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ANNUAL REPORT AND ACCOUNTS
202212023 IV>
VERSUS
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ARTHRITIS
**Versus Arthritis won’t rest until everyone with arthritis has access to the treatments and support they need to live the life they choose, with real hope of a cure in the future.**
**To deliver our mission we invest in world-class research, deliver high-quality services and campaign on the issues that matter most to people with arthritis.**
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CONTENTS
Contents
4 6 8
A Message from our Trustees’ Report Achievements and
CEO and Chair Performance
10 16 22
Our Research Our Services Campaigning for Change
26 30 32
Our People Building Our Income Generation
Foundations
33 34 40
Thank You Financial Review Principal Risks and
Uncertainties
42 45 56
Looking to the Future Structure, Governance Independent Auditor’s
and Management Report
60 63 100
Consolidated Statement Notes to the Our Board of Trustees
of Financial Activities Consolidated Statements
104
Reference and
Administrative Details
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**CONTENTS**
## **A Message from our CEO and Chair**
**More than 10 million people in the UK live with arthritis – that’s one in six of the population. Yet public awareness of arthritis, and the heavy toll it has on so many, is still limited. There are significant inequalities in accessing treatment and associated services between different parts of the country. And many people are still living with chronic pain and other debilitating effects of arthritis.**
Deborah Alsina MBE – CEO
Kate Tompkins – Chair
As the UK’s largest arthritis remit and ambitions, committing charity, we are determined us to clear goals that will define to do everything possible to our progress and relevance in work with and enable people the medium and long term (see with arthritis to live the lives page 7 for more information). they choose - whether that’s The work was supported by amplifying their voices to brilliantly by many people with create lasting policy change to arthritis and professionals improve diagnosis, treatment who work alongside them. and care; funding research We are truly grateful for their that will provide the therapies, generosity in working with treatments and cures of the us to deliver this work. future; or delivering services that can help people to navigate Our new strategy is deliberately their treatment and care, and to focused on people with arthritis, live well with their condition. with an emphasis on the whole
Our new strategy is deliberately focused on people with arthritis, with an emphasis on the whole person. We are interested not just in the condition itself but also in its causes and consequences. This will define our longer-term approach to creating and sustaining strong partnerships, and we will actively seek out those organisations and groups whose work best complements ours to improve interventions for people with arthritis.
At the beginning of 2022/2023, Versus Arthritis started implementing a restructure of the organisation which aimed to streamline the charity and make our new ways of working more efficient. Our new chief executive, Deborah Alsina MBE, also felt that it was critically important that we look at our strategy, culture and foundations. We therefore launched a programme to foster new values and behaviours as part of a positive, mission-led culture; embarked on the development of our ambitious new five-yearstrategy and ten-year financial plan; and started to review all the charity’s foundations to ensure we have the best launch pad for the future.
During 2022/2023, as we mapped our longer-term strategy, we introduced an interim strategic framework to enable the charity to plan effectively for the year and bring clarity to our priorities. We also introduced a new and more robust planning and budgeting process, and began to develop our longer-term financial plans. All of this has seen Versus Arthritis grow stronger, more focused and more determined than ever to drive the change that people living with arthritis need.
We are delighted to have made huge progress on all these fronts. Our new five-year strategy (2023-2028) was agreed by the board in December 2022, and was launched publicly in April 2023. The strategy clarifies our
We are so grateful for the incredible support we have received from our community over the last year, and delighted to be told that our work has made a real difference to them. Time and again, we have been inspired by remarkable stories – from people whose strides in managing pain have enabled them to become volunteers and fundraisers; people who tell us how much their lives have been improved by accessing our services and information; and talented researchers whose work now promises real hope because our charity supported their efforts.
We have made great strides forward in the last year – beginning with the appointment of six new trustees and our new Chair of Trustees, Kate Tompkins – but none of this would have been possible without the efforts of our wonderful community, from our volunteers and campaigners to our clinical and research advisors.
**Thank you for your support and for being Versus Arthritis.**
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**CONTENTS**
## **Trustees’ Report**
**The trustees, who are also directors of the charitable company, present their annual report (including the strategic report) on the affairs of the charity and the group, together with the audited financial statements and auditor’s report for the year ended 31 March 2023.**
Versus Arthritis is a charity inspired, driven and guided by people with arthritis.
Our objects as enshrined within our governing document are:
- To advance the study of and research into the causes, treatment and cure of arthritis and related musculoskeletal disorders, and disseminate the useful results of that research;
- To relieve the needs of those suffering from arthritis and related musculoskeletal disorders, including by (i) promoting the teaching of matters relating to, and further understanding of, arthritis and related musculoskeletal disorders among healthcare professionals and students and other persons involved in the treatment of such disorders, (ii) improving the treatment and care of persons suffering from arthritis and related musculoskeletal disorders;
- To advance the education of the public in all matters relating to arthritis and related musculoskeletal disorders, including those persons suffering from such disorders.
## duRinG 2022/2023 the chARity coMMitted to the followinG GoAls:
## **PUBLIC BENEFIT**
Versus Arthritis is a public benefit entity. In preparing this report, the trustees have referred to the Charity Commission’s general guidance on public benefit and are satisfied that the activities undertaken by the charity meet the Commission’s requirements.
## GoAl 1 GoAl 2 ReseARch seRvices
Stimulating and investing in groundbreaking biopsychosocial research to make arthritis and related musculoskeletal conditions preventable, manageable and treatable. Our funded research will remain focused on efforts to find a cure, and on ways of improving the lives of people with arthritis.
Ensuring that everyone affected by arthritis can access Versus Arthritis delivers public the information and support benefit by galvanising the wider they need to live well with arthritis community so no one their condition, and providing has to tolerate the fatigue, pain development opportunities for and isolation caused by arthritis. health professionals so they can We do this this by delivering deliver best treatment and care. direct services across the UK to people with arthritis – providing support and information; funding research that will provide new treatments and interventions; and campaigning for policy change to ensure our health and GoAl 4 social care systems meet the MARketinG needs of people with arthritis.
## GoAl 3 policy And influencinG
## GoAl 4 MARketinG And enGAGeMent
The Board of Trustees reviews and signs off strategic plans in each of these domains, and reviews quarterly reports to understand progress made in each area.
Transforming awareness of arthritis and related musculoskeletal conditions, building the charity’s reputation and profile, and growing a strong, active community of support.
Driving positive policy change so that everyone can benefit from an early diagnosis and best treatment and care wherever they live in the UK.
GoAl 6 people, GoveRnAnce And infRAstRuctuRe Running an efficient, digitallyenabled, highly-skilled, safe and well-governed charity – a great and inclusive place to volunteer or work.
GoAl 5 sustAinAbility
Building a financially sustainable organisation to make sure that we have the financial resources to deliver our mission now and in the future.
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**CONTENTS**
## **Achievements and Performance**
ouR yeAR in nuMbeRs
£7 600 Million ReseARcheRs funded We funded the work of over invested 600 researchers across our We spent over £7 million on cutting-edge UK-wide centres, building a research into the diagnosis, treatment coalition of experts dedicated and prevention of arthritis. to outsmarting arthritis.
890,000 £6 heAlth booklets We distributed over 890,000 health Million information booklets, helping our community on their journey through invested diagnosis, treatment and We spent £6 million on self-management. delivering services and support for people living with arthritis.
18,000 people suppoRted We provided face-to-face support to over 18,000 people living with arthritis.
11,000 heAlth And sociAl cARe Our network of health and social care professionals grew to more than 11,000, helping us to promote best practice for people living with arthritis.
6 Million visits foR online heAlth content Our online health content received over six million visits, confirming our position as the UK’s leading web provider of arthritis information.
660,000 11,000 online cAlls Responded visits Our Helpline responded to over 11,000 calls, offering Our online community, a safe space practical and emotional for anyone affected by arthritis, support to those most received over 660,000 visits. affected by arthritis.
## ouR yeAR in bRief
**Following the appointment of our new CEO in March 2022, we set ourselves three major priorities for 2022/23:**
1
These priorities, described We also welcomed elsewhere in this report, have Kate Tompkins as our new given us the focus and impetus we chair in December 2022. Kate needed to make the progress that brings a wealth of experience we had hoped for. as a distinguished senior health professional to the At the start of the year, we finished charity as our new strategy implementing a strategic review begins to gather momentum. exercise that began in late 2021. This review looked carefully at a Sadly, we said a fond farewell number of the charity’s activities to a number of trustees whose and, where appropriate, introduced tenures had come to an end. We changes to structures and working are indebted to each of them for practices in those areas. their commitment, insight and tireless support for people living with arthritis.
**To ensure that our charity had right culture to move us forward**
## 2
**To build a relevant and impactful strategy to steer us towards our objectives**
## 3
During the year, we also stabilised with arthritis. our leadership team, with new appointments in our Services Following a major trustee & Influencing and Finance & recruitment exercise in the Corporate Resources directorates. second half of the year, we have since welcomed a new group of Since the year end, we have also trustees. Their diverse skills and brought in experienced leaders to experiences will assist our board at a vital time.
**To work on our foundations – our data and systems; our financial health; our policy, risk and assurance arrangements; and most importantly, how we best support our staff and volunteers.**
Since the year end, we have also brought in experienced leaders to the Income & Engagement and People & Culture directorates, and have a new Director of Research & Health Intelligence scheduled to join us in October 2023.
VERSUS ARTHRITIS ANVERSUS ARTHRITIS A **N** NUAL REPORT AND AUAL REPORT AND AC **C** OUNTS 2022-2023 COUNTS 2022-2023 059
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**CONTENTS**
## **Our Research**
**Millions of people with arthritis in the UK are not getting the treatment, support and care that they deserve. Out of all the ‘high-burden diseases’ in the UK, arthritis has the greatest mismatch between funding and disease impact.**
## 2
Over the last year, we’ve continued to implement our research strategy, always looking to deliver insights and breakthroughs that will make arthritis treatable, manageable and preventable.
Versus Arthritis invests in stateof-the-art science, working with leading researchers to develop smarter methods of diagnosis, more precise treatments and more effective prevention.
**Targeted treatments:** Taking the guesswork out of treatment by increasing effective, reliable and timely drug and non-drug solutions to reduce, manage or cure disease.
In late 2021, we agreed and published a research strategy which set out four priority areas where we would focus our investment and influence over the next five years, to create real change for people with arthritis.
This year, we’ve made 17 new research awards, taking our total investment in live projects to over £106 million. We’ve also recruited new experts with research, clinical and lived experience to the specialist committees and advisory groups that steer our research; contributed to the analysis and reporting of disparities in musculoskeletal health at a national level; and developed a Research Impact Framework to collect the data that we’ll be using to track our research funding.
3
**Living well:** Addressing musculoskeletal health inequalities for individuals and wider society by striving for better musculoskeletal health and care at home, leisure, at work, and in communities.
These four priority areas are:
## 1 **Early detection and prevention:**
4
Spotting the biological **People and partnerships:** signatures of arthritis early to Making Versus Arthritis the maximise the opportunities partner of choice for our funding for timely intervention and partners, the life-sciences preventing it from getting worse. industry, and our researchers.
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**CONTENTS**
## ReseARch spotliGht
Professor Mauri’s focus has been on gut health, vital to the maintenance of a good immune system. Her group has found that patients with RA have “gut leakiness”, allowing harmful bacteria to enter the blood stream, triggering inflammation in the joints.
autoimmune conditions. If this proves to be the case, research on gut health could potentially provide a pathway to new treatments.
**Rheumatoid arthritis (RA) is a painful and progressive autoimmune disease that affects approximately 400,000 people in the UK. Drug treatments can help control many of its symptoms, but there is no cure. A significant proportion of people with RA continue to live with pain, inflammation and fatigue, as well as debilitating secondary illnesses.**
The prospect of early-stage treatments that restore a healthy gut opens new and exciting possibilities. “We could correct the gut barrier prior to the development of inflammation, and then see if this prevents development of the disease,” says Professor Mauri. “This might provide a long period of remission, or the ability to reduce the amount of anti-inflammatory treatment.”
Professor Mauri and her team have discovered that, in preclinical models of arthritis, treatments that help repair the gut lining can bring about a marked reduction in joint inflammation.
With funding from Versus Arthritis, Professor Claudia Mauri, an immunologist at University College London, has been investigating why people with autoimmune diseases such as RA lack a subset of B-cells called regulatory B-cells, which in healthy people fight off potentially excessive inflammation.
To build on these insights, the team is now looking to investigate whether the level of gut leakiness is also a predictor of disease progression in patients with RA and other
## **FASTER DIAGNOSIS, BETTER TREATMENT**
## **GROWING OUR NEW RESEARCH COMMUNITY PARTNERSHIPS**
We know that diagnosis of By seeding a new generation The challenge of arthritis arthritis often takes far too long, of research specialists, we can research requires a broad alliance and that because of a trial-andincrease the pace and precision of researchers, funders, industry error approach to treatment, of research, accelerating its partners, healthcare professionals, too many people are given transition from lab to clinic, and and people with lived experience. ineffective therapies. In the its impact on policy and practice. meantime, further damage and Since 2008, we’ve invested in 13 deterioration can take place, This year we awarded a senior research centres across the UK, reducing quality of life in the research fellowship to one forging expertise in pioneering short and long term. researcher aiming to improve the and innovative approaches to early diagnosis of rheumatoid arthritis research. This year we put out a call for arthritis, and funded two clinical research projects which focused research fellowships: one We’re now investing in a new on two of our new priority areas: investigating the links between series of cutting-edge projects, ‘Targeted treatments’ and ‘Early pregnancy and inflammation fostering networks and multidetection and prevention’. in rheumatoid arthritis; the disciplinary collaborations across other looking to improve our our priority areas. As a result of this funding call, understanding of the pain behind we’ve committed to investing fibromyalgia. In partnership with the Nuffield
The challenge of arthritis research requires a broad alliance of researchers, funders, industry partners, healthcare professionals, and people with lived experience.
As a result of this funding call, we’ve committed to investing almost £2.5 million in new projects to accelerate the diagnosis and treatment of arthritis. This includes research into:
fibromyalgia. In partnership with the Nuffield Foundation, we are supporting We’ve also awarded three career the **Oliver Bird Fund** for development fellowships. research on the links between musculoskeletal conditions and economic and social well-being.
- Diet and the biological markers found during the onset and progression of arthritis
- arthritis “The Support from Versus Arthritis will
- • The early detection of severe allow the research team to develop new juvenile idiopathic arthritis methods to estimate the amount of
- • How to treat patients with time that people with musculoskeletal rheumatoid arthritis with conditions can stay healthy and in work… targeted treatments without compromising the immune The research is important because it
- system will contribute to the development of
- • Unlocking the neurological interventions and policies that help mechanisms of chronic pain to accelerate diagnosis and people to extend their working lives.”
- Unlocking the neurological mechanisms of chronic pain to accelerate diagnosis and treatment.
## **Professor Ross Wilkie**
Oliver Bird Fund Researcher
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**CONTENTS**
“There is an increased burden of osteoarthritis in people experiencing socioeconomic disadvantage, and it has a big impact on their lives and society.
Co-funded by Versus Arthritis, our research will develop and test a new support programme that will involve trained volunteers with osteoarthritis (“peer mentors”) helping other people with osteoarthritis learn how to manage their condition better. The support will be delivered remotely and tailored to people who feel disadvantaged by their finances, education or social circumstances.”
## **Professor Gretl McHugh**
University of Leeds
## **of Health Improvement and**
Last year, we joined with nine regularly attending and coother autoimmune charities chairing Research Advisory to form **Connect Immune** Groups and expert committees **Research** , a funding scheme that which shape our investment brings together scientists from priorities. various disease specialisms to understand how autoimmune conditions are linked, and to **HEALTH DISPARITIES** see what shared lessons can be learned from a wider focus on At Versus Arthritis, we’ve the causes of autoimmunity. long recognised that people’s
**Disparities** (OHID), publishing a new report on “Musculoskeletal health: trends, risk factors and disparities in England”. The report provides new data to expand awareness of disparities in musculoskeletal (MSK) health at a national level, underscoring the effects of health inequalities relating to age, sex, geography, ethnicity, deprivation, obesity and physical activity.
learned from a wider focus on At Versus Arthritis, we’ve the causes of autoimmunity. long recognised that people’s relating to age, sex, geography, experience of arthritis is a social ethnicity, deprivation, obesity Partnering with the **Kennedy** as well as physical phenomenon, and physical activity. **Trust for Rheumatology** meaning that part of our mission **Research** , we embarked on a is to identify and counter Our ‘Pain People Place’ project new research project on fatigue inequalities that have such an connected with people living in in musculoskeletal conditions. enormous impact on access chronic MSK pain in the rural, to care and treatment, and on remote and island communities People living with arthritis outcomes and longevity. of Argyll, and supported work remain at the very core of all our with the Gypsy Traveller research activities. We currently Over the last year, we’ve community in the Highlands. have 82 experts by experience continued our important who act as our research partners, partnership with the **Office**
## soMe ReseARch hiGhliGhts
The REDUCE study, undertaken Research from the Pathogenesis by researchers at the University of Osteoarthritis Centre Versus of Bristol, found considerable Arthritis at the University of differences in how well patients Oxford shone new light into the with hip fractures are cared causes of hand osteoarthritis. for by hospitals in England Our funded scientists found and Wales. that a molecule called retinoic acid, made from vitamin A, These findings have led to is important in controlling the creation of a professional inflammation in the cartilage. toolkit for best practice in hip They are currently testing a fracture care. drug that protects retinoic acid in a small proof-of-concept clinical study.
The LIFT study, led by researchers from the University of Aberdeen and the University of Glasgow, showed that non-drug treatments such as physical activity and cognitive behavioural therapy (CBT), delivered by non-specialists, can significantly improve fatigue in people with inflammatory arthritis.
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**CONTENTS**
## **Our Services**
## **Getting People Moving and Managing Their Condition**
Last year, our UK team delivered more than 3,200 in-person events across the UK, supporting over 18,000 people living with arthritis.
**Providing people with the support, motivation and techniques to manage their own health and well-being is at the core of our services. All of our physical activity and self-management courses are specifically tailored to the needs of all people living with arthritis.**
The team was commissioned by four local NHS Clinical Commissioning Groups to provide information, selfmanagement and peer support to people with osteoarthritis of the knee or hip.
Along with 14 other leading health and social care charities, we have, with funding from Sport England, continued to help thousands of people with longterm health conditions find ways to become active through the **We Are Undefeatable** campaign.
Our **Let’s Move with Leon** and **Let’s Move for Surgery** series of activity programmes extended their online audience, attracting over half a million views and a great deal of positive feedback.
“The self-management course was great for me. I was very lucky to get on that soon after my diagnosis, hence why I do so much for Versus Arthritis now. It was fantastic getting that peer support, seeing other people at a similar age and with similar problems.
All the group classes help you to meet people and make friends, especially the drumming and on your feet dancing. There’s a sense of community when you do these things… It’s great to see the progression of people with long-term conditions.”
**Gareth**
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## spotliGht on wAles
Thanks to funding from the Welsh Government, Cymru Versus Arthritis continued to reach out to adults with arthritis through its Communities Working Together Can Help Project (CWTCH, the Welsh word for hug).
Over the last year, the team has been busy bringing support and information to individuals and community groups, building support networks, offering one-to-one support to over 1,200 people, and connecting with over 2,500 people at 89 events.
The CWTCH classes have made a real difference to people living with arthritis, helping people like Catherine to manage their symptoms and improve their well-being.
“I was just in this lonely world of not really knowing what was going to happen to me before I spoke [to the service coordinator] and they opened the door… it meant that I had access and knowledge about other things that could help as well.”
**Catherine**
## **YOUNG PEOPLE AND FAMILIES SERVICE**
Last year, following the lifting of Covid-19 restrictions, our dedicated Young People and Families Service (YPFS) resumed a full roster of events and activities supporting children and young people across all four nations. As well as offering clinic support and residential weekends, the YPFS ran workshops that encouraged young people to explore their sense of self following diagnosis, while receiving support from their peers, staff and volunteers.
“Being part of Versus Arthritis events has boosted my confidence to believe that we as young people are not just disabled people but children who have dreams and aspirations that we know we can achieve with the support of Versus Arthritis, the volunteers and the other young people.”
“My son felt like he was the only child with arthritis and frustrated he couldn’t join in activities like other children. The Young People and Families events have built his confidence and made him feel like a ‘normal’ teenager.”
Last year, the YPFS continued to give support in hospital settings, partnering with specialist rheumatology clinics all over the UK to support and guide children and young people living with arthritis.
