Registered number: 11742522 Charity number: 1188616
Cleveland Clinic Philanthropy (UK) Ltd
Trustees' report and financial statements for the year ended 31 December 2024
Cleveland Clinic Philanthropy (UK) Ltd
Contents
| Page(s) | |
|---|---|
| Reference and administrative information | 1 |
| Trustees and directors' report | 2 - 5 |
| Independent auditor's report on the financial statements | 6 - 9 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 - 18 |
Cleveland Clinic Philanthropy (UK) Ltd
Reference and administrative information for the year ended 31 December 2024
Company registered number 11742522 Charity registered number 1188616 Registered office Suite 1, 7th Floor 50 Broadway London, United Kingdom SW1H 0BL Principal operating office 40 Grosvenor Place London, United Kingdom SW1X 7AW Company secretary Vistra Cosec Limited Trustees (Directors) J Botts Dr T Falcone D Gordon R Gordon D Laraway Dr R Lorenz D Pritchard Independent auditor Buzzacott Audit LLP 130 Wood Street London EC2V 6DL
1
Cleveland Clinic Philanthropy (UK) Ltd Trustees and Directors’ report for the year ended 31 December 2024
The Trustees present their annual report and financial statements of Cleveland Clinic Philanthropy (UK) Ltd (“the charity”) for the year ended 31 December 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the financial statements and comply with the Charities Act 2011, the Statement of Recommended Practice: Accounting and Reporting by Charities effective 1 January 2019 and the Companies Act 2006.
Trustees
The Trustees are also the directors of the charity. The Trustees who held office during the year and up to the date of signing the financial statements, unless otherwise indicated, are given below:
J Botts, Dr T Falcone (appointed 1 June 2024), D Gordon (appointed 1 June 2024), R Gordon, D Laraway, Dr R Lorenz, D Pritchard, W Peacock (resigned 1 June 2024), D Rowan (resigned 1 June 2024)
Structure, governance and management
The charity is a registered charity in England and Wales, number 1188616, and is constituted under a certificate of incorporation dated 27 December 2018. The charity is a private company limited by shares and is registered with Companies House, number 11742522. The Articles of Association of the charity were approved on 20 February 2020 and the Charities Commission approved it as a charity in February 2020. The charity was established by a contribution from The Cleveland Clinic Foundation, a non-profit corporation incorporated under the laws of the State of Ohio, United States (“Cleveland Clinic”), a non-profit healthcare system, which provides continual operating support so that all monies raised by the charity may be used for its mission. The charity began fundraising in 2021 and seeks to perform its charitable work through active fundraising.
The sole member of the charity, Cleveland Clinic, has the authority to appoint new Trustees provided that at all times at least a sufficient number of Trustees to be able to form a quorum are independent. The Trustees serve for an initial term of office for three years and may be reappointed for a further term or terms of three years each. The charity's Articles of Association provide for a minimum of five Trustees but is not subject to a maximum.
The Trustees agree on the broad strategy and areas of activity for the charity, including consideration of grant making, investment, reserves and risk management policies and performance. The day-to-day administration of grants and the processing and handling of applications prior to consideration by the relevant subcommittee is delegated to the Administrator, B Mikhail. The charity hired two employees during 2024 to provide fundraising and other services for the charity. Prior to the hiring of employees, the charity utilized the services of a professional fundraiser. The Administrator monitors the fundraising activity by providing training and maintaining frequent communication with the employees. Fundraising is also monitored by Cleveland Clinic. Fundraising activities to date have been limited in scope and primarily from certain individuals. During the course of the year we did not receive any complaints about our fundraising practice. We do not engage in persistent or intrusive fundraising practices with any of our supporters.
All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in notes 8 and 15 to the financial statements. Trustees are required to disclose all relevant interests and register them with the Chair and, in accordance with the charity’s policy, withdraw from decisions where a conflict of interest arises.
On appointment new Trustees meet with the Chair and the Trustees. The Trustees maintain monitoring and oversight of the activities of the charity through formal meetings and continuous informal communications. The Trustees meet periodically to review strategic, governance, operational and financial matters. All Trustees are encouraged to attend appropriate external training events that will facilitate the undertaking of their role.
