessed by the appropriate executive committee sub-committee. Information and instructions for making an application are available to members, and application forms available from national office.

These grant making activities contribute to the achievement of IA’s aims and objectives by:

• Helping those with an ileostomy and internal pouch who are in financial hardship.

• Providing a service to its members, and keeping ileostomists and those with an internal pouch informed by giving them the opportunity to attend a variety of conferences, meetings and seminars.

• Promoting research by enabling members to attend a variety of research events and/or participate in research activities.

We continue to encourage the take up of the various grants available as the level of applications has remained low over recent years.

LIAISON WITH OTHER GROUPS

We continue to maintain good working relationships with other ostomy associations in the UK such as Colostomy UK and the Urostomy Association, as well as with internal pouch support groups, with Crohn’s & Colitis UK, and other relevant charities such as A Bear Named Buttony. Membership of the European Ostomy Association (EOA) enabled co-operation with ostomy support organisations in Europe and the worldwide ostomy community, and IA’s PR &

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Communications Manager Caroline Bramwell sits on the EOA’s Executive Committee, further strengthening ties and co-operation between our two associations and ensuring IA represents the UK at a European and wider level. IA is also one of the patient and professional organisations working together in partnership as IBD UK to improve standards of care and treatment for everyone with Inflammatory Bowel Disease.

Mutual benefit was derived from the continued liaison with the Royal College of Nursing, the Association of Stoma Care Nurses UK, the Royal College of Surgeons of England, the World Council of Enterostomal Therapists, the Kingston Trust, the Association of Coloproctology of Great Britain & Ireland, the Association of Coloproctology Nurses, the Irish Stoma Care Nursing Association, the Romanian Ostomy Patients’ Support Foundation, the British Healthcare Trades Association, Patients, Industry and Professionals (PIPs) Forum and the Scottish Stoma Forum.

RISK AND RISK MANAGEMENT

The trustees have a risk management strategy which comprises:

• The maintenance of a risk register recording all identified risks.

• An annual review of the risk register including the principal risks and uncertainties that the charity faces.

• The establishment of policies, systems and procedures to mitigate those risks identified in the annual review.

• The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

This work has identified that the performance of its investments is the major financial risk for the charity. Investment income forms a significant proportion of overall income and any reduction in investment income levels could have an adverse effect on the income available to support day-today operations. This risk is mitigated by retaining expert investment managers, Rathbone Investment Management (Rathbones), on a discretionary basis and ensuring that an investment policy is in place which specifies both the level of risk to be applied to the management of the investment portfolio and the approach to income generation. The arrangement with Rathbones is reviewed on an annual basis to ensure that performance continues to meet with the charity’s requirements. An annual review meeting with Rathbones also normally takes place, although this has not taken place in person this year due to scheduling difficulties. Nevertheless, regular communication between the charity and Rathbones has continued during this period and email updates are provided by our dedicated investment manager whenever changes to the portfolio’s composition occur.

The Trustees are in agreement with Rathbones’ cautious view on the global economic outlook over the coming year and anticipate that there could be recessions in both the US and Europe. Potential downside risks in term of capital value depreciation have been mitigated by locking in some profits already achieved through the sale of existing equity portfolio holdings, as well as the moving of some monies from the diversifiers segment into traditional government bonds. The Trustees are satisfied with these actions in term of risk management and reduction.

Attention has also been focused on non-financial risks, the principal ones relating to the employment of staff and the potential loss of key staff and officers. The former risk has been mitigated by the engagement of professional legal advice on employment matters, the latter by the creation of contingency plans that include the identification of alternate resources able to assume responsibility should the loss of key people occur.

During the financial year, the impact of the Covid-19 pandemic has to a large extent faded away, with staff members located at our National Office returning to work in the office as the norm. Our annual Information Day took place in person in April 2023 for the first time since 2019 and the numbers attending confirmed the fact that to a large extent most people have chosen to return to

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normal in term of their activities and social contact with others. Nevertheless, the Trustees are aware that future pandemics are a possibility and the risk management procedures and practices put in place during Covid have been well learned and can be implemented again at short notice should that be necessary.

FINANCIAL RESULTS AND REVIEW

The full accounts of IA are shown on pages 20 to 44. They show the activities of the principal charity and the Branch member organisations but do not include the activities of the Affiliate member organisations, who are separately registered charities responsible for preparing their own accounts in accordance with the appropriate legislation.

The accounts show a deficit of £119,043 in the financial year to 30 September 2023. This figure includes an amount of £102,033 in relation to gains on investments. Of the £119,043 deficit recorded, £100,350 related to a deficit on unrestricted funds whilst £18,693 related to restricted funds. Taking these results into account, closing assets stood at £5,298,203.

RESERVES POLICY

The Board of Trustees has determined that the following policies will apply in respect of the various funds held.

General Fund

The General Fund provides resources for the day to day running of the charity and should hold reserves sufficient to cover a minimum of six months’ payments based on the expenses incurred in the last full financial year, plus any future planned additional expenditure.

Designated funds

Any designated funds established by the Board of Trustees are intended to provide income for specific purposes. The Capital Investment Fund was established to provide income for the General Fund. All capital in any designated funds may be spent on the authority of the Board of Trustees. In addition to the designated funds noted above, each Branch member organisation has its own designated fund. Further information on this is provided in the section Branch Funds below.