Outside of these healthcare settings, the team connected with hundreds more children and young adults through various face-toface and digital events, including self-management workshops and our first YPFS volunteer conference. All these events have helped foster mutual support, uniting families on a shared journey.
## spotliGht on sfiyAh
**Sfiyah was nine years old when she was diagnosed with juvenile idiopathic arthritis (JIA), a condition that affects around 12,000 children across the UK. The diagnosis was slow in coming, and Sfiyah’s family often felt that health professionals weren’t properly listening to their concerns.**
“Even though we are all here can support her in ways that to support her,” says Parvina, don’t make her feel intimidated… Sfiyah’s mother, “it’s taking its toll. It’s been great to have someone Sfiyah can notice the difference there to help Sfiyah and give her since her diagnosis. She’s still a positive mindset.” trying to come to terms with the fact that she has to change her lifestyle.”
The Young Persons and Families Service have been supporting Sfiyah and her family since her diagnosis at Noah’s Ark Children’s Hospital. “Sfiyah struggles to build trust with everyone, but with Elinor [her YPFS worker] it was instant. Elinor understood that Sfiyah’s had such a difficult time and she
A year on, Sfiyah is taking medication to help with regular flare-ups that restrict her mobility. “My JIA impacts me a lot,” says Sfiyah. “It stops me from doing lots of things. Sometimes I don’t feel included… I can’t do the things I want to do.”
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**CONTENTS**
## **HELPLINE AND ONLINE SUPPORT**
“Thank you for the wealth of information. I feel more confident now that I can weather the storm until my surgery.”
Our free and confidential telephone helpline is there for everyone without online access and anyone who prefers to speak in person to one of our trained advisors about their health needs.
“Finally had the courage to call VA. I cannot recommend their helpline, or should I say lifeline, enough.”
Last year, the helpline supported over 11,000 people living with arthritis. While chronic pain remained the single subject behind most calls, there was a notable increase in calls from those seeking emotional support for untreated conditions and delayed operations. The helpline team managed to answer 90% of incoming calls, with an average call length of 20 minutes.
## **SUPPORT FROM OUR VOLUNTEERS**
Over the next year, we’ll be working closely with all our partners to ensure that we are truly capable of expanding our reach and keeping closer contact with our volunteers and service users.
for untreated conditions and Beyond the essential fundraising delayed operations. The helpline work that our 140 volunteer-led team managed to answer 90% of groups and branches undertake incoming calls, with an average on our behalf, they’ve continued call length of 20 minutes. to act as support networks for the most underserved members Our **online community** now of our community, particularly has 16,481 members actively those that are older, socially posting and offering peer-toisolated or digitally excluded. peer support to people with arthritis. Thank you to all our Over the last year, our UK volunteer moderators for groups and branches organised making this a welcoming space movement classes and for people with arthritis to ask hydrotherapy sessions, and, most questions and share experiences. importantly, provided a forum where people with arthritis could **AVA** , our Arthritis Virtual openly share their difficulties, Assistant chatbot, hosted frustrations and achievements. 6,562 conversations.
## **SUPPORTING HEALTH PROFESSIONALS**
Our Health Development Team works across the four nations to make sure that healthcare and workplace professionals fully understand the needs of people living with arthritis, so that they can follow best practice when assessing their symptoms and needs.
Our vision for our future **Our Young People Tracker** volunteer-led network is clear: **App** – designed to help teens we aim to expand our network, and young adults with arthritis reaching more people with manage their symptoms, arthritis, and making inroads talk to their healthcare into diverse and underserved professionals, and connect communities. with other young people facing the same challenges To do this, we’ve been creating a - had 11,185 downloads. new and overarching model for a volunteer-led network.
Over the last year, the team has led training courses and produced clinical guides for doctors, nurses and physiotherapists. They’ve grown their professional network of healthcare practitioners to more than 11,000, delivering face-toface and digital training that has been accessed more than 150,000 times.
“I live on my own and I live in a house with stairs. In the morning, the stairs aren’t too bad, but by the evening I look up at them and it’s like climbing Kilimanjaro. I drag myself up. When you’re on your own you just have to do things. It’s painful but I have to do it. I turn over in bed at night and it wakes me up. I don’t sleep all that well… I don’t want to give into my arthritis too much, if that makes sense.”
**Christine Harvey**
“As GPs and medical student teachers we want to provide more opportunities for future doctors to listen to real patient stories. We worked with Versus Arthritis and discussed how we might achieve our goal…. Learning experiences are much more valuable and memorable when the patient is the centre of the session.”
## **Jim McMullan**
GP and Clinical Teaching Fellow at Queens University
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## **Campaigning for Change**
**Versus Arthritis gathers evidence to influence national policies and workplace practice, and leads campaigns to make arthritis a policy and public health priority.**
**In 2022-23, three issues dominated the work of our policy and campaign teams: waiting times for joint replacement surgery; the cost-of-living crisis; and supporting health system change.**
## **TACKLING WAITING TIMES**
Having previously called on decision-makers to take urgent action to reduce waiting times for joint replacement surgery, our **Impossible to Ignore** campaign gained further traction.
We spoke to politicians throughout the UK about the impact of NHS waiting times.
Our supporters joined us by emailing their local MPs, asking them to contact their local health services about what’s being done to tackle the backlog in care and to support people with arthritis as they wait.
In Scotland, we worked with our healthcare partners to successfully influence the Scottish Government for a new system to prioritise elective care.
To date, the **Impossible to Ignore** campaign has helped to secure positive changes on elective care in all four nations of the UK, with all governments publishing elective care recovery plans or setting new targets to drive improvement.
“There was a lot of angst in waiting. Every time that phone rings you think maybe this is it! And it did happen to me one day – it finally was that call. I thought someone was having me on! I’d been waiting day in day out for two years and they said, “Can you come tomorrow? It was amazing. It’s so transformative. I wish they’d get a move on with these waiting lists. The day after the surgery the arthritis pain is gone. It just disappears. It’s completely life changing.”
**Brenda**
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**CONTENTS**
## **RESPONDING TO THE COST-OF-LIVING CRISIS**
Last year, a significant number of people with arthritis told us that their health and well-being was dramatically impacted by the cost-of-living crisis. In September 2022, we surveyed almost 4,000 of our supporters. The results were stark. More than nine in ten said they were concerned about the cost of heating their homes over the coming winter; almost one third said they were skipping meals or eating less due to the costof-living crisis.
“I wear alpaca socks and merino gloves to keep my hands and feet warm. It’s so cold at night that the pain from just moving to get warmer in the quilt will wake me up… There have been some really dire times. I’ve been very close to doing something stupid. When the pain’s there, I come down some mornings and curl up in a ball and cry.”
**Dave Roberts**
As a result of what we heard, we marked World Arthritis Day by publishing an **Open Letter to the Prime Minister** , urging the UK Government to increase support to people needing additional heating to maintain their health; to make sure that planned treatments were not disrupted by winter pressures on health services; and to protect groundbreaking research on arthritis in the UK from rising costs. More than 28,000 supporters signed our Open Letter, which we handed in to Number 10 in February 2023.
## spotliGht on noRtheRn iRelAnd
for people abandoned on a treatment waiting list.
**In the run-up to the Assembly election in May, the Northern Ireland team ran a successful campaign to get arthritis on the political agenda.**
Building on this success, Versus for people abandoned on a Arthritis’s Northern Ireland team treatment waiting list. hosted a well-attended reception at the Assembly in November. **Caitriona** was diagnosed with The reception introduced arthritis at 12. Her teenage years the charity and highlighted were difficult. As she transitioned the issues facing people with to adult services, her health went arthritis. Invited politicians and into serious decline, disrupting health policy makers heard the both her education and work. personal stories of four Change Maker volunteers, all of whom **Gillian** demanded to know made a powerful case for better why people in Northern Ireland support for people with arthritis: were waiting six years for joint
The campaign asked supporters to contact their local election candidates and ask them to pledge their support for people with arthritis.
**Gillian** demanded to know why people in Northern Ireland were waiting six years for joint surgery, calling for urgent action.
Thanks to their help, we gathered pledges of support to champion improvements from candidates in every constituency and across 10 parties, and a third of the elected Members of the Legislative Assembly.
**Tracey** explained how arthritis had stolen her health, her income, her home and marriage. She spoke of the need for better support and communication
## otheR cAMpAiGninG hiGhliGhts
would meet the needs of everyone living with the condition.
In March 2023, we were delighted to see several of our key policy demands on employment represented in the UK Spring Budget, with Westminster committing £400 million to help people with musculoskeletal and mental health conditions stay in, or return to, work.
would meet the needs of everyone In Scotland, we partnered with living with the condition. other third sector organisations to push for improvements in elective After many years of recovery, including support campaigning, we were thrilled for people waiting for surgery. to see the completion of a new Consequently, the Scottish multidisciplinary Paediatric Government set new targets for Rheumatology service at the elective care and established a Noah’s Ark Children’s Hospital new ‘Waiting Well’ initiative to for Wales. The new service will improve people’s experiences ensure that more young people of waiting. In January 2023, we with arthritis have access to the brought together government, diagnosis, support and treatment NHS and third sector stakeholders they need. to a Waiting Well roundtable to discuss key issues and concerns. One of the key recommendations Subsequently we were invited to in our 2021 Senedd election join the Scottish Government’s manifesto was met when Waiting Well Steering Group. the Welsh Government recruited their first-ever national MSK clinical leads.
The UK Government announced plans for a Major Conditions Strategy in England to tackle the biggest healthcare challenges of our time, including musculoskeletal conditions. Our CEO, Deborah Alsina, was invited to sit on the UK Parliament’s External Advisory Panel to represent the experiences of people living with arthritis, making sure that this strategy
24
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 25
**CONTENTS**
## **Our People**
**We strive to make Versus Arthritis a safe, healthy and inclusive workplace for all of our staff and volunteers.**
**Our employees are regularly consulted and canvassed for their views and opinions through engagements surveys, staff networks, drop-in sessions with senior managers, and through our Employee Forum which keeps senior management aware of concerns, ideas and areas for improvement.**
In 2022-23, the Employee Forum provided early engagement on the development of a new pay framework, a new statement on values and behaviours, and support for an inclusive workplace.
As of 31 March 2023, we employed 281 full-time staff, 40% of which live with arthritis or another musculoskeletal condition.
We are extremely proud of the energy and professionalism that all our staff have brought to our cause over the last year.
## **VOLUNTEERING AND INVOLVEMENT**
The energy, commitment and goodwill of volunteers is central to our work.
Last year, over 590 volunteers of all ages helped champion our cause, spreading awareness of arthritis, raising funds, shaping our research and ensuring that we are well governed.
When it comes to delivering support to people living with arthritis, the debt we owe to all our wonderful volunteers is huge. As well as acting as moderators to our online community, volunteers have supported our Young People and Families Service, and managed around 140 of our local groups and branches, offering a lifeline to many older people in communities where we have little presence, and to those lacking access to our digital services.
## stAff spotliGht sARAh stAnyeR helpline AdvisoR
**“Working on the helpline, you can never share your story or tell people you understand – but I really do. I’m 55, and I’ve had osteochondritis in my knees since I was 12. I started to get back problems at 23, and had a partial knee replacement 12 years ago.**
What’s great on the helpline calls is that we’re able to be there for as long as people need us. Emotional support is key. Being there to listen is incredibly important for people.
I love my job – it’s so rewarding, and we’re learning all the time.”
26
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 27
**CONTENTS**
“I was diagnosed with rheumatoid arthritis in 2010. I was in my third year at university in England and was training to become a primary school teacher when I first noticed symptoms.
started volunteering with the charity shortly after that.
university in England and I’m still very involved with the was training to become a charity, carrying out different primary school teacher when volunteer roles. I was chair I first noticed symptoms. of a support group here in Northern Ireland for many My body at the time felt like years. it wasn’t mine. It was taken over by rheumatoid arthritis. I’m now on the Volunteer I was in extreme pain and Engagement Group and I every joint in my body felt am involved with the Patient stiff and swollen, which Voice role, where we speak limited my mobility. to healthcare professional
over by rheumatoid arthritis. I’m now on the Volunteer I was in extreme pain and Engagement Group and I every joint in my body felt am involved with the Patient stiff and swollen, which Voice role, where we speak limited my mobility. to healthcare professional students in local universities. Versus Arthritis has helped It gives them an insight into me loads. When I moved what it’s like to live with back to Northern Ireland, I arthritis and the impact it has.” attended a Versus Arthritis **Keri McFarlane** self-management course and
## **DIVERSITY AND INCLUSION**
of diversity and inclusion, antiracism and disability practices, we understand that we still have some way to go, particularly in revising our people policies, and we now have a timetable at hand for this important task.
Over the past year, the volunteering team has undertaken an audit of all volunteer roles, improving recruitment and core training processes. If you think you might want to join us, please contact the Volunteering Team on **volunteering@ versusarthritis.org** or **01246 901797.**
Last year, we took some important steps towards building a diverse and inclusive organisational culture, laying out a new strategy, including staff workshops and the launch of a network of inclusion champions.
workshops and the launch of a Our work has been greatly network of inclusion champions. helped by feedback and guidance from our four staff As part of this strategy, all new networks: staff at Versus Arthritis have attended a mandatory Diversity • Race Equity Network and Inclusion workshop which explores the meaning of equity, • Disability and Inclusion diversity and inclusion. All staff Network have also attended anti-racism training. • LGBTQ+ Equality Network
While results from our 2022 • Women’s Network. People Survey indicate that we’ve made real progress in **Thank you to all involved.** fostering a better understanding
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 29
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28
**CONTENTS**
## **Building Our Foundations**
**Last year, Versus Arthritis committed to making improvements in four key infrastructure areas in the year ahead.**
We refer to these as our ‘foundations’, given their importance in both effective decision-making and risk management:
- Initiating a comprehensive data and systems transformation programme, covering finance, human resources and customer relationship management
- Our strategic planning approach (see page 42)
- Our performance culture, from organisation level to teams and individuals
- Safeguarding, in relation to which we are embarking on a project for the strategic overhaul of the charity’s culture, capacity and resources, to better protect those to whom we owe a duty of care.
We have now successfully retired our on-site ICT infrastructure, migrating all operations to the cloud. This has driven down costs, improved security, removed technical overheads and increased the availability of our services. We have also started our wider transformation programme, with projects to replace our finance and HR systems, and the implementation of a common services platform, well advanced by the year end.
Our strategic planning work reached an important milestone in early 2023, with the agreement of a new strategy, which we launched in the spring. By the year end we were already starting to translate this into detailed implementation plans, with many key initiatives already under way.
We put in place an improved organisational performance measurement system during the year, with further enhancements set for the coming year (2023/24), linking key performance indicators to our new strategic goals. In addition, we launched a new appraisal and objective setting process, which saw reassuringly very high levels of completion in early 2023.
In late 2022, a dedicated team began work on improving our safeguarding functions. We have agreed improved practices on safer recruitment, improved training coverage and made good progress in identifying a full case management system. We have also agreed an increased staff complement and work to extend the team is in hand.
As the year progressed, we extended the review of our organisational foundations to strengthen this work even further.
This included the following:
- Improving our risk management methodology
- Agreeing and implementing a revised approach to property assets, both to drive cost effectiveness as well as improving accessibility in our buildings
- Commencing work to restructure our investment portfolio so as to reduce volatility in asset values
- Rolling out new software to support the operation of our board and committees.
30
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 31
**CONTENTS**
## **Income Generation**
**Throughout the year, our community and event supporters have run, walked, knitted and done so much more to raise an incredible £700,000.**
We received over 100,000 We saw a strong performance direct donations from our post in legacy gifts; established appeals, and sold 12,000 packs robust relationships with of Christmas cards via our new trusts, foundations and online shop. lotteries; secured income from institutional funders; and People remembering us in built our loyal community of their wills continue to be a individual donors. major source of income for Versus Arthritis, with 566 new Over thirty years ago, our notifications last year. funded research led to the
**Thanks to the generosity and commitment of all involved, we’ve raised £22,575,000.**
We would like to say a huge thank you all our donors and supporters. This includes all trusts and corporations, those who wish to remain anonymous, our local groups and branches, and those who have left us a legacy. We would also like to thank our many celebrity supporters and friends for their work in raising both awareness and funds.
Versus Arthritis, with 566 new Over thirty years ago, our notifications last year. funded research led to the development of anti-TNF We’ve continued to reap the treatment - a new class of drugs rewards of many long-standing for inflammatory arthritis. Since fundraising partnerships, then, we’ve received royalty receiving £456,000 from the payments in recognition of Welsh Government to deliver this investment. Sadly, but not the **Communities Working** unexpectedly, in the summer **Together Can Help** (CWTCH) of 2022, we received our final programme. **Sport England** royalty payment. invested £98,000 in our Physical Activity Programme, and Versus Arthritis have also been helping administer their **Together Fund Award Programme** , worth £400,000.
**We look forward to working with you again as we strive to deliver more for people living with arthritis.**
thAnks to the GeneRosity And coMMitMent of All involved, we’ve RAised £22,575,000
Always keen to optimise the potential of the generous donations we receive, we’ve also claimed £125,826 of gift aid from HMRC at no additional cost to our individual donors.
Over the last year, the Income and Engagement team has worked hard to inspire and motivate our valued supporters, sharing stories of what it’s like to live with arthritis and celebrating the impact of our work.
## **Thank You**
The Albert Gubay Charitable Foundation Andrew Lumley Anne Channevy Walsh Awards for All - Wales BBC Children in Need - Northern Ireland The Catherine Cookson Charitable Trust David Mitchell E B M Charitable Trust The Edith Murphy Foundation Farah Asemi Grand Duo Charitable Trust The Honourable Association Ian Hart The Lyons Charitable Trust Mrs Mary Rose McMurtrie The Manali Charitable Trust Mrs K Laurence Charitable Trust The National Lottery Community Fund Scotland (Improving Lives) The National Lottery Community Fund Scotland (Young Start)
Narberth Fundraising Branch
NEXT plc
The Northwood Charitable Trust North Tyneside VODA The Peter Harrison Foundation People and Communities – National Lottery Community Fund Northern Ireland The Revere Charitable Trust Richard Wilkins Scottish Government ShareGift The Simon Gibson Charitable Trust The Sir Samuel Scott of Yews Trust Sport England - Sport England Together Fund St Patrick White Charitable Trust The Violet M Richards Charity The Waterloo Foundation Welsh Government Social Services & Integration Directorate The William A Cadbury Charitable Trust
## **Update on We Are Arthr Ltd**
**Our social venture We Are Arthr Ltd, a wholly owned subsidiary of Versus Arthritis, was created to disrupt the aids and adaptations market, developing and championing well-designed, high-quality products that help people with arthritis live life to the full.**
In the spring of 2022, after trading was adversely impacted by the Covid-19 crisis, the trustees decided not to extend further loans. We Are Arthr stopped trading on 6 January 2023. All remaining assets were transferred to the charity. There were no outstanding creditors.
In May 2023, We Are Arthr Ltd appointed Grant Thornton to act as liquidators, enacting a members' voluntary liquidation of the company under s105 of the Charities Act.
32
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 33
**CONTENTS**
## **Financial Review**
## **OVERVIEW**
**We received a total income of £29.4m in the year ended March 2023, a 4% fall from last year (2022: £30.6m). This was due to the timing of legacy income.**
**----- Start of picture text -----**
NET EXPENDITURE £ MILLION
Total income
Total expenditure
Net expenditure
-20 -10 0 10 20 30 40 50
2022 2023
**----- End of picture text -----**
After unrealised investment losses of £26.7m (2022: £15.1m), the charity made a net overall loss of £27.3m in year (2022: £29.9m, restated). This deficit was entirely due to volatility within our investment portfolio, which is currently under review to ensure that the portfolio is appropriate for the risk appetite of the charity.
During this year, we spent agreements, and we expect 2024 £30.0m (2022: £45.4m, restated), results to be significantly higher. of which £23.2m was on our charitable activities, compared We ended the year with a to £36.7m (restated) in 2022. deficit of £0.6m (2022: £14.8m, This reduction in charitable restated). This figure represents spend is across a number of the difference between our areas (services, raising funds income and expenditure before and raising awareness) as we investment gains/losses and restructured our activities actuarial gain on defined benefit following the strategic review. scheme, and although it is But the majority of the decrease much lower than last year, we is within grant awards (from acknowledge there is further £18.2m (restated) last year to work to be done to ensure that £6.6m in 2023). Much of this the charity is sustainable for the fall is due to the timing of grant long term.
