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2022-10-05-accounts

NORTHCOTT DEVON MEDICAL FOUNDATION

ANNUAL REPORT AND ACCOUNTS

PERIOD 6 APRIL 2021 TO 5TH OCTOBER 2022

Registered Charity Number 204660

NORTHCOTT DEVON MEDICAL FOUNDATION

PERIOD TO 5TH OCTOBER 2022

Trustees : Dr M S Morgan (Chair)
Dr R Haigh
Dr C D Sheldon (appointed 10 January 2023)
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

1

NORTHCOTT DEVON MEDICAL FOUNDATION

Registered Charity Number 204660

TRUSTEES' REPORT

The Trustees present their report and the accounts of the Foundation for the eighteen months ended 5 October 2022.

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, PUBLIC BENEFIT AND GRANT MAKING POLICY

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.

When considering grant applications, the trustees give preference to pilot studies that enable researchers to go on to make subsequent applications for major funding from larger grant funders. They also like to see studies that can lead to direct clinical applications and improved patient outcomes.

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 £7,925 (2021: £5,870) 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 period presented here, investment income increased from £41,718 to £70,393. This is largely in line with the markets and represents a 12.5% increase on an annualised basis.

However, there has been a significant fall in the value of the Foundation’s investments, although, again, this is largely in line with the markets. The value of capital has reduced from £2.023m at 5 April 2021 to £1.872m this year. The trustees are satisfied with the investment performance.

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:-

Dr C Clark
(University of Exeter)
Thresholds used to detect postural hypotension (THUD) - pilot
Dr A Oguro-Ando
(University of Exeter)
Investigating the Molecular function of Contactins, a family of APP-interacting
proteins, in Alzheimer’s Disease
Dr J Williams
(University of Exeter Diabetes and Vascular Research Centre)
Accuracy of continuous glucose monitoring in patients on peritoneal dialysis
Dr MC Jones
(University of Plymouth)
Defining changes in prostate stromal extracellular matrix during cancer progression
and in response to androgen-deprivation therapy
Dr N Hill
(University of Plymouth)
Targeting matrix interactions to treat pancreatic cancer
Dr J Carre
(University of Plymouth)
Assessing interactions between energy metabolism, protein balance and insulin in
muscle weakness and wasting
£		 £
7,068
7,989
4,783
9,970
9,944
6,000
45,754

Due to the coronavirus pandemic, a number of the studies that the Foundation is funding had delayed starts or had to be temporarily suspended. Accordingly, there have been fewer claims against grant awards than would have been expected during this period and the previous year. Grants outstanding at the 5 October 2022 were £100,466 (2021 £95,452).

3

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 period reported here, having charged investment management costs to capital funds, there has been a surplus on unrestricted income funds of £14,321 (2021 £1,975), increasing the unspent income funds carried forward to £17,961 (2021 £3,640).

Restricted funds of £365 remain for multiple sclerosis research and this amount will be used towards future grants for this purpose.

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. On this basis, the Trustees expect to have largely spent the charity’s income reserves at any one time. The reserves policy is to maintain a very minimum of unspent income reserves.

FUTURE COMMITMENTS

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 Secretary

Dr M S Morgan Trustee

1 August 2023

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 period ended 5 October 2022 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 ACA CTA Bush & Co Chartered Accountants 2 Barnfield Crescent Exeter EX1 1QT

3 August 2023

5

NORTHCOTT DEVON MEDICAL FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

PERIOD ENDED 5TH OCTOBER 2022


Notes

INCOME
Income from UK quoted investments
2
Interest on cash deposits
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 2021
BALANCE CARRIED
FORWARD
5 October 2022
9

Unrestricted
£

70,393
0

70,393
21,332
45,150
10,922
77,404
(7,011)
(129,194)
(136,205)


2,026,225
1,890,020

Restricted
£
0
0
0
0


0

0
0
0
0
0
365
365		 18 months
2022
Total
£
70,393
0



70,393
21,332


45,150

10,922
77,404

(7,011)
(129,194)
(136,205)


2,026,590



1,890,385		 12 months
2021
£
41,560
158
41,718
13,427
31,499
8,244
53,170
(11,452)
528,397
516,945
1,509,645
2,026,590

In neither 2022 nor 2021 did any income or expenditure relate to restricted funds.

All activities were continuing activities.

