## Charity number: 1180494
## Cosmic
## Financial Statements
For the year to 31 January 2023
## COSMIC CONTENTS
||Page|
|---|---|
|Reference and administrative details of the charity, its trustees and
advisers|1|
|Trustees' report
Independent auditors' report
Statement of financial activities
Balance sheet
Notes to the financial statements|13 - 25
2 - 6
7-10
11
12|
## **COSMIC REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS**
Trustees Dr Simon Nadel, Chair (appointed 8[th] February 2023) Angela Birkin, Vice-Chair Jeremy Mills (resigned as Chair, 8[th] February 2023) Joshua Lawrence Dr Sunit Godambe (appointed 28[th] June 2023) Dr Tom Lissauer Sara Wan Henry St George (appointed 5[th] September 2023) Jeanne Altberger (appointed 5[th] September 2023)
Charity number 1180494 Principal office Ground floor Acrow West Unit 20E St. Marys Hospital South Wharf Road London W2 1BL Independent auditors Moore Kingston Smith LLP 9 Appold St London EC2A 2AP Bankers CAF Bank (CAF accounts closed 1[st] March 2023) 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA Lloyds Bank 185 Baker Street London NW1 6XB
Page 1
## COSMIC TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JANUARY 2023
The Trustees present their report together with the financial statements of Cosmic (the Charity) for the year to 31 January 2023. The Trustees confirm that the Annual Report and the financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015 and updated in 2019).
## Objectives and Activities
Cosmic is an independent charity that is dedicated to providing the best possible care for premature and sick babies and children, as well as their families and the frontline staff who care for them.
It was formed through the merger of two legacy charities, each supporting departments within Imperial College Healthcare NHS Trust, London and each founded nearly 30 years ago by parents and doctors who knew that more could be achieved with additional funds than the NHS could provide on its own:
The Winnicott Foundation CIO supported the work of the Trust’s two Neonatal Intensive Care Units (“NICUs”); one at St Mary’s Hospital, Paddington, and the other at Queen Charlotte’s & Chelsea Hospital, Hammersmith. Together they form the UK’s largest Neonatal Service providing specialist care for new-born babies across North and West London. The Trust also takes in babies from further afield where the transferring hospital does not have the specialist facilities to care for them.
The NICUs can support babies born up to 17 weeks prematurely – after only 5 months of pregnancy. These babies are extremely vulnerable to infection and may face difficult and stressful procedures during their time in intensive care. Babies born at full term but experiencing complications such as oxygen deprivation at birth, infection, heart and lung problems, or genetic conditions are also treated in the Units. So too are babies facing serious difficulties because their mothers battled drug or alcohol addiction during pregnancy. Depending on the severity of their condition, babies can spend anything from a few days to many months on the NICUs.
Children of St Mary’s Intensive Care supported the Trust’s Paediatric Intensive Care Unit (“PICU”) at St Mary’s Hospital, Paddington. It is the only Unit of its kind in West London – all children admitted here are critically ill and need life-support. Around 20% of patients are admittedly directly through St Mary’s A&E department but they can also be transferred from much further afield, due to the Ward’s speciality status.
As with the NICU, children can spend anything from a few days to many months on the PICU. Some patients from the NICU are also readmitted here.
The Charity raised funds and helped to provide direct support to those babies and children and their families.
The Charity aims to:
- Help save the lives of more children
- Support parents to be with their children
- Help to give children the best long-term future
- Help to get children home sooner
Page 2
## COSMIC TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JANUARY 2023
We did this by:
- Purchasing leading-edge equipment
- Funding staff training and information
- Funding support for parents
- Helping to improve the environment of the NICUs and PICU
- Supporting research
- Supporting the practice of developmental care and breastfeeding
## Structure and Governance
Cosmic’s team of 6 employees is led by a Chief Executive who reports to the Board of Trustees.