**----- Start of picture text -----**
TOTAL MOVEMENT IN RESERVES £ MILLION
Total reserves at
1 April
Net expenditure
Actuarial loss
defined benefit
scheme
Investment gains /
(losses)
Total reserves at
31 March
-50 0 50 100 150 200
2022 2023
**----- End of picture text -----**
Historically, Versus Arthritis the levels seen in recent years has built up significant reserves are not sustainable in the owing primarily to the charity’s longer term, so we continue to highly successful investment examine our operating model portfolio, which enabled us to as part of the ongoing strategy realise over £100m in investment development. gains over the last decade. Since the merger of Arthritis The Versus Arthritis group holds Research UK and Arthritis Care, cash and short-term deposits of in the financial year ending 2018, £28.7m, compared to £41.4m at Versus Arthritis has deliberately the start of the year. These funds, reduced reserves by way of together with our investments, investment in transformation of will enable us to meet our the charity in order to improve commitments to research the lives of people with arthritis. projects, improving the lives of However, we recognise that people with arthritis and ensuring further operating deficits at the sustainability of the charity.
34
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 35
**CONTENTS**
## **INCOME**
**Our total income was £29.4m, (2022: £30.6m), generated mainly through donations from our generous supporters, trading activities, charitable grants, intellectual property, and investments.**
Our largest source of funding events. Donations totalled £2.2m is from legacies, and we are for the year and represent 7% of grateful to all those who donate total income, in line with last year to us in this way. In 2023, we (£2.4m). received £19.9m in legacy income, 68% of the total (2022: £23.4m, Intellectual property income has 76%). This decrease is due to remained comparable to last the unpredictable nature of year at £0.2m (2022: £0.3m). legacies, as well as that the 2022 The anti-TNF patents have now figure included some “catch-up” expired, and the Kennedy Trust for donations that had been delayed Rheumatology Research has now due to the Covid-19 pandemic. released all income apart from approximately £1.4m, 22% of which Other voluntary income is is due to Versus Arthritis. This is received from regular givers, retained in a legal expense fund philanthropic donations, until the potential for legal dispute corporate partners and people expires in 2023 (see note 3 of the participating in our fundraising financial statements).
Income from charitable activities relates to commissioned funding. This generated £4.1m (2022: £2.1m) to support the delivery of our services to people with arthritis.
Investments generated income for the year of £2.1m (2022: £1.5m), derived mainly from interest and dividend income from our investment portfolio. The rise is related to the increase in interest rates over the period. Further information on investment policy and performance can be found in the section below and Note 10 to the Financial Statements.
## **INCOME £ MILLION**
**----- Start of picture text -----**
Donations and
legacies
Charitable
activities
Investment
income
Intellectual
property income
Other trading
activities
Other income
0 5 10 15 20 25 30
2022 2023
**----- End of picture text -----**
## **EXPENDITURE**
## **Our total spend for the year was £30.0m (2022: £45.4m, restated).**
Staff numbers were reduced following the strategic review and restructure in 2021/22, and for much of the year the organisation was running with significant vacancies. Staff costs dropped from £15.1m in 2022 to £12.5m in 2023 (approximately 17%) and are expected to increase again in 2024 as we continue to recruit.
approximately £16.5m. In 2024 we expect to ‘catch up’ against our 2023 underspend.
as the company was no longer financially viable, and so went into solvent liquidation in May 2023. The costs shown of £0.9m (2022: £1.4m, restated) relate to the ongoing costs until the end of trading in January 2023, plus expenditure relating to the orderly wind-up of the company.
£12.4m was spent on information, services, and awareness activities in 2023 (2022: £15.4m). The reduction was almost entirely within staff costs, due to the large level of vacancies in this area after the strategic review. Recruitment has continued and we are excited to develop our services further.
The cost of raising funds (excluding management fees) was £5.4m, significantly lower than last year due to the impact of staff vacancies (2022: £6.6m).
In 2023 we spent £10.9m on research (2022: £21.4m, restated), which is significantly less than we had planned. We aim to award an average of £13m per year in Research Awards, on a 3-year rolling basis, which with staff and other costs should lead to a total spend in this area of
Social venture expenditure vacancies (2022: £6.6m). relates to the expenditure of We Are Arthr Ltd (‘Arthr’), Investment management costs, Versus Arthritis’s wholly-owned relating to the fees for managing subsidiary. In 2022 the decision our investment portfolio, were was made to stop funding Arthr £0.5m (2022: £0.6m).
**----- Start of picture text -----**
EXPENDITURE £ MILLION
Research
Information,
Services and
Awareness
Raising funds
Investment
management
Other
0 5 10 15 20 25
2022 2023
**----- End of picture text -----**
36
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 37
**CONTENTS**
## **INVESTMENT POLICY AND PERFORMANCE**
## **FUTURE PERIODS**
consideration by the Board of Trustees, and a new
Although the results for the year ended 31 March 2023 show a Versus Arthritis’s policy is to hold relatively small deficit for the sufficient funds as cash and cash charity, this is principally due to equivalents to meet cash flow timing around grant agreements. requirements for the next two The charity continues to operate years. Surplus funds are available an underlying structural deficit for investment by Versus but is working towards a new Arthritis’s investment managers. business model which will bring us to a break-even point by Our Finance Committee the financial year ending 2027. reviews the performance of In 2024 we have budgeted each investment provider on a for a significant operational regular basis and reviews how deficit as we continue to the total portfolio is allocated work towards the growth of across the different funds. We our research partnerships monitor our actual performance and service provision, whilst against this benchmark with the also redeveloping the way aim of optimising our long-term we operate to bring our return within appropriate risk costs in line with income. parameters.
investment policy was approved Versus Arthritis’s policy is to hold in September 2022. A new sufficient funds as cash and cash version of this is expected to be equivalents to meet cash flow approved in 23/24, with a greater requirements for the next two emphasis on the environmental, years. Surplus funds are available social and governance aspects of for investment by Versus our holdings. In January 2023, we Arthritis’s investment managers. engaged Stanhope Consulting to advise us and provide expert Our Finance Committee oversight on the management of reviews the performance of our investments.
## **RESERVES POLICY**
The Charity Commission
and service provision, whilst against this benchmark with the does not dictate what amount also redeveloping the way aim of optimising our long-term a charity should hold in its we operate to bring our return within appropriate risk reserves, and it is therefore for costs in line with income. parameters. the trustees to determine an appropriate level by considering Versus Arthritis’s principal the main risks faced by the **CUSTODIAN HOLDINGS** investment manager Baillie charity, such as an unexpected Gifford and Co Limited, which collapse in legacy and donated The charity acts as a custodian, manages the majority of our core income or a significant fall in the holding investments on behalf investments, has the discretion value of our investment holdings. of the Maisie Lewis fund. This is to manage the portfolio within a fund bequeathed to support this framework. Versus Arthritis’s Charitable funds generally break the funding of a position ethical policy specifically down into three types: at the Kennedy Institute of excludes direct investments in • Restricted funds – to be Rheumatology and was valued companies with more than 10% spent on specific activities, at £256,601 on 31 March 2023. of disclosed sales in the tobacco as agreed when the money The fund does not form part industry. was accepted (a restriction of the charity’s balance sheet is put in place through ‘donor and all income is paid over Our overall portfolio returned a intention’ for the funds). to the Kennedy Institute of net unrealised loss of £26.7m, a • Designated funds - specific Rheumatology. movement of £7.6m compared obligations or commitments
Charitable funds generally break down into three types:
Our overall portfolio returned a net unrealised loss of £26.7m, a movement of £7.6m compared to last year, where we reported a net unrealised loss of £15.1m (See Note 10 to the financial statements).
- Designated funds - specific obligations or commitments trustees have chosen to make on future activities.
- General funds or ‘free’
statements). reserves – no restrictions as to the use of these, within The Finance Committee the organisation’s charitable keeps the investment policy objectives. under review with periodic
## These designated funds are:
Both the designated and the general funds (of which the revaluation fund is part) are unrestricted, in that the trustees have full discretion on the use of these, within the charitable objectives.
This enables us to be clear on why we need to hold reserves, determine the level we should retain and be able to justify why we are holding them.
- Tangible fixed assets used to carry out the charity’s activities, e.g., land and buildings.
- Commitments that have not been provided for as a liability in the accounts.
objectives. The trustees consider that unrestricted free reserves need To determine the “general” to be at least six months of reserves level, the Charity budgeted expenditure, which Commission states we must equates to £15.3m as of 31 March exclude: 2023 (2022: £18.5m). This is to • Tangible fixed assets used to protect against short-term falls carry out the charity’s activities, in income and enable the charity e.g., land and buildings to react strategically to other • Programme-related external factors. Six months’ investments held solely to expenditure was felt to be an further the charity’s purposes appropriate level to enable the • Designated funds set aside to charity to make decisions in a meet essential future spending, considered fashion if faced with such as funding a project that an unforeseen existential threat to could not be met from future the organisation. income
- A legacy-defined benefit pension scheme (closed to new entrants since 2010). The trustees of this scheme (The Pensions Trust) request that we hold £1.9m as a designated fund to mitigate the risk of any future funding shortfalls in the scheme.
- A set amount of £75m in investments, from which income of 4% a year (£3m) is committed to funding infrastructure costs. This amount is taken from the historical investment gains rather than donations.
• Commitments that have not The revaluation reserve (£19.3m) rather than donations. been provided for as a liability is also considered unrestricted, • The funding of our data in the accounts. but we maintain this as a and systems transformation separate fund to protect against programme, which is expected In addition, trustees should set a any volatility in the value of our to cost £5m over the next minimum level of “free” reserves, long-term investments. Total free three years. based on an assessment of risk, reserves were therefore £16.1m at • A further fund of £10m to allow to ensure that the charity is the end of the financial year, which for investment in outstanding sustainable through shortis in line with our reserves policy. projects outside of the agreed and medium-term fluctuations In 2022 we reported £109.9m budget (and with appropriate in income. (restated), which at the time was trustee oversight). This is in our reserves policy. Please refer intended to allow agility and The reasons why Versus Arthritis to note 16. the appropriate use of funds to needs to hold reserves are specific further our charitable aims, and to the charity. We have taken a Designated funds at 31 March may include a research grant, risk-based approach to reviewing 2023 have been created to policy discussion, recognition, and assessing the reserves which ensure that the charity complies or services opportunity. covers: with the Charities’ Statement of • Our internal strategy, activity, Recommended Practice (SORP) and business model and best practice, and will • The risks inherent in our continue as a going concern in organisation perpetuity, as long as those living • Income sources and volatility with arthritis need our support. alongside the degree to which spend is variable.
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 39
38
**CONTENTS**
## **Principal Risks and Uncertainties**
## **Internal Controls and Risk Management**
**Our Board of Trustees is ultimately accountable for risk management across Versus Arthritis. They are responsible for ensuring that we have adequate systems of internal control and risk management in place. The board is supported in this by a dedicated Risk and Audit Committee (RAC), established in 2019.**
## **ASSURANCE FRAMEWORK**
The RAC provides strategic oversight of our risk and assurance frameworks.
To ensure effective management of risk and a strong governance framework, we operate a “three lines” model of assurance.
## **RISK FRAMEWORK**
Our risk framework enhanced towards the end of 2022. The key element to note is a greater focus on risk controls, as well roles and responsibilities, which aims to reduce impact and probability of risks through their effective monitoring and management, underpinned by clear and simple processes and procedures.
## **First Line of Defence**
The critical elements of the first line of defence have been enhanced by clarifying the roles of risk owners, risk coordinators and policy owners, and providing adequate support to manage risks at all levels.
## **Second Line**
Central to the risk framework is the “rethinking risk” approach, which aims to improve our risk culture and create greater risk literacy across the organisation. Historically, risk was overwhelmingly the responsibility of just one role (the Risk and Compliance Manager) and there was no clear pathway to make senior leadership aware of risks, such as by escalation from team level to directorate level and on to the corporate risk register. There was also confusion about the roles and responsibilities of risk coordinators and risk owners.
The second line of assurance is led by the Head of Governance, Assurance and Legal, supporting the SLT through legal and compliance monitoring.
## **Third Line**
Grant Thornton UK LLP provide an outsourced internal audit service, drawing on multi-disciplinary expertise. They undertake topical audits against a programme agreed annually with the SLT and the RAC. They also provide independent quality assurance relating to follow-up actions by management, as derived from topical audits..
This year, we’ve sought to address these perceived weaknesses. Our first step has been to introduce seven risk pillars, ensuring that risk is the responsibility of everyone within Versus Arthritis and not just one person. These are: **Financial Sustainability, People, Compliance, Impact, Safeguarding, Reputation, and Cyber Risk** .
## **KEY CORPORATE RISKS**
We have undertaken a full review of corporate risks, categorising them in accordance with the seven risk pillars mentioned above. There are 18 corporate risks in total on the corporate risk register at present.
Our new risk approach is underpinned by a revised corporate risk register, approved in November 2022. The purpose of this register is to create a clear pathway for feedback and the escalation of strategic risks to the Senior Leadership Team (SLT) and Risk and Audit Committee, for their immediate attention.
From the strategic risks identified in the corporate risk register, five risks are deemed to have the potential to be “very high impact”. These are outlined in the table on the next page.
**----- Start of picture text -----**
PLANNED / IN PROGRESS
RISK DESCRIPTION RISK PILLAR MITIGATION ACTION
Charity fails to define and implement Sustainability A new organisational strategy has
an effective and sustainable business been approved and is now being
model, leading either to fundamental implemented. The financial strategy
failure or serious decline in activity to support this is in development
(business model risk). and will focus on sustainability.
Detailed 10-year modelling, 3-year
planning and financial projections
are all being worked up in 2023 to
inform this work.
All levels of the organisation are
involved in developing future
sustainable plans.
We are investing in the financial
literacy of our people to ensure
strategies and plans are well
understood and managed.
Charity has poor assurance and Compliance We are conducting a policy audit
oversight regimes, leading to lack to ensure we have the correct
of challenge and review of working controls in place.
practices (assurance risk).
The internal audit programme
has been aligned to the new risk
approach.
Staff are being upskilled in risk
and regulation.
Charity fails to embed safeguarding Safeguarding Safeguarding project was
practices into its everyday operation initiated to scope organisational
(safeguarding practice risk). requirements. Findings are now
being operationalised.
Charity fails to respond adequately Safeguarding Outcomes from the recent
to significant safeguarding issues safeguarding project include a case
(safeguarding incident risk). management system; a refresh
of standing incident protocols;
and the instigation of a culture of
continuous review.
Charity fails to handle an incident or Reputational Key personnel have undergone
prominent, negative news story. spokesperson training and we are
currently investigating potential
crisis incident simulation with SLT.
**----- End of picture text -----**
40
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 41
**CONTENTS**
## **Looking to the Future**
**Last year, during our strategic review, we held a mirror to all aspects of our work, listening closely to people with arthritis, and speaking to carers, researchers and healthcare professionals. This wide-ranging consultation made two things clear to us. Firstly, we needed to renew our commitment to ground-breaking research; to deliver services that support people to live well with arthritis; and to drive policy change on the issues that matter most to people with arthritis. Secondly, we needed a new set of organisational values and commitments – a map and compass to guide us towards deepening our impact and realising our vision of a future free from arthritis.**
the five stRAteGic GoAls thAt will Guide ouR woRk oveR the next five yeARs ARe:
1 2 3 4 5 Arthritis is Everyone People live To transform That Versus prevented or has equitable well with awareness Arthritis is a diagnosed access to arthritis and of arthritis sustainable, promptly and personalised have a strong and related effective effectively. treatment community of musculoskeletal charity and and care, and support. conditions, a great place the range of building the to work and targeted charity’s volunteer. treatments reputation and and cures profile and an available are active and loyal expanded. community of support.
We know that we can’t do this alone, so collaboration and bridge-building will be more essential than ever.
Working side by side with our volunteers, supporters and partners across all four nations of the UK, we aim to extend our reach and foster support at all stages.
As with everything we do, our new strategy was developed with people with arthritis and our wider community of our volunteers and involved people. We are grateful to everyone who contributed.
## obJectives foR 2023-24
**For the first year of this strategy, we’ve set out a number of key priorities:**
- Building our **self-management services** and partnering with the **health and social care sector**
- Agreeing a **financial strategy** that will sustain our work in the long term
- Creating a **three-year influencing plan**
- Determining our future approach to **strategic partnerships**
- Gathering evidence on the **health inequalities** that exist in arthritis and musculoskeletal care
- Progressing the next phase of our **data, digital and systems transformation programme**
- Continuing to deliver our **equality, diversity and inclusion strategy**
- Developing and delivering a **strategic learning** plan to further upskill and develop our staff
- Improving **how we communicate** with our staff and volunteers
- Implementing a **volunteering and involvement action plan** and delivering our **branches and groups project**
- Completing our **safeguarding project** as part of our ongoing commitment to make sure we maintain excellent safeguarding culture and practice
- Developing **our website** .
## **MEASURING OUR IMPACT**
To realise our goals and objectives, we recognise the need to measure and report the difference we as an organisation make in the lives of those we serve. For this reason, our trustees have approved a new impact policy and framework, to improve data collection and our ability to monitor how our services are benefiting all our communities.
From April 2023, we will consult and collect data under this new framework. Over the coming year, we’ll also work to improve our means of impact measuring for the long term. This will ensure that all decisions made by Versus Arthritis will be based on the most accurate data available.
## **GRANTS POLICY**
Opportunities for research funding are, under normal circumstances, subject to open competition, and we receive applications via the online Grant Tracker system. Applications are validated and, where appropriate, these applications also undergo independent, external peer review.
The applications and independent, expert peer reviewers’ comments are considered by research subcommittees, expert groups or bespoke panels that make recommendations to Versus Arthritis about whether an award
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**CONTENTS**
should be made or whether the application should be rejected.
advisory panel must be independent of the charity’s administrative staff and trustees.
hinder our strategic plans to grow income at the pace we had previously anticipated.
The panels are comprised of trustees. experts in the field and experts • **Rotation of scientific** We are continuing to review our by experience. All reviewers **advisers** – scientific advisory operational expenditure to bring undergo a strict assessment to panel members must have a down the operating deficit to a identify any conflicts of interest fixed term of office and not sustainable position. While doing prior to being asked to review have tenure. so, we are utilising our reserves an application. • **Impartiality** – scientific to invest in strategic initiatives advisory panels must include that will improve processes and When applications are a significant number of nonthe efficiency of the organisation, recommended for an award, they beneficiaries. There must be enabling us to better meet the are approved in accordance with a conflict-of-interest policy needs of people living with Versus Arthritis’s schedule of and potential beneficiaries arthritis.
an application. • **Impartiality** – scientific advisory panels must include When applications are a significant number of nonrecommended for an award, they beneficiaries. There must be are approved in accordance with a conflict-of-interest policy Versus Arthritis’s schedule of and potential beneficiaries authority, and letters of award should not be present when are issued, including conditions decisions are made. of the award and any contractual requirement for those awards. During 2021/22 the AMRC
We are fortunate to be able to weather uncertainties through our substantial unrestricted and designated reserves. The charity is likely to run a deficit over the medium term which will be gradually reduced in a controlled manner as we work towards a balance between our income and expenditure.
requirement for those awards. During 2021/22 the AMRC performed its five-yearly All awards are managed independent review of the post-award for compliance, processes and procedures used performance and impact, and by Versus Arthritis to administer appropriate dissemination and and manage its portfolio of attribution of the outputs is research awards. The review monitored. reported very positively on the quality and standards of grant Versus Arthritis supports the management approaches being Association of Medical Research used by the organisation. Charities (AMRC) Principles of Peer Review throughout all award making and abides by its **GOING CONCERN** five basic principles:
Versus Arthritis supports the management approaches being The trustees have reviewed Association of Medical Research used by the organisation. this alongside our financial Charities (AMRC) Principles position and financial forecasts, of Peer Review throughout all taking into account the levels of award making and abides by its **GOING CONCERN** investment reserves and cash, five basic principles: and our systems of financial The trustees must satisfy control and risk management. • **Accountability** – charities themselves as to the ability of As a result of this review, the must be open and Versus Arthritis to continue as trustees believe that we are well transparent about their a going concern for a minimum placed to manage operational peer review procedures and of 12 months from the approval and financial risks successfully. publish details, including of the financial statements. At Accordingly, the trustees have the names of members of the year end, the continued a reasonable expectation that scientific advisory panels or impact of Covid-19, Brexit and the charity and the group have other decision-making bodies. the cost-of-living crisis on both adequate resources to continue • **Balance** – scientific advisory the macroeconomy and on our in operational existence for the panels must reflect a fair operations are essential factors foreseeable future. The trustees balance of experience and in determining this. We expect have not identified any material scientific disciplines. that these factors will reduce uncertainty relating to the • **Independent decision** our supporters’ ability to give charity’s ability to continue as a **making** – the scientific so generously to our cause and going concern.