Restricted Funds

Restricted funds have been established either where the donations received are restricted by the donors, or where the fund has been established for a restricted purpose. In the case of the Welfare Fund and the Bryan N. Brooke (IA) Overseas Travel Fund, the intention is to maintain the capital, adding any donations received, and to spend the income providing grants for the purposes for which the funds were established. All other restricted funds are holding donations until such time as they can be spent in accordance with the restriction. In addition to the named restricted funds, each Branch member organisation has its own restricted fund(s). Further information on this is provided in the section Branch Funds below.

When assessing levels of reserves in each fund, the Board of Trustees ignores unrealised profits on investments, as these are not considered sufficiently reliable to guarantee future spending levels.

Branch Funds

Each Branch member organisation has its own designated fund and restricted fund. All income for a particular Branch is credited to its designated fund, whilst all expenditure for that Branch is taken from its restricted fund until such time as that fund has been exhausted, when expenditure is then

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set against the branch’s designated fund. Rather than set an individual reserves policy for each Branch and its funds, the Board of Trustees instead monitor the net position of each Branch on an ongoing basis to ensure that sufficient funds remain in each branch to continue their activities for the foreseeable future.

Overall

All fund balances are in line with or exceed their reserves policy. The total funds held by the charity at 30 September was £5,298,203 of which £4,730,012 was held as unrestricted funds and the remaining £568,191 held as restricted funds. Included in unrestricted funds are designated funds of £4,465,577 leaving £264,435 in general unrestricted funds.

INCOMING AND OUTGOING RESOURCES

Income for the year was £393,993 compared to £390,382 in the prior year, a 0.9% increase year on year.

Looking at income in more detail, income from donations and legacies was £128,222, a fall from the 2022 figure of £142,341. This fall was due in large part to a decrease in legacy income, down from £97,774 in 2022 to £69,068 in the year under review. It is in the nature of income from legacies that levels can fluctuate significantly year on year and are neither controllable nor forecastable. Partially offsetting the fall in legacy income was an increase in external donation income, up from £37,318 in 2022 to £44,853 in 2023.

Income from charitable activities rose 21.6% this year, up from £108,516 in 2022 to £132,016 this year. Of this figure, income from advertising in the IA Journal contributed £53,128, which was up from the previous year’s figure of £50,647. Income from Journal advertising has therefore shown an increase over the past two years after a decline over a number of years, and it is hoped that with income from this stream now stabilised we can look to build further increases in advertising revenue going forward. Also included within income from charitable activities, member organisation annual subscription income of £30,149 (2022: £29,257) credited to unrestricted funds relates to the annual charge payable by member organisations to the national charity and includes £27,314 of annual subscription income charges to Branch member organisations. As the £27,314 is also a cost to the Branches, the same amount is also included in expenditure on charitable activities as this was charged against the Branches’ individual restricted funds. Income from member subscriptions rose to £41,568 (2022: £27,912) after a concerted and successful effort to collect overdue subscriptions due from previous years.

Income from investments was down to £133,755 in 2023 from a figure of £139,525 the previous year. To an extent income levels here are likely to fall as capital is drawn down from the portfolio to help fund operational activities.

Expenditure for the year was £615,069 (2022: £544,093), of that £557,504 (2022: £503,451) being charged to unrestricted funds and £57,565 (2022: £40,642) to restricted funds. Of total expenditure, 95% (2022: 95%) or £587,322 (2022: £515,404) was in support of IA's charitable activities with 5% (2022: 5%) or £27,747 (2022: £28,689) being the cost of raising funds. Of the £587,322 incurred as expenditure of charitable activities, £40,098 (2022: £31,303) related to costs borne by Branches as a result of their charitable activities and charged to their restricted funds.

INVESTMENT POLICY

Investments are shown in the accounts at market value. Up until October 2019, the charity had a single investment portfolio managed under a discretionary management agreement with Rathbone Investment Management using a medium risk stance. In October 2019 £385,000 was transferred from the charity’s bank account in to a new “B” portfolio, this being the investment of a proportion of funds held on behalf of Branches. The “B” portfolio is similarly managed under a discretionary management agreement using a low to medium risk stance.

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The charity's investment policy is shown in the Financial Regulations document and is "to hold investments to provide income in support of its core operations". Income generated from the “B” portfolio is credited to Branches taking into account their average funds over the financial year as a proportion of total funds. There are no social, environmental or ethical considerations contained within the investment policy.

As noted above, combined total investment income from both portfolios was £133,755 this year compared to £139,525 in 2022. Net gains on investment stood at £102,033 (2022: net losses of £554,935). Of the total net gains of £102,033, unrealised gains on investments held within the portfolios at year end were £29,088, whilst realised gains on investment sales were £72,945.

Total return on investments over the 12-month period to 30 September 2023 for the main portfolio was 3.86% when compared to the ARC Charity Balanced GBP portfolio reference point return of 3.77% over the same period. Returns over three years on an annualised basis were 4.11% compared to a benchmark figure of 2.23% using the same ARC benchmark. The “B” portfolio, which has a slightly more defensive strategy than the main portfolio, posted a total return over the 12-month period to 30 September 2023 of 2.76% and returns over three years on an annualised basis were 2.43%, with the same ARC benchmark figures noted above being applicable here.

