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2020-04-05-accounts

NORTHCOTT DEVON MEDICAL FOUNDATION

ANNUAL REPORT AND ACCOUNTS

YEAR TO 5TH APRIL 2020

Registered Charity Number 204660

NORTHCOTT DEVON MEDICAL FOUNDATION

YEAR TO 5TH APRIL 2020

Trustees : Mr J F Thompson (Chairman)
Mr R K Jacoby (Resigned 21 May 2019)
Dr M S Morgan
Dr R Haigh (Appointed 12 November 2019)
Secretary : Mr R E T Borton
Registered address : Stratus House
Emperor Way
Exeter Business Park
Exeter
EX1 3QS
Independent Examiner : Mr S Cann
Bush & Co
2 Barnfield Crescent
Exeter
EX1 1QT
Bankers : Barclays Bank Plc
20 High Street
Exeter
EX4 3LL
Investment Advisors : Brewin Dolphin
Vantage Point
Woodwater Park
Pynes Hill
Exeter
EX2 5FD
Solicitors : Foot Anstey
Senate Court
Southernhay Gardens
Exeter
EX1 1NT

1

NORTHCOTT DEVON MEDICAL FOUNDATION

Registered Charity Number 204660

TRUSTEES' REPORT

The Trustees present their report and the accounts of the Foundation for the year ended 5 April 2020.

GOVERNING DOCUMENT

The Foundation was founded on 8 November 1961 and is constituted under a deed of trust by the late George Vernon Northcott, CBE. The charity’s registered office is given on page 1.

TRUSTEES AND PRINCIPAL ADVISERS

The names of the trustees and principal advisers are set out on page 1.

TRUSTEES' RESPONSIBILITIES

The trustees are responsible for the preparation of financial statements which give a true and fair view of the state of affairs of the Foundation at the end of each financial year and also of the financial activities for the year. In preparing these financial statements, the Trustees ensure that applicable accounting standards have been followed and that appropriate accounting policies supported where necessary by appropriate judgement and estimates, have been consistently applied.

The Trustees have also complied with the deed of trust by ensuring that administrative expenditure has been funded from income.

PRINCIPAL OBJECTS AND PUBLIC BENEFIT

The principal objects are to promote the improvement of medical practice, by supporting postgraduate medical education and medical research in the County of Devon.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. The Trustees’ grant making policy is established in such a way that the Foundation achieves its objects for the public benefit, by seeking to improve medical practice.

ADMINISTRATIVE STRUCTURE

The Trustees are empowered by the deed of trust to appoint additional trustees and also to appoint persons to serve on an advisory committee which meets twice a year to consider grant applications.

The trustees and members of the advisory committee offer their services free of charge and are not remunerated for the expenses they incur. There are no other voluntary helpers.

The Secretary, Mr R E T Borton, is a partner in Bishop Fleming LLP, Chartered Accountants. That firm received £5,770 (2019: £5,670) exclusive of VAT by way of fees for secretarial and accounting services.

2

NORTHCOTT DEVON MEDICAL FOUNDATION

Registered Charity Number 204660

TRUSTEES' REPORT (Cont'd.)

REVIEW OF THE YEAR

As explained below, the Foundation's investment advisors are instructed to maximise total returns. During the year presented here, investment income increased from £49,654 to £50,833.

After the positive investment growth in 2018/19, the Foundation’s investment portfolio decreased significantly by around £198,000, from £1.792m at 5 April 2019 to £1.594m this year. This was driven by investment markets and year-end valuations were particularly affected by the global pandemic, but the losses have reversed since the year end.

The Foundation receives a steady stream of worthy applications and the Trustees continue to balance the needs of current researchers with their objective to protect the time value of the charity’s funds for the future.

The grants awarded during the year were:-

Prof Nick Gutowski and Prof Paul Eggleton
(University of Exeter Medical School)
Stimulator of interferon genes (STING) activation in multiple sclerosis
Dr Rosie Bamford
(University of Exeter Medical School)
Exploring the consequences of disrupting CNTN4 gene in the 3p26 deletion region
associated with ASD
Dr Valentina Mosienko
(Royal Devon & Exeter Hospital, Wonford)
Dissecting antidepressant mechanisms of astrocytic lactate release
Dr Michael T Craig
(University of Exeter Medical School)
Investigating disrupted network inhibition in new mouse model of Alzheimer’s
disease
Dr Tracey E Madgett
(University of Plymouth)
Understanding the role of CD47 in colorectal cancer and the use of CD47 monoclonal
antibodies for potential cancer immunotherapy
Philip Mitchelmore
(University of Exeter)
Impact of long-term azithromycin therapy on the resistome of patients and their
partners
£		 £
4,200
6,059
5,340
3,129
9,985
7,576
36,289

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NORTHCOTT DEVON MEDICAL FOUNDATION

Registered Charity Number 204660

TRUSTEES' REPORT (Cont'd.)