The Trustees formed a Grant-Making Committee in November 2020 to provide oversight and guidance regarding the charity’s grant-making initiatives and activities. The committee has established a formal governance structure for grant decision making and review of grant applications. The charity began making grant distributions in 2022.
2
Cleveland Clinic Philanthropy (UK) Ltd Trustees and Directors’ report (continued) for the year ended 31 December 2024
Objectives and activities for the public benefit
The objects of the charity are as follows:
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The advancement of health, including without limitation by the relief and prevention of poor health and physical and / or mental illness of any description
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The advancement of medical education and research, for the benefit of the public and in supporting Cleveland Clinic
In furtherance of these objectives, the charity supports and promotes the following programmes and activities:
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Clinical fellowships and education
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Nurse and allied health training and education
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Executive healthcare leadership for clinicians
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Clinical outcomes research
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Research collaborations with UK and Cleveland Clinic partners
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Charitable and community care
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant-making policy for the year.
Financial review
For the year ended 31 December 2024, the charity received income of £6,863,386 (2023: £7,467,021), consisting of £800,000 contributions received from the Cleveland Clinic, £5,609,226 contributions raised through fundraising, comprised of £160,131 of unrestricted contributions and £5,449,095 of restricted contributions, and £454,160 of interest income. Contributions from the Cleveland Clinic are used to pay unrestricted support costs, which totaled £899,716 in 2024 (2023: £1,003,478). Cleveland Clinic will make additional contributions to the charity in 2025 to enable the charity to cover support expenses incurred in 2025. Therefore, the charity will be able to utilize all contributions raised through active fundraising for its mission. Grant distributions from restricted funds totaled £4,863,782 in 2024 (2023: £2,513,043). These distributions were comprised of £4,852,122 provided to Cleveland Clinic London Ltd to support healthcare education and of nurses and physicians, medical research for the benefit of the general public, and the provision of medical care to the general public for those unable to pay.and £11,660 provided to various individuals to support educational scholarships in nursing. Grant distributions from unrestricted funds totaled £124,600 in 2024 (2023: £nil). At 31 December 2024 the charity had accrued grant distribution liabilities of £1,981,100 (2023: £453,331).
At 31 December 2024 the charity had cash at bank and in hand of £14,034,419 (2023: £11,835,248), an increase of £2,199,171 from cash at bank and in hand at 31 December 2023 primarily resulting from an increase in accrued distribution liabilities during 2024. Cash at bank and in hand at 31 December 2024 was comprised of £1,302,184 (2023: £1,109,043) in unrestricted funds and £12,732,235 (2023: £10,726,205) in restricted funds, which will be utilized to support the charity’s objectives in accordance with donor restrictions.
The charity has received pledge commitments from certain donors for future contributions. Total pledge commitments at 31 December 2024 were £11,743,000 (2023: £14,500,000) and are expected to be collected over the next four years. Pledge commitments are not recorded in the financial statements until entitlement of the pledged assets has passed to the charity, which is generally when the donation is received.
The Cleveland Clinic Foundation has confirmed that it will continue to support the charity's obligations, to enable it to meet its liabilities as they fall due for at least the next twelve months from the date of this report. The Trustees have a reasonable expectation that the charity and the group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the charity continues to adopt the going concern basis in preparing its financial statements.
3
Cleveland Clinic Philanthropy (UK) Ltd Trustees and Directors’ report (continued) for the year ended 31 December 2024
Risk management
Effective risk management is fundamental in enabling the charity to deliver its strategy and ensure it remains strong and sustainable in the long term. The Trustees are responsible for the overall management of the administration of the charity and for ensuring that there are appropriate systems of controls in place. The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. Decisions by the Trustees concerning the charity are taken by the Trustees, acting collectively.
The Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. A major risk is attracting donors to help the charity satisfy its mission of advancing health and medical education and research. As the charity works to establish a good reputation, reputational risks may arise from its fundraising and grant-making activities. However, plans have been implemented to mitigate these risks as far as reasonably possible. To avoid inappropriate or unethical use of charitable funds, processes are in place to scrutinize grant applications for ethical issues and to ensure that, so far as practicable, charitable funds are disseminated in accordance with any specific wishes of each donor, or the stated aims of a particular campaign or fund.