In accordance with the requirements of the Trustee Act, 2000, Part II, section 4(2), from time to time, the trustees review the investments of the trust and consider whether, having regard to the standard investment criteria, they should be varied. Changes in policy would be reflected in the investment management agreement and in the targets set for IA’s investment managers. There were no changes to the investment policy document during the year.

FUTURE PLANNING

The restructure that the Charity went through in 2018 put firm foundations in place on which to build a more resilient charity, with the option of local groups becoming a Branch if they wished to ease their regulatory and administrative burdens and concentrate instead on supporting their members, or to remain as an independent charity affiliated to IA, these groups known as Affiliates. A further Affiliate group took the decision to become a Branch in the year under review, leaving a total of 37 Branches and 8 Affiliates. This demonstrates that the decision to restructure was the right one to take for the Charity. The Trustees will continue to offer the option of becoming a Branch to any Affiliate who feels their circumstances warrant a change of status going forward.

Last year’s report noted that a new IA Strategic Plan 2022-25 had been published in September 2022, the Trustees believing that its implementation would present many exciting opportunities for the charity to further develop its services to members and the wider community. Work has continued during the year under review on various aspects of the plan, and looking ahead, there are plans for more of strategic aims and objectives contained in the plan to be implemented. One example of this is the creation of a new role to act as a liaison between the national charity and its local groups, thereby helping to achieve aim 3 of the plan, “harnessing the power of our group network and volunteers”. Recruitment for this role is currently underway and it is expected that the new person will be in post shortly. The Trustees recognise that strategy setting is an organic process and work will continue on further strategic planning going forward.

The working undertaken during the year under review to create a national set of policies and procedures will continue over the coming year as the Charity seeks to ensure that all areas of the Charity are operating in a consistent way and that good governance is built into everything it does.

The management committee, which consists of senior staff and Trustees, continues to meet regularly to consider matters of both strategic and operational natures, making recommendations to the Board of Trustees where relevant. All meetings are held online as this has proved more effective logistically, and the large majority of Board and sub-committee meetings are also held online rather than in person for the same reason. Nevertheless, some meetings are planned to take place on a face-to-face basis over the coming year as the Trustees believe that certain benefits accrue from meeting in this way that cannot be replicated online.

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It is for this reason that we were very pleased to be able to hold our annual Information Day for 2023 in person for the first time since the onset of Covid and its resultant restrictions. The event was without doubt a great success and the plan is for future annual Information Days to continue to be actual rather than virtual events. In addition, there are plans for more regional events to be held to allow more members and other interested parties to attend where they might not otherwise be able to due to geography or other conflicting commitments.

The Trustees consider that the charity will be able to continue to meet its charitable objectives over the coming year.

CONCLUSION

IA continues to have a significant level of assets which offers a cushion against future problems. All funds remain stable and all activities can continue as planned. The Trustees are satisfied that all known commitments can be met for the foreseeable future.

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ILEOSTOMY AND INTERNAL POUCH ASSOCIATION

Opinion

We have audited the accounts of IA (the ‘Charity’) for the year ended 30 September 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, 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 the 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 charitable company's affairs as at 30 September 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the 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 FRC’s Ethical Standard, and we have fulfilled our 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees’ Report which includes the directors’ report for the purposes of company law for the financial year for which the accounts are prepared is consistent with the accounts; and

• the directors’ report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the Trustees’ Report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of trustees’ remuneration specified by law are not made; or

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

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal controls 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 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 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 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 accounts.

Identification and assessment of irregularities including fraud

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

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• 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 association, including The Companies Act 2006.

• we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework by making appropriate enquiries of management as well as considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

• we made enquiries of those charged with governance and management concerning: - the risks of fraud;

• instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented during the period;

• we allocated an engagement team that we considered collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

Audit response to the risk of irregularities including fraud

Based on the results of our risk assessment, our procedures included, but were not limited to:

• performing analytical procedures to identify any unusual or unexpected relationships.

• evaluating whether the selection and application of accounting policies by the entity that may be indicative of fraudulent financial reporting resulting from management’s effort to manage earnings.

• assessing whether judgements and assumptions made in determining the accounting estimates set out in note 1.11 were indicative of potential bias.

• agreeing financial statement disclosures to underlying supporting documentation.

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

• reviewing the correspondence with relevant regulatory bodies.

• testing of journal entries to address the risk of fraud through management override.

• incorporating an element of unpredictability in the selection of the nature, timing, and extent of our audit procedures.

• corroborating the business rationale for transactions outside the normal course of business.

Conclusions regarding the risks of irregularities including fraud

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.

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.

We considered our audit was capable of detecting irregularities due to:

• the effectiveness of the entity’s internal controls;

• the nature, timing and extent of audit procedures performed; and

• the absence of contradictory evidence.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Statement of Financial Activities (including income and expenditure account) for the year ended 30 September 2023

	Note	Unrestricted Funds £	Restricted Funds £	Total funds 30/9/2023 £	Total funds 30/9/2022 £ (Note 2)
Income from: Donations and legacies Charitable activities Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) before gains and losses on investments Net gains (losses) on investments Net income/(expenditure) Transfers between funds Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward
	3 4 5	110,707 132,016 124,666	17,515 - 9,089	128,222 132,016 133,755	142,341 108,516 139,525
		367,389	26,604	393,993	390,382
	6 7	25,903 531,601	1,844 55,721	27,747 587,322	28,689 515,404
		557,504	57,565	615,069	544,093
		(190,115)	(30,961)	(221,076)	(153,711)
		94,841	7,192	102,033	(554,935)
	20	(95,274) (5,076)	(23,769) 5,076	(119,043) -	(708,646) -
		(100,350) 4,830,362	(18,693) 586,884	(119,043) 5,417,246	(708,646) 6,125,892
		4,730,012	568,191	5,298,203	5,417,246

IA has no recognised gains or losses other than those dealt with in the Statement of Financial Activities.

