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2021-04-05-accounts

Charity Registration No. 1186102

Company Registration No. 12266787 (England and Wales)

THE CHRONIC DISEASE RESEARCH FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

THE CHRONIC DISEASE RESEARCH FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr M Benaim Dr E Bochukova Dr J Bristow Mr N S Pike Mr M D B Simon Dr E Stonehill Charity number 1186102 Company number 12266787 Principal address 140 Brompton Road Knightsbridge London SW3 1HY Registered office 140 Brompton Road Knightsbridge London SW3 1HY Auditor Plummer Parsons 18 Hyde Gardens Eastbourne East Sussex BN21 4PT Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Solicitors Collyer Bristow LLP 140 Brompton Road Knightsbridge London SW3 1HY

THE CHRONIC DISEASE RESEARCH FOUNDATION

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 5
Independent auditor's report 6 - 9
Statement of financial activities 10 - 11
Statement of financial position 12
Statement of cash flows 13
Notes to the financial statements 14 - 26

THE CHRONIC DISEASE RESEARCH FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 5 APRIL 2021

The trustees present their report and financial statements for the year ended 5 April 2021.

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 Foundation's Memorandum and Articles of Association , 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 Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Foundation's objects are t o provide funds for projects, fellowships and equipment to researchers studying the genetic basis for the common chronic diseases for developed countries and to support studies using twins to uncover clues about causes and risk factors of diseases

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Foundation should undertake.

I n the main, grants are awarded to the Department of Twin Research and Genetic Epidemiology, King’s College London (KCL), with the results of each study being monitored by the Foundation’s trustees. The results of these studies advance the medical profession as a whole and as such benefit all areas of society.

When the Foundation makes an award, it reserves the right, without notice, to terminate it should it so wish. In such a case, the Foundation will reimburse the Institution for expenditure properly and reasonably incurred under the award up to the termination date . Still, it will not be responsible for claims for compensation for which the Institution may be liable as an employer.

Achievements and performance

The Foundation received £500,000 from the Denise Coates Foundation in April 2020 to fund immediate research into Covid-19. These monies were used to fund CDRF-21/2020 TwinsUK COVID-19 Research Project.

In April 2020, the Foundation launched a campaign to fund the Covid Symptom Study. The Covid Symptom study comprised an app developed by Zoe Global Ltd (now Zoe Limited) , which collected data from citizen scientists who contributed to the data bank, and an analysis of the compiled information conducted by KCL researchers. The campaign raised £1, 950,773 . This is shown as designated funds in the accounts. These monies were used to fund two awards: CDRF-22/2020 The COVID Symptom Study Application: Research Platform and Biobank and CDRF-23/2020 The COVID Symptoms Study: The Genetics of Long COVID-19.

In addition, the Foundation received £497,248 from the Denise Coates Foundation to fund research into LongCOVID. These monies were allocated to the award CDRF-23/2020 The COVID Symptoms Study: The Genetics of Long COVID-19.

The Foundation received an award of £464,801 (plus an administration fee of 5%) in 2014/2015 from the Denise Coates Foundation for the project CDRF-9/2016 “The urinary microbiome and its relation to morbidity in older people”. A total of £342,881 was paid for the project to April 2021 to Kings College London. This is shown as restricted funds in the accounts. A no-cost extension was given for this award due to delays caused by the Covid-19 lockdown.

The Foundation received from the Denise Coates Foundation in 2018/2019 an award of £701,673 to fund the establishment of a Microbiome Laboratory, plus £650,000 (plus an additional 5% administration fee) to perform DNA extraction of stored samples and fund the cost of sequencing those samples - CDRF-17/2018. The amount of £469,561 was paid to April 2021. The awards will run until August 2022.

THE CHRONIC DISEASE RESEARCH FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

In addition, the Foundation received an award of £321,088 (plus an administration fee of 5%) in 2019 from the Denise Coates Foundation for the fellowship, CDRF-18/2019 “Targeting the gut microbiome and its metabolites to improve cardiovascular outcomes” equivalent to £80,272 per annum. This award will run until November 2023.