Reserves policy
The Trustees aim to maintain unrestricted reserves that are sufficient to cover support costs for at least three months. Unrestricted reserves and funding for support costs are reviewed at least annually considering the annual operating budget and long-term financial projections of the charity. Support costs are funded by contributions received from the Cleveland Clinic that are contributed to the charity throughout the year as support costs are incurred. Contributions provided by the Cleveland Clinic are generally provided quarterly and reviewed to ensure that adequate funds are available to cover at least three months of support costs for the charity. Cleveland Clinic has provided contributions to the charity in 2024 and will continue to support the operating and governance costs as necessary to enable the charity to meet its obligations and liabilities as they fall due.
At 31 December 2024 the charity held free reserves (excluding restricted funds) of £1,000,619 (2023: £612,210) which corresponds to approximately 12 months (2023: 7 months) of unrestricted expenditure.
Plans for the future
The charity is committed to the advancement of healthcare and medical education and research. As a public charity, it appreciates and relies upon philanthropy contributions from grateful patients, friends of the charity, alumni, corporations, charities and foundations in order to support its mission: caring for life, researching for health, and education of those who serve. The plans for the future are to develop these philanthropic networks to raise funds in order to support its mission for the long term.
Qualifying third-party indemnity provisions
The charity has granted indemnity to one or more of its Trustees against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying thirdparty indemnity provision was in force during the financial year and remains in force as at the date of approving the Trustees' report.
4
Cleveland Clinic Philanthropy (UK) Ltd Trustees and Directors’ report (continued) for the year ended 31 December 2024
Responsibilities of the Trustees
The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS102.
Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102) issued in 2019;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is not appropriate to assume that the charity will continue on that basis.
The Trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are also responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006.
Disclosure of information to the auditor
In accordance with company law, each of the Trustees confirm that:
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so far as they are aware, there is no relevant audit information of which the charity's auditors are unaware; and
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as the Trustees of the charity, they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditor, Buzzacott Audit LLP will be proposed for reappointment in accordance with section 487 of the Companies Act 2006.
This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and reporting by Charities (effective 1 January 2019) and in accordance with the small companies regime.
Approved by the Trustees on 02 June 2025 and signed on their behalf by:
D Laraway Trustee
5
Cleveland Clinic Philanthropy (UK) Ltd
Independent auditor's report to the members of Cleveland Clinic Philanthropy (UK) Ltd
Opinion
We have audited the financial statements of Cleveland Clinic Philanthropy (UK) Ltd (the ‘charitable company’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2024 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company’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 trustees’ report and financial statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ report and financial statements. 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.
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.
6
Cleveland Clinic Philanthropy (UK) Ltd
Independent auditor's report to the members of Cleveland Clinic Philanthropy (UK) Ltd
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement on page 5, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company’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
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:
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Cleveland Clinic Philanthropy (UK) Ltd
Independent auditor's report to the members of Cleveland Clinic Philanthropy (UK) Ltd
Auditor’s responsibilities for the audit of the financial statements (continued)
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and
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we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation).
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual variances;
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tested journal entries to identify unusual transactions;
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tested the authorisation of expenditure and bank payments; and
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reviewed the implementation and design of controls and procedures in place around the grants payable system.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reviewing the minutes of meetings of those charged with governance; and
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enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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Cleveland Clinic Philanthropy (UK) Ltd
Independent auditor's report to the members of Cleveland Clinic Philanthropy (UK) Ltd
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Katharine Patel (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
05 June 2025
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Cleveland Clinic Philanthropy (UK) Ltd
Statement of financial activities (incorporating income and expenditure account) for the year ended 31 December 2024
account) or the year ended 31 December |
2024 |
|||
|---|---|---|---|---|
| Income: Note Donations 3 Interest receivable and similar income 4 Total income Expenditure on: Charitable activities 5 Total expenditure Net income for the year Reconciliation of capital and funds: Balances at beginning of year Balances at end of year |
Unrestricted funds 2024 £ 960,131 452,594 1,412,725 (1,024,316) (1,024,316) 388,409 612,211 1,000,620 |
Restricted funds 2024 £ 5,449,095 1,566 5,450,661 (4,863,782) (4,863,782) 586,879 10,272,874 10,859,753 |
Total funds 2024 £ 6,409,226 454,160 6,863,386 (5,888,098) (5,888,098) 975,288 10,885,085 11,860,373 |
Total funds 2023 £ 7,467,021 - |
| 7,467,021 | ||||
| (3,516,521) | ||||
| (3,516,521) | ||||
| 3,950,500 | ||||
| 6,934,585 | ||||
| 10,885,085 |
The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.
