Charity number: 212498 THE CHARTERHOUSE RHEUMATISM CHARITY TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 THE CHARTERHOUSE RHEUMATISM CHARITY CONTENTS Page Reference and administrative details of the Charity. its Trustee and advisers Trustee's report Trustee's responsibilities statement Independent auditors. report on the financial statements statement of financial activities 10 Balance sheet Notes to the financial statements 12-20 THE CHARTERHOUSE RHEUMATISM CHARITY REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 31 JULY 2024 Trustee University of Leeds Charity registered number 212498 Principal office Central Finance Room 11.23 EC Sloner Building University of Leeds Leeds LS2 9JT Independent audltors Armstrong Watson Audit Limited Chartered Accounlanls & Slatulory Auditors Third Floor 10 South Parade Leeds Wesl Yorkshire LS15QS Page 1 THE CHARTERHOUSE RHEUMATISM CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 JULY 2024 The Trustee presents the annual report and the audited financial statements for the year ended 31 July 2024. Name and registered office of the Charity The full name of the Charity is The Charterhouse Rheumatism Charity. The Charity is registered in England and Wales. Ils principal and registered office is Central Finance, 11.23 EC Stoner Building, University of Leeds. Leeds LS2 9JT. Trustee The University of Leeds is the Corporate Trustee of the Charity. Members of the University of Leeds Council are, for the purposes of Charity Law, the Iruslees of the University of Leeds and are disclosed on page 79 of ils Integrated Annual Report for the University- Objectives and activities for the public benefit The aims and objectives of the Charity are to fund research into the causes of rheumatism and the Irealmenl thereof and lo provide relief lo individuals by providing or paying for items, services or facilities for persons with theumalic lor chronicl conditions. The Trustee confirms that il has referred lo the guidance contained in the Charity Commission's general guidance on public benefit in its decision making. The Charity carries out the objectives by providing grants lo projects that seek lo provide innovation in this field. In the year, donations of £100,00012023". £100,000) were made lo the Charterhouse Endowment which supports the Chair of Rehabilitation Medicine, as head of the Rehabililalion Unil al the University of Leeds and as a praclicing clinician in the field. This supports rehabilitation for persons with disability. as well as further research into ways of helping people experiencing illness and disability. The Charity is committed to continuing to fund research in line with its aims and objectives. Achievement51 performance and future policy The nature of perfomiance and operations at Leeds Institute of Rheumatic and Musculoskeletal Medicine, University of Leeds, in the year mel with the objectives of the Charity- The reserves of the Charity increased by £324.69612023.. decrease by £103.8961 during the year. This was as a result of market movements in the value of inveslmenls. During the year, the main achievements of the grants provided to Leeds Institute of Rheumatic and Musculoskeletal Medicine included.. Continued work on rehabililalion in Parkinson's disease using augmented reality technology. This work has obtained an award of over £2.3m, the largest ever awarded to a rehabilitation physician in the UK, and recently featured in Rory Cellan-Jones Movers and Shakers" podcast. Project set-up commenced in July 2024 with recruilmenl of first participants in April 2025., Development of the assessment, monitoring and rehabilitation of patients with Long Covid, with 15°A of all NHS patients in Britain using the Institute's app. The LOCOMOTION study, completed during this financial year, gave valuable insights into Long Covid. A follow-on funding application lo expand on the most promising treatments developed during LOCOMOTION has been submilled lo NIHR., The Inslitule's long-standing collatioration with the University of Sheffield and Sheffield Teaching Hospital NHS Foundation Trust, which received a fourth tranche of funding for the next five years - nearly £3m - the largest award lo date, allowing consolidation of rehabilitation and methodological innov81ion work., Progression with work on the role of continuous slralific81ion in stroke rehabilitstion using digital twins. An app has been developed which can be used during rehabilitation to monitor progress and inform the next stage of Irealmenl- Collaboration on a randomised controlled trial with Kings College London on pulmonary rehabilitslion which is nearing completion of recruitment. It is hoped that this study will demonstrate new and effective ways to improve the care of people with long-lerm respiratory conditions., Expanding the suite of outcome measLJres on the University of Leeds website, available for researchers and clinicians to use to monitor the impact of rheumalological and neurological conditions and their treatment. The translation of the COVID-19 Yorkshire Rehabilitation Scale IC19-YRSI outcome measure into over 40 languages, and its extensive use in induslry-funded trials., Continued presentation of work on technology in rehabilitstion at national and international conferences as well as webinars for members of the public, and extensive publication in peer-reviewed journals., Page 2 THE CHARTERHOUSE RHEUMATISM CHARITY TRUSTEE'S REPORT {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2024 Hosting a portfolio of courses teaching psychometric principles and practi￿, and providing input to psychometric leaching internationally. Feedback for the Courses remains uniformly high and form part of the CPD offering of the School of Medicine. Financial review and reserves The CharIt￿S work is entirely reliant on income and investment returns from its endowments. During the year the net income before investment gains amounted to £1,17512023'. loss of £8701, with investment gains of £323,521 12023- losses of £103,026) contributing lo a net increase of funds by £324,696 12023.. decrease of £103,896). The Charity has subslanlial net assets and the Trustee believes that the reserves of £3,885,992 12023.. £3,561,296} are sufficient to fund the daY-l￿daY working capital requirements and lo continue the objeclives of the Charity. The value of the investments has been impacted by the current economic situation and recent global events. The total fund gain before fees and costs of 12.60/012023.. 