## Trustees
The Trustees who served the Charity were as follows:
Dr Simon Nadel, Chair (appointed Chair 8[th] February 2023) Angela Birkin, Vice-Chair Jeremy Mills (resigned as Chair 8[th] February 2023) Joshua Lawrence Dr Lidia Tyszczuk (resigned 28[th] June 2023) Dr Sunit Godambe (appointed 28[th] June 2023) Dr Tom Lissauer Sara Wan Eleanor Wolfson (resigned 14[th] September 2022) Dr Parviz Habibi (resigned 8[th] February 2023) Paul Doyle (resigned 8[th] February 2023)
The combined Board includes parents of children whose lives have been saved by Imperial’s Neonatal or Paediatric Intensive Care Units. They bring experience from their own professional and personal lives. In addition, it includes Clinical Representatives from both Units. They help to consider the current and longerterm priorities of the Neonatal and Paediatric Intensive Care Services to ensure the most effective use of donations. All Trustees support the effective management of the Charity and its funds on a voluntary, nonexecutive basis. The Board of Trustees meets 3-4 times a year.
The power of appointing new Trustees is vested in the Trustees who will vote at a Trustee meeting. For this accounting period, the Trust Deed provided for a maximum of 12 and prior to signing this Report and Accounts there were 7 Trustees.
Before appointment, new Trustees meet with the Chair and the Chief Executive and at least one other Trustee, in order to understand expectations from both sides as well as the Charity’s aims. They are also given a role description as well as a copy of the Charity Commission’s document CC3 – The Essential Trustee.
Trustees are appointed for fixed, renewable terms of three years.
## Management
Staff work closely with the medical teams to deliver support to patients and their families. The Cosmic team work from home on a flexible basis, ensuring at least half the team are always on-site. This model has been successful in delivering our objectives and attracting and retaining staff.
In carrying out this review and in planning future activities the Trustees have considered the Charity Commission’s guidance on the public benefit.
Page 3
## COSMIC TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JANUARY 2023
## Achievements and performance
These accounts mark three years since the merger between The Winnicott Foundation CIO and Children of St Mary’s Intensive Care, providing cost and operational efficiencies as well as greater security for both legacy charities.
This year has posed a number of operational challenges for the team. Cosmic runs on-site accommodation for the families of children who are receiving treatment in the PICU, allowing families to remain with their children during this difficult time. However, some of the bedrooms were impacted by a flood within the hospital and so significant staff time was spent relocating families to local hotels and dealing with remedial action.
In addition, a challenging recruitment market meant that the team was operating under headcount target (4 instead of 6) for much of the year. As a result, some of the projects which were due to complete within the year have completed post year end.
Key achievements include:
- Refurbishment of the Milk Bank – The Milk Bank at QCCH is the oldest continuously operating Milk Bank in the world. However, it was becoming unfit for purpose and at risk of closing down. Breast milk is especially critical for the healthy survival of very low birth weight, premature and sick babies. Mothers of these infants may be unable to provide sufficient human milk for their needs, particularly in the early days following the baby’s birth. Milk banks follow rigorous protocols to screen donors, test, process and dispense the donated milk and to provide safe donor human milk to these babies. Cosmic raised the funds to refurbish the QCCH Milk Bank so that it can continue to support babies within Imperial’s hospitals and the surrounding areas.
- Purchase of RETCAM equipment - Retinopathy of Prematurity (ROP) is a complication in premature babies which can cause vision impairment, and in extreme cases blindness. All premature babies born at or before 32 weeks’ gestation or born with weight under 1,500g have their eyes routinely checked for ROP. Those who show severe ROP require laser therapy to prevent visual impairment or blindness. The ROP examination has historically been done by a specialised eye doctor, on a weekly basis, at set times. Babies experience stress during this procedure and sometimes take days to recover. However, if Neonatal nurses can be trained to take photographs of the back of the baby’s eye using a device called a Retcam, the procedure can be performed when suitable for the baby whilst making sure the baby is comfortable and supported by either the parent or another nurse. The images can then be reviewed by the specialised eye doctor remotely and saved in the baby’s health records to be reviewed whenever necessary. This approach reduces the stress to the baby whilst the parents can also objectively see the photos and understand the changes within their baby’s eyes. Cosmic supported this Quality Improvement Project by purchasing a RETCAM to enable a pilot study.