## **Structure, Governance and Management**
## **LEGAL STATUS**
## **OUR SUBSIDIARY COMPANIES**
Versus Arthritis is a charitable company. The governing document of the charity is its Articles of Association dated 13 January 1951 and last amended substantively on 15 June 2022. Versus Arthritis is a company limited by guarantee, the liability of the members of the Board of Trustees being limited to £1 each. The change of our name from Arthritis Research UK to Versus Arthritis was certified at Companies House on 24 September 2018.
Versus Arthritis had two trading subsidiaries in 2022-23:
- Versus Arthritis Trading Ltd (company number: 00891517), whose profits are donated to Versus Arthritis; and
- We Are Arthr Ltd (trading as Arthr, company number: 12203478). Arthr is now in solvent liquidation, see page 79.
The results of trading subsidiaries are consolidated with those of the charity on a line-by-line basis.
Versus Arthritis is registered with the Charity Commission of England and Wales and the Office of the Scottish Charity Regulator. Versus Arthritis (as Arthritis Care and Arthritis Research UK) has informed the Charity Commission for Northern Ireland of its intention to register (as a “Section 167 institution”) and is now waiting to be called forward to do so.
Our other subsidiary companies which are all dormant:
- Arthritis Care (Company number: 00529321)
- Arthritis Matters Ltd (Company number: 10029084)
- Arthritis UK Ltd (Company number: 03450500).
Versus Arthritis is governed by the Board of Trustees who, for the purposes of the Companies Act 2006, are the directors of the charity.
In addition, there are 140 Versus Arthritis branches located throughout the UK. These are volunteer-led groups engaged in either fundraising or the provision of local services for people living with arthritis. None of these affiliated branches are separate legal entities.
## **OUR MANAGEMENT**
## **SECTION 172 STATEMENT**
The board delegates operational planning and dayto-day management, including financial authority, to the chief executive, and through the chief executive to the Organisational Leadership Team, within approved limits.
Under the Companies Act 2006 (CA 2006), directors have seven general duties to the company. One of these duties, commonly referred to as the “s172 duty”, is “to promote the success of the company”. Part one of that duty requires directors to do so “for the benefit of its members as a whole”, and in doing so, to have regard to the following six factors:
The board oversees the performance of the chief executive and SLT through reports and briefings presented by them at board and committee meetings as well as other interactions as required.
- the likely consequences of any decisions in the long term
Versus Arthritis makes all appointments in line with our equality, diversity and inclusivity framework
- the interests of the company’s employees
- the need to foster the company’s business relationships with suppliers, customers and others
- the impact of the company’s operations on the community and the environment
- the reputation for a high standard of business conduct
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**CONTENTS**
- the need to act fairly as between members of the company.
In a year when we have reviewed our strategic purpose and operating model, we have paid significant attention to stakeholder engagement in the review process and the long-term impact of decision-making.
We are committed to living up to the requirements of section 172 of the Companies Act 2006. As such, we are mindful of the interests of all those affected by our decisions when we seek to promote the success of Versus Arthritis for the benefit of our wider community, including our beneficiaries, volunteers, supporters, employees, partners and others.
In the tables below we report on: the strategic decisions and arising actions that were made during the year; how the decisions were made; the stakeholders most affected by those decisions; how they were engaged in the decision-making process; and the long-term impacts of those decisions.
## **We complied with our duties to consult and involve colleagues in accordance with Schedule 711(1)(a) of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008**
**PEOPLE AFFECTED OUR ACTIONS IMPACTS** Our employees We regularly provided employees Employee consultation impacted the with information on matters of refreshing of the membership of our concern to them through a variety Board of Trustees, and our efforts of channels, including our in-house towards continuously improving EDI newsletter (“Our Voice”), our Yammer (Equality, Diversity and Inclusion) feed, our “Hub” on SharePoint, representation on the board. regular meetings of wider staff and smaller manager groups, directorate meetings and presentations from our CEO and other members of senior management.
We sought a wide range of diverse views to feed into the development of our new strategy and our values and behaviours. This included staff, volunteers and people with arthritis spanning all four nations, and various demographic characteristics.
We consulted employees on a regular basis so that their views could be taken into account in making decisions which were likely to affect their interests – including through the above channels and also through regular consultations.
Going forward we will embed our approved values and behaviours through our appraisal and objective setting activities to build a strong, positive culture in which staff and volunteers feel safe, happy and motivated to perform well in their roles.
**We continued to assess, review and work to mitigate the risk and impact of COVID-19**
**----- Start of picture text -----**
PEOPLE AFFECTED OUR ACTIONS IMPACTS
Our employees Following the lockdowns, we shifted Less office space required, less
back to a hybrid model of working, energy usage, contribution towards
however many staff have continued CSR and saving of costs.
to work from home.
We reviewed our internal Our employees continued to deliver
communications using our “Keeping plans for people with arthritis, to
Connected” online meetings as be supported by the charity and to
an opportunity to gather all our remain engaged with their colleagues
employees together for updates, and the charity.
conversation and communication.
We took specific decisions and made The progressive nature of the award
steps to mitigate the impact of the was widely met with a positive
cost-of-living crisis that arose in response from staff, as the one-off
2022-23. In addition to a salary review, payment offered the greatest support
a one-off payment was awarded to all to the lowest paid employees.
staff (except SLT) to the sum of £2k.
Our volunteers We maintained regular contact with Our volunteers remained engaged
our volunteers through newsletters with the charity and motivated to
distributed across the UK. We deliver services for people with
continued to involve our volunteers arthritis.
in developing innovative ways of
delivering services remotely.
The research community We developed ways to support Vital research continued, allowing
researchers post pandemic, when things to return to normal once
their research had been affected. restrictions started to relax following
For example, agreeing to no-cost the pandemic.
extensions to funding.
Our partners and suppliers We have continued to work closely By continuing to pay suppliers
with partners and suppliers, making and partners on time, and working
every reasonable effort to uphold closely with companies and
our commitments. individuals, we have mitigated the
economic impacts of the pandemic
on other parties.
**----- End of picture text -----**
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 47
**CONTENTS**
**We have continued to press forward with our long-term responsibility to diversity and inclusion**
**----- Start of picture text -----**
PEOPLE AFFECTED OUR ACTIONS IMPACTS
Our employees We continued to implement the We have recognised the need to
findings of the external report on provide continuous and ongoing
leadership and governance issues reassurance through our actions,
in 2022-23 following previous and remain genuinely committed to
accusations of bullying and racism. learning from what had happened.
This work has been led by our SLT
and Head of Diversity and Inclusion This work is ongoing, so we continue
(D&I), and the latter has been to seek ways of making and
engaging with staff across the charity embedding positive changes across
on a group and one-to-one basis. the charity.
We are implementing our D&I
strategy and have continued D&I
training for staff, including workshops
and events and embedded a diversity
survey.
The board received training on
inclusive recruitment in spring 2022.
Our recruitment processes for Chair
and new trustees (late 2022) as well
as other ongoing staff recruitments
have been structured with our
updated D&I requirements being
taken into account.
**----- End of picture text -----**
Our trustees
We recruited a new Chair of Trustees and six new trustees to the board.
Our volunteers were kept informed and have been involved in shaping the processes for chair and trustee recruitment, with a view to us accessing as diverse a talent pool as possible.
We introduced several new measures into our trustee recruitment process explicitly aimed at diversifying the board’s membership, and we appointed a recruitment agency with a specialist equality, diversity and inclusion profile.
D&I training is mandatory for all trustees. We have carried out a diversity survey and their completion of training has been recorded.
We include regular D&I information in the trustees’ weekly newsletter.
We achieved measurable progress in refreshing the board with a view to long-term cultural diversity and inclusivity.
Five of the current 13 board members are female. We now have a wider range of social backgrounds and ages present among our trustees. We slightly improved representation among those with lived experience of arthritis, and from ethnic minorities. This is an ongoing process that we are committed to improving.
Trustees’ awareness and understanding of the importance of D&I issues was increased and their knowledge of good practice developed.
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 49
48
**CONTENTS**
**We continued to operate a deficit budget (funded from reserves) while working towards becoming a financially sustainable charity.**
**----- Start of picture text -----**
PEOPLE AFFECTED OUR ACTIONS IMPACTS
Our beneficiaries We continued to involve and The needs of people with arthritis
consult people with arthritis, are identified through insight derived
learning what they need from the from – or evidence relating to – those
charity and how those needs can people themselves. This process will
be addressed. We developed our ensure that the charity can continue
new strategy and business model. to make the biggest possible
difference to their lives, making best
use of available resources available.
**----- End of picture text -----**
## **Arthr, our social venture was closed down**
**----- Start of picture text -----**
PEOPLE AFFECTED OUR ACTIONS IMPACTS
Our supporters and After careful review of the financial Any wider impact of our investment
beneficiaries performance of the subsidiary, Versus in Arthr will take time to materialise,
Arthritis decided to close down Arthr but it has made available products
but remains committed to addressing that will help make everyday living
the unmet needs of people with easier for people with arthritis.
arthritis in this area.
With regret, we had to recognise
Progress of Arthr against its and address the financial losses of
operational and financial targets was Arthr in the short term and ensure
heavily impacted by the Covid-19 that charitable funds are preserved
pandemic and the more recent cost by its closure. This involved the
of living crisis. Arthr’s key assets inevitable and regrettable loss of a
were recovered into the charity for small number of jobs in the subsidiary
the benefit of people with arthritis – by way of redundancy. We have also
including stock and IP for future use reported to the Charity Commission
by VA and the Arthr Changemaker on the write-off of an intra-group loan
Group. which was necessary to ensure that
all creditors and staff were fully paid.
Versus Arthritis remains committed
to the outlined social purposes and The charity will seek to harness
our trustees have been reviewing the benefits of the Change Maker
how those goals are best achieved for programme set up within Arthr for
those we serve, namely people with the enduring benefit of people
arthritis. with arthritis..
**----- End of picture text -----**
## **ENERGY USE DISCLOSURE**
In accordance with the requirements of Streamlined Energy and Carbon Reporting (SECR), imposed by the 2018 SECR Regulations, we are required to disclose energy and carbon information, including:
- methodologies used in calculation of disclosures
- information about energy efficiency action taken in the organisation’s financial year
- methodologies used in calculation of disclosures.
• our energy use (as a minimum gas, electricity Within this disclosure, captured and prepared by the and transport) charity, is a summary of our energy and transport • the associated greenhouse gas emissions (GHG) consumption, emissions along with requirements • at least one emissions intensity ratio of intensity ratio, methodologies and a narrative on • previous year’s figures for energy use and GHG energy efficiency action.
- previous year’s figures for energy use and GHG emissions
**----- Start of picture text -----**
Units Conversion 2022/23 2021/22
Used Factor GHG KgCO2e GHG KgCO2e
Electricity KWh 58,885 0.19338 11,387 36,521
Gas KWh 82,818 0.18254 15,118 59,878
Fuel Business Mileage 122,581 0.27465 33,667 18,056
60,172 114,455
**----- End of picture text -----**
## **Intensity ratio**
The decrease in gas and electricity usage in 2022-23 was due to the charity no longer being responsible for the energy costs of our investment property at Aspenlea Road, after a guardian arrangement was put in place in May 2022. The business mileage has again increased significantly in year due to staff being more able to travel post-pandemic.
To measure our success in reducing our carbon footprint over time, we have set an intensity ratio. Income generated by 1 KG CO2e. 2022/23 = £489. (2021/22 £267). This is a considerable improvement on pervious years.
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**CONTENTS**
## **REMUNERATION POLICY**
We implemented a market-based pay system in January 2019 as part of our Versus Arthritis employment offer.
The pay policy applies to all job roles within Versus Arthritis, including the chief executive officer and all directors. It is underpinned by our commitment to pay all employees, including apprentices and interns, at least in line with the real Living Wage.
Last year, pay was addressed by two methods: a specific recalculation of pay because of benchmarking for the Strategic Review which was undertaken for some roles; whilst the rest of the staff were awarded a 3.5% cost of living increase.
In November, in the light of the spiralling cost of living, all staff, with the exception of directors, received a one-off non-consolidated, non-pensionable payment of £2,000.
A pay framework project was also initiated. This aims to provide a pay framework which is fair, equitable, transparent, financially sustainable, market competitive and reflective of our culture and new values – while supporting effective recruitment, retention and career development.
We aim to operate a pay framework that is based on objective criteria and free from gender bias. As part of our commitment, we will undertake an equal pay audit at the same time as carrying out each full benchmarking exercise, and we will share the outcome and any resulting action plan with our people. We prepare an annual gender pay gap report to identify any differences in the average pay between male and female employees, and we publish the information on our website along with further information on our approach to pay.
In addition to our commitment to fair pay, we also offer our employees an attractive benefits package and we support flexible and hybrid working. The remuneration of senior management, including the chief executive officer, is set by the Appointments, Remuneration and Governance Committee.
In addition, remuneration of all employees of Versus Arthritis paid in excess of £125k must be approved by the board. This figure will be reviewed from time to time and be amended in the Scheme of Authority.
## **OUR APPROACH TO FUNDRAISING**
Section 144 (2) of the Charities Act 2011 and Sections 13 and 14 of the Charities (Protection and Social Investment) Act 2016 require Versus Arthritis to provide information about our fundraising activities.
Below, we report on our fundraising efforts and the ways that we make sure that our fundraising complies with regulation and with best practice in our sector.
## **HOW WE FUNDRAISE**
While gifts in wills make up most of the income that we receive, we raise funds from a variety of voluntary and earned income sources.
We base our fundraising efforts around these income streams, and we focus on finding and engaging with supporters, donors, funders and partners who share our vision and can help us raise funds.
We use relationship fundraising methods, including direct marketing, to help us find and engage with donors, partnering with marketing companies to produce fundraising materials for this purpose.
We also offer different ways for our supporters to get involved and help us raise funds to continue the push against arthritis. These opportunities include legacies, holding collections, taking part in sponsored events or donations in response to our appeals.
With no investment in face-to-face or door-to door fundraising, we chose to expand our digital fundraising activity to encourage our wider arthritis community to join us in our mission.
We also worked in partnership with individuals, trusts, foundations and companies who give generously to support all aspects of our vital work.
## **ETHICAL FUNDRAISING**
Our values influence everything we do – and that includes fundraising. Our approach to the acceptance and refusal of donations and fundraising partnerships is rooted in our values of being united, brave, compassionate, and diverse.
We apply principles of due diligence to our stance on accepting donations and partnerships, particularly in the pharmaceutical sector.
We believe that this approach is fundamental to demonstrating our integrity, protecting our reputation, and ensuring the public trust and confidence essential to allow us to do more to realise our vision of a world free from arthritis.
## **FUNDRAISING REGULATION**
We are committed to raising funds in an ethical and appropriate way. We are registered with the Fundraising Regulator and the Fundraising Preference Service, and are members of the Chartered Institute of Fundraising, and the Lotteries Council. We are also licenced by the Gambling Commission
Our fundraising promise outlines our commitment to fundraise in a way that is honest, respectful and fair, meeting the highest standards of the charity sector.
To meet our commitment to our fundraising promise, we monitor our fundraising activities from both a performance and a compliance perspective.
We base our compliance on the Code of Fundraising Practice, and we monitor our fundraising teams’ activities in adherence to that code.
Finally, all fundraising and volunteering staff members receive a monthly digest of updates from the fundraising regulator and other key regulatory bodies.
## **FUNDRAISING COMPLAINTS RESOLUTION**
In 2022/23, we received five complaints about our fundraising activity, compared with 23 complaints in the previous year. We are committed to addressing all complaints in a timely way, and we resolved each of them within 10 working days through investigation of each complaint.
Complaints received are logged in our customer relationship management database. The database is monitored regularly by our complaints coordinator, allowing us to review and share the lessons to be learnt from complaints and use that learning to help inform future fundraising activity.
In dealing with complaints, we ensure compliance with the Code of Fundraising Practice. We report complaints to the fundraising regulator.
## **MANAGING RISK IN FUNDRAISING**
As part of Versus Arthritis’s commitment to managing risk well across the charity, an Income and Engagement risk register, supported by a risk coordinator, is used to dynamically identify and monitor risks to our fundraising activity and ensure swift mitigations are put in place wherever possible.
## **PROTECTING PEOPLE AND THEIR DATA**
We take our responsibility to manage our supporters’ data seriously. We take active steps to respect people’s privacy and their communication choices. We are investing in our technology infrastructure and have clear data governance procedures in place to help us.
In line with the General Data Protection Regulation (GDPR) legislation, we publish our privacy notice.
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**CONTENTS**
This notice outlines how we manage people’s data. Where we use direct marketing or process donations, we ensure we are GDPR compliant and valid consent is sought that is specific, clear and easy to withdraw by our supporters.
We do not swap, sell or share our supporters’ details with other charities or organisations for marketing purposes.
In line with the code of fundraising practice, we are particularly aware of the risks to vulnerable people and other members of the public from fundraising behaviour that unreasonably intrudes on their privacy, is unreasonably persistent, or places undue pressure on a person to give money or other property.
Any serious incident or potential serious incident that is reported concerning fundraising activity is investigated thoroughly, following serious incident procedures. If the incident is found to be serious, we will, for transparency, promptly report this to the Fundraising Regulator and/or Charity Commission.
Finally, we’ve put in place a safeguarding policy which is supported by an overarching procedure and detailed processes. All Versus Arthritis employees, including all fundraising staff, are required to complete comprehensive safeguarding training. Two members of the fundraising team are designated safeguarding persons (DSPs), and as such provide safeguarding support across the charity as part of an organisation wide DSP (now called Safeguarding Champion) network..
## **OUR BOARD OF TRUSTEES**
The Board of Trustees is responsible for the overall governance, policy and work of Versus Arthritis. It is also responsible for ensuring that Versus Arthritis delivers charitable outcomes for the benefit of people who live with all forms of arthritis in accordance with its charitable purposes.
The trustees are volunteers and do not receive any remuneration for their services, but they may claim
reasonable expenses that are properly incurred in connection with attendance at meetings or other duties. The Board of Trustees meets formally at least four times each year.
The trustee recruitment that commenced in April 2022 had the twin aims of filling some key skill and experience gaps that had been identified within the board and improving board diversity. After a comprehensive recruitment process, a new chair and six new trustees were recruited and took up their places on the board in January 2023.
Trustees are recruited in accordance with Versus Arthritis’s articles of association and through a transparent, open recruitment procedure. As set out in the articles of association, new trustees are appointed for their first term of office by the Appointments , Remuneration and Governance Committee and continue in office until the next annual board meeting, when the appointment is approved by the trustees.
New trustees are given a comprehensive induction. The continuing development of all trustees is addressed through regular updates and refresher presentations, including through invited expert speakers at board meetings and at an annual residential conference.
## **BOARD COMMITTEES**
The board has established a number of subcommittees with terms of reference and whose members are set out from page 100.
During the year that ended 31 March 2023, the trustees received support from the committees listed below:
- Appointments, Remuneration and Governance Committee
- Finance Committee
- Charitable Purposes Committee
- Risk and Audit Committee
- Charitable Purposes Committee.
All committees operate under specific terms of reference drawn up by the Board of Trustees, which maintains governance oversight of the activities and decisions of each committee.
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also directors of Versus Arthritis for the purposes of company law) are responsible for preparing the trustees’ 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 in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 affairs of the charitable company and the group, and of the incoming resources and application of resources, including the income and expenditure of the charitable group for that period.
In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently.
- Observe the methods and principles in the Charities Statement of Recommended Practice.
- Make judgements and accounting estimates that are reasonable and prudent.
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in business.
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, to disclose with reasonable accuracy at any time the financial position of the company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group, and for taking reasonable steps to prevent and detect fraud and other irregularities.
The trustees confirm that insofar as each is aware:
- There is no relevant audit information of which the charitable company’s auditor is not aware.