The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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Balance Sheetas	Balance Sheetas	30 SeDtember 2023	30 SeDtember 2023
	Notes	f	Total :ixw,fi,$,23 e	€	Total MN1N C
FiredAssets
lnesfrEnts	14		5,224,613		5,346,790
TotalFixedAsse{s			5,24,613		5,346,790
Cu]fent Assets
Debtors	16	91,889		139,388
Cash on deposit andinhand		133,029		88,699
T&lCunEntAssc{s		224,914		228,O87
Liatilitics
Creditors fallingduewithinoneyear	18	151,328		157,631
NetGunent Assets			73,590		70,rf56
Total assetsIesscurcrt !iabalities			5,298,203		5,117,2fi
l{etAsseils			5,298,203		5,117,26
The Funds oftfie Charity
Generalunresticiedincomefunds	20&21	4,fi2,326		4,753,1il
Revaluatimresene		167,686		77,204
TotalunresticHirmmefrrnds			1,730,O12		4,830,362
Generalresticiedincone funds	20&21	565,033		596.200
RevahElionreserve		3,158		(9,316)
Total rcstsicGd inc.xnefunds			558,191		586,884
T&lGharityFunds			5,298,203		5,117,26

Statement of Cash Flows for the year ended 30 September 2023

Net cash used in operating activities Cash flows from investing activities Interest and dividend income Proceeds from sale of investments Purchase of investments Net cash provided by/(used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward Relating to: Cash on deposit and in hand
	Notes	Total Funds 2023 £	Total Funds 2022 £
	23	(313,634)	(336,692)
		133,755 763,448 (539,239)	139,525 1,118,785 (994,821)
		357,964	263,489
		44,330 88,699 133,029	(73,203) 161,902 88,699
		133,029	88,699

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Notes to the Accounts for the Year ended 30 September 2023

1 ACCOUNTING POLICIES

Charity information

Ileostomy and Internal Pouch Association is a private company limited by guarantee incorporated in England and Wales. The registered address is Danehurst Court, 35-37 West Street, Rochford, Essex SS4 1BE.

1.1) Basis of preparation and assessment of going concern

The Charity is a public benefit entity and the financial statements have been prepared in accordance with the governing document, the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (as amended for accounting periods commencing from 1 January 2019), the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Act 2011, relevant law and accounting standards.

The charity meets the definition of a public benefit entity under FRS102.

The accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in the financial statements are rounded to the nearest pound.

The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies are set out below.

All property, assets, rights and charitable undertakings of IA (Ileostomy and Internal Pouch Support Group) (registered charity number 234472) were transferred to Ileostomy and Internal Pouch Association with effect from 1 October 2018.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern, and that they have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing these accounts of the incorporated association.

1.2) Income

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

Journal advertising is taken on an accruals basis. Donations are recognised when the charity has been notified in writing of both the amount and the settlement date. Legacies are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. 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. Investment income is recognised on a receipts basis upon notification by the charity's investment manager.

All other income has been taken into account on a cash received basis.

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1.3) Expenditure

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

All expenditure is accounted for on an accruals basis.

“Raising funds” includes all direct costs incurred in running fundraising events and investment management costs.

“Charitable activities” includes all costs incurred in meeting our charitable objects and providing support and information to our beneficiaries. Half of the costs of the annual meeting (formerly known as the National Council meeting) are charged under this heading since this meeting not only fulfils the requirements of an annual general meeting but also includes activities designed to help representatives of IA’s member organisations to run their charities effectively. Included are updates on research undertaken and other matters important to the running of the charity.

In addition 50% of the costs of our national office are included. The national office of IA not only provides administrative support to the Board of Trustees but also acts as the first point of contact for patients needing our advice and support, as well as supporting IA’s member organisations. For this reason the costs are divided between this category and “governance costs”.

Much of the work of IA is managed by sub-committees of the main board. The costs of their meetings are included as part of our charitable activities. In addition, since the responsibilities of the board include much direct charitable work, 50% of the cost of the board meetings is included as charitable activities.

“Governance costs” include all costs incurred in the financial management of IA. In addition, 50% of the cost of the annual meeting, the running of national office and the meetings of the board are shown here. Any other costs of an administrative nature are also charged to this heading.

Grants for research and other purposes are recognised as soon as a written agreement between the parties confirming the amount committed and the work to be carried out has been made. Provisions for grants for research and other purposes are recognised when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of the grant payable.

1.4) Tangible and intangible fixed assets

Expenditure on tangible and intangible fixed assets is normally charged to revenue in the year of purchase, unless the level of expenditure on individual items would distort the accounts, or if the asset has been donated to a research project while ownership has been retained by IA. In such cases assets are written off on a straight-line basis at rates calculated to reduce their cost to expected residual value over the term of their anticipated useful lives as follows:

Software 33%

1.5) Investments

All investments 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 statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their

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opening carrying value or their purchase value if acquired on or 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. Realised and unrealised investment gains and losses are combined in the statement of financial activities.