In 2019 the Foundation received an award of £704,687 (plus an administration fee of 5%) from the Denise Coates Foundation for the project, CDRF-19/2019 "Using the faecal metabolomics and serum glycomics to unravel the microbiome inflammatory pathways causative of cardiovascular disease". The award will run until December 2024.

From April 2020 to April 2021 , many awards were given no - cost extensions cau sed by the lockdown of laboratories and research facilities during the Covid-19 pandemic.

The Denise Coates Foundation had pledged to fund the Foundation an annual amount of £250,000 over a five-year period per annum (plus an administration fee of 5%). The Year 5 Grant was paid on 1 April 2021.

These funds have been used for the following grants:

THE CHRONIC DISEASE RESEARCH FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

The total commitments over the next 12 months are £2 ,262,373 . T here are sufficient funds available to cover the cost of these awards.

Financial review

The results for the year show a surplus of £2,527,863 (20 20 : £ 999,095 ). The closing Net Assets were £ 5,066,913 (20 20 : £ 2,539,050 ).

The trustees’ policy regarding free reserves is to set a minimum for such reserves equal to approximately three months’ projected management and administrative expenditure. The trustees aim to achieve this by judicious management of resources.

Using this reserves policy, the Foundation needs to have reserves of above £13,720 based on the 2020 administration costs. At the end of the year, unrestricted funds amount to £ 158,631, which is well in excess of this level.

Excess funds will be carried forward to be used for future grant awards at the trustees’ discretion.

The Foundation’s primary source of income is grants received, along with a small amount of interest income.

The Foundation raised £ 300 in donations from private donors for general purposes, and a donation of £10,000 which was raised from the sale of face masks.

The trustees’ investment policy is governed by the Memorandum and Articles of Association which permit the funds available to be invested in a wide range of securities and assets.

The trustees’ investment policy is to aim for safety commensurate with immediate and planned spending requirements. Accordingly, funds are held as cash balances and not invested.

The trustees will continue to manage the Foundation’s investments in conformity with the policy and its constitution. They are averse to risk and surplus funds will presently be held on deposit.

The Foundation’s cash-flow situation is comfortable, but the trustees want any excess funds to be invested wisely and will be considering the option of investing the funds. Currently excess funds are held in the Shawbrook 60-day account which pays interest at 0. 5 0% p.a. and the Shawbrook 1-year fixed saver which pays interest at 1.39% p.a.

The trustees are responsible for the management of the risks faced by the Foundation.

All major risks to which the Foundation is exposed have been reviewed and systems have been established to mitigate these risks.

THE CHRONIC DISEASE RESEARCH FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Structure, governance and management

The Foundation is a company limited by guarantee a nd was established by its Memorandum and Articles of Association. It is registered with the Charity Commission under charity number 1186102 and is registered with Companies House under the company number 12266787.

The incorporated charity took over the activities of the previously unincorporated charity on 17 March 2020.

The Foundation’s governing instrument is its Memorandum and Articles of Association which allow for any activities covered by the Foundation’s objectives, with no specific restrictions.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr M Benaim

Dr E Bochukova

Dr J Bristow Mr N S Pike Mr M D B Simon Dr E Stonehill

Appropriately qualified people are selected according to requirements at the time of appointment, such as scientific or medical knowledge in the field of research in which the Foundation is interested, as well as legal and commercial knowledge. As part of the induction programme, the trustees are provided with a copy of the Memorandum and Articles of Association and a copy of the past 3 years' accounts. The aims and goals of the Foundation are explained to newly appointed Trustees by the Foundation’s Medical Director.

The management of the Foundation is the responsibility of the trustees who are appointed under the terms of the Memorandum and Articles of Association . The trustees meet regularly to discuss and implement policy.

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.

Auditor

Plummer Parsons were appointed as auditor to the company and a resolution proposing that they be reappointed will be put at a General Meeting.

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.