- They have taken all necessary steps to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included in the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The trustees’ report, incorporating the strategic report, was approved by the Board of Trustees on 30 November 2023 and is signed on its behalf on 21 December 2023:
## **Kate Tompkins**
Chair of the Board of Trustees
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**CONTENTS**
## **Independent Auditor’s Report**
## **To the members and Trustees of Versus Arthritis**
## **OPINION ON THE FINANCIAL STATEMENTS**
auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In our opinion, the financial statements:
- give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as 31 March 2023 and of the Group’s incoming resources and application of resources for the year then ended;
## **Independence**
We remain independent of the Group and the Parent Charitable Company in accordance with the ethical requirements 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.
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the **CONCLUSIONS RELATED TO**
- requirements of the Companies Act 2006, the **GOING CONCERN**
- Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities In auditing the financial statements, we have Accounts (Scotland) Regulations 2006, concluded that the trustees’ use of the going as amended.
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.
We have audited the financial statements of Versus Arthritis (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, the consolidated and charity balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. 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).
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 Group and the Parent 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information
## **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
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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## **OTHER COMPANIES ACT 2006 REPORTING**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic report and the Directors’ Report, which are included in the Trustees’ Report, have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
- proper and adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the trustees’ responsibilities statement, 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 determines 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 Group’s and the Parent 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 Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 57
**CONTENTS**
## **Independent Auditor’s Report**
**To the members and Trustees of Versus Arthritis** continued
## **AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS**
Our procedures in respect of the above included:
- Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
- Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and regulations;
- Review of financial statement disclosures and agreeing to supporting documentation; and
- Review of legal expenditure accounts to understand the nature of expenditure incurred.
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.
## **Fraud**
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
- Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
- Obtaining an understanding of the Group’s/ Charitable Company’s policies and procedures relating to:
- Detecting and responding to the risks of fraud; and
## **Extent to which the audit was capable of detecting irregularities, including fraud**
- Internal controls established to mitigate risks related to fraud.
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:
- Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
- Discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
## **Non-compliance with laws and regulations**
Based on our understanding of the Group and the sector in which it operates; discussion with management and those charged with governance; and obtaining and understanding of the Group’s policies and procedures regarding compliance with laws and regulations; we considered the significant laws and regulations to be related to the reporting framework, FRS 102, and we considered the extent to which non-compliance might have a direct impact and material effect on the company’s Financial Statements or their continued operation.
Based on our risk assessment, we considered the areas most susceptible to fraud to be income recognition with regards to completeness and accuracy of income, recognition of income in the correct period, valuation of accrued income at balance sheet date and management override of controls.
Our procedures in respect of the above included:
- Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;
- Challenging assumptions made by management in their significant accounting estimates and judgements, in particular legacy income accruals;
- A critical review of the consolidation and, in particular, manual or late journals posted at consolidated level;
- A review of unadjusted audit differences for indications of bias or deliberate
- misstatement; and
- A “stand back” review to consider all relevant audit evidence obtained, whether corroborative or contradictory.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: **https://www.frc.org.uk/auditorsresponsibilities** . This description forms part of our auditor’s report.
## **USE OF OUR REPORT**
This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the Charitable Company’s trustees, as a body, in accordance with the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charitable Company’s members and trustees 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, the Charitable Company’s members as a body and the Charitable Company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**Sarah Anderson** (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Leeds, UK
Date: 22 December 2023
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 59
58
**CONTENTS**
## **Consolidated Statement of Financial Activities**
## **Incorporating an income and expenditure account for the year ended 31 March 2023**
**----- Start of picture text -----**
Restated
Unrestricted Restricted 2023 2022
Note Funds Funds Total Funds Total Funds
£’000 £’000 £’000 £’000
Income from
Donations and legacies 2 20,261 2,314 22,575 26,411
Other trading activities 2 367 - 367 321
Investment income 2 2,085 - 2,085 1,477
Intellectual property income 2, 3 203 - 203 253
Charitable activities 2 244 3,863 4,107 2,072
Other 2 88 - 88 75
Total Income 23,248 6,177 29,425 30,609
Expenditure
Raising funds 5 5,400 - 5,400 6,594
Investment management costs 5 517 - 517 646
Charitable activities:
- Research 5 6,281 4,586 10,867 21,362
- Information, Services and Awareness 5 11,636 717 12,353 15,371
Other activities:
- Social Venture 5 859 - 859 1,393
Total Expenditure 5 24,693 5,303 29,996 45,366
Net (expenditure) before net losses
on investments (1,445) 874 (571) (14,757)
Net (losses) on investments 9 (26,738) - (26,738) (15,100)
Actuarial gains on defined benefit
scheme 19 34 - 34 4
Transfers between funds 16 - - - -
Net movement in funds (28,149) 874 (27,275) (29,853)
Reconciliation of funds
Funds brought forward as
previously reported 150,613 3,010 153,623 184,453
Prior adjustment 23 3,076 (924) 2,152 1,175
Total funds brought forward as
restated 153,689 2,086 155,775 185,628
Total funds carried forward 125,540 2,960 128,500 155,775
**----- End of picture text -----**
The Charity has not presented its own statement of financial activities as permitted by Section 408 (4) of the Companies Act 2006.
The notes on pages 63 to 99 form part of these financial statements. All amounts relate to continuing activities.
## **Consolidated and Charity Balance Sheets Company Number: 00490500**
**----- Start of picture text -----**
Restated Restated
Group Group Charity Charity
As at 31 March 2023 Note 2023 2022 2023 2022
£’000 £’000 £’000 £’000
Fixed assets
Tangible assets 8 1,160 1,248 1,160 1,248
Intangible assets 8 440 2 440 2
Investments 9 119,157 139,873 119,407 140,123
Investment property 9 3,680 8,250 3,680 8,250
Total Fixed Assets 124,437 149,373 124,687 149,623
Current assets
Stock 8 108 - -
Debtors 12 20,426 19,534 20,559 19,460
Cash on deposit and in hand 28,658 41,367 28,274 40,493
Total Current Assets 49,092 61,009 48,833 59,953
Creditors – amounts falling due within one year
Creditors 13 (1,640) (1,852) (1,665) (1,740)
Grant payments due within one year 14 (18,656) (18,989) (18,656) (18,989)
Total Creditors due within one year (20,296) (20,841) (20,321) (20,729)
Net current assets 28,796 40,168 28,512 39,224
Total assets less current liabilities 153,233 189,541 153,199 188,847
Creditors – amounts falling due after more than one year
Grant payments due after more
than one year 14 (24,357) (33,250) (24,357) (33,250)
Provisions for liabilities 15 (376) (516) (376) (516)
Net assets 128,500 155,775 128,466 155,081
The funds of the group: Unrestricted income
Designated funds 16, 17, 18 93,504 3,154 93,504 3,154
Revaluation reserve 14,769 38,466 14,769 38,466
General funds 18 17,267 112,069 17,233 111,375
Total unrestricted funds 125,540 153,689 125,506 152,995
Restricted income funds 18 2,960 2,086 2,960 2,086
Total funds 18 128,500 155,775 128,466 155,081
**----- End of picture text -----**
Approved by the Trustees on 30 November 2023 and signed on its behalf on 21 December 2023.
## **Kate Tompkins**
Chair of the Board of Trustees The notes on pages 63 to 99 form part of these financial statements.
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 61
**CONTENTS**
## **Consolidated Cash Flow Statement**
**----- Start of picture text -----**
Restated
For the year ended 31 March 2023 2023 2022
£’000 £’000
Cash flows from operating activities
Net (Expenditure) for the reporting period (as per statement of
financial activities) (27,275) (29,853)
Depreciation 218 573
Loss on disposal of fixed assets - 269
Dividends, interest and rent (2,085) (1,477)
Net losses on investments 26,738 15,100
Decrease / (Increase) in stocks 100 (24)
(Increase) in debtors (892) (5,016)
(Decrease) in creditors (212) (57)
(Decrease) / Increase in provisions (140) 183
(Decrease) / Increase in grant creditors (9,226) 3,666
Net cash used in operating activities (12,774) (16,636)
Cash flows from investing activities
Dividends, interest and rent 2,085 1,477
Proceeds from the sale of property, plant and equipment (6) -
Purchase of property, plant, and property (562) (65)
Proceeds from the sale of investments 17 5
Purchase of investments (1,469) (1,384)
Net cash provided by investing activities 65 33
Change in cash and cash equivalents in the reporting period (12,709) (16,603)
Cash and cash equivalents at the beginning of the reporting period 41,367 57,970
Cash and cash equivalents at the end of the reporting period 28,658 41,367
**----- End of picture text -----**
No reconciliation of net debt has been prepared as the group holds only cash and cash equivalents and has no external debt or borrowings.
The notes on pages 63 to 99 form part of these financial statements.
## **Notes to the Consolidated Statements** For the year ended 31 March 2023
## **1. ACCOUNTING POLICIES**
well placed to manage operational and financial risks successfully. Accordingly, the trustees have a reasonable expectation that the charity and the group have adequate resources to continue in operational existence for the foreseeable future. As a consequence, the trustees have not identified any material uncertainty relating to going concern and therefore continue to support the going concern basis in preparing the annual accounts.
## **Basis of preparation**
The financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice, comprising Financial Reporting Standard 102 – “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” (“FRS 102”) and the Statement of Recommended Practice “Accounting and Reporting by Charities” FRS 102 as revised in 2019 (‘the SORP’), together with the reporting requirements of the Companies Act 2006, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006. Versus Arthritis is a public benefit entity.
## **Income**
Income is recognised in the period in which entitlement is established, when economic benefit is probable, and the value can be measured reliably.
Legacies are accounted for when probate has been granted, and the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy and any conditions attached to the legacy are either within the control of the charity or have been met.
The consolidated financial statements comprise the charity, its trading subsidiaries Versus Arthritis Trading Limited and We Are Arthr Ltd, which cover the year ending 31 March 2023. They have been prepared under the historical cost convention as modified by the revaluation of listed investments and investment property at market value. The charity’s investment in its subsidiaries has been included in the accounts at cost as there is no readily available market value.
Grants are recognised when the group is entitled to receipt. Grants receivable on terms that require the charity to carry out research or other work are recognised in income as the performance obligations are satisfied.
The total income and net expenditure dealt with in the financial statements of the charity was £29.5m and £27.3m respectively (2021/22 income £30.6m and net expenditure of £29.9m, restated). This includes the results of the Versus Arthritis branches, which are volunteer-led groups engaged in either fundraising or provision of local services for people living with arthritis. None of the affiliated branches are separate legal entities or hold a material level of funds.
Donations and charitable income from non-statutory trusts are accounted for when received.
Trading income is recognised on point of sale when the risks and rewards of ownership have passed to the buyer.
Income from investments is recognised in the period in which it is earned.
Income from intellectual property rights is recognised at the point at which the charity is notified that an amount is due.
## **Going Concern**
The trustees have reviewed our future plans alongside our financial position and financial forecasts, taking into account the levels of investment reserves and cash, and the systems of financial control and risk management. As a result of this review, the trustees believe that we are
No amounts are included in the financial statements for services donated by volunteers. Additionally, no amounts have been included for donated use of facilities as such amounts are not considered to be
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 63
**CONTENTS**
financially significant. Income is attributable to UK activity.
## **Expenditure**
Except in respect of Grants Payable (see below) expenditure is accounted for on an accrual basis.
Where costs cannot be directly attributed to particular activities, they have been allocated to activities on a basis consistent with the use of the resources.
Publicity costs relating to raising the public awareness of the range of services the charity provides are included within the costs of Information, Services and Awareness.
Governance costs incurred consist of internal and external audit, legal advice for trustees and costs associated with constitutional and statutory requirements.
Support costs consist of central resources that support all activities undertaken by the charity. Further information can be found in note 5.
Support costs are allocated to activities on the basis of staffing resource within departments, using the same methodology as in previous years.
Irrecoverable VAT costs are included with the expenditure on which the VAT was charged in the Statement of Financial Activities.
## **Grants Payable**
Grant awards are charged to the financial statements as the obligation arises.
We recognise that upon entering into these agreements, a constructive liability for the full value of the contractual commitments is thereby entered into, and so, in line with Charities SORP, the full amount must be recognised in the year of the award.
Where material, grant liabilities in excess of one year are discounted to net present value to reflect the time value of money which is based on the investment returns with a similar risk profile.
If, subsequent to the full amount being recognised, the award is cancelled or the grantee is unable to meet the requirements of the grant, a negotiated withdrawal from the agreement takes place and any excess, unused amounts are shown as negative expenditure in the period.
## **Tangible Fixed Assets**
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on a straightline basis at the rates set out below which are sufficient to write them down to their residual value over their estimated useful lives.
**----- Start of picture text -----**
Freehold property 2%
Fixtures and fittings 10-25%
Computer equipment 33%
Plant and machinery 33%
**----- End of picture text -----**
Freehold land and investment property is not depreciated. Assets with a cost below £1,000 are not capitalised.
## **Intangible Fixed Assets**
Intangible fixed assets are stated at cost less amortisation. Amortisation is provided on a straightline basis at the rates set out below which are sufficient to write them down to £nil over their estimated useful lives.
**----- Start of picture text -----**
Computer software and website 10%-33%
Product development and design 20%
**----- End of picture text -----**
Costs that are directly attributable to a product’s development and design phase are recognised as intangible assets, provided they meet all of the following recognition requirements:
- The development costs can be measured reliably
- The product is technically and commercially feasible so that it will be available for use or sale
- The group intends to and has sufficient resources to complete the development
- The group has the ability to use or sell the product, that a market exists for the product and
- The product will generate probable future economic benefits.
Development and design costs not meeting these criteria for capitalisation are expensed as incurred.
## **Funds**
Versus Arthritis holds the following types of funds:
- **Restricted Income** – funds which are subject to restrictions imposed by the donors.
- **Designated** – money set aside by the trustees from unrestricted funds for a specific purpose. The aim and use of each designated fund is set out in the notes to the financial statements.
- **General Reserve** – unrestricted funds which can be used by the trustees for the general purposes of Versus Arthritis.
- **Revaluation Reserve** – the difference between the historic cost of investments and their market value.
Further information on funds and the Reserves Policy can be found in the Finance Review on page 38.
All material transfers between funds must be approved by Finance Committee.
## **Investments**
Listed investments are shown in the balance sheet at their mid-market valuation.
Property leased to tenants is treated as an investment property and is valued at open market (RICS Red Book valuation method) at the balance sheet date as determined by an independent external valuation.
## **Social investments**
The trustees exercise their power to make social investments when it is in the best interests of Versus Arthritis. The investment in We Are Arthr Ltd was classed as a social investment, as it furthers the core charitable purpose of Versus Arthritis and was expected to achieve a financial return. Since the decision was taken by the trustees to cease funding, We Are Arthr Ltd, the value of this investment has been fully provided at the balance sheet date. As disclosed Arthr is now in liquidation.
The trustees seek appropriate advice when making decisions about social investments and ensure that any private benefit that might accrue is incidental.
## **Stock**
Stocks consist of goods for resale and are stated at the lower of cost and net realisable value, except for new goods which have been donated for resale which are valued at wholesale cost.
## **Foreign Currency**
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in the Statement of Financial Activities.
## **Pensions**
Pension contributions relating to both defined benefit and defined contribution arrangements, which are explained in note 20, are charged to the Statement of Financial Activities in the period in which they become payable.
As set out in note 20, a defined benefit pension fund which transferred from Arthritis Care at the point of merger and its funds are held separately from those of the charity in an independently administered scheme. The charity has adopted the full requirements of FRS 102 section 28. The surplus/ (deficit) on the scheme, representing the excess/
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 65
**CONTENTS**
shortfall of the value of the scheme assets above/ below the present value of the scheme liabilities is recognised as an asset/liability on the balance sheet to the extent that the charity is able to recover the surplus, or has a legal or constructive obligation for the liability. A pension reserve is included within designated funds at the request of the pension trustees to mitigate against any future liabilities in the scheme.
The assets of the defined contribution pension schemes are held separately from those of the charitable company in independently administered funds. The pension cost charged to the Statement of Financial Activities represents contributions payable under the scheme by the charitable company to the funds. The charity has no liability under the schemes other than for the payments of those contributions.
## **Leases**
Rental costs under operating leases are charged to the Statement of Financial Activities on a straightline basis over the lease term.
## **Debtors**
expected to flow to entity and is recognised at its recoverable amount.
## **Creditors**
A liability is recognised at its settlement amount when there is a present obligation to the entity arising from past events.
## **Accounting Estimates and Judgements**
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and judgements will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
• **Legacies** – For estates with estimated values taken from the grant of probate, 10% of the gross estate is deducted to account for administrative costs. To be able to prepare financial statements in accordance with FRS102, Versus Arthritis must make certain estimates and judgements that have an impact on the policies and the amount reported in the annual accounts. The estimates and judgements are based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgements are made.
• **Defined Benefit Pension Scheme** – No provision has been made in these accounts for any deficit payments to the Arthritis Care legacy pension scheme. The Group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depends on a number of factors, including life expectancy, salary increases, and the discount rate on corporate bonds. Management estimates these factors in determining the pension obligations in the balance sheet. The assumptions reflect historical experience and current trends. Note 17 details the actuarial assumptions used in determining the carrying amount at 31 March 2023.
- **Discounting of grant liabilities** – The rate applied to discount grant liabilities payable after more than twelve months requires an estimate of the appropriate discount rate, as well as an estimate of when the liability will be called down as a claim to be paid. A discount rate of 6% (2022: 6%) has been applied on the basis we have an opportunity gain via investments before we pay out (long term expected CPIH + 4%).
## **Cash**
Cash in hand consists of cash at bank and in hand and short-term investments with an original maturity date of three months or less.
## **2. INCOME**
**----- Start of picture text -----**
Restated
Unrestricted Restricted 2023 Total Unrestricted Restated 2022 Total
Income Income Income Income income Income
£’000 £’000 £’000 £’000 £’000 £’000
Donations
and Legacies
Legacies 17,620 2,272 19,892 22,770 667 23,437
Donations 2,078 40 2,118 2,200 257 2,457
Sponsorship 563 2 565 517 - 517
Total 20,261 2,314 22,575 25,487 924 26,411
Trading Activities 367 - 367 321 - 321
Investment Income
Listed
Investments 2,025 - 2,025 1,398 - 1,398
Unlisted
Investments 7 - 7 8 - 8
Income from
Investment
Property 33 - 33 11 - 11
Bank Interest 20 - 20 60 - 60
Total 2,085 - 2,085 1,477 - 1,477
Intellectual
Property Income 203 - 203 253 - 253
(note 3)
Income from
charitable
activities 244 3,863 4,107 222 1,850 2,072
Other income 88 - 88 75 - 75
Total Income 23,248 6,177 29,425 27,835 2,774 30,609
**----- End of picture text -----**
Income from charitable activities includes £530k from UK-based government bodies (2022: £451k).
Income has been restated to reflect Arthr adjustments. For details on prior year restatements see note 23.
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**CONTENTS**
## **3. INTELLECTUAL PROPERTY INCOME**
||**2023**|**2022**|
|---|---|---|
||**£’000**|**£’000**|
|**Intellectual Property Income**|**203**|**253**|
Royalties arise from anti-TNF immunotherapy of inflammatory conditions including rheumatoid arthritis developed with the Kennedy Trust for Rheumatology Research, which collect the royalties, some of which they retain in a legal expenses fund to enable them to protect the related patents.
Most patents have come to an end and the Kennedy Trust has now released all income apart from some £1.4m, 22% of which is due to Versus Arthritis, which they continue to retain in a legal expense fund until the potential for legal dispute expires in 2023. This is not accounted for as an asset in these financial statements as it is not yet more likely than not that the economic benefit of the patent will flow to Versus Arthritis.
## **4. NET EXPENDITURE FOR THE YEAR**
**----- Start of picture text -----**
Restated
2023 2022
£’000 £’000
Net expenditure for the year is stated after charging / (crediting):
Rentals payable under operating leases 918 799
Depreciation charge on tangible assets for the year (note 8) 193 325
Amortisation charge on intangible assets for the year (note 9) 25 248
Rents receivable (33) (11)
Fees payable to the charity’s auditor and its associates for the audit of the
charity’s annual accounts 81 46
Prior year additional fees payable to the charity’s auditor and its associates
for the audit of the charity’s annual accounts 55 27
Fees payable to the charity’s auditor and its associates for other services to
the group:
- Taxation compliance services 40 12
- The audit of the charity’s subsidiaries pursuant to legislation 6 24
**----- End of picture text -----**
## **5. EXPENDITURE ANALYSIS**
**----- Start of picture text -----**
(Note 7)
Staff
Costs –
including
Direct and Direct Support 2023
Awards Support Costs Costs Total
£’000 £’000 £’000 £’000 £’000
Raising Funds
Legacies - 321 65 187 573
Donations - 2,352 929 1,098 4,379
Trading Activities - 177 105 166 448
Total Cost of Raising Funds - 2,850 1,099 1,451 5,400
Investment Management Costs - - 509 8 517
Charitable Activities
Research 6,617 2,547 315 1,388 10,867
Information, Services and Awareness 533 6,875 1,737 3,208 12,353
Total Charitable Activities 7,150 9,422 2,052 4,596 23,220
Social Venture - 244 615 - 859
Total Expenditure 7,150 12,516 4,275 6,055 29,996
**----- End of picture text -----**
Research and Information, Services and Awareness expenditure includes £5,303k (2022: £3,012k) of restricted expenditure.