- SimBaby – A SimBaby is highly realistic mannequin of a 9 month old child designed to help healthcare providers effectively recognize and respond to critically ill children. Cosmic purchased a SimBaby for the PICU medical team to assist with training on initial assessment and treatment.
- Bereavement Counselling – Cosmic now has 2 counsellors available to support bereaved parents from the PICU. Referrals are made by the Family Liaison Team for a minimum of 10 sessions, or as required, during this difficult time.
- Staff Training – Cosmic continues to fund additional training for doctors and nurses in line with our aim to provide patients with the best possible care, whilst also supporting medical staff recruitment and retention.
- In addition, a number of on-going projects aimed at improving the environment for staff and for parents are now planned to complete within the next financial year.
The Trustees would like to thank the parents, families, friends, staff, corporate partners and members of the public who have supported the Charity and have helped to raise £563,951 in this financial year. Their kindness and generosity has enabled the Charity to continue to support both families and staff across both the NICU and PICU in line with our Aims above.
Page 4
## COSMIC TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JANUARY 2023
## Financial review
Our income arises principally from donations from the families who benefit from PICU and NICU services. We continue to build strong relationships with the medical teams and with the families on-site and often receive support from those families long after their child has been discharged.
We also continue to build strong relationships with a number of corporates, particularly those based in the Paddington area near to St Mary’s Hospital. They have been generous in both their financial donations and in providing pro bono services and facilities to the Charity.
In addition, we are excited that our full calendar of Challenge Events is returning. Our London Marathon runners in October 2022 did exceptionally well this year raising nearly £52,000.
It is the Charity's policy to maintain restricted funds for the specific projects and equipment for which they were donated. It holds reserves of 12 months running costs, including the provision of core services to both Units. Major projects – either fundraising or charitable expenditure – are not committed to without funds being available.
Total funds at the year-end were £970,491 of which £359,558 relates to restricted funds, and £610,933 to unrestricted funds.
The Charity has no investments, although the Chief Executive and the Finance Committee review the banking arrangements annually.
The Charity funds projects undertaken by the NICU and PICU so that all staff providing specialist support and expertise are operating under NHS contracts and child protection policies. Purchased equipment is gifted to the NHS Trust which is then responsible for maintenance.
As permitted by the Charity’s governance document, Indemnity Insurance is held by the Charity as a precaution. No claims have been made either in the year under review or since the year end.
There were no serious incidents relating to the Charity and therefore no reports made to the Charity Commission.
## Managing Restricted Funds
The Charity holds some restricted funds on behalf of the NICU and PICU, allowing them to be awarded grants for use in their respective Units. These cover such things as staff education and training and equipment.
Each fund outlines the purpose of the grant as well as the nominated member of staff who may access the funds under set criteria.
## Fundraising
Cosmic’s approach is largely relationship led through individual donor giving and grants from Trusts and Foundations. Cosmic does not generally engage with commercial participators and professional fundraiser’s and does not carry out house to house fundraising or street collections. Cosmic did not receive any complaints associated with its fundraising practices during the year. The Charity utilises applicable updates and guidance on fundraising issued by the Charity Commission.
Cosmic does not fundraise on a large scale to the general public and its exposure to vulnerable people unknown to the Charity is minimal. Cosmic does not use any third-party fundraising agencies, nor conduct any direct marketing. The Charity’s individual donors mainly come from or through the Units and any families classified as "vulnerable" - those for example who may have been bereaved - are flagged to the Charity by clinicians and the Family Liaison Teams. Cosmic works in partnership with such individuals on any fundraising activity they may be conducting and liaise with NHS staff if any concerns.