6

NORTHCOTT DEVON MEDICAL FOUNDATION

BALANCE SHEET

5TH OCTOBER 2022

Notes
FIXED ASSETS
UK Quoted investments
7
CURRENT ASSETS
Brewin Dolphin Deposit
Cash at Bank
Debtors – accrued interest
Creditors: Amounts falling due within
one year
8
NET CURRENT
ASSETS/(LIABILITIES)
NET ASSETS
Represented by:
UNRESTRICTED FUNDS
9
RESTRICTED FUNDS
9		 5 October
2022
£
£

1,909,324


87,178

71

595

87,844

(106,783)


(18,939)

1,890,385



1,890,020
365
1,890,385		 5 April
2021
£
£

2,069,446
59,993
59
486
60,538
(103,394)
(42,856)
2,026,590
2,026,225
365
2,026,590		 5 April
2021
£
£

2,069,446
59,993
59
486
60,538
(103,394)
(42,856)
2,026,590
2,026,225
365
2,026,590
2,026,590
2,026,225
365
2,026,590

The Accounts were approved by the Board of Trustees on 1 August 2023 and signed on its behalf by:-

Dr M S Morgan

7

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 5TH OCTOBER 2022

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.

Grants are accounted for when awarded.

8

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS PERIOD ENDED 5TH OCTOBER 2022 (Cont'd.)

2. INCOME FROM UK QUOTED INVESTMENTS

2. INCOME FROM UK QUOTED INVESTMENTS
Dividends and interest received
3. GRANTS AND LECTURES

Grants awarded
Grants released
Grant claim against previously released awards		 18 months
2022
£
70,393
18 months
2022
£
45,754
(604)
0
45,150		 12 months
2021
£
41,560


12 months
2021
£
30,499
0
1,000
31,499

Details of the recipients and purpose of grants are given in the Trustee's Report, under Review of the Year on page 3. All grants were awarded from unrestricted funds and none were awarded from restricted funds for 2022 and 2021.

ADMINISTRATIVE EXPENSES
Secretarial and Accountancy
Independent Examination
Trustee Indemnity Insurance
Meeting expenses		 18 months
2022
£
9,510
886
526
0
10,922		 12 months
2021
£
7,044
768
408
24
8,244

4. ADMINISTRATIVE EXPENSES

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 £7,925 (2021: £5,870) exclusive of VAT by way of fees for secretarial and accounting services during the 18 month period (2021 – 12 months).

9

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS PERIOD ENDED 5TH OCTOBER 2022 (Cont'd.)

7.
UK QUOTED INVESTMENTS
Balance brought forward
at valuation
Acquisitions at cost
Disposals at valuation
Revaluation at 5 April 2021
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
Fidelity US Income Fund
8.
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR
Accrued expenses
Grants outstanding		 5 October
2022
5 April
2021
£
£
2,069,446
1,478,490
655,485
339,103
(655,886)
(234,950)
2,069,045
1,582,643

(159,721)
486,803
1,909,324
2,069,446
1,505,423
1,365,878
the investment portfolio:
5.2%
4.0%
6.0%
6.6%
6.3%
0.0%
5 October
2022
5 April
2021
£
£
6,317
7,942
100,466
95,452		 5 April
2021
£
1,478,490
339,103
(234,950)
1,582,643
486,803
2,069,446
1,365,878
106,783
103,394

9. RESTRICTED FUNDS

During previous years donations of £4,565 were received towards Multiple Sclerosis research. A grant was awarded during 2021 for £4,200, leaving £365 carried forward at the 5 April 2021 and 5 October 2022. All other funds stated below represent unrestricted funds.

UNRESTRICTED FUNDS
At cost
Revaluation surplus
Being:-
Capital
Income		 5 October
2022
£
1,486,119
403,901
1,890,020
1,872,059
17,961
**1,890,020 **		 5 April
2021
£
1,322,657
703,568
2,026,225
2,022,585
3,640
2,026,225

10

NORTHCOTT DEVON MEDICAL FOUNDATION

NOTES TO THE ACCOUNTS PERIOD ENDED 5TH OCTOBER 2022 (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		 5 October
2022
£
1,909,324
595
87,249
1,997,168
(6,317)
(100,466)
(106,783)		 5 April
2021
£
2,069,446
486
60,052
2,129,984
(7,942)
(95,452)
(103,394)

11