The notes on pages 13 to 18 form part of these financial statements.
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Registered number: 11742522
Cleveland Clinic Philanthropy (UK) Ltd
Balance sheet as at 31 December 2024
| Note Current assets Debtors: Amounts falling due within one year 10 Cash at bank and in hand Creditors: Amounts falling due within one year 11 Total net assets Capital and funds Share capital 12 Unrestricted funds 13 Restricted funds 13 Total capital and funds |
2024 £ 32,578 14,034,419 14,066,997 (2,206,624) |
2024 £ 11,860,373 1 1,000,619 10,859,753 11,860,373 |
2023 £ - 11,835,248 11,835,248 (950,163) |
2023 £ 10,885,085 |
|---|---|---|---|---|
| 1 612,210 10,272,874 |
||||
| 10,885,085 |
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on 02 June 2025 and signed on their behalf by:
D Laraway Trustee
The notes on pages 13 to 18 form part of these financial statements.
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Cleveland Clinic Philanthropy (UK) Ltd
Statement of cash flows
for the year ended 31 December 2024
| Cash flows from operating activities Net income for the year Adjustments: (Increase) / decrease in debtors Increase in creditors Net cash provided by operating activities Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December |
2024 £ 975,288 (32,578) 1,256,461 2,199,171 11,835,248 14,034,419 |
2023 £ 3,950,500 11,858 609,363 |
|---|---|---|
| 4,571,721 7,263,527 |
||
| 11,835,248 |
The notes on pages 13 to 18 form part of these financial statements.
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Cleveland Clinic Philanthropy (UK) Ltd
Notes to the financial statements for the year ended 31 December 2024
1. General information
The charity is a registered charity limited by shares and is incorporated and domiciled in England and Wales. The address of its registered office is Suite 1, 7th Floor, 50 Broadway, London, SW1Y 0BL.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Cleveland Clinic Philanthropy (UK) Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
2.2 Going concern
The Trustees have assessed the ability of the charity to continue to operate as a going concern taking into consideration forecasted operations and potential events requiring a cash outflow for the foreseeable future. The ultimate parent company, The Cleveland Clinic Foundation, provides contributions to the charity to support operational and governance costs and provide for the ability of the charity to meet their liabilities as they fall due. Grant distributions are paid from cash balances in unrestricted and restricted funds and do not exceed the available cash within each fund.
The ultimate controlling party The Cleveland Clinic Foundation, a non-profit corporation in Ohio, United States of America, has confirmed it will continue to support the charity’s obligations, to enable it to meet its liabilities as they fall due, for at least the next twelve months from the date of this report. The Trustees have assessed the ability and intent of The Cleveland Clinic Foundation to provide financial support and concluded that it will be able to do so.
As such, the Trustees have a reasonable expectation that the charity and the group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2.3 Functional and presentational currency
The charity's functional and presentational currency is the pound sterling.
2.4 Income
Donations are 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.
Interest income is recognised in the statement of financial activities using the effective interest method.
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Cleveland Clinic Philanthropy (UK) Ltd Notes to the financial statements (continued) for the year ended 31 December 2024
2. Accounting policies (continued)
2.5 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.
Expenditure on raising funds includes all expenditure incurred by the charitable company to raise funds for its charitable purposes and includes costs of all fundraising activities events and noncharitable trading.
All expenditure is inclusive of irrecoverable VAT.
2.6 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.
2.7 Financial instruments
(i) Financial assets
The charity's financial assets comprise cash at bank and in hand. Management determines the classification of its financial assets at initial recognition.