FINANCIAL POLICY (INVESTMENTS, RESERVES AND RISKS)

Whilst the Trustees have wide powers to make investments as they see fit, they maintain a medium risk balanced portfolio.

As the Trustees have the power to apply the capital of the fund to any of the charitable objects of the Foundation, since 2004, the Trustees have asked their investment adviser to try to maximise total return, without being concerned with the split between income and capital.

In the year reported here, there has been a deficit on unrestricted income funds of £256 (2019 surplus of £1,207), reducing the unspent income funds carried forward to £1,665. The trustees have not reallocated any of the capital funds to income during the year.

The Trustees were very grateful to receive donations of £1,565 during the year towards Multiple Sclerosis research. This has added to the £3,000 received in previous years, giving a balance of £4,565 to utilise as a restricted fund. A project was awarded an amount of £4,200 during the year.

Overall, the Trustees’ aim is to maintain the value of capital in real terms and to apply income earned therefrom to award grants and to otherwise fulfil the charity’s objectives.

FUTURE COMMITMENTS

Further to the change in accounting policy (see note 11) there were no commitments at the year-end that were not already recognised as liabilities in the accounts.

INDEPENDENT EXAMINER

A resolution proposing the re-appointment of Mr S Cann of Bush & Co will be put to a meeting of the Trustees.

SIGNED ON BEHALF OF THE TRUSTEES

R E T Borton Dr M S Morgan Secretary Trustee

5 February 2021

4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

NORTHCOTT DEVON MEDICAL FOUNDATION

I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2020 which are set out on pages 6 to 11.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

S Cann FCCA CTA Bush & Co Chartered Accountants 2 Barnfield Crescent Exeter EX1 1QT

5 February 2021

5

NORTHCOTT DEVON MEDICAL FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 5TH APRIL 2020

Notes

INCOME
Income from UK quoted investments
2
Interest on cash deposits
Donations
Total income
EXPENDITURE
Raising funds
Investment management charges
Charitable activities
Grants and lectures
3
Administrative expenses
4
Total expenditure
Net income/(expenditure) before
gains and losses
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)

BALANCE BROUGHT
FORWARD

6 April 2019 – as previously reported
Prior year adjustment
11
As restated
BALANCE CARRIED
FORWARD
5 April 2020
9
Unrestricted
£

50,833
219
-

51,052
13,260
29,948
8,100
51,308
(256)
(204,301)
(204,557)


1,781,342
(67,505)
1,713,837
1,509,280
Restricted
£
-
-
1,565
1,565
-


4,200
-
4,200
(2,635)
-
(2,635)

3,000
-

3,000

365		 2020
2019
As restated
Total
£
£
50,833
49,654
219
15

1,565
2,000


52,617
51,669
13,260
14,427


34,148
28,122

8,100
7,913
55,508
50,462

(2,891)
1,207
(204,301)
110,546
(207,192)
111,753


1,784,3421,670,144

(67,505)
(65,060)
1,716,837 1,605,084



1,509,645 1,716,837
 2020
2019
As restated
Total
£
£
50,833
49,654
219
15

1,565
2,000


52,617
51,669
13,260
14,427


34,148
28,122

8,100
7,913
55,508
50,462

(2,891)
1,207
(204,301)
110,546
(207,192)
111,753


1,784,3421,670,144

(67,505)
(65,060)
1,716,837 1,605,084



1,509,645 1,716,837
51,669
14,427
28,122
7,913
50,462
1,207
110,546
111,753
1,670,144
(65,060)
1,605,084
1,716,837

In 2019 £2,000 of income, no expenditure and reserves carried forward of £3,000 related to restricted funds. The balance was unrestricted.

All activities were continuing activities.

6

NORTHCOTT DEVON MEDICAL FOUNDATION

BALANCE SHEET

5[TH] APRIL 2020

Notes
FIXED ASSETS
UK Quoted investments
7
CURRENT ASSETS
Brewin Dolphin Deposit

Cash at Bank
Debtors – accrued interest
Creditors: Amounts falling due within
8
one year
NET CURRENT ASSETS
NET ASSETS
Represented by:-
UNRESTRICTED FUNDS
9
RESTRICTED FUNDS
9
2020
£
£

1,478,490


115,463

388

581

116,432

(85,277)


31,155

1,509,645



1,509,280

365
1,509,645		 2019
As restated.
£
£

1,714,029
78,273
56
791
79,120
(76,312)
2,808

1,716,837
1,713,837

3,000

1,716,837		 2019
As restated.
£
£

1,714,029
78,273
56
791
79,120
(76,312)
2,808

1,716,837
1,713,837

3,000

1,716,837
1,716,837
1,713,837
3,000
1,716,837

The Accounts were approved by the Board of Trustees on 2021 and signed on its behalf by:-

Dr M S Morgan

7

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5TH APRIL 2020

1. ACCOUNTING POLICIES

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the Foundation's Accounts.