The trustees' r eport was approved by the Board of Trustees.

Mr M Benaim Trustee Dated: 1 November 2021

Mr N S Pike

Trustee Dated:1 November 2021

THE CHRONIC DISEASE RESEARCH FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 5 APRIL 2021

The trustees, who are also the directors of The Chronic Disease Research Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE CHRONIC DISEASE RESEARCH FOUNDATION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE CHRONIC DISEASE RESEARCH FOUNDATION

Opinion

We have audited the financial statements of The Chronic Disease Research Foundation (the ‘Foundation’) for the year ended 5 April 2021 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including 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 Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Foundation 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 Foundation’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.

We have nothing to report in this regard.

THE CHRONIC DISEASE RESEARCH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CHRONIC DISEASE RESEARCH FOUNDATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the Foundation for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Foundation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

Based on our understanding of the charity and industry, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006, Charities Act 2011, employment law, Data Protection Act and GDPR. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS 102 and the Charities Statement of Recommended Practice (SORP). We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit.

THE CHRONIC DISEASE RESEARCH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CHRONIC DISEASE RESEARCH FOUNDATION

We evaluated management’s incentives and opportunities for fraudulent activities in the financial statements (including the risk of override of controls), and assessed that the principal risks could relate to posting journal entries to artificially increase income or reduce expenditure, related party transactions, management bias in accounting estimates and judgmental areas of the financial statements such as the allocation of support cost expenditure. Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

THE CHRONIC DISEASE RESEARCH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CHRONIC DISEASE RESEARCH FOUNDATION

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Plummer Parsons

Chartered Accountants Statutory Auditor

1 November 2021 18 Hyde Gardens Eastbourne East Sussex BN21 4PT

Plummer Parsons is eligible for appointment as auditor of the Foundation by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

THE CHRONIC DISEASE RESEARCH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2021

Current financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
2021
2021
2021
Notes
£
£
£
Income from:
Donations and legacies
3
299
1,915,773
1,284,611
Investments
4
17,528
-
-
Total income
17,827
1,915,773
1,284,611
Expenditure on:
Raising funds
5
-
46,662
-
Charitable activities
6
-
-
643,686
Total resources expended
-
46,662
643,686
Net income for the year/
Net movement in funds
17,827
1,869,111
640,925
Net income for the year/
Net movement in funds
17,827
1,869,111
640,925
Fund balances at 6 April 2020
140,804
-
2,398,246
Fund balances at 5 April 2021
158,631
1,869,111
3,039,171		 Total
2021
£
3,200,683
17,528
3,218,211
46,662
643,686
690,348
2,527,863
2,527,863
2,539,050
5,066,913		 Total
2020
£
1,339,946
24,740
1,364,686
-
365,591
365,591
999,095
999,095
1,539,955
2,539,050

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE CHRONIC DISEASE RESEARCH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2021

Prior financial year

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
379
1,339,567
Investments
4
24,740
-
Total income
25,119
1,339,567
Expenditure on:
Charitable activities
6
-
365,591
Total resources expended
-
365,591
Net income for the year/
Net movement in funds
25,119
973,976
Fund balances at 6 April 2019
115,685
1,424,270
Fund balances at 5 April 2020
140,804
2,398,246		 Total
2020
£
1,339,946
24,740
1,364,686
365,591
365,591
999,095
1,539,955
2,539,050

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE CHRONIC DISEASE RESEARCH FOUNDATION

STATEMENT OF FINANCIAL POSITION

AS AT 5 APRIL 2021

Notes
Current assets
Trade and other receivables
12
Investments
13
Cash at bank and in hand
Current liabilities
14
Net current assets
Income funds
Restricted funds
16
Unrestricted funds-general
Designated funds
17
General unrestricted funds		 2021
£
£
272,500
3,250,000
1,905,037
5,427,537
(360,624)
5,066,913
3,039,171
1,869,111
158,631
2,027,742
5,066,913		 2020
£
£
-
-
3,375,640
3,375,640
(836,590)
2,539,050
2,398,246
-
140,804
140,804
2,539,050