Page 5
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## COSMIC
## INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF Cosmic FOR THE YEAR ENDED 31 JANUARY 2023
## Opinion
We have audited the financial statements of Cosmic for the period ended 31 January 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 January 2023, and of its incoming resources and application of resources, for the period 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 Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 7
## COSMIC
## INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF Cosmic FOR THE YEAR ENDED 31 JANUARY 2023
## Other information (continued)
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
## We have nothing to report in this regard.
## Matters on which we are required to report by exception
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 annual report.
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; and
- we have not received all the information and explanations we required for our audit.
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Page 8
## COSMIC INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF Cosmic FOR THE YEAR ENDED 31 JANUARY 2023
## Auditor’s responsibilities for the audit of the financial statements (continued)
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.
## Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group and charity.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the group and charity and considered that the most significant are the Charities Act 2011 and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the group and charity complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
Page 9
## COSMIC
## INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF Cosmic FOR THE YEAR ENDED 31 JANUARY 2023
## Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and charity’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group or charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
## Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.
Moore Kingston Smith LLP, Chartered Accountants and Statutory auditor 9 Appold St Date: 15 November 2023 London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
Page 10
## COSMIC
## STATEMENT OF FINANCIAL ACTIVITIES
## FOR THE PERIOD ENDED 31 JANUARY 2023
**----- Start of picture text -----**
Unrestricted Restricted Year to 31 Year to 31
funds funds January January
2023 2023 2023 2022
Notes £ £ £ £
Income from:
Donations and legacies 2 492,688 69,486 562,174 351,871
Other Trading activites 2 894 295 1,189 2,391
Investment income 2 842 - 842 50
Donations in services 2 - - - 3,000
JRS Grant - - - 16,718
Total income 494,424 69,781 564,205 374,030
Expenditure on:
Costs of raising funds 3 143,907 380 144,287 89,214
Charitable activities 4 297,303 77,920 375,223 342,778
Total expenditure 441,210 78,300 519,510 431,992
Net movement in funds
before transfers 53,214 (8,519) 44,695 (57,962)
Transfers 14 - - - -
Net movement in funds 53,214 (8,519) 44,695 (57,962)
Reconciliation of funds:
Total funds brought forward 17 557,719 368,077 925,796 983,758
Total funds carried forward 610,933 359,558 970,491 925,796
**----- End of picture text -----**
* see note 17 for the comparative Statement of Financial Activities.
The notes on pages 13 to 25 form part of these financial statements.
Page 11
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COSMIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
## 1 Accounting Policies
## 1.1 General Information
Cosmic is a registered charity. Its registered office and principal place of business is Ground floor, Acrow West Unit 20E, St. Mary's Hospital, South Wharf Road, London W2 1BL.
## 1.2 Basis of preparation of financial statements
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 notes to these accounts. The financial statements have been prepared in accordance with 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 (FRS 102) (effective 1 January 2015) - (Charities SORP FRS 102) including Update Bulletin 2 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011. The functional currency of the Charity is sterling and amounts in the financial statements are rounded to the nearest pound.
Cosmic constitutes a public benefit entity as defined by FRS 102.
## 1.3 Going concern
The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements and have considered the Charity's forecasts. After making enquiries the Trustees have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in the preparation of the financial statements.
## 1.4 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donated services or facilities are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.
Page 13
COSMIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
## 1 Accounting Policies (Continued)
For legacies, entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Donation and fundraising income is recognised at the point at which the pledge is made.
Grant income is recognised in line with the conditions specified in the grant contract. Where grant contracts specify the period the activities and the costs are to be undertaken, they are recognised as income over that period as the associated costs which give rise to the entitlement to the income are incurred.
Investment income is recognised on a receivable basis.
Following a review of income and expenditure a number of categories have been reanalysed into the area that more appropriately represents their activity, but there has been no change to the prior year surplus/deficit nor balance sheet reserves.