The financial statements have been prepared to give a "true and fair" view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a "true and fair view". This departure has involved following the 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 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn.

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

(b) Income from investments Dividends are accounted for when due and payable. Interest entitlements are accounted for as they accrue.

8

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5TH APRIL 2020 (Cont'd.)

(h) Preparation of the accounts on a going concern basis

2. INCOME FROM UK QUOTED INVESTMENTS

2.
INCOME FROM UK QUOTED INVESTMENTS
Dividends and interest received
3.
GRANTS AND LECTURES
Grants awarded
Grants not taken up		 2020
£
50,833
2020
£
36,289
(2,141)
34,148		 2019
£
49,654
2019
As
restated
£
32,319
(4,197)
28,122

Details of the recipients and purpose of grants are given in the Trustee's Report, under Review of the Year on page 3. £4,200 of grants awarded were from restricted funds, with the balance from unrestricted.

4.

ADMINISTRATIVE EXPENSES
Secretarial and Accountancy
Independent Examination
Trustee Indemnity Insurance
Meeting expenses		 2020
£
6,924
750
408
18
**8,100 **		 2019
£
6,804
690
398
21
7,913

5. TRUSTEES’ REMUNERATION AND EXPENSES

The Trustees act in a voluntary capacity. They receive no remuneration and are paid no expenses.

6. RELATED PARTY TRANSACTIONS

The Secretary, Mr R E T Borton, is a partner in Bishop Fleming LLP, Chartered Accountants. That firm received £5,770 (2019: £5,670) exclusive of VAT by way of fees for secretarial and accounting services.

9

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5TH APRIL 2020 (Cont'd.)

7.
UK QUOTED INVESTMENTS
Balance brought forward
at valuation
Acquisitions at cost
Disposals at valuation
Revaluation at 5 April 2020
Balance carried forward at valuation
Quoted investments stated at historic cost
The following investments represent more than 5% of
J P Morgan American Investment Trust
Vanguard Funds S&P 500
8.
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR
Accrued expenses
Grants outstanding
9.
RESTRICTED FUNDS		 2020
2019
£
£
1,714,029
1,646,764
340,255
173,702
(365,931)
(200,156)
1,688,353
1,620,310

(209,863)
93,719
1,478,490
1,714,029
1,242,836
1,220,904
the investment portfolio:
7.7%
8.1%
6.5%
5.2%
2020
2019
As
restated
£
£
7,973
8,807
77,304
67,505		 2019
£
1,646,764
173,702
(200,156)
1,620,310
93,719
1,714,029
1,220,904
85,277
76,132

During the year donations of £1,565 were received towards Multiple Sclerosis research. A grant was awarded during the year for £4,200, leaving £365 carried forward at the year end. All other assets and liabilities represent unrestricted funds.

UNRESTRICTED FUNDS
At cost – as previously reported
Revaluation surplus
Being:-
Capital
Income		 2020
£
1,273,626
235,654
1,509,280
1,507,615
1,665
**1,509,280 **		 2019
As
restated
£
1,220,712
493,125
1,713,837
1,711,916
1,921
1,713,837

10

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5TH APRIL 2020 (Cont'd.)

10.
FINANCIAL INSTRUMENTS
Financial assets measured at fair value through
income and expenditure
Investments
Financial assets measured at amortised cost
Accrued income
Cash at bank
Financial liabilities measured at amortised cost
Accrued expenses
Grants outstanding		 2020
£
1,478,490
581
115,851
1,594,922
(7,973)
(77,304)
**(85,277) **		 2019
As
restated
£
1,714,029
791
78,329
1,793,149
(8,807)
(67,505)
(76,312)

11. PRIOR YEAR ADJUSTMENT

Previously, the charity has recognised grant expenditure as claims are made by grant recipients. However, as, once awards are made, the Trustees are not able to retract the grant unless the grant recipients do not meet their obligations. Accordingly, the Trustees have changed the accounting policy to recognise grant commitments when the grants are awarded. Grant commitments at 1 April 2018, the start of the comparative period, were £65,060 and at 1 April 2019, they were £67,505. Brought forward reserves have been adjusted by these amounts to recognise the creditors. The impact on the statement of financial activities has, for the comparative period, been to reduce net income in the year to 5 April 2019 by £2,445 to £114,198. The reduction in funds at the balance sheet date has been charged to capital funds.

11