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 69
**CONTENTS**
## **EXPENDITURE ANALYSIS** CONTINUED
## **Prior year comparative:**
**----- Start of picture text -----**
(Note 6)
Staff
Costs –
including Restated
Direct and Direct Support 2022
Awards Support Costs Costs Total
£’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
||**Awards**
**£’000**|(Note 6)
**Staf**
**Costs –**
including
Direct and
Support
**£’000**|**Direct**
**Costs**
**£’000**|**Support**
**Costs**
**£’000**|**Restated**
**2022**
**Total**
**£’000**|
|---|---|---|---|---|---|
|||||||
|**Raising Funds**||||||
|Legacies|-|278|86|151|515|
|Donations|-|3,086|1,081|1,158|5,325|
|TradingActivities|-|346|125|283|754|
|**Total Cost of Raising Funds**|**-**|**3,710**|**1,292**|**1,592**|**6,594**|
|||||||
|**Investment Management Costs**|**-**|**-**|**642**|**4**|**646**|
|**Charitable Activities**||||||
|Research|18,207|2,042|365|748|21,362|
|Information, Services and Awareness|439|9,078|1,933|3,921|15,371|
|**Total Charitable Activities**|**18,646**|**11,120**|**2,298**|**4,669**|**36,733**|
|||||||
|**Social Venture**|**-**|**276**|**1,117**|**-**|**1,393**|
|||||||
|**Total Expenditure**|**18,646**|**15,106**|**5,349**|**6,265**|**45,366**|
## **Support Costs for the year ending March 2023**
**----- Start of picture text -----**
Finance and People and
Corporate Organisational
Resources Development Engagement Governance Total
£’000 £’000 £’000 £’000 £’000
Legacies 158 21 - 8 187
Donations 769 102 159 68 1,098
Activities - - 159 7 166
Investments - - - 8 8
Research 869 116 239 164 1,388
Information, Services and
Awareness 2,455 327 239 187 3,208
Total 4,251 566 796 442 6,055
**----- End of picture text -----**
## **EXPENDITURE ANALYSIS** CONTINUED
## **Prior year comparative:**
**----- Start of picture text -----**
Planning Information, Recognition,
and People and Data and Brand and
Operations Organisation Technology Activation Governance Total
£’000 £’000 £’000 £’000 £’000 £’000
Legacies 7 90 50 - 4 151
Donations 47 601 334 139 37 1,158
Activities 7 85 47 139 5 283
Investments - - - - 4 4
Research 17 220 121 241 149 748
Information,
Services and
Awareness 173 2,186 1,214 241 107 3,921
Grand Total 251 3,181 1,767 760 306 6,265
**----- End of picture text -----**
The apportionment of support costs is based on staff resources related to activities except governance which has been apportioned by total expenditure incurred by activities.
## **Governance Costs Analysed**
**----- Start of picture text -----**
2023 2022
£’000 £’000
External Audit Fees 142 97
Internal Audit Fees 118 156
Board of Trustees Costs 38 16
Legal Costs 129 34
Other Costs 15 3
Total Governance Costs 442 306
**----- End of picture text -----**
70
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 71
**CONTENTS**
## **6. RESEARCH GRANTS NEW AWARDS**
The table below summarises all the new grant awards committed within the financial year.
**----- Start of picture text -----**
Restated
2023 2022
£’000 £’000
17 awards over £10,000 (2022: 42 awards) 6,506 19,716
111 awards under £10,000 (2022: 84 awards) 533 370
Supplements to existing grants 884 815
Awards no longer required and other adjustments (1,385) (927)
Unwinding / (Impact) of discounting for grant liabilities 612 (1,328)
7,150 18,646
**----- End of picture text -----**
All grant awards are made to institutions. Details of grants awarded over £10,000 are shown below.
**----- Start of picture text -----**
Number Awarded
of New (over
Grants £10,000)
£’000
**----- End of picture text -----**
||**Number**
**of New**
**Grants**|**Awarded**
**(over**
**£10,000)**
**£’000**|
|---|---|---|
||||
|Academyof Medical Sciences|1|219|
|Cardif University|-|71|
|Guy’s and St Thomas’ NHS Foundation Trust|1|276|
|Keele University|-|40|
|Newcastle University|-|66|
|Nottingham UniversityHospitals NHS Trust|-|40|
|The Nufield Foundation|1|250|
|Ulster University|-|3|
|UniversityCollege London|4|1,764|
|Universityof Aberdeen|-|40|
|Universityof Birmingham|1|475|
|Universityof Bristol|1|750|
|Universityof Cambridge|-|51|
|Universityof East Anglia|1|238|
|Universityof Glasgow|-|88|
|Universityof Liverpool|2|435|
|Universityof Manchester|1|935|
|Universityof Nottingham|1|207|
|Universityof Oxford|3|1,398|
|Universityof Shefield|-|23|
|Universityof Sussex|-|21|
## **RESEARCH GRANTS NEW AWARDS** CONTINUED
|Awards no longer required and other adjustments|-|(1,385)|
|---|---|---|
|Grants – Awarded under £10k|111|533|
|Unwindingof discountingforgrant liabilities||612|
|**Total Awards**|**128**|**7,150**|
## **7. STAFF COSTS**
**----- Start of picture text -----**
2023 2022
£’000 £’000
Gross salaries 10,714 12,220
Employer national insurance costs 1,184 1,272
Pension costs 715 877
Redundancy costs 60 737
Redundancy provision write off (40) -
Total staff costs 12,633 15,106
Staff costs capitalised (117) -
Attributable staff costs 12,516 15,106
Other staff costs 38 36
12,554 15,142
**----- End of picture text -----**
For the years ending 31 March 2023 and 31 March 2022 the Senior Leadership Team are regarded as the key management personnel for the purposes of this note. (Further details on the leadership team can be found on page 104)
Remuneration and benefits of key management personnel are set out in the table below:
**----- Start of picture text -----**
Incl. pension and NI Excl. pension and NI
contributions contributions
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Key management personnel 830 1,120 698 953
**----- End of picture text -----**
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 73
**CONTENTS**
## **STAFF COSTS** CONTINUED
The remuneration paid to the Chief Executive.
**----- Start of picture text -----**
Employer pension Employer NI
Gross Salary contributions contributions
2023 2022 2023 2022 2023 2022
£’000 £’000 £’000 £’000 £’000 £’000
Chief Executive Officer 137 7 19 - 8 18
Acting Chief Executive
Officer - 147 - 10 - 1
137 154 19 10 8 19
**----- End of picture text -----**
The average number of employees (headcount) and FTE during the year was:
**----- Start of picture text -----**
Average Headcount Average FTE
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Charitable Activities 217 286 200 250
Raising Funds 63 71 59 76
280 357 259 326
**----- End of picture text -----**
An apportionment of support staff headcount is based on staff resources related to each activity.
The number of employees in the group whose benefits (excluding pension contributions) fell within the following bands during the year ending 31 March 2023 is set out below.
**----- Start of picture text -----**
2023 2022
Key 2023 2023 Key 2022 2022
Management Total Actual Management Total Actual
Headcount Headcount Payments Headcount Headcount Payments
£60,000-£69,999 - 13 £814,709 - 6 £379,645
£70,000-£79,999 - - - - 3 £224,491
£80,000-£89,999 - - - 2 3 £249,471
£90,000-£99,999 2 2 £187,513 1 1 £97,824
£100,000-£109,999 1 1 £106,785 1 1 £102,727
- - - - - -
£110,000-£119,999
£130,000-£139,999 1 1 £136,500 - - -
£140,000-£149,999 - - - 2 2 £288,963
**----- End of picture text -----**
## **STAFF COSTS** CONTINUED
£275). The expenses policy applies to trustees and all staff, including the Organisational Leadership Team.
Trustees receive no remuneration for their services in that capacity but, in line with the charity’s expenses policy, three trustees (2022, three) have been reimbursed for expenses directly incurred in carrying out their activities as trustee at a cost of £684 for the year ended 31 March 2023 (2022,
In addition, the charity took out indemnity insurance for the trustees for the year, at a cost of £4k (2022: £4k).
## **8. TANGIBLE AND INTANGIBLE ASSETS**
## **Tangible Assets – Group and Charity**
**----- Start of picture text -----**
Freehold Fixtures
land and and Computer
buildings Fittings Equipment Total
£’000 £’000 £’000 £’000
Cost
At 1 April 2022 (restated) 681 1,989 1,455 4,125
Additions - - 98 98
Disposals - - (54) (54)
Adjustment - (50) (8) (58)
At 31 March 2023 681 1,939 1,491 4,111
Depreciation
At 1 April 2022 (restated) 430 1,038 1,409 2,877
Charge for the year 14 157 22 193
Disposals - - (54) (54)
Adjustment - (57) (8) (65)
At 31 March 2023 444 1,138 1,369 2,951
Net Book Value
At 31 March 2023 237 801 122 1,160
At 31 March 2022 (restated) 251 951 46 1,248
**----- End of picture text -----**
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 75
**CONTENTS**
## **TANGIBLE AND INTANGIBLE ASSETS** CONTINUED
## **Intangible Assets – Group and Charity**
**----- Start of picture text -----**
Computer Software, Work in progress –
Domain and Website Systems Total
£’000 £’000 £’000
Cost
At 1 April 2022 (restated) 936 - 936
Additions 143 320 463
Disposals - - -
Adjustment 8 - 8
At 31 March 2023 1,087 320 1,407
Amortisation
At 1 April 2022 (restated) 934 - 934
Charge for the year 25 - 25
Disposals - - -
Adjustment 8 - 8
At 31 March 2023 967 - 967
Net Book Value
At 31 March 2023 120 320 440
At 31 March 2022 (restated) 2 - 2
**----- End of picture text -----**
## **9. INVESTMENTS**
**----- Start of picture text -----**
Market Market
Value Value Cost Cost
2023 2022 2023 2022
GROUP £’000 £’000 £’000 £’000
Listed Investments:
Global Stewardship fund 83,137 100,425 67,034 66,332
Multi-asset investment fund 35,556 38,995 38,593 37,829
Other 464 453 464 453
Sub Total 119,157 139,873 106,091 104,614
Investment Property 3,680 8,250 6,994 6,994
Total Investments 122,837 148,123 113,085 111,608
CHARITY
As stated above for the group 122,837 148,123 113,085 111,608
Investment in subsidiary 250 250 250 250
Total 123,087 148,373 113,335 111,858
**----- End of picture text -----**
## **INVESTMENTS** CONTINUED
## **Group and Charity Investments**
**----- Start of picture text -----**
2023 2022
£’000 £’000
Carrying value (market value) at beginning of year 148,123 161,844
Additions at cost 1,469 1,384
(Withdrawal) from cash deposit investments (17) -
Proceeds of sale - (5)
Unrealised losses on revaluation of investments (26,738) (15,100)
Carrying value (market value) at end of year 122,837 148,123
**----- End of picture text -----**
## **Reconciliation of revaluation of investments to net (losses) per SoFA**
**----- Start of picture text -----**
2023 2022
£’000 £’000
Realised gains - -
Unrealised (losses) (22,168) (16,780)
(Losses) on investments (22,168) (16,780)
(Losses) / Gains on revaluation of property (4,570) 1,680
Unrealised losses on revaluation of investments (26,738) (15,100)
Net (losses) on investments (SoFA) (26,738) (15,100)
**----- End of picture text -----**
Valuation Practice Statements (VPS) contained in the RICS Valuation – Professional Standards 2019 incorporating the IVSC International Valuation Standards (the “Red Book”).
The portfolio of investments is mainly managed on Versus Arthritis’s behalf by Baillie Gifford & Co, Blevins Franks, Abrdn and Royal London Asset Management.
The basis of market value as defined in VPS4 of the “Red Book” being: “The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”
The investment property has been valued as at 31 March 2023 by an external independent qualified surveyors, Lambert, Smith, Hampton, on the basis of the asset being sold in its current capacity. The value is based on an analysis of recent market transactions, supported by market knowledge derived from the surveyors’ professional experience.
Versus Arthritis is currently seeking to sell the investment property.
The valuation was in accordance with the appropriate sections of the current RICS Professional Standards (PS) and RICS Global
76
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 77
**CONTENTS**
## **10. SOCIAL INVESTMENTS**
## **Social investment in We Are Arthr Ltd (trading as Arthr)**
**----- Start of picture text -----**
2023 2022
£’000 £’000
Allotted, issued, and fully paid 2 ordinary shares of £1 each - -
Loans to Social Venture (Arthr)
Value brought forward at 1 April - 2,238
Additional loan advanced in year - 690
Loan interest applied - 59
Other intercompany transactions -
Impairment of loan value - (2,987)
Value carried forward at 31 March - -
**----- End of picture text -----**
The loan is secured, and interest is payable at 2% above base rate. The loan is repayable no more than 6 months following a demand from the charity.
## **11. SUBSIDIARY COMPANIES**
The charity owns 100% of the 250,000 issued ordinary shares of Versus Arthritis Trading Ltd (formerly Arthritis Research UK Trading Ltd), a company registered in England (Company number: 00891517). The company is principally engaged in the sale of Christmas cards on behalf of the parent
charity. The results of Versus Arthritis Trading Ltd have been consolidated with those of the charity on a line-by-line basis. All taxable profits of the subsidiary are donated to the charity. A summary of the results of the subsidiary is shown below:
## **Versus Arthritis Trading Ltd**
**----- Start of picture text -----**
2023 2022
£’000 £’000
Turnover 57 78
Cost of sales (9) (64)
Gross profit 48 14
Administrative expenses (53) (13)
Net profit for the year (5) 1
**----- End of picture text -----**
## **SUBSIDIARY COMPANIES** CONTINUED
The aggregate of the assets, liabilities and capital and reserves was:
**----- Start of picture text -----**
2023 2022
£’000 £’000
Assets 407 321
Liabilities (152) (62)
Net Assets 255 259
Share Capital 250 250
Reserves 5 9
Funds 255 259
**----- End of picture text -----**
## **Charity investment in subsidiary**
||**2023**|**2022**|
|---|---|---|
||**£’000**|**£’000**|
|Investment in subsidiary (Versus Arthritis Trading Limited)
Allotted, issued, and fully paid 250,000 ordinaryshares of £1 each|**250**|**250**|
## **We Are Arthr Ltd**
We Are Arthr Ltd (trading as Arthr, company number: 12203478) is a 100% subsidiary of Versus Arthritis, who own the fully issued share capital (2 shares of £1 each). It is a social investment, funded by way of loans from the charity. It is a start up company that designs, develops and champions
innovative, high-quality arthritis products and solutions. A summary of the results of the subsidiary is shown below:
**----- Start of picture text -----**
Restated
2023 2022
£’000 £’000
Turnover 204 180
Cost of sales (256) (254)
Gross (loss) (52) (74)
Expenditure (603) (1,148)
Net (loss) (655) (1,222)
**----- End of picture text -----**
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 79
78
**CONTENTS**
## **SUBSIDIARY COMPANIES** CONTINUED
The aggregate of the assets, liabilities and reserves was:
**----- Start of picture text -----**
2023 2022
£’000 £’000
Assets 30 812
Liabilities - (127)
Net Liabilities 30 685
Funds 30 685
**----- End of picture text -----**
## **Custodian holdings**
The trustees of Versus Arthritis decided to cease all further financial support to We Are Arthr Ltd from March 2022 onwards. The company has now ceased trading and is in solvent liquidation. Versus Arthritis remains committed to the social aims that We Are Arthr Ltd was created to pursue.
The charity acts as a custodian, holding investments on behalf of the Maisie Lewis fund. This is a fund bequeathed to support the funding of a position at the Kennedy Institute of Rheumatology, and was valued at £295k at 31 March 2022. The fund does not form part of the charity’s balance sheet and all income is paid over to the Kennedy Institute of Rheumatology.
## **Dormant Subsidiaries**
The charity has three subsidiary dormant companies: Arthritis Matters Ltd (Company number: 10029084), Arthritis UK Ltd (Company number: 03450500) and Arthritis Care Ltd (Company number: 529321).
## **12. DEBTORS**
**----- Start of picture text -----**
Group Charity
Restated
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Amount due from group undertakings - - 143 53
Gift Aid recoverable 714 664 714 664
VAT 28 21 15 -
Prepayments 334 120 334 111
Accrued income 17,548 18,563 17,548 18,563
Other debtors 1,802 166 1,805 69
20,426 19,534 20,559 19,460
**----- End of picture text -----**
As at 31 March 2023 there was a contingent asset for legacies notified which did not meet the Charities SORP criteria for recognition for income which totalled £3.02m (2022: £3.60m).
## **13. CREDITORS**
**----- Start of picture text -----**
Group Charity
Restated
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Trade creditors 538 564 538 466
Other creditors 45 401 74 424
Taxes and Social Security 430 358 430 376
Accruals 627 529 623 474
1,640 1,852 1,665 1,740
**----- End of picture text -----**
## **14. GRANT CREDITORS**
Grant awards are reviewed and agreed by a committee, which includes various people from different fields of expertise. A letter of award is issued, and it is once this contract is signed that we recognise the expense in the financial statements.
## **Charity and Group Grant creditors:**
**----- Start of picture text -----**
2023
£’000
**----- End of picture text -----**
|**Grant Creditors**|**Grant Creditors**|**Grant Creditors**|
|---|---|---|
|**Balance at 1 April 2022 (restated)**||**52,239**|
||||
|New awards||6,538|
|Awardspaid|16,706||
|Matched funded|(330)||
|Unwindingof discountingforgrant liabilities|(612)||
|||(15,764)|
|**Movement inyear**||**(9,226)**|
||||
|**Balance at 31 March 2023**||**43,013**|
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 81
**CONTENTS**
## **GRANT CREDITORS** CONTINUED
**----- Start of picture text -----**
£’000
**----- End of picture text -----**
||**£’000**|
|---|---|
|||
|**Grantspayable within oneyear:**|**18,656**|
|||
|**Grantspayable after more than oneyear:**|**24,357**|
|Year 2|12,208|
|Year 3|7,554|
|Year 4|3,069|
|Year 5 +|1,526|
## **For the year ending 31 March 2022**
**----- Start of picture text -----**
Restated
2022
£’000
**----- End of picture text -----**
|||**Restated**
**2022**
**£’000**|
|---|---|---|
|**Grant Creditors**|||
|**Balance at 1 April 2021 (restated)**||**48,573**|
||||
|New awards||19,974|
|Awardspaid|14,093||
|Awards written back|887||
|Impact of discounting grants awarded|1,328||
|||(16,308)|
|**Movement inyear**||**3,666**|
||||
|**Balance at 31 March 2022**||**52,239**|
|||**Restated**
**2022**|
|---|---|---|
|||**£’000**|
|**Grantpayable within oneyear:**||**18,989**|
||||
|**Grantspayable after more than oneyear:**||**33,250**|
|Year 2||16,632|
|Year 3||10,971|
|Year 4||4,125|
|Year 5 +||1,522|
## **15. PROVISIONS FOR LIABILITIES – GROUP AND CHARITY**
## **For the year ending 31 March 2023**
||**Dilapidation**|**Redundancy**|**Holiday Pay**|**Total**|
|---|---|---|---|---|
||**£’000**|**£’000**|**£’000**|**£’000**|
|At 1 April|228|167|121|**516**|
|Charge duringtheyear|20|-|7|**27**|
|Utilised duringtheyear|-|(167)|-|**(167)**|
|**At 31 March**|**248**|**-**|**128**|**376**|
## **For the year ending 31 March 2022**
||**Dilapidation**|**Redundancy**|**Holiday Pay**|**Total**|
|---|---|---|---|---|
||**£’000**|**£’000**|**£’000**|**£’000**|
|At 1 April|29|-|-|**29**|
|Charge duringtheyear|199|246|343|**788**|
|Utilised duringtheyear|-|(79)|(222)|**(301)**|
|**At 31 March**|**228**|**167**|**121**|**516**|
82
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 83
**CONTENTS**
## **16. MOVEMENT IN FUNDS**
**For the year ending 31 March 2023**
**----- Start of picture text -----**
General Revaluation Designated Restricted Group
Note Funds Reserve Funds Funds Total
£’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
||**Note**|**General**
**Funds**
**£’000**|**Revaluation**
**Reserve**
**£’000**|**Designated**
**Funds**
**£’000**|**Restricted**
**Funds**
**£’000**|**Group**
**Total**
**£’000**|
|---|---|---|---|---|---|---|
||||||||
|**Funds brought forward**
**aspreviously reported**||**108,724**|**38,466**|**3,423**|**3,010**|**153,623**|
|Prior Adjustment|23|3,345|-|(269)|(924)|2,152|
|**Funds brought forward**
**as restated**||**112,069**|**38,466**|**3,154**|**2,086**|**155,775**|
|Income||23,248|-|-|6,177|29,425|
|Expenditure||(24,693)|-|-|(5,303)|(29,996)|
|Net unrealised investment
(losses)||(26,738)|-|-|-|(26,738)|
|Actuarial gain on defined
benefit scheme||34|-|-|-|34|
|Other transfers between
funds||(66,653)|(23,697)|90,350|-|-|
|**Total recognised**
**(losses) for the financial**
**year**||**(94,802)**|**(23,697)**|**90,350**|**874**|**(27,275)**|
||||||||
|**Balance sheet at**
**31 March 2023**||**17,267**|**14,769**|**93,504**|**2,960**|**128,500**|
A full analysis of designated funds is provided in note 17. The revaluation reserve represents the difference between the historic cost of investments and their market value amount.