## 1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
## Grants Payable
Grants payable are charged in the period when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the period end are noted as a commitment, but not accrued as expenditure.
## Costs of raising funds
Costs of raising funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
## Allocation of support costs
Support costs are allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity:
|Raising funds|30%|
|---|---|
|Medical research|0%|
|Unit support|30%|
|Parents support|30%|
|Accommodation|10%|
Charitable activity costs are costs incurred on the Charity's operations, including support costs and costs relating to the governance of the Charity apportioned to charitable activities.
Page 14
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
## COSMIC
## 1 Accounting Policies (Continued)
## 1.6 Interest receivable
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.
## 1.7 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## 1.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## 1.9 Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## 1.10 Tangible fixed assets and depreciation
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
|Office equipment|25% straight line basis|
|---|---|
|Fixtures and fittings|25% straight line basis|
Assets acquired under £250 are not capitalised in line with the Charity's policy.
## 1.11 Liabilities and provisions
Liabilities 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. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation.
Trade and other creditors are recognised at the settlement amount after any trade discounts received. Accruals are value based on the estimated amount to be paid.
## 1.12 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 15
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
## 1 Accounting Policies (Continued)
## 1 Pensions
The Charity operated a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the period.
## 1 Critical accounting estimates and areas of judgement
In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial period.
## 2 Income from donations and legacies
|Donations
Legacies
Individuals and Trust
Challenge events
Special events
Gift Aid - HMRC
Corporate and Club sponsors
Total donations and legacies
Total 2022|Unrestricted
funds
2023
£
52,535
-
99,671
116,173
83,750
33,557
107,002
492,688
277,959|Restricted
funds
2023
£
10,007
-
59,479
-
-
-
-
69,486
73,912|Total
2023
£
62,542
-
159,150
116,173
83,750
33,557
107,002
562,174
351,871|Total
2022
£
106,775
460
131,590
91,419
-
596
21,031
351,871|
|---|---|---|---|---|
In the prior year, Gift Aid was included under donations except when applied for separately by Cosmic.
Income from other trading activities
|||Unrestricted
funds
2023
£|Restricted
funds
2023
£|Total
2023
£|Total
2022
£|
|---|---|---|---|---|---|
|Other||894|295|1,189|2,391|
|Total||894|295|1,189|2,391|
|Total 2022||507|1,884|2,391||
|||||||
|||||||
Page 16
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 31 JANUARY 2023
|2 (continued)
Investment income
Bank interest receivable
Total
Total 2022|Unrestricted
funds
2023
£
842
842
50|Restricted
funds
2023
£
-
-
-|Total
2023
£
842
842
50|Total
2022
£
50
50|
|---|---|---|---|---|
- 3 Costs of raising funds
|Fundraising and marketing expenses
Challenge events
Other fundraising costs
Support costs- other
Support costs- wages
Total
Total 2022|Unrestricted
funds
2023
£
12,805
5,241
10,398
56,536
58,927
143,907
86,876|Restricted
funds
2023
£
50
-
-
330
-
380
2,338|Total
2023
£
12,855
5,241
10,398
56,866
58,927
144,287
89,214|Total
2022
£
19,322
7,750
6,070
18,698
37,374
89,214|
|---|---|---|---|---|
Page 17
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 31 JANUARY 2023
**----- Start of picture text -----**
4 Analysis of expenditure on charitiable activities
Unrestricted Restricted
Total Total
funds funds
2023 2023 2023 2022
£ £ £ £
Equipment donated/Unit Support 88,068 18,458 106,526 96,792
Medical Research 5,493 - 5,493 41,823
Parents support 82,534 49,970 132,504 88,054
Accommodation 121,208 9,492 130,700 116,109
Total 2023 297,303 77,920 375,223 342,778
Total 2022 276,808 65,970 342,778
5 Analysis of expenditure by activities
Activities
undertaken Support costs Total Total
directly
2023 2023 2023 2022
£ £ £ £
Equipment donated/Unit Support 24,598 81,928 106,526 96,792
Medical Research 99 5,394 5,493 41,823
Parents support 51,675 80,829 132,504 88,054
Accommodation 93,751 36,949 130,700 116,109
Total 2023 170,123 205,100 375,223 342,778
Total 2022 147,359 195,419 342,778
**----- End of picture text -----**
Support costs for charitable activities have been allocated to charitable activities based on usage in the year
Page 18
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
- 6 Support costs
|Audit and accountancy
Legal and Professional
Office Costs
Depreciation
Salaries, NIC and pension costs
Stationery & consumables
Communication costs
Staff costs
Other|31 January
2023
£
26,969
-
71,941
6,687
196,422
1,163
-
11,999
5,711|31 January
2022
£
20,104
9,024
14,759
6,849
186,870
1,770
3,000
6,815
2,300|
|---|---|---|
||320,892|251,491|
Office costs have increased due to the inclusion of back-rent on the office space.