0.70/0 gain) is below the index benchmark of a gain of 14.10/0 12023". 3.5Q/o gain). The Charity continues lo invest in the Climate Active fund, a fund which aligns ils investments with the goals of the Paris Climate Accord. The Trustee believes that continuing to invest in the Climate Active fund, despite achieving lower returns on average than other fund options in the short-lerm, is ethically and slffitegically the right approach for the Charity. The Trustee remains confident that the long-tem) target of CPl+40/o will be achieved. The Trustee aims to maintain free reserves in unrestricted funds to support donations made throughout the year lo fulfil the objectives of the Charity. There is no further policy around reserves. The balan￿ held as unrestricted reserves al 31 July 2024 was £3,885.992 {2023.. £3,561,296). Going concern The principal risks facing the Charity are discussed in this Trustee's report. The Trustee has reviewed the cash position of the Charity and cash forecasts al the dale of signing the financial statements and is satisfied that the Charity will be able to meet all of ils financial commilmenls. As a consequence, the Trustee believes that the Charity is well placed to manage its financial risks successfully. After making enquiries. the Trustee has a reasonable expectation that the Charity has adequate reserves to continue in operational existence for a minimum of 12 months after signing date. Under the current strategy of granting £100,000 annually to the Charterhouse Endowment. the Charity currenuy holds sufficient reserves to make over 30 years of grants. Accordingly. the Trustee continues lo adopt the going concern basis in preparing the financial slalemenls. Statement of investment policy The Trust Deed permits wide powers of investment. Investments are monitored closely by Central Finance al the University of Leeds on behalf of the Trustee. The funds are managed and invested on behalf of the Charity by Sarasin & Partners. Risk management The principal risks faced by the Charity lie in the performance of investments. The Trustee considers variability of investment relums lo conslilule the Charity's major financial risk. This is miligaled by retaining expert investment managers and having diversified investments within the climate active investment fund. The Trustee has examined the major business, strategic and operational risks that the Charity faces and confirms that systems have been estsblished to enable regular reports to be produced so that the necessary steps can be taken lo lessen these risks. Related parties All grants payable were paid to the Charterhouse Endowment, which is administered by the University of Leeds Faculty of Health & Medicine. The Trustee is the University of Leeds. which provides finance, secretarial, legal and treasury services to the Charity for an annual fee of £4.872 {2023.. £4,730). Page 3 THE CHARTERHOUSE RHEUMATISM CHARITY TRUSTEE'S REPORT {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2024 Structure, governance and management The Charity is a registered charity in England & Wales, Charity number 212498. The Charity is governed by the Trust Deed dated 1 November 1936, as varied or affected by Schemes of the Charity Commissioners of the 9th January 1975 and 3rd December 1980. The University of Leeds was appointed as Corporate Trustee under a Charity Commission scheme effective 25 October 1996. Central Finance at the University of Leeds ensures that the Charity complies with all legal and slalutory requirements and conducts ils affairs in conformity with the Trust Deed and the practices and requirements as prescribed by the Council for the corporate govemance of the University. The University has established an administrative team to undertake the day-to-day responsibilities of the Charity. including maintenance of appropriate records, preparation of accounts and reporting to Council on an annual basis. The University ensures that the administrative team are inducted, trained and have adequate resources lo complete this role. A review of the grant making policy and process is underway and any necessary changes will be implemented in 2025. Armstrong Watson Audit Limited has been reappointed as the statutory auditor to the Charity- Approved by order of the Corporate Trustee and signed on its behalf by.. Alan Thomson Corporate Trustee Date.. 1110412025 Page 4 THE CHARTERHOUSE RHEUMATISM CHARITY STATEMENT OF TRUSTEE'S RESPONSIBILITIES FOR THE YEAR ENDED 31 JULY 2024 The Trustee is responsible for preparing the Trustee's report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. The law applicable to charities in England & Wales requires the Trustee lo prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the Charity and of ils incoming resources and application of resources. including its income and expenditure. for that period. In preparing these financial slatemenls, the Trustee is required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021., make judgements and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject lo 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 Charity will continue in business. The Trustee is responsible for keeping adequate accounting records that are sufficient lo show