1.6) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7) Financial instruments

The charity has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments” of FRS102 to all of its financial instruments.

Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at the market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are an obligation to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.8) Funds

IA has both unrestricted and restricted funds, but no endowment funds, as shown below.

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Unrestricted Funds

1. General Fund

2. Capital Investment Fund (designated to provide income for the General Fund)

3. Branch member organisation Designated funds

Restricted Funds

1. Research Fund (to provide grants for research projects relevant to our beneficiaries)

2. Welfare Fund (to provide small financial grants to members)

3. Bryan N. Brooke (IA) Overseas Travel Fund (established by our founding president, Professor Bryan N. Brooke, to provide grants to assist members to attend related meetings abroad)

4. Young IA Bursary Fund (to provide grants to young people to attend events which will aid their recovery after surgery)

5. The Victoria Wills IA Internal Pouch Bursary (established in memory of Victoria Wills to provide grants to those with an internal pouch to attend events which will aid their recovery after surgery)

6. IA Annual Award for Innovation (established by former executive committee chairman Carolyn Stammers to provide funds for an annual award offered to IA member organisations for innovative ideas and activities).

7. Robert Wainwright Fund (established as a result of a pecuniary legacy from the estate of Robert Wainwright to promote exercise and fitness in stoma patients through online classes, videos, workshops and other similar services).

8. Branch member organisation Restricted funds

One of the unrestricted funds, the Capital Investment Fund, was designated to special purposes (to provide income for the General Fund) by decision of the board, which could be changed in the future.

For the purposes of clarity in these financial statements, all Branch designated funds have been amalgamated into a single reporting line shown as Branch Designated within unrestricted funds and similarly all Branch restricted funds have been amalgamated into a single reporting line shown as Branch Restricted funds under restricted funds.

Further details of each fund are disclosed in note 20.

1.9) Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the statement of financial activities on a straight-line basis over the period of the lease.

1.10) Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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As required by law, the charity offers a workplace pension scheme to all eligible employees. The scheme is operated by the National Employment Savings Trust (NEST) and is a defined contribution scheme with contributions made by both employer and employee. The amount charged to the Statement of Financial Activities in respect of pension costs is the contribution payable by the charity in the year.

1.11) Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and the future periods where the revision affects both current and future periods.

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2 ANALYSIS OF PRIOR YEAR TOTAL FUNDS SHOWN ON STATEMENT OF FINANCIAL ACTIVITIES

	Note	Unrestricted Funds £	Restricted Funds £	Total funds 30/9/2022 £
Income from: Donations and legacies Charitable activities Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) before gains and losses on investments Net gains (losses) on investments Net income/(expenditure) Transfers between funds Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward
	3 4 5	133,090 108,516 129,985	9,251 - 9,540	142,341 108,516 139,525
		371,591	18,791	390,382
	6 7	26,783 476,668	1,906 38,736	28,689 515,404
		503,451	40,642	544,093
		(131,860)	(21,851)	(153,711)
		(516,938)	(37,997)	(554,935)
	20	(648,798) (58)	(59,848) 58	(708,646) -
		(648,856) 5,479,218	(59,790) 646,674	(708,646) 6,125,892
		4,830,362	586,884	5,417,246

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3 INCOME FROM DONATIONS AND LEGACIES

General Fund Branch Designated funds Total unrestricted funds Research Fund Branch Restricted funds Total restricted funds Total 2023 Total 2022
	Funds transferred in from Branch member organisations	Member organisation donations £	Other donations £	Legacies £	Total 2023 £	Total 2022 £
	- -	- -	24,584 20,055	64,068 2,000	88,652 22,055	115,215 17,875
	-	-	44,639	66,068	110,707	133,090
	- 13,801	500 -	214 -	3,000 -	3,714 13,801	5,502 3,749
	13,801	500	214	3,000	17,515	9,251
	13,801	500	44,853	69,068	128,222
	3,749	3,500	37,318	97,774		142,341

As of 1 October 2022, one Affiliate member organisation opted to become a Branch and the transfer of their funds of £13,801 into the national charity is therefore included in donations in the Statement of Financial Activities.

The charity benefits greatly from the involvement and support of its volunteers, details of which are given in our annual report. In accordance with FRS102 and the Charities SORP (FRS102), the economic contribution of general volunteers is not recognised in the accounts.

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4 INCOME FROM CHARITABLE ACTIVITIES

IA Journal Annual (National Council) meeting Member organisation annual subscriptions Member subscriptions Total Total 2022	Unrestricted funds £	Restricted funds £	Total 2023 £	Total 2022 £
	53,128 7,171 30,149 41,568	- - - -	53,128 7,171 30,149 41,568	50,647 700 29,257 27,912
	132,016	-	132,016	108,516
	108,516	-	-	108,516

Income of £30,149 shown above under unrestricted funds as member organisation annual subscriptions includes £27,314 in relation to annual subscription charges levied on Branch member organisations by the charity. A corresponding expense of £27,314 is included under charitable expenditure to reflect the cost to the individual Branches’ restricted funds. As such, the overall net effect of these items on the charity is zero.