- 7 Net income/(expenditure)
This is stated after charging:
|This is stated after charging:|||
|---|---|---|
|Depreciation of tangible fixed assets
Auditor's remuneration - audit|31 January
2023
£
6,687
12,000|31 January
2022
£
6,849
14,700|
|Auditor's remuneration - other|7,037|5,404|
||||
Page 19
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
**----- Start of picture text -----**
||||
|---|---|---|
|8|Staff costs|
|31 January|31 January|
|2023|2022|
|£|£|
|Wages and salaries|179,643|160,367|
|Social security costs|8,211|12,512|
|Other pension costs|8,490|6,583|
|Staff training|305|-|
|196,649|179,462|
**----- End of picture text -----**
The average number of persons employed by the Charity during the period was as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|No.|No.|
|Average number of employees|5|5|
**----- End of picture text -----**
No employee received remuneration amounting to more than £60,000 in either period.
During the period key management personnel received remuneration totalling £80,084, which included the salary for parental leave for the Chief Executive.
No trustees received any remuneration, benefits in kind or reimbursement of expenses in the current or prior period.
## 9 Tangible fixed assets
**----- Start of picture text -----**
||||
|---|---|---|
|Fixtures and|Office|
|Fittings|Equipment|
|£|£|
|Cost|
|At 1 February 2022|22,515|10,275|
|Additions|2,348|-|
|Disposals|(4,656)|(2,432)|
|At 31 January 2023|20,207|7,843|
|Depreciation|
|At 1 February 2022|13,778|6,061|
|Charge for the period|5,282|1,283|
|Disposals|(4,656)|(2,432)|
|At 31 January 2023|14,404|4,912|
|Net book value|
|At 31 January 2023|5,803|2,931|
|At 31 January 2022|8,737|4,214|
**----- End of picture text -----**
Page 20
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
**----- Start of picture text -----**
10 Debtors
31 January 31 January
2023 2022
£ £
Prepayments and accrued income 9,464 6,586
9,464 6,586
11 Creditors: Amounts falling due within one year
31 January 31 January
2023 2022
£ £
Trade creditors 62,967 6,061
Accruals and deferred income 270,946 185,231
Taxation and social security 3,823 3,369
337,736 194,661
**----- End of picture text -----**
## 12 Analysis of net assets between funds
Analysis of net assets between funds - current period
|Analysis of net assets between funds - current period||||
|---|---|---|---|
|Tangible fixed assets
Current assets
Creditors due within one year
Analysis of net assets between funds - prior period|Unrestricted
funds
2023
£
8,734
939,935
(337,736)
610,933
Unrestricted
funds
2022
£|Restricted
funds
2023
£
-
359,558
-
359,558
Restricted
funds
2022
£|Total funds
2023
£
8,734
1,299,493
(337,736)
970,491
Total funds
2022
£|
|Tangible fixed assets|12,951|-|12,951|
|Current assets
Creditors due within one year|739,429
(194,661)
557,719|368,077
-
368,077|1,107,506
(194,661)
925,796|
Page 21
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
## 14 Statement of funds
Statement of funds - current period
|Unrestricted funds
General funds
Restricted funds
Funds held for Neonatal Unit / Doctor
education material
Post Discharge Support