## **MOVEMENT IN FUNDS** CONTINUED
**For the year ending 31 March 2022 (Restated)**
**----- Start of picture text -----**
General Revaluation Designated Restricted Group
Note Funds Reserve Funds Funds Total
£’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
||**Note**|**General**
**Funds**
**£’000**|**Revaluation**
**Reserve**
**£’000**|**Designated**
**Funds**
**£’000**|**Restricted**
**Funds**
**£’000**|**Group**
**Total**
**£’000**|
|---|---|---|---|---|---|---|
||||||||
||||||||
|**Funds at 1 April 2021**
**aspreviously reported**||**122,071**|**53,576**|**3,907**|**4,899**|**184,453**|
|Prior Adjustment|23|1,919|-|-|(744)|1,175|
|**Funds brought forward**
**as restated**||**123,990**|**53,576**|**3,907**|**4,155**|**185,628**|
|Income||27,835|-|-|2,774|30,609|
|Expenditure||(42,534)|-|-|(3,012)|(45,366)|
|Net unrealised investment
(losses)||(15,100)|-|-|-|(15,100)|
|Actuarial gain on defined
benefit scheme||4|-|-|-|4|
|Other transfers between
funds||17,694|(15,110)|(753)|(1,831)|-|
|**Total recognised**
**(losses) for the financial**
**year**||**(11,921)**|**(15,110)**|**(753)**|**(2,069)**|**(29,853)**|
||||||||
|**Balance sheet at**
**31 March 2022**||**112,069**|**38,466**|**3,154**|**2,086**|**155,775**|
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 85
**CONTENTS**
## **MOVEMENT IN FUNDS** CONTINUED
## **Movement in Restricted Income Funds for the year ending 31 March 2023**
## **Group and Charity**
**----- Start of picture text -----**
Balance
Balance Sheet
Sheet at as at
1 April 31 March
2022 Transfers Income Expenditure 2023
Donor Funded Projects £’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Research**|**Research**|**Research**|**Research**|**Research**|**Research**|
|---|---|---|---|---|---|
|Advanced Pain Discovery
Platform|-|-|5|(5)|-|
|Ankylosingspondylitis|-|-|758|(487)|271|
|Back Pain|-|-|198|(159)|39|
|COLGENE Partnership|18|-|-|-|18|
|Contribution to Core Costs|-|-|52|(52)|-|
|Contribution to Healthcare costs|77|-|-|(38)|39|
|Cutaneous Systemic Sclerosis|2|-|-|-|2|
|Fellowships|4|-|10|(14)|-|
|Frozen Shoulder|-|-|68|(66)|2|
|Helpline|-|-|7|(7)|-|
|Juvenile Idiopathic Arthritis|5|-|350|(347)|8|
|Knee Pain|-|-|71|(66)|5|
|Local Networks / Volunteering|2|-|-|(2)|-|
|LivingWell with Arthritis|-|-|127|(125)|2|
|National Lottery Community Fund
(NI)|46|-|70|(78)|38|
|National LotteryCommunityFund|13|80|41|(57)|77|
|Osteoarthritis (OA)|228|-|1,152|(728)|652|
|Osteomalacia|16|-|46|-|62|
|Osteoporosis (OP)|23|-|92|(92)|23|
|Osteoporosis,Osteoarthritis|-|-|68|(67)|1|
|Pain|-|-|3|-|3|
|Physical ActivityOfer|-|-|282|(273)|9|
|Rheumatoid Arthritis (RA)|451|-|908|(898)|461|
|Sjögren’s Syndrome|3|-|33|(29)|7|
## **MOVEMENT IN FUNDS** CONTINUED
|Small Restrictedprojects|79|15|454|(463)|85|
|---|---|---|---|---|---|
|Sport England|35|-|385|(418)|2|
|Systemic Sclerosis|35|-|-|(35)|-|
|Together Arthritis Argyll & Bute|40|(40)|-|-|-|
|Un-allocated to project/
programme|54|-|-|-|54|
|VODA|-|-|30|-|30|
|YoungPeople and Families|-|-|160|(81)|79|
|**Sub Total Research**|**1,131**|**55**|**5,370**|**(4,587)**|**1,969**|
## **Central and Regional Funds**
|**Central and Regional Funds**||||||
|---|---|---|---|---|---|
|Information|78|-|-|(60)|18|
|Services|30|-|657|(656)|31|
|Regions|549|(40)|142|-|651|
|Branches/Groups|298|(15)|8|-|291|
|**Sub-total Central and Regional**|**955**|**(55)**|**807**|**(716)**|**991**|
|**Total Restricted Funds**|**2,086**|**-**|**6,177**|**(5,303)**|**2,960**|
86
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 87
**CONTENTS**
## **MOVEMENT IN FUNDS** CONTINUED
## **Movement in Restricted Income Funds for the year ending 31 March 2022**
## **Group and Charity**
**----- Start of picture text -----**
Balance
Balance Sheet
Sheet at as at
1 April 31 March
2021 Transfers Income Expenditure 2022
Donor Funded Projects £’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Research**|**Research**|**Research**|**Research**|**Research**|**Research**|
|---|---|---|---|---|---|
|Advanced Pain Discovery
Platform|500|-|20|(520)|-|
|AI Programme|-|-|41|(41)|-|
|AnkylosingSpondylitis|-|-|10|(10)|-|
|COLGENE Partnership|18|-|-|-|18|
|Contribution to Core Costs|-|-|17|(17)|-|
|Cutaneous Systemic Sclerosis|2|-|-|-|2|
|Contribution to Healthcare|113|-|-|(36)|77|
|Fellowships|2|-|5|(3)|4|
|Juvenile Idiopathic Arthritis|12|1|26|(34)|5|
|LivingWell with Arthritis|58|(103)|122|(77)|-|
|Local Network of of Touchpoints|-|-|4|(2)|2|
|NLC Fund (NI)|-|-|63|(17)|46|
|NLCF|40|-|-|(27)|13|
|Osteoarthritis (OA)|84|-|405|(261)|228|
|Osteomalacia|-|1|74|(59)|16|
|Osteoporosis (OP)|-|-|1|22|23|
|Pain|-|-|59|(59)|-|
|Physical ActivityOfer|-|-|284|(284)|-|
|Raynaud’s|63|-|0|(63)|-|
|Rheumatoid Arthritis (RA)|695|(209)|468|(503)|451|
|Sjögren’s Syndrome|-|-|3|-|3|
|Tackling Inequalities (Sport
England)|232|-|-|(197)|35|
|Systemic sclerosis|25|-|40|(30)|35|
|Together Arthritis Argyll & Bute|-|-|40|-|40|
## **MOVEMENT IN FUNDS** CONTINUED
|YoungPeople and Families|-|-|7|(7)|-|
|---|---|---|---|---|---|
|Unmet Needs|-|-|95|(95)|-|
|Other funds|12|67|118|(118)|79|
|Un-Allocated|2,093|(2,053)|14|-|54|
|**Sub Total Research**|**3,949**|**(2.296)**|**1,916**|**(2,438)**|**1,131**|
## **Central and Regional Funds**
|Information|132|(54)|-|-|78|
|---|---|---|---|---|---|
|Services|74|(143)|673|(574)|30|
|Regions|-|384|165|-|549|
|Branches/Groups|-|278|20|-|298|
|**Sub-total Central and Regional**|**206**|**465**|**858**|**(574)**|**955**|
|**Total Restricted Funds**|**4,155**|**(1,831)**|**2,774**|**(3,012)**|**2,086**|
Restricted funds are appropriately allocated in accordance with the restrictions associated with the funds. Until restricted income is allocated to a project, it is held under unallocated funds.
to another (e.g., where funds were left specifically to a branch that has since closed, we have gone back to the legacy wording / branch activities to honour the donor intention for those funds as closely as possible).
Transfers within the year refer to amounts held initially within one reserve but upon review moved
## **17. DESIGNATED FUNDS – GROUP AND CHARITY**
||**Invest to**
**Change**|**Well**
**Managed**
**Charity**|**Investment**
**for O/S**
**Projects**|**Pension**
**(TPT)**|**Fixed**
**Asset Fund**|**Total**|
|---|---|---|---|---|---|---|
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Balance at 1 April 2022|-|-|-|1,904|1,250|3,154|
|Transfers from/(to)
general fund|75,000|5,000|10,000|-|350|90,350|
|**Balance at**
**31 March 2023**|**75,000**|**5,000**|**10,000**|**1,904**|**1,600**|**93,504**|
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 89
88
**CONTENTS**
## **18. ANALYSIS OF NET ASSETS BY FUND**
**----- Start of picture text -----**
General Revaluation Designated Restricted
GROUP Funds Reserve Funds Funds Total
£’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**GROUP**
**Fund balances at 31 March**
**2023 are represented by:**|**General**
**Funds**
**£’000**|**Revaluation**
**Reserve**
**£’000**|**Designated**
**Funds**
**£’000**|**Restricted**
**Funds**
**£’000**|**Total**
**£’000**|
|---|---|---|---|---|---|
|Fixed assets|-|-|1,600|-|1,600|
|Investments|16,164|14,769|91,904|-|122,837|
|Current assets|46,132|-|-|2,960|49,092|
|Current liabilities|(20,296)|-|-|-|(20,296)|
|Long-term liabilities|(24,357)|-|-|-|(24,357)|
|Provisions|(376)|-|-|-|(376)|
|**Total net assets**|**17,267**|**14,769**|**93,504**|**2,960**|**128,500**|
|**GROUP**|**General**
**Funds**|**Revaluation**
**Reserve**|**Designated**
**Funds**|**Restricted**
**Funds**|**Total**|
|---|---|---|---|---|---|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Restated fund balances at**
**31 March 2022 are**
**represented by:**||||||
|Fixed assets|-|-|1,250|-|1,250|
|Investments|107,753|38,466|1,904|-|148,123|
|Current assets|58,923|-|-|2,086|61,009|
|Current liabilities|(20,841)|-|-|-|(20,841)|
|Long-term liabilities|(33,250)|-|-|-|(33,250)|
|Provisions|(516)|-|-|-|(516)|
|**Total net assets**|**112,069**|**38,466**|**3,154**|**2,086**|**155,775**|
## **ANALYSIS OF NET ASSETS BY FUND** CONTINUED
**----- Start of picture text -----**
General Revaluation Designated Restricted
CHARITY Funds Reserve Funds Funds Total
£’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Fund balances at 31 March**
**2023 are represented by:**|**Fund balances at 31 March**
**2023 are represented by:**|**Fund balances at 31 March**
**2023 are represented by:**|**Fund balances at 31 March**
**2023 are represented by:**|**Fund balances at 31 March**
**2023 are represented by:**|**Fund balances at 31 March**
**2023 are represented by:**|
|---|---|---|---|---|---|
|Fixed assets|-|-|1,600|-|1,600|
|Investments|16,414|14,769|91,904|-|123,087|
|Current assets|45,873|-|-|2,960|48,833|
|Current liabilities|(20,321)|-|-|-|(20,321)|
|Long-term liabilities|(24,357)|-|-|-|(24,357)|
|Provisions|(376)|-|-|-|(376)|
|**Total net assets**|**17,233**|**14,769**|**93,504**|**2,960**|**128,466**|
**----- Start of picture text -----**
General Revaluation Designated Restricted
CHARITY Funds Reserve Funds Funds Total
£’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**CHARITY**|**General**
**Funds**
**£’000**|**Revaluation**
**Reserve**
**£’000**|**Designated**
**Funds**
**£’000**|**Restricted**
**Funds**
**£’000**|**Total**
**£’000**|
|---|---|---|---|---|---|
|||||||
|**Restated fund balances at**
**31 March 2022 are**
**represented by:**||||||
|Fixed assets|-|-|1,250|-|1,250|
|Investments|108,003|38,466|1,904|-|148,373|
|Current assets|57,867|-|-|2,086|59,953|
|Current liabilities|(20,729)|-|-|-|(20,729)|
|Long-term liabilities|(33,250)|-|-|-|(33,250)|
|Provisions|(516)|-|-|-|(516)|
|**Total net assets**|**111,375**|**38,466**|**3,154**|**2,086**|**155,081**|
90
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 91
**CONTENTS**
## **19. PENSION ARRANGEMENTS**
Versus Arthritis operates a number of pension funds whose assets are held separately from those of the charity in independently administered funds. Further details are below.
## **DEFINED CONTRIBUTION SCHEMES**
## **Group Personal Pension Plan managed by Royal London**
This is the charity’s current pension plan. All employees are eligible for membership and are automatically enrolled unless they request to opt out. The pension charge for the year ending 31 March 2023 represents contributions payable by Versus Arthritis and amounted to £708k (2022: £870k). The Charity has no liability under the scheme other than for the payment of those contributions.
## **Flexible retirement plan managed by The Pensions Trust (TPT)**
This plan which transferred from Arthritis Care has operated since the end of 2010 and closed to new members from the date of merger. The pension charge for the year ending 31 March 2023 represents contributions payable by Versus Arthritis and amounted to £1.15k (2022: £1.86k). The charity has no liability under the scheme other than for the payment of those contributions.
## **DEFINED BENEFIT SCHEMES**
## **The Pensions Trust – Arthritis Care Pension Scheme**
The scheme, which transferred from Arthritis Care at the point of merger, is a defined benefit funded pension scheme which closed to new members and to service accruals with effect from 31 December 2010. It is a separate trustee administered fund holding the pension scheme assets to meet long-term pension liabilities. An actuarial valuation was completed as at 30 September 2018 and updated to 31 March 2023 by a qualified actuary, independent of the scheme’s sponsoring employer. The major assumptions used by the actuary are shown below.
The actuarial triennial valuation as at 30 September 2018 showed a surplus of £1,036,000. The charity agreed with the scheme trustees that it will pay £75,180 per annum in respect of the cost of meeting the expenses of the scheme and levies to the Pension Protection Fund. Therefore, the total contributions paid in 2023 amounted to £76,887 (2022: £75,180). The net assets of the pension scheme are not recognised as an asset on the balance sheet in line with accounting standards on such matters as any surplus cannot be refunded directly to Versus Arthritis. The next triennial valuation (for 30 September 2021) is still in the process of being agreed, but no deficit is expected to arise.
The following information in respect of the scheme has been provided in accordance with the requirements of FRS102:
## **PENSION ARRANGEMENTS** CONTINUED
**----- Start of picture text -----**
31 March 31 March
2023 2022
£’000 £’000
Bonds 1,651 6,166
LDI 3,957 4,159
Property 1,556 1,678
Cash 187 369
Other 1,887 1,938
Total market value of assets 9,238 14,310
Present value of scheme liabilities (9,295) (13,045)
Surplus (57) 1,265
-
Effect of asset ceiling (1,265)
Net pension asset under FRS102 (57) -
**----- End of picture text -----**
## **Analysis of amount charged to SoFA**
**----- Start of picture text -----**
31 March 31 March
2023 2022
£’000 £’000
Expenses 111 79
Operating charge 111 79
Interest (income) on assets (393) (305)
Interest cost on defined benefit obligation 358 284
Interest on surplus that is not recoverable 35 21
Total expense recognised in the SoFA 111 79
**----- End of picture text -----**
## **Statement of other comprehensive income**
**----- Start of picture text -----**
31 March 31 March
2023 2022
£’000 £’000
Return on plan assets (excluding amounts included in net interest cost) (5,116) (55)
Experience (losses) on liabilities (885) (366)
Gain from change in assumptions 4,678 684
Effects of changes in the amount of surplus that is not recoverable
(excluding amounts included in the net interest cost) – (loss) 1,300 (259)
Actuarial (loss) / gain (23) 4
**----- End of picture text -----**
92
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 93
**CONTENTS**
## **PENSION ARRANGEMENTS** CONTINUED
## **Movement in balance sheet asset/(liability) during the period**
**----- Start of picture text -----**
31 March 31 March
2023 2022
£’000 £’000
Surplus/(deficit) in scheme at the beginning of the period - -
Expenses (111) (79)
Re-measurements included in other comprehensive income (23) 4
Employer contributions 77 75
(Deficit) in scheme at the end of the period (57) -
**----- End of picture text -----**
## **Change in liabilities during the period**
**----- Start of picture text -----**
31 March 31 March
2023 2022
£’000 £’000
Opening liabilities 13,045 13,354
Interest cost 358 284
Benefits paid (315) (275)
Actuarial (gain) on changes in demographic and financial assumptions (4,678) (684)
Experience loss on liabilities 885 366
Closing liabilities 9,295 13,045
**----- End of picture text -----**
## **Change in assets during the period**
**----- Start of picture text -----**
31 March 31 March
2023 2022
£’000 £’000
Opening assets 14,310 14,339
Interest income on assets 393 305
Expenses (111) (79)
Return on assets excluding interest income (5,116) (55)
Employer contributions 77 75
Benefits paid (315) (275)
Closing assets 9,238 14,310
**----- End of picture text -----**
## **PENSION ARRANGEMENTS** CONTINUED
## **Financial assumptions**
**----- Start of picture text -----**
31 March 31 March
2023 2022
Discount rate at the end of the year 4.86% 2.78%
Future salary increases 3.19% 3.59%
Deferred revaluation 3.19% 3.59%
Inflation assumption (RPI) 3.19% 3.59%
Inflation assumption (CPI) 2.92% 3.28%
Pension increases in payment
• CPI max 5% 2.84% 3.13%
• CPI max 2.5% 2.01% 2.13%
**----- End of picture text -----**
## **20. RELATED PARTY TRANSACTIONS**
Two Versus Arthritis trustees were based at UK institutions which received grant payments during the year. The details are as follows:
## **For the year ending 31 March 2023**
|**Name**|**Position**|**Related Party**|**Amount**
**Awarded**|**Amount in**
**Creditors**|
|---|---|---|---|---|
||||**£’000**|**£’000**|
|Iain McInnes|Trustee|Universityof Glasgow|88|2,281|
|Professor John Isaacs|Trustee|Newcastle University|66|1,007|
## **For the year ending 31 March 2022**
|**Name**|**Position**|**Related Party**|**Amount**
**Awarded**|**Amount in**
**Creditors**|
|---|---|---|---|---|
||||**£’000**|**£’000**|
|Professor David Isenberg|Trustee|UniversityCollege London|896|4,509|
|Professor Iain McInnes|Trustee|Universityof Glasgow|508|3,005|
|Professor John Isaacs|Trustee|Newcastle University|518|1,271|
|Caroline Rassell|Director|Active Essex|20|20|
One Versus Arthritis trustee made a donation to the charity during the year for the value of £1,200. One other Versus Arthritis trustee has signed up for the weekly £1 lottery.
