## **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
3. 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.
- (a) Basis of Preparation of Financial Statements
- The financial statements have been prepared under the historical cost convention, as modified by the recognition of investment assets at fair value, and in accordance with the 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 address of the registered office, the nature of the charity's operations and its principal activities are set out in the Trustees' report.
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.
- (c) Fixed Asset Investments
- Fixed Asset Investments have been included in the balance sheet at 5 October 2022 fair value.
- (d) Gains and Losses on investments Realised gains and losses are recognised when investments are sold. Unrealised gains and losses are accounted for on revaluation of investments at 5 October. All gains and losses, realised and unrealised, are accounted for through the Statement of Financial Activities.
- (e) Grants payable
Grants are accounted for when awarded.
- (f) Other expenditure
- Other expenditure is accounted for on an accruals basis, including VAT which the Foundation cannot recover.
8
## **NORTHCOTT DEVON MEDICAL FOUNDATION**
## **NOTES TO THE ACCOUNTS PERIOD ENDED 5TH OCTOBER 2022 (Cont'd.)**
- (g) Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
- (h) Preparation of the accounts on a going concern basis
- The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
## **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