Bereavement Study day
COVID-19 / Staff Support
Multiple Births Programme
Neonatal projects
Sound Ear Units
Vital Sound Monitors
Family Support Fund
Best in class (NICU Education Fund)
Winnicott discharge nurse
ARNI
Incubator purchases|Balance at 1
February 2022
£
557,719
26,497
-
5,000
23,701
1,030
4,963
13,596
9,000
29,772
-
38,771
420
35,323|Income
£
494,424
-
-
-
2,184
-
-
-
-
23,000
-
-
-
10,958|Expenditure
£
(441,210)
-
(800)
-
(7,326)
-
-
-
-
(18,459)
(150)
-
-
(1,508)|Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-|Balance at 31
January 2023
£
610,933
26,497
(800)
5,000
18,559
1,030
4,963
13,596
9,000
34,313
(150)
38,771
420
44,773|
|---|---|---|---|---|---|
|Rebecca Harwood Memorial|5,093|-|(750)|-|4,343|
|Impact
Accommodation
Cosmic House
PICU Accommodation
More Smiles Appeals
Kawasaki Research
Sleep Study
Play Specialist Team
Egyptian Education Bureau
Jimmy St George's Nurses Fund
Refurbishment
Staff Support
Other restricted funds
Total restricted funds
Total of funds|53,027
1,868
3,038
-
23,462
38,217
3,419
8,325
9,224
8,315
-
-
26,016
368,077
925,796|-
20,000
344
4,295
-
-
-
-
-
-
7,000
2,000
-
69,781
564,205|(39,341)
(538)
(269)
(8,354)
(750)
-
-
(55)
-
-
-
-
-
(78,300)
(519,510)|-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|13,686
21,330
3,113
(4,059)
22,712
38,217
3,419
8,270
9,224
8,315
7,000
2,000
26,016
359,558
970,491|
Page 22
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
## 14 Statement of funds (continued) Statement of funds - prior period
|Unrestricted
General funds
Restricted funds
Funds held for Neonatal Unit / Doctor
education material
Developmental care and breastfeeding
Bereavement Study day
COVID-19
Multiple Births Programme|Balance at 1
February 2021
£
629,274
26,497
(2,258)
5,000
24,754
1,030|Income
£
298,234
-
-
-
2,248
-|Expenditure
£
(363,684)
-
-
-
(3,301)
-|Transfers
£
(6,105)
-
2,258
-
-
-|Balance at 31
January 2022
£
557,719
26,497
-
5,000
23,701
1,030|
|---|---|---|---|---|---|
|Neonatal projects|4,963|-|-|-|4,963|
|Sound Ear Units
Vital Sound Monitors
Family Support Fund
Family Liaison Support
Winnicott discharge nurse
ARNI
Incubator purchases
Rebecca Harwood Memorial
Impact
Accommodation
Cosmic House
SMART
More Smiles Appeals
Kawasaki Research
Sleep Study
Play Specialist Team
Egyptian Education Bureau
Jimmy St George's Nurses Fund
Other restricted funds
Total restricted funds
Total of funds|13,596
9,000
30,620
-
38,771
420
(1,188)
8,093
53,027
-
-
(1,649)
30,244
22,717
38,967
8,325
9,224
8,315
26,016
354,484
983,758|-
-
600
1,278
-
-
51,220
-
-
1,912
3,038
-
-
15,500
-
-
-
-
-
75,796
374,030|-
-
(1,448)
(3,476)
-
-
(14,709)
(3,000)
-
(44)
-
-
(6,782)
-
(35,548)
-
-
-
-
(68,308)
(431,992)|-
-
-
2,198
-
-
-
-
-
-
-
1,649
-
-
-
-
-
-
-
6,105
-|13,596
9,000
29,772
-
38,771
420
35,323
5,093
53,027
1,868
3,038
-
23,462
38,217
3,419
8,325
9,224
8,315
26,016
368,077
925,796|
## Restricted funds
Funds held for Neonatal Unit / Doctor education material: This fund is held for income generated by neonatal teams from grants and donations for staff education and items to improve the working environment.