94
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 95
**CONTENTS**
## **RELATED PARTY TRANSACTIONS** CONTINUED
There is a standard item of each committee and board meeting for members to declare any conflicts of interest in relation to the agenda. In advance of the meeting the governance team will check the register of interests and as appropriate make a note within the chair’s brief to ensure conflicted trustees or committee members are invited to vacate the room during discussions of the relevant agenda item.
## **Group Transactions**
For the year ending 31 March 2023:
- Versus Arthritis Trading Ltd made no donations in 2022/23 to the Charity (2022: £0)
- There was no management fee from the Charity to Versus Arthritis Trading Ltd (2022: £0k).
## **21. EX GRATIA PAYMENTS**
In addition to contractual redundancy payments set out in Note 6, there has been nil ex-gratia payments during the year (2022: nil).
Further information on redundancy and settlement payments to related parties is disclosed in Note 6.
## **22. OPERATING LEASE COMMITMENTS**
(i) Operating lease agreements where the Group is lessee.
Minimum lease obligations falling due at the balance sheet date are set out below:
**----- Start of picture text -----**
2023 2022
Other Leases £’000 £’000
Less than 1 year 971 964
2 to 5 years 3,092 3,649
Over 5 years 9 300
Total 4,072 4,913
**----- End of picture text -----**
During the year £918k (2022: £799k) was charged to the SoFA in respect of operating leases.
## **23. EXPLANATION OF PRIOR PERIOD ADJUSTMENT**
In 2022 and earlier years some items of restricted expenditure were incorrectly recorded as unrestricted expenditure and the restricted fund balance overstated in error. The effect of the restatement included below is to reduce the restricted fund balance and increase the unrestricted fund balance at 31 March 2022 by £924k. £744k relates to the opening position of FY22 and the remaining £180K has been allocated to research expenditure in the comparative consolidated statement of financial activities.
Grant liabilities falling due after more than one year have been restated at 31 March 2022 to correct for the impact of discounting and have decreased by £2,501k, with corresponding decrease to 2022 charitable expenditure of £1,331k and increase b/f funds of £1,170k.
In the 2022 consolidated statement of financial activities, some income and expenditure relating to the social venture were omitted in error. The effect of the restatement to move these items from 2023 to 2022 consolidated statement of financial activities is included in the tables below.
**----- Start of picture text -----**
Previously Prior Period
GROUP 2022 Reported Adjustment Restated
**----- End of picture text -----**
|**GROUP 2022**|**Previously**
**Reported**|**Prior Period**
**Adjustment**|**Restated**|
|---|---|---|---|
|||||
|Fixed Assets|1,519|(269)|1,250|
|Stock|185|(77)|108|
|Debtors|19,519|16|19,535|
|Creditors fallingdue within oneyear|(20,823)|(19)|(20,842)|
|Creditors fallingdue after more than oneyear|(35,751)|2,501|(33,250)|
|**Net assets**|**153,623**|**2,152**|**155,775**|
|||||
|**Total unrestricted funds**|**150,613**|**3,076**|**153,689**|
|**Restricted income funds**|**3,010**|**(924)**|**2,086**|
|**Total funds**|**153,623**|**2,152**|**155,775**|
|||||
|Other tradingactivities income|325|(5)|320|
|Charitable activities expenditure|38,060|(1,329)|36,731|
|Other activities expenditure|1,049|344|1,393|
|||||
|**Net (expenditure) before net (losses) on investments**|**(15,730)**|**980**|**(14,750)**|
|||||
|**Net movements in funds for theyear**|**(30,830)**|**980**|**(29,850)**|
|||||
|**Net movements in funds brought forward 2021**|**184,453**|**1,172**|**185,625**|
|||||
|**Total funds carried forward 2022**|**153,623**|**2,152**|**155,775**|
96
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 97
**CONTENTS**
## **EXPLANATION OF PRIOR PERIOD ADJUSTMENT** CONTINUED
**----- Start of picture text -----**
Previously Prior Period
CHARITY 2022 Reported Adjustment Restated
**----- End of picture text -----**
||**Previously**
**Reported**|**Prior Period**
**Adjustment**|**Prior Period**
**Adjustment**|
|---|---|---|---|
|||||
|**Creditors – amounts due after more than oneyear**|**(35,751)**|**2,501**|**(33,250)**|
|**Net assets**|**152,580**|**2,501**|**155,081**|
|||||
|**Total unrestricted funds**|**149,570**|**3,425**|**152,995**|
|**Total restricted income funds**|**3,010**|**(924)**|**2,086**|
|**Total funds**|**152,580**|**2,501**|**155,081**|
|||||
|**Raising Funds expenditure**|**6,515**|**2**|**6,517**|
|**Charitable activities expenditure**|**38,042**|**(1,330)**|**36,712**|
|||||
|**Net (expenditure) before net (losses) on investments**|**(17,838)**|**1,329**|**(16,509)**|
|||||
|**Net movements in funds for theyear**|**(32,934)**|**1,329**|**(31,605)**|
|||||
|**Total funds brought forward 2021**|**185,514**|**1,172**|**186,686**|
|||||
|**Total funds carried forward 2022**|**152,580**|**2,501**|**155,081**|
## **24. PRIOR-YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - RESTATED**
## **Incorporating an income and expenditure account for the year ended 31 March 2022**
**----- Start of picture text -----**
Restated
Unrestricted Restricted 2022 Total
Note Funds Funds Funds
£’000 £’000 £’000
**----- End of picture text -----**
|**Income from**|**Income from**|**Income from**|**Income from**|**Income from**|
|---|---|---|---|---|
|Donations and legacies|2|25,487|924|26,411|
|Other tradingactivities|2|321|-|321|
|Investment income|2|1,477|-|1,477|
|Intellectualpropertyincome|2,3|253|-|253|
|Charitable activities|2|222|1,850|2,072|
|Other|2|75|-|75|
|**Total Income**||**27,835**|**2,774**|**30,609**|
|**Expenditure**|||||
|Raisingfunds|5|6,594|-|6,594|
|Investment management costs|5|646|-|646|
|Charitable activities:|||||
|- Research|5|18,924|2,438|21,362|
|- Information, Services and Awareness|5|14,797|574|15,371|
|Other activities:|||||
|- Social Venture|5|1,393|-|1,393|
|**Total Expenditure**|**5**|**42,354**|**3,012**|**45,366**|
|**Net (expenditure) before net gains on**
**investments**||**(14,519)**|**(238)**|**(14,757)**|
|Net (losses) on investments|9|(15,100)|-|(15,100)|
|Actuarialgain on defined benefit scheme|18|4|-|4|
|Transfers between funds|15|1,831|(1,831)|-|
|**Net movement in funds**||**(27,784)**|**(2,069)**|**(29,853)**|
|**Reconciliation of funds**|||||
|**Funds brought forward**||**179,554**|**4,899**|**184,453**|
|Prior adjustments||1,919|(744)|1,175|
|**Total funds brought forward as restated**||**181,473**|**4,155**|**185,628**|
|**Total funds carried forward**||**153,689**|**2,086**|**155,775**|
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 99
**CONTENTS**
## **Board of Trustees**
## **DETAILS OF COMMITTEES THAT SUPPORT THE BOARD**
## **Appointments, Remuneration and Governance (ARG) Committee**
## **Finance Committee**
The Finance Committee is a committee of the Board of Trustees created to exercise, on behalf of the Board of Trustees, supervisory oversight, judgment and scrutiny of all aspects of Versus Arthritis’s corporate financial policies and operations.
The ARG Committee is a committee of the Board of Trustees of Versus Arthritis, created to exercise supervisory oversight and scrutiny on behalf of the board of all aspects of Versus Arthritis’s policies and procedures related to appointment of trustees and the chief executive officer, as well as those related to remuneration and pensions arrangements for the organisation.
Alongside this, the committee provides the Board of Trustees with an informed and independent assessment of the management and control of finance and resources and of related risk throughout the Charity. It is also responsible for reviewing this Annual Report and Accounts – in particular, our work to ensure that we have a sustainable charitable business model – and to make its position known with recommendations to the board for decision.
As a result of a change approved by the board in December 2022, the committee is also delegated responsibility by the board to consider matters of the charity’s governance, as directed by the board.
## Members:
## Members:
- Dr Andrew Holford (As Chair of Finance Committee)
- Dr Andrew Holford (Chair)
- Mrs Kate Tompkins (As Chair of the Board of • Ms Jessica Patel (Co-opted member) Trustees) (Appointed December 2022) • Mr Sukhy Bachada (Appointed Trustee
- • Mr Vincent Noinville (As Chair of Risk and Audit December 2022)
- Mr Vincent Noinville (As Chair of Risk and Audit December 2022) Committee) • Ms Lilian Rose (Appointed Trustee December
- • Professor John Isaacs (As Chair of the Charitable 2022)
- Professor John Isaacs (As Chair of the Charitable 2022) Purposes Committee) (Appointed June 2022) • Mr Paul Vandenberghe (Appointed Trustee
- • Ms Karin Hogsander (Chair, as Deputy Chair of December 2022) the Board of Trustees) (Retired December 2022) • Mrs Kate Tompkins (Ex-officio as Chair of the
- • Professor Jonathan Cohen (As Chair of Board of Trustees, appointed December 2022) •
- Charitable Purposes Committee) Mr Philip Gray (Retired December 2022) (Retired June 2022) • Ms Karin Hogsander (Retired December 2022)
- Ms Karin Hogsander (Retired December 2022)
- Mr Philip Gray (As Trustee appointed to the committee) (Retired December 2022)
- Dr Rodger McMillan (Retired December 2022)
- Mr Mark Jarvis (Co-opted member) (Retired December 2022)
- Dr Rodger McMillan (Retired December 2022) (As Chair of the Board of Trustees) • Ms Juliette Scott (Appointed to FC Nov 2022) (Retired December 2022). (Retired March 2023).
## **Charitable Purposes Committee**
## **Research Advisory Groups**
There are four Research Advisory Groups that provide strategic advice to Versus Arthritis related to important areas of research focus. The RAGs are formulated around the following four broad areas:
## Members:
- Professor Martijn Steultjens
- Ms Jane Taylor (Appointed Trustee December 2022)
- ProfessorJohn Isaacs (Elected to Chair August 2022)
- adult inflammatory arthritis
- autoimmune rheumatic disease
- Professor Iain McInnes (Appointed to this committee August 2022)
- musculoskeletal disease
- paediatric rheumatology.
- Caitriona Roberts (Appointed Trustee December 2022)
The groups comprise people with expertise in the following areas:
- Mrs Kate Tompkins (Ex-officio as Chair of the Board of Trustees, appointed December 2022)
- Professor Jonathan Cohen (Chair) (Retired June 2022)
- lived experience
- clinical
- scientific
- Mr Stewart Falconer (Co-opted member) (Retired October 2022)
- methodological
- Ms Kate Law (Co-opted member) (rRetired June 2022)
- healthcare.
- Ms Juliette Scott (Retired from CPC September 2022).
## **Membership of the RAGs**
- Professor Stefan Siebert (Chair)
## **Risk and Audit Committee**
- **Risk and Audit Committee** • Professor Allan Wailoo • Professor Andrew Cope
- Members: • Dr Arthur Pratt • Professor Carl Goodyear
- • Mr Vincent Noinville (Chair) • Dr Carla Cohen • - • Mr Sandeep Das (Co opted member) Mr Christopher Martey
- • Mr Paul Vandenberghe (Previously a co-opted • Mr David Chandler member; and appointed Trustee • Dr Ken Baker December 2022) • Mrs Kirsty Bell
- • Joanne Williams (Appointed Trustee • Dr Lesley-Anne Bissell December 2022) • Professor Nicole Horwood
- • Professor Sarah (Sallie) Lamb (Retired • Dr Pauline Ho •
- September 2022). Dr Sarah Twigg • Mrs Sarah Burn • Dr Suzan Verstappen
- **Expert Committees** • Dr William Tillett
## **Expert Committees**
• Professor Chris Denton (Chair) • Dr Andrea Murray • Professor Ann Morgan • Dr Deepa Jakakody Arachchillage • Dr Ed Vital • Dr Emma Derrett-Smith • Professor Hector Chinoy
A number of committees provide advice on our research activity:
- Research Advisory Groups (RAGs)
- Fellowship Expert Committee
- Funding review panels
- Progress Review Committee (PRC).
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**CONTENTS**
• Dr Jane Taylor Our Fellowship Committee remained in place and, • Dr John Pauling with the addition of supplementary members to • Ms Lucy Brett form bespoke panels, reviewed our fellowship • Ms Lynn Laidlaw applications. We also formed other bespoke review • Dr Megan Rutter panels for non-fellowship research activity.
• Dr Megan Rutter
• Dr Neil Basu
• Dr Peter Lanyon
• Dr Shirish Dubey
## **Membership of the Fellowship Expert Committee**
• Dr Fiona Watt (Chair)
• Mrs Amanda Clark
• Professor Christine Le Maitre
• Professor Gretl McHugh (Chair)
• Professor John Isaacs
• Dr Christopher Brown
• Professor Gary Macfarlane
• Dr David Andersson
• Professor Alexander MacGregor
• Dr Deborah Mason
• Professor Maya Buch
• Mrs Debra Dulake
• Dr Elspeth Wise
• Dr Jesmond Dalli
• Professor Alison McGregor
• Dr Emma Clark
• Professor Lucy Donaldson
• Dr Emma Salt
• Dr Felicity Bishop
• Professor George Peat
## **Membership of Bespoke Panels**
• Professor Hemant Pandit
• Ms Jane Taylor-Wormald
• Professor John Loughlin
• Dr Alan Reynolds
• Dr Linda Troeberg
• Dr Ben Seymour
• Dr Malvika Gulati
• Dr Catherine Hilkens
• Dr Chrissy Hammond
• Dr Maura McCarron
- Dr Neal Millar
• Dr Darren Plant
• Professor Richard Jones
• Dr David Andersson
• Professor Ruth Wilcox
- Dr David Ellard
• Dr Stephen Richardson
• Dr Frances Humby
• Dr Tim Barlow
• Dr Frederique Ponchel
• Dr Zoe Paskins (Lead)
• Dr Ian Scott
• Professor Athimalaipet Ramanan (Co-Chair)
• Dr James Wason
• Dr Clare Pain (Co-Chair)
• Dr Linda Troeberg
• Mrs Louise Parker
• Dr Megan MacLeod
• Dr Taranjit Singh Rai
• Mr Colin Wilkinson
## **Funding Review Panels**
• Mr Matt Kaiser
• Mr Terry Lock
Last year we moved away from our model of four committees (focused on Disease, Treatment, Health and Fellowship) and began work on a more agile, lighter model. We therefore no longer have an expansive list of committee members but applied a much more bespoke approach to reviewing research applications.
• Mrs Annabel Dawson
• Mrs Maureen Grossman
• Ms Anna Dawson
• Ms Anne Channevy
• Ms Jane Taylor-Wormald
• Ms Tracey Snell
• Professor Alex MacGregor
- Professor Andrew McCaskie
- Professor Caroline Alexander
- Professor Claudia Mauri
- Professor Cosimo De Bari
- Professor David Abraham
• Professor David Jayne
• Professor David Leon
- Professor Ernest Choy
• Professor Gary Macfarlane
• Professor Gretl McHugh
- Professor Ian Bruce
- Professor Ilaria Bellantuono
- Professor Janet Lord
- Professor John McBeth
- Professor Jonathan Tobias
- Professor Kevin Davies
- Professor Lesley Colvin
- Professor Lucy Donaldson
- Professor Martin Underwood
- Professor Maya Buch
- Professor Michele Bombardieri
- Professor Paul Eggleton
- Professor Paul Genever
- Professor Paul Greenhaf
- Professor Raashid Luqmani
• Professor Robert van Deursen
- Professor Simon Jones
- Professor Steven Edwards
- Professor Ursula Fearon
## **Progress Review Committee (PRC)**
The PRC is comprised of a group of experts that review ongoing studies that involve recruitment of research participants. The purpose of this committee is to provide us with assurance that the studies are progressing satisfactorily and to support us with any ongoing actions if this is not the case.
## **Membership of PRC**
- Professor Ed Roddy
• Dr Jonathan Hill • Dr Coziana Ciurtin • Dr Sarah Kingsbury • Dr Mark Lunt • Professor Terence O’Neill
• Dr Natasha Jordon • Dr Nicholas Harvey • Dr Isabel Reading
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**CONTENTS**
## **Reference and Administrative Details**
## **VERSUS ARTHRITIS**
**Director of Marketing, Communication and Engagement**
Copeman House St Mary’s Court St Mary’s Gate Chesterfield S41 7TD
- Chris Phillips (Interim, to October 2022)
## **Director of Insight, Data and Technology**
- Paul Barton (Interim, to September 2022)
**Telephone:** 0300 790 0400 **Email:** enquiries@versusarthritis.org **Website:** www.versusarthritis.org
## **BOARD OF TRUSTEES**
- Mrs Kate Tompkins (Chair) (Appointed December 2022)
A company limited by guarantee and registered in England and Wales (00490500)
- Dr Andrew Holford
- Professor John Isaacs
- Professor Iain McInnes
A Charity registered in England and Wales (207711) and in Scotland (SC041156).
- Mr Vincent Noinville
- Mr Jonathan Rodgers
- Professor Martijn Steultjens (Deputy Chair)
## **LEADERSHIP AT VERSUS ARTHRITIS**
- Mr Sukhy Bachada (Appointed December 2022)
## **Senior Leadership Team**
- Caitriona Roberts (Appointed December 2022)
- Lilian Rose (Appointed December 2022)
## **Chief Executive**
- Ms Jane Taylor (Appointed Trustee December 2022)
- Deborah Alsina MBE
- Paul Vandenberghe (Appointed Trustee December 2022)
## **Director of Finance and Corporate Resources**
- Simon Hopkins
- Joanne Williams (Appointed December 2022)
- Dr Rodger McMillan (Chair) (Retired December 2022)
**Director of People and Organisational Development**
- Professor Jonathan Cohen (Retired December 2022)
- Wendy Honeyghan (From June 2023)
- Steve Williams (Interim from September 2022 to July 2023)
- Mr Philip Gray (Retired December 2022)
- Helen Timbrell (To July 2022)
- Ms Karin Hogsander (Deputy Chair)
(Retired December 2022)
## **Director of Income and Engagement**
- Professor Sarah Lamb (Retired September 2022)
- Alastair Graham (From May 2023)
- Ms Juliette Scott (Retired March 2023)
- Emma Whitcombe (Interim from November 2022 to July 2023)
Details of the subcommittees that support the Board of Trustees are set out on pages 100 of this report.
## **Director of Services and Influencing**
Zoe Chivers
## **HONORARY VICE PRESIDENTS**
## **Director of Research and Health Intelligence**
• Mrs Sue Arnott
- Lucy Donaldson (Appointed October 2023)
• Dr Colin Barnes
- Caroline Aylott and Sarah Rudkin (Acting from January 2023 – October 2023)
• Dr Peter Copeman
- Professor Graham Hughes
- Neha Issar-Brown (To January 2023)
## **PATRON**
## **PROFESSIONAL ADVISORS**
## **AUDITORS**
## **BDO LLP**
55 Baker Street London W1U 7EU
## **BANKERS**
## **NatWest plc**
5 Market Place Chesterfield S40 1TJ
## **INVESTMENT MANAGERS Baillie Gifford & Co**
Calton Square 1 Greenside Row Edinburgh EH1 3AN
## **Royal London Asset Management**
55 Gracechurch Street London EC3V 0RL
## **Abrdn plc (Aberdeen Standard)**
1 George Street Edinburgh EH2 2LL
## **Blevins Franks**
28 St James’s Square London SW1Y 4JH
## **SOLICITORS**
## **Bates Wells**
10 Queen Street Place London EC4R 1BE
• Her Royal Highness The Former Duchess of Cornwall
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VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 105
**CONTENTS**
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**We are Versus Arthritis. We’re the 10 million people living with arthritis. We’re the carers, researchers, healthcare professionals, friends, parents, fundraisers and volunteers, all united in our ambition to ensure that one day, no one will have to live with the pain, fatigue and isolation that arthritis causes.**
VERSUS ARTHRITIS ANNUAL REPORT AND ACCOUNTS 2022-2023 107
## **VERSUS ARTHRITIS**
Copeman House St Mary’s Court St Mary’s Gate Chesterfield S41 7TD
**Telephone:** 0300 790 0400 **Email:** enquiries@versusarthritis.org **Website:** www.versusarthritis.org
A company limited by guarantee and registered in England and Wales (00490500)
A Charity registered in England and Wales (207711) and in Scotland (SC041156).
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