and explain the Charity's transactions and disdose with reasonable accuracy al any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. The Trustee is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 5 THE CHARTERHOUSE RHEUMATISM CHARITY INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE CHARTERHOUSE RHEUMATISM CHARITY Opinion We have audited the financial statements of The Charterhouse Rheumatism Charity Ilhe 'charity') for the year ended 31 July 2024 which comprise the Statement of financial activities, the Balance sheet, and the related notes, induding 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, Iunited Kingdom Generally Accepted Accounting Practi￿1. The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021 in preference lo the Accounting and Reporting by Charities.. Slalement of Recommended Practice issued on 1 April 2005 which is referred lo in the extant regulations bul has been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial statements.. give a true and fair view of the stale of the charity's affairs as at 31 July 2024 and of ils incoming resources and application of resources for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intemalional S18ndards on Auditing IUK) IISAS IUKII and applicable 18w. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concem In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material un￿rtaintieS relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustee with respect lo going ￿n￿M are described in the relevant sections of this report. Page 6 THE CHARTERHOUSE RHEUMATISM CHARITY INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE CHARTERHOUSE RHEUMATISM CHARITY ICONTINUEDI Other infomiation The other information comprises the information included in the Annual report other than the financial statements and our Auditors, report Ihereon. The Trustee is responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the exlenl othenmise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial stslemenls or our knowledge obtained in the course of the audit, or othenNise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise lo a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misslalemenl of this other infomialion, we are required lo report that fact. We have nothing lo report in this regard. Matters on whlch we are requlred to report by exceptSon We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us lo report to you if, in our opinion.. the information given in the Trustee's report is inconsislenl in any material respect with the financial statements- or sufficient accounting records have not been kept., or the financial stslemenls are not in agreement with the accounting records and returns., or we have not re￿iVed all the infomialion and explanations we require for our audit. Responslbllltles of the Trustee As explained more fully in the Trustee's responsibilities statement, the Truslee is responsible for the preparation of the financial statements which give a true and fair view, and for such intemal control as the Trustee detemiines is necessary lo enable the preparation of financial statements that are free from material misslatemenl, whether due to fraud or error. In preparing the financial statements, the Trustee is responsible for assessing the charitls ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends lo liquidate the charity or lo cease operations, or has no realistic altemalive but to do so. Page 7 THE CHARTERHOUSE RHEUMATISM CHARITY INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE CHARTERHOUSE RHEUMATISM CHARITY ICONTINUEDI Auditors. responsibilities for the audit of the financial statements We have been appointed as auditor under section 145 of the Charities Art 2011 and report in accordance with the Act and relevant regLJlations made or having effect Ihereunder. Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misststement, whether due to fraud or error, and to issue an Auditors, report that includes our opinion. Reasonable assuran￿ is a high level of assurance, bul is not a guarantee that an audit conducted in accordan￿ with ISAS IUKI will always delect 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 slatemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design prO￿dureS in line wilh our responsibilities, outlined above, lo detect material misslalemenls in respect of irregularities, induding fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud is detsiled below.. Our approach non-compliance lo idenlrfwng and assessing the risks of material misstatement in respect of irregularities, including fraud and with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, such as the Charities Act 2011- we identified the laws and regulations applicable lo the charitable company through discussions with Trustees and other management., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management., and identified laws and regulations were communicated within the audit team regulady and the team remained alert lo instances of non-compliance throughout the audit. We assessed the susceptibility of the charitable companls financial statements lo material misslatemenl, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as lo where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place lo mitigate risks of fraud and non•compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., and In response lo the risk of irregularities and non-compliance with laws and regulations, we designed prO￿dureS which included, bul were not limited to.. agreeing financial statement dis¢losures to undedwng supporting documentation., and enquiring of management as to actual and potential litigation and claims. Due lo the inherent limitstions of an audit, there is a risk that we will not delecl all irregularities, including those leading to a material misstatement in the financial slalemenls or non