The charity's financial assets are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
(ii) Financial liabilities
The charity's financial liabilities comprise amounts owed to group undertakings and other creditors. Management determines the classification of its financial liabilities at initial recognition.
The charity's financial liabilities are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
2.8 Share capital
Ordinary shares are classified as equity.
2.9 Fund accounting
Unrestricted funds are general 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. Fundraising and administrative costs are charged against unrestricted funds.
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. Restricted funds are held by the charity for purposes that are consistent with its mission of advancing healthcare, medical education and research.
Grant distributions are paid from cash balances in unrestricted and restricted funds and do not exceed the available cash within each fund.
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Cleveland Clinic Philanthropy (UK) Ltd Notes to the financial statements (continued) for the year ended 31 December 2024
3. Income from donations
| Income from donations | ||||
|---|---|---|---|---|
| Donations Contributions from parent undertaking |
Unrestricted Funds 2024 £ 160,131 800,000 |
Restricted funds 2024 £ 5,449,095 - |
Total funds 2024 £ 5,609,226 800,000 6,409,226 |
Total funds 2023 £ 6,367,021 1,100,000 |
| 960,131 | 5,449,095 | 7,467,021 |
The contribution from the parent undertaking relates to providing funds to cover the support costs of the charity. In 2023 restricted donation income totalled £6,079,207, there was no other restricted income in that year.
4. Interest receivable and similar income
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| Funds | funds | funds | funds | |
| 2024 | 2024 | 2024 | 2023 | |
| £ | £ | £ | £ | |
| Interest income | 452,594 | 1,566 | 454,160 | - |
5. Expenditures on charitable activities
| Grant distributions Operational support costs Governance support costs |
Unrestricted funds 2024 £ 124,600 869,428 30,288 1,024,316 |
Restricted funds 2024 £ 4,863,782 - - 4,863,782 |
Total funds 2024 £ 4,988,382 869,428 30,288 5,888,098 |
Total funds 2023 £ 2,513,043 950,190 53,288 3,516,521 |
|---|---|---|---|---|
Grant distributions from restricted funds totaled £4,863,782 in 2024 (2023: £2,513,043). These distributions were comprised of £4,852,122 (2023: £2,505,723) provided to Cleveland Clinic London Ltd to support healthcare education and training of nurses and physicians, medical research for the benefit of the general public, and the provision of medical care to the general public for those unable to pay and £11,660 (2023: £7,320) provided to multiple individuals to support educational scholarships in nursing. Grant distributions from unrestricted funds totaled £124,600 in 2024 (2023: £nil)
Operational support costs include employee costs, expenses relating to a seconded employee from The Cleveland Clinic Foundation, services provided by a professional fundraiser and other administrative costs of the charity. The charity hired two employees during 2024.
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Cleveland Clinic Philanthropy (UK) Ltd Notes to the financial statements (continued) for the year ended 31 December 2024
6. Staff costs
| 6. | Staff costs | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Wages and salaries | 23,069 | - | |
| Social Security costs | 2,676 | - | |
| Cost of defined contribution scheme | 995 | - | |
| 26,740 | - | ||
| 2024 | 2023 | ||
| No. | No. | ||
| Average number of employees during the year | 1 | - | |
| There were no employees whose emoluments exceeded £60,000 during | the year. | ||
| 7. | Auditor's remuneration | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Fees payable to the charity's auditor for the audit of the charity's financial | |||
| statements | 20,250 | 19,500 |
8. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2023: £nil).
During the year, no Trustee expenses have been incurred (2023: £nil).
9. Taxation
The charity is not liable for corporation tax on income derived from charitable activities, as it falls within the various exemptions available to registered charities.
10. Debtors: Amounts due within one year
| Accrued interest receivable 11. Creditors: Amounts falling due within one year Amounts owed to group undertakings Accruals for grants payable Other taxation and social security Accruals and deferred income Trade creditors |
2024 £ 32,578 2024 £ 83,306 1,981,100 116,964 23,400 1,854 2,206,624 |
2023 £ - 2023 £ 293,535 453,331 157,160 46,137 - 950,163 |
|
|---|---|---|---|
The amounts owed to group undertakings are unsecured, interest-free and are repayable on demand.