Developmental care and breastfeeding - This fund is for the purchase of items and the training of staff to support the developmental care of babies and to support mothers to express their milk and to breastfeed their babies.
Bereavement Study Day - This fund is used to organise a Bereavement Study Day at the Units. COVID-19 - This is an emergency fund to provide both practical and emotional support for staff, families and patients on NICU and PICU.
Page 23
## COSMIC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
## 14 Statement of funds (continued)
Restricted funds (continued)
Multiple Births Programme - This fund is used to develop a model of Neonatal care for multiple birth babies and their parents.
Neonatal projects - This fund is used to fund research projects to improve Neonatal care.
Family Support fund - This fund is used to provide practical, emotional and financial support to families and staff across all Units.
Winnicott discharge nurse - Funds held for the position of a NICU Discharge Nurse.
ARNI (Advanced Resuscitation of New Born Infants) - Funding for the ARNI resuscitation course.
Incubator purchases - This fund is used to fund the purchase of incubators.
Rebecca Harwood Memorial - This fund is used to fund the training of doctors and nurses on the Units.
Impact - This fund represents monies received towards simulation training and the purchase and upkeep of specialist equipment and materials to support in situ training.
SMART - The St. Mary's Allergy Research Team ("SMART") fund represents amounts received for the training of the allergy team doctors and nurses.
Family Liaison Support - This fund represents monies received to fund the work of our family liaison sisters.
More Smiles Appeals - This fund is used to support the refurbishment and expansion of the PICU from 8 to 15 beds and the provision of its services.
Kawasaki Research - This fund is used to support research into Kawasaki Disease.
Sleep Study - This fund is used to support research into sleep and sleep related medicine and respiratory disorders.
Accommodation - This fund relates to money raised for the development of parent accommodation.
Play Specialist Team - This fund relates to money raised to support the play specialist team.
Egyptian Education Bureau - This fund represents money donated for the joint supervision of a student and education activities for doctors and nurses.
Jimmy St George's Nurses' Fund - This fund relates to money raised for nurses' education, support and recognition.
Other restricted funds - These relate to a small number of other restricted funds.
## 15 Related party transactions
During the period reimbursements of £nil (2022: £nil) were made to Trustees for expenses paid on behalf of the Charity.
## 16 Trustee Indemnity
During the year to 31 January 2023, the Charity purchased Trustee indemnity insurance (as allowed under the Charity's constitution) for a price of £8,146 (2022: £6,933).
Page 24
## COSMIC
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 31 JANUARY 2023
17 Prior period Statement of Financial Activities
||Income from:
Donations and legacies
Other Trading Activities
Investment income|Unrestricted
funds
2022
£
277,959
507
50|Restricted
funds
2022
£
73,912
1,884
-|Total
2022
£
351,871
2,391
50|
|---|---|---|---|---|
||Gift Aid - HMRC|3,000|-|3,000|
||JRS Grant
Total income
Expendtiure on:
Costs of raising funds
Charitiable activities
Total expenditure
Transfers
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net movement in funds
before transfers|16,718
298,234
86,876
276,808
363,684
(65,450)
(6,105)
(71,555)
629,274
557,719|-
75,796
2,338
65,970
68,308
7,488
6,105
13,593
354,484
368,077|16,718
374,030
89,214
342,778
431,992
(57,962)
-
(57,962)
983,758
925,796|
Page 25