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 5 April 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 1 November 2021

Mr M Benaim Mr N S Pike Trustee Trustee

Company Registration No. 12266787

THE CHRONIC DISEASE RESEARCH FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2021

2021
Notes
£
£
Cash flows from operating activities
Cash generated from operations
21
1,761,869
Investing activities
Proceeds on disposal of investments
(3,250,000)
Investment income received
17,528
Net cash (used in)/generated from
investing activities
(3,232,472)
Net cash used in financing activities
-
Net (decrease)/increase in cash and cash
equivalents
(1,470,603)
Cash and cash equivalents at beginning of year
3,375,640
Cash and cash equivalents at end of year
1,905,037		 2020
£
£
1,044,501
-
24,740
24,740
-
1,069,241
2,306,399
3,375,640

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

Charity information

The Chronic Disease Research Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 140 Brompton Road, Knightsbridge, London, SW3 1HY.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Foundation's Memorandum and Articles of Association, 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 Republic of Ireland (FRS 102) (effective 1 January 2019)". The Foundation is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Foundation . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The Chronic Disease Research Foundation is a member of the umbrella organisation, the Association of Medical Research Charities.

1.2 Going concern

At the date of this report, there exists considerable uncertainty regarding the potential impact of the Coronavirus and the economic consequences, both within the U.K. and overseas, which may result from government policies to contain the spread. The duration and geographical extent of any possible lockdown or future government policies are unknown. Whilst we are unable to predict what the economic consequences may be and the impact on the c harity ’s future ability to continue trading, we have continued to use the going concern basis as appropriate in the preparation of these accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Foundation.

1.4 Income

Income is recognised when the Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Foundation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

(Continued)

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Expenditure

Grants provided are, in the main, awarded to various departments of Kings College London (KCL). The research and fulfilment of the project is undertaken by KCL, with the results of each study being monitored by the Foundation's trustees. The results of these studies advance the medical profession as a whole and as such benefit all areas of society.

When the Foundation makes an award, it reserves the right, without notice, to terminate it should it so wish. In such a case, the Foundation will reimburse the Institution for expenditure properly and reasonably incurred under the award up to the termination date but will not be responsible for claims for compensation for which the Institution may be liable as an employer.

Grants are recognised in the accounts when the Foundation is committed to making the payment, based on the requirements of each grant agreement.

Support/governance costs are those that related to the running of the Foundation and fulfilling its statutory obligations. These costs are recognised when incurred.

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 Foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Foundation 's balance sheet when the Foundation 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 trade and other receivables 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 a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including trade and other payables 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 the future p aymen ts 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 payables are obligations 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 payables 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 Foundation ’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the Foundation’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 future periods where the revision affects both current and future periods.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

3 Donations and legacies

Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
2021
2021
2021
£
£
£
Donations and gifts
299
1,915,773
-
Grants
-
-
1,284,611
299
1,915,773
1,284,611		 TotalUnrestricted
funds
general
2021
2020
£
£
1,916,072
379
1,284,611
-
3,200,683
379		 Restricted
funds
2020
£
-
1,339,567
1,339,567		 Total
2020
£
379
1,339,567
1,339,946

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

4
5
6		 Investments
UnrestrictedUnrestricted
funds
funds
general
general
2021
2020
£
£
Interest receivable
17,528
24,740
Raising funds
Unrestricted
Total
funds
d esignated
2021
2020
£
£
Fundraising and publicity
Fees deducted from online donations received
46,662
-
46,662
-
Charitable activities
Charitable
Expenditure
Charitable
Expenditure
2021
2020
£
£
Grant funding of activities (see note 7)
580,872
305,348
Share of governance costs (see note 8)
62,814
60,243
643,686
365,591