5 INVESTMENT INCOME

Investment and interest income was £133,755 (2022: £139,525) of which £124,666 was unrestricted (2022: £129,985) and £9,089 was restricted (2022: £9,540). It came from the following sources:

UK listed investments Bank interest Total
	2023 £	2022 £
	133,755 -	139,525 -
	133,755	139,525

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6 EXPENDITURE ON RAISING FUNDS

Investment management costs Online fundraising costs Total
	2023 £	2022 £
	27,117 630	28,059 630
	27,747	28,689

Expenditure on raising funds was £27,747 (2022: £28,.689) of which £25,903 was unrestricted (2022: £26,783) and £1,844 was restricted (2022: £1,906).

7 EXPENDITURE ON CHARITABLE ACTIVITIES

IA Journal (including distribution costs) Grants and donations Annual (National Council) meeting (apportioned) Internal Pouch Group activities One2One training Publicity & promotion Information sheets & booklets National office (apportioned) Charitable activities Branch member organisation activities Support costs Governance costs Total	Note	2023 £	2022 £
	8 9 10	56,346 15,245 13,622 8,860 4,350 106,884 3,686 154,863 - 40,098 20,272 163,096	53,039 21,149 7,359 4,060 5,738 82,724 2,616 145,892 5 31,303 11,251 150,268
		587,322	515,404

In 2023, expenditure on charitable activities was £587,322 (2022: £515,404), of which £531,601 was expenditure from unrestricted funds (2022: £476,668) and £55,721 was expenditure from restricted funds (2022: £38,736). Expenditure of £40,098 shown above as Branch member organisation activities includes £27,314 in relation to annual subscription charges levied on Branch member organisations by the charity. Corresponding income of £27,314 is included under

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charitable income to reflect the income due to the unrestricted funds of the charity. As such, the overall net effect of these items on the charity is zero.

8 GRANTS AND DONATIONS

Grants to individuals Grants to institutions and organisations Grants to IA member organisations Other donations	2023 £	2022 £
	4,129 5,000 2,853 3,263	13,024 - 3,556 4,569
Total	15,245	21,149

Recipients of grants to institutions and organisations were –

Recipients of grants to institutions and organisations were –
	£
Cardiff and Vale University Health Board: Grant for IDB surveillance project	5,000

9 SUPPORT COSTS

IA Journal Annual (National Council) meeting (apportioned) Publicity & promotion Young IA Internal Pouch Charitable activities Total	2023 £	2022 £
	3,231 6,116 5,505 120 120 5,180	3,211 1,452 1,425 120 120 4,923
	20,272	11,251

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10 GOVERNANCE COSTS

National office (apportioned) Annual (National Council) meeting (apportioned) Other administrative meetings Audit fee Insurance Bank charges & currency costs Legal costs Other expenses Total	2023 £	2022 £
	132,616 7,552 - 4,050 4,606 1,004 4,613 8,655	113,883 5,908 5 3,850 4,187 688 7,702 14,045
	163,096	150,268

IA has Trustee Indemnity Insurance to indemnify the trustees and other officers against the consequences of any neglect or default on their part and to cover the trustees of IA's member organisations. The cost of this insurance is £4,606 (2022: £4,187) and is shown above.

11 ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

Salaries and wages Social security costs Pension costs Other benefits Agency/contract staff Total	2023 £	2022 £
	141,103 10,559 13,888 3,625 69,256	162,545 12,394 14,628 3,768 29,731
	238,431	223,066

During the year no employment termination payments were made (2022: £5,000).

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The average number of employees during the year was 4 (2022: 5) with all employee time involved in providing either support to the governance of the charity or support to charitable activities. The average number of full time equivalent employees during the year was 3 (2022: 4).

The number of employees receiving total employee benefits (excluding employer pension costs) in excess of £60,000 were

excess of £60,000 were
Total employee benefits (excluding employer pension costs)	2023	2022
£70,001 - £80,000	1	1

The charity considers that its key management personnel comprise the trustees, the Chief Executive Officer and the National Officer Manager. The total employee benefits of the key management personnel were £140,625 (2022: £131,733).

12 PAYMENTS TO TRUSTEES AND RELATED PARTY TRANSACTIONS

The trustees all give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2022: nil). Trustees were reimbursed expenses incurred in performing their duties as board members, as follows -

Five trustees (2022: 4) were paid £1,305 (2022: £985) for travelling, postage, telephone, stationery and other costs incurred in fulfilling their voluntary activities. No trustees received remuneration for providing services to the charity.

Total donations received without conditions from trustees were zero (2022: nil).

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13 INTANGIBLE FIXED ASSETS

Software Cost At 1 October 2022 Additions At 30 September 2023 Amortisation At 1 October 2022 Charge for the year At 30 September 2023 Net book value At 30 September 2022 At 30 September 2023
	Total £
	6,211 -
	6,211
	6,211 -
	6,211
	- -

Software comprises the membership database purchased to administer the membership records of the charity. Development costs which enhance the functionality of the software are capitalised. Costs for the software are amortised over a three year life from the date the expenditure was incurred, with amortisation included within expenditure on charitable activities in the statement of financial activities. The trustees have chosen to amortise such costs over a three year period as in their opinion this most accurately reflects the life of all software, which is inherently limited due to ongoing product development and the retirement and replacement of current software products with new improved versions .

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14 FIXED ASSET INVESTMENTS

Movements on investments for the year ended 30 September 2023 were as shown below.