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Cleveland Clinic Philanthropy (UK) Ltd Notes to the financial statements (continued) for the year ended 31 December 2024
| 12. | Share capital | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Allotted, called up and not paid | |||
| 1 Ordinary share of £1 | 1 | 1 |
13. Statement of funds
| Unrestricted funds Restricted funds: Clinical Institute Education Nursing Education and Training Lakshmi Mittal and Family Foundation Clinical Institute Research Community Support Total restricted funds Statement of funds - prior year Unrestricted funds Restricted funds: Clinical Institute Education Nursing Education and Training Lakshmi Mittal and Family Foundation Clinical Institute Research Community Support Total restricted funds |
Balance at 1 January 2024 £ 612,210 399,074 828,172 4,919,234 728,556 3,397,838 |
Income £ 1,412,725 101,423 - 3,600,000 749,238 1,000,000 5,450,661 6,863,386 Income £ 1,387,814 399,074 403,668 3,600,000 680,000 996,465 6,079,207 7,467,021 |
Expenditure £ 1,024,316 - 265,833 4,333,746 16,000 248,203 |
Balance at 31 December 2024 £ 1,000,619 500,497 562,339 4,185,488 1,461,794 4,149,635 |
|---|---|---|---|---|
| 10,272,874 | 4,863,782 | 10,859,753 | ||
| 10,885,084 | 5,888,098 | 11,860,372 | ||
| Balance at 1 January 2023 £ 227,874 - 431,824 3,600,000 48,556 2,626,330 |
Expenditure £ 1,003,478 - 7,320 2,280,766 - 224,957 |
Balance at 31 December 2023 £ 612,210 399,074 828,172 4,919,234 728,556 3,397,838 |
||
| 6,706,710 | 2,513,043 | 10,272,874 | ||
| 6,934,584 | 3,516,521 | 10,885,084 |
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Cleveland Clinic Philanthropy (UK) Ltd Notes to the financial statements (continued) for the year ended 31 December 2024
13. Statement of funds (continued)
The Clinical Institute Education Fund is to support professional staff development, student and faculty development, and educational/technical resources.
The Nursing Education and Training Fund is to support professional staff development, student and faculty development, and educational/technical resources for nurses.
The Lakshmi Mittal and Family Foundation Fund is to support the advancement of health, medical education and research in the UK.
The Clinical Institute Research Fund is to support research efforts in the advancement of healthcare in collaboration with research institutions.
The Community Support Fund is to support the community in furtherance of Cleveland Clinic Philanthropy (UK) Ltd.'s mission to advance health, medical education and research for the benefit of the public.
14. Analysis of net assets between funds
| Debtors due within one year Cash at bank and in hand Creditors due within one year |
Unrestricted funds 2024 £ 32,578 1,302,184 (334,142) 1,000,620 |
Restricted funds 2024 £ - 12,732,235 (1,872,482) 10,859,753 |
Total funds 2024 £ 32,578 14,034,419 (2,206,624) 11,860,373 |
Total funds 2023 £ - 11,835,248 (950,163) |
|---|---|---|---|---|
| 10,885,085 |
15. Related party transactions
During the year the charity received grants of £800,000 (2023: £1,100,000) from its ultimate parent entity, The Cleveland Clinic Foundation.
During the current year and prior year, no related party transactions took place outside of that group.
16. Immediate and ultimate parent undertaking and controlling party
The charity's immediate and ultimate parent undertaking and controlling party is The Cleveland Clinic Foundation, a non-profit corporation at 9500 Euclid Ave, Cleveland, OH 44195, Cleveland, United States of America. The Cleveland Clinic Foundation is organised and operated to provide medical and hospital care, research and education. The sole member of the charity is The Cleveland Clinic Foundation.
The State of Ohio corporation registration number for The Cleveland Clinic Foundation is #95560.
The financial statements of the charity are included in the consolidated financial statements of The Cleveland Clinic Foundation. These consolidated financial statements are publicly available from The Cleveland Clinic Foundation website www.clevelandclinic.org.
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