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

7 Grants payable

Charitable Charitable
Expenditure Expenditure
2021 2020
£ £
Grants to institutions:
Role of urinary microbiome in relation to Morbidity in Older People (award 9) - 108,682
Utilising Omega 3 and Fibre to improve metabolic health: a proof of concept
nutritional intervention study targeting the Gut Microbiome (award 11) 57,989 -
A statistical framework for personalised nutrition recommendations based on
genetic and antrhopometric data (award 12) - 16,976
Gut microbiome modulation of fasting glucose homeostasis and postprandial
glycaemic response in TwinsUK and PREDICT: towards personalised diet for
healthy aging (award 13) 17,832 57,808
Changes in peripheral blood mononuclear cell (PBMC) immunophenotypes
during immunotherapy for stage 4 melanoma (award 14) - 9,400
Influence of the gut microbiome on inter-individual differences in blood pressure
at fasting and in response to a combined glycaemic and lipaemic test meal
challenge (award 15) - 32,061
Assessing the role of long and short-term food choices on gut microbiome-
induced visceral fat mass accumulation (award 16) 15,368 80,421
TwinsUK Covid-19 Research Project (award 21) 346,664 -
The COVID Symptom Study Application: Research Platform and Biobank
(award 22) 143,019 -
580,872 305,348

All of the above grants were made to Kings College, London (KCL). The previous year's grants were all to KCL, aside from the grant of £9,400 which was made to an NHS Trust.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

8 Support costs

Audit fees
Accountancy
Legal and professional
Management expenses
Bank charges
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
7,332
-
3,014
-
24,202
-
28,119
-
147
-
62,814
-
62,814		 2021
£
7,332
3,014
24,202
28,119
147
62,814
62,814		 Support
costs
Governance
costs
£
£
-
7,200
-
5,500
-
29,077
-
18,376
-
90
-
60,243
-
60,243		 2020
£
7,200
5,500
29,077
18,376
90
60,243
60,243

Governance costs includes payments to the auditors of £ 7,332 for audit fee s ( 2020 £ 7,200) and £3,014 for other services (2020 £5,500) .

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration , reimbursement of expenses or benefits from the Foundation during the year.

10 Employees

The average monthly number of employees during the year was:

Total
11
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
12
Trade and other receivables
Amounts falling due within one year:
Other receivables		 2021
Number
-
2021
£
3,250,000
2021
£
272,500		 2020
Number
-
2020
£
-
2020
£
-

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

13 Current asset investments

Unlisted investments
Investments represent cash held on long term deposits.
Current liabilities
Trade payables
Accruals and deferred income		 2021
£
3,250,000
2021
£
351,096
9,528
360,624		 2020
£
-
2020
£
822,958
13,632
836,590

14 Current liabilities

Trade creditors includes £ 232,112 towards the cost of a new Microbiome Laboratory at Kings College London. The work has been completed, but details of the amounts payable are yet to be received. A creditor has therefore been included for the anticipated remaining amount.

Accruals includes £NIL (2020: £4,272) towards project expenditure incurred but not invoiced until after the year end.

Contingent liabilities

At the end of the year, the Foundation has agreed to make further grants of up to £ 4,502,430 (2020: £2,270,669) to various projects. The timing of these payments is not yet known.

Some of the grants received contain a claw-back clause if all of the grant conditions are not followed. The trustees do not anticipate that these clauses should be enacted and will do everything in their power to ensure that the terms are adhered to.

15 Retirement benefit schemes

The Foundation operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Foundation in an independently administered fund.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Urinary microbiome
Laboratory
Microbiome research projects
Gut microbiome
Administration
Coronavirus symptom study
Long Covid study		 Balance at
6 April 2019
£
207,346
650,000
540,171
-
26,753
-
-
1,424,270		 Movement in funds
Incoming
resources
Resources
expended
Transfers
£
£
£
-
(108,682)
21,788
-
-
-
250,000
(196,666)
(21,788)
1,025,779
-
-
63,788
(60,243)
-
-
-
-
-
-
-
1,339,567
(365,591)
-		 Balance at
6 April 2020
£
120,452
650,000
571,717
1,025,779
30,298
-
-
2,398,246		 Movement in funds
Incoming
resources
Resources
expended
Transfers
£
£
£
-
-
-
-
-
-
250,000
(91,189)
(59,996)
-
-
-
37,363
(62,814)
-
500,000
(489,683)
39,996
497,248
-
20,000
1,284,611
(643,686)
-		 Balance at
5 April 2021
£
120,452
650,000
670,532
1,025,779
4,847
50,313
517,248
3,039,171