Market value basis Quoted investments Brought forward Additions Disposals at carrying value Unrealised gains/losses At market value 30th September At cost 30 September
	2023 £	2022 £
	5,346,790 539,239 (690,504) 29,088	6,025,689 994,821 (1,105,242) (568,478)
	5,224,613	5,346,790
	5,053,769	5,278,898

Prior to October 2019, all investments were held in a single main portfolio, with investments allocated to funds on the basis of the cost input by each fund. At 1 October 2019, the split was as follows:

follows:
Capital Investment Fund	87.54%	Research Fund	6.64%
General Fund	0.00%	Welfare Fund	0.46%
Elizabeth Clay Memorial Fund	5.18%	Bryan N. Brooke (IA) Overseas Travel Fund	0.18%

In October 2019, £375,000 was transferred from the charity’s bank account into a new “B” portfolio, this being the investment of a proportion of funds held on behalf of Branches in order to generate an income for these Branches. The main portfolio continued to operate using the split noted above until 30 September 2021, when the Elizabeth Clay Memorial Fund was closed and the value of the main portfolio previously allocated to it was transferred to the Capital Investment fund as of 1 October 2021. The split from 1 October 2021 on the main portfolio was therefore as follows:

Capital Investment Fund	92.72%	Research Fund	6.64%
General Fund	0.00%	Welfare Fund	0.46%
		Bryan N. Brooke (IA) Overseas Travel Fund	0.18%

The table above showing movement on investments for the year represents the combined investments held on both the main and “B” portfolios.

The cash held within the investment portfolios is £24,574 (2022: £40,579). All the investments are quoted on the UK Stock Exchange. IA does not hold any investments outside the UK. Looking at the combined investment portfolios, there are no investments that exceed 5% of the total market

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value as at 30 September 2023. There are no restrictions on the realisation of any investment held by the charity.

15 FINANCIAL INSTRUMENTS

15 FINANCIAL INSTRUMENTS
Carrying value of financial assets Instruments measured at fair value through profit and loss	2023 £	2022 £
	5,224,613	5,346,790

16 DEBTORS

Amounts falling due within one year: Legacies due Prepayments Other debtors Due from branch member organisations Rent deposit Total
	2023 £	2022 £
	42,468 8,549 37,372 - 3,500	81,681 3,231 39,466 11,510 3,500
	91,889	139,388

17 CASH ON DEPOSIT AND IN HAND

The balance shown includes an amount of £100 held on trust for the unincorporated predecessor charity, IA (Charity Commission (England & Wales) registration number 234472).

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18 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals Research projects Taxation and social security Due to branch member organisations Other creditors Total
	2023 £	2022 £
	39,802 84,355 4,044 1,178 21,949	40,354 84,355 4,298 1,038 27,586
	151,328	157,631

19 RETIREMENT BENEFIT SCHEMES

Defined contribution schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.

The charge to profit or loss in respect of defined contribution schemes was £13,888 (2022: £14,628). The creditor at the balance sheet date relating to this scheme is £975 (2022: £472).

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20 ANALYSIS OF CHARITABLE FUNDS

For the financial year ended 30 September 2023

Unrestricted funds General Capital Investment Branch Designated Total unrestricted funds Restricted funds Research Welfare Bryan N Brooke (IA) Overseas Travel Young IA Bursary The Victoria Wills IA Internal Pouch IA Annual Award for Innovation Robert Wainwright Branch Restricted Total restricted funds Total funds	Balance 1/10/22 £	Income £	Expenditure £	Gains/ (losses) on investment assets £	Transfers between funds	Balance 30/9/2023 £
	238,466 4,375,566 216,330	295,886 - 71,503	553,935 - 3,569	- 94,841 -	284,018 (284,018) (5,076)	264,435 4,186,389 279,188
	4,830,362	367,389	557,504	94,841	(5,076)	4,730,012
	97,853 34,483 19,774 5,230 1,813 460 58,056 369,215	12,005 570 228 - - - - 13,801	1,682 276 46 - - 111 3,969 51,481	6,560 451 181 - - - - -	- - - - - - - 5,076	114,736 35,228 20,137 5,230 1,813 349 54,087 336,611
	586,884	26,604	57,565	7,192	5,076	568,191
	5,417,246	393,993	615,069	102,033	-	5,298,203

The transfer of £284,018 from the Capital Investment Fund to the General Fund was made to bring the level of General Fund reserves back into line with the charity’s reserves policy. A transfer of £5,076 was made from Branch Designated to Branch Restricted funds to cover deficits on individual Branches’ Restricted Funds accounts.