The Urinary Microbiome fund relates to the restricted income and expenditure towards a project relating to the Urinary microbiome and its relation to morbidity in older people. Funding for the project included £23,200 to be used towards the foundations administration costs.

The Laboratory fund consists of amounts received with the restricted purpose of funding the cost of equipping and operating a laboratory for 4 years.

The Microbiome research projects fund is for the support of activities relating to the study of the Microbiome and aging.

The Gut microbiome fund relates to projects evaluating the effect of gut microbiomes on cardiovascular outcomes.

The Administration fund relates to the amounts that have been received with the propose of being used to cover the foundations administration costs.

The Long Covid research fund contains grants given specifically to investigate the long term effects of Covid-19.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Coronavirus symptom study
Long Covid study		 Balance at
6 April 2020
£
-
-
-		 Movement in funds
Incoming
resources
Resources
expended
£
£
1,412,773
(46,662)
503,000
-
1,915,773
(46,662)		 Balance at
5 April 2021
£
1,366,111
503,000
1,869,111

The Coronavirus Symptom Study fund contains amounts raised toward the symptom study work being carried out throughout the pandemic. These donations were to be used towards Covid-19 research as required, with any surplus funds being available for general use within CDRF.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

18
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2021
2021
2021
£
£
£
Fund balances at 5 April 2021 are represented by:
Current assets/(liabilities)
158,631
1,869,111
3,039,171
158,631
1,869,111
3,039,171		 TotalUnrestricted
funds
2021
2020
£
£
5,066,913
140,804
5,066,913
140,804		 Restricted
funds
2020
£
2,398,246
2,398,246		 Total
2020
£
2,539,050
2,539,050

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

19 Related party transactions

Transactions with related parties

During the year the Foundation entered into the following transactions with related parties:

During the year, £ 24,202 was charged by Collyer Bristow for administration and other legal services. (20 20 : £ 29,077 , of which £8,802 was outstanding). Mr M D B Simon, trustee, is a partner of Collyer Bristow.

Expenditure in the year includes £ 91,189 to projects of which Prof essor Tim Spector (Medical Director) is the lead researcher. A further £ 874,843 has been approved for payment to projects led by Prof essor Spector and this is contained in Contingent liabilities (2020: £295,948 paid with £2,270,669 in Contingent liabilities).

In June 2018, the Foundation was granted an option agreement, to buy 43,242 shares in Zoe Global Limited (now Zoe Limited), at any point in the subsequent 15 years. The Foundation's Medical Director, Professor Tim Spector, is one of the founders of Zoe Global Limited. At the end of the year, the trustees have estimated the value of these share options using a share option pricing model as being no more than £3,900. As Zoe Limited is still a relatively new company and the Foundation does not expect to exercise its options within the foreseeable future, the trustees regard it as prudent not to include any valuation in the accounts for these share options at the present time. The trustees will re-assess the situation at each subsequent year end.

20 Merger accounting

On 17 March 2020, the company took over the activities of the unincorporated Chronic Disease Research Foundation (charity number: 1055375). These activities are being continued in full and the provision in relation to merger accounting have been applied in accordance with the FRS102 SORP. As such, the accounts of the previous charity have been included as comparatives, to demonstrate the continuation of activities.

THE CHRONIC DISEASE RESEARCH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

21
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
(Increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Cash generated from operations
22
Analysis of changes in net funds
The Foundation had no debt during the year.		 2021
£
2,527,863
(17,528)
(272,500)
(475,966)
1,761,869		 2020
£
999,095
(24,740)
-
70,146
1,044,501