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For the financial year ended 30 September 2022

Unrestricted funds General Capital Investment Branch Designated Total unrestricted funds Restricted funds Research Welfare Bryan N Brooke (IA) Overseas Travel Young IA Bursary The Victoria Wills IA Internal Pouch IA Annual Award for Innovation Robert Wainwright Branch Restricted Total restricted funds Total funds	Balance 1/10/21 £	Income £	Expenditure £	Gains/ (losses) on investment assets £	Transfers between funds	Balance 30/9/2022 £
	210,455 5,102,082 166,681	318,017 - 53,574	499,584 - 3,867	- (516,938) -	209,578 (209,578) (58)	238,466 4,375,566 216,330
	5,479,218	371,591	503,451	(516,938)	(58)	4,830,362
	120,046 36,388 20,537 5,230 1,813 571 60,000 402,089	14,204 599 239 - - - - 3,749	1,738 120 48 - - 111 1,944 36,681	(34,659) (2,384) (954) - - - - -	- - - - - - - 58	97,853 34,483 19,774 5,230 1,813 460 58,056 369,215
	646,674	18,791	40,642	(37,997)	58	586,884
	6,125,892	390,382	544,093	(554,935)	-	5,417,246

The transfer of £209,578 made to the General Fund from the Capital Investment Fund was made to bring the level of General Fund reserves back into line with the charity’s reserves policy. A transfer of £58 was made from Branch Designated to Branch Restricted funds to cover a deficit on an individual Branch’s Restricted Funds account.

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21 ANALYSIS OF NET ASSETS BETWEEN FUNDS

For the financial year ended 30 September 2023

Unrestricted funds General Capital Investment Branch Designated Total unrestricted funds Restricted funds Research Welfare Bryan N Brooke (IA) Overseas Travel Young IA Bursary The Victoria Wills IA Internal Pouch Bursary IA Annual Award for Innovation Robert Wainwright Branch Restricted Total restricted funds Total funds	Fixed Assets £	Net Current Assets/ (Liabilities) £	Long Term Liabilities £	Total 30/9/2023 £
	- 4,520,304 -	264,435 (333,915) 279,188	- - -	264,435 4,186,389 279,188
	4,520,304	209,708		4,730,012
	323,715 22,426 8,775 - - - - 349,393	(208,979) 12,802 11,362 5,230 1,813 349 54,087 (12,782)	- - - - - - - -	114,736 35,228 20,137 5,230 1,813 349 54,087 336,611
	704,309	(136,118)	-	568,191
	5,224,613	73,590	-	5,298,203

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For the financial year ended 30 September 2022

Unrestricted funds General Capital Investment Branch Designated Total unrestricted funds Restricted funds Research Welfare Bryan N Brooke (IA) Overseas Travel Young IA Bursary The Victoria Wills IA Internal Pouch Bursary IA Annual Award for Innovation Robert Wainwright Branch Restricted Total restricted funds Total funds	Fixed Assets £	Net Current Assets/ (Liabilities) £	Long Term Liabilities £	Total 30/9/2022 £
	- 4,634,600 -	238,466 (259,034) 216,330	- - -	238,466 4,375,566 216,330
	4,634,600	195,762		4,830,362
	331,900 22,993 8,997 - - - - 348,300	(234,047) 11,490 10,777 5,230 1,813 460 58,056 20,915	- - - - - - - -	97,853 34,483 19,774 5,230 1,813 460 58,056 369,215
	712,190	(125,306)	-	586,884
	5,346,790	70,456	-	5,417,246

Unrealised gains on investment assets included above:

Unrestricted funds Restricted funds Total
	2023 £	2022 £ 77,208 (9,316) 67,892
	167,686 3,158
	170,844

22 OPERATING LEASE COMMITMENTS

The charity previously entered into a lease for the rental of office premises at Danehurst Court, Rochford on 27/1/2016 with a lease term of 5 years. A rental of £14,000 was payable per annum for the first 3 years of the lease with a rent review after that period based on the rise in the Retail Price Index (RPI) during the lease term, which led to an increased rental of £15,336 per annum

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payable from 27/1/2019 until the lease expired. An annual service charge of £1,000 was also payable. A security deposit of £3,500 was paid on the inception of the lease which was returnable at the expiry of the lease term.

The charity entered into a further 5 year lease on the same premises on 27/1/2021 with an agreed rental for the first 2 years of the lease of £14,000 and a rent review after that period where the rent would be subject to negotiation with the landlord but where in any event the increased annual rental payable will not exceed £15,336 per annum. This review took place in January 2023 and the new rental payable was set at £15,336 per annum. The annual service charge of £1,000 will continue to be payable and the security deposit of £3,500 has been retained by the landlord, the latter amount being disclosed in note 16 above.

The amount charged to expenditure on charitable activities in relation to the lease was £15,905.

The charity has the following future minimum payments under this lease for each of the following periods:-

periods:-
Payment due	2023 £	2022 £
No later than one year Later than one year and not later than five years Total	16,336 21,350	15,000 34,583
	37,686	49,583

The charity had no other off-balance sheet arrangements.

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23 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
	2023 £	2022 £
Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Deduct interest income shown in investing activities Deduct gains/add back losses on investments Loss/(profit) on the sale of investments (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash used in operating activities	(119,043) (133,755) (29,088) (72,944) 47,499 (6,303)	(708,646) (139,525) 568,478 (13,543) (34,148) (9,308)
	(313,634)	(336,692)

24 ANALYSIS OF CHANGES IN NET FUNDS

The charity had no debt during the year.

25 MEMBER ORGANISATIONS’ ACCOUNTS

Branch member organisations’ activities are included in these financial statements. Affiliate member organisations, being separately registered charities, prepare their own accounts in accordance with the appropriate legislation and are accordingly not included in these financial statements.

As noted in notes 4 and 7 above, annual subscription charges of £27,314 were charged to Branch member organisations by the charity and as a result, both charitable income for unrestricted funds and charitable expenditure for restricted funds have been increased by this amount to reflect those transactions. The overall net effect on the charity is zero.

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