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2020-12-31-accounts

Royal Surgical Aid Society

Company No. 00515174 (England and Wales) Registered Charity No. 216613

Financial Statements for the year ended

31 December 2020

Royal Surgical Aid Society Contents

Company Information 1
Report of the Trustees 2
Independent Auditor's Report 10
Statement of Financial Activities 14
Balance Sheet 15
Notes to the Financial Statements 16

Royal Surgical Aid Society Company information

Trustees and Board of Directors: Catherine A'Bear
Anthony Burch
William Burnand
Richard Drummond
Julie Flower
Darren Garner
David Goodridge
Elizabeth Amanda Houlihan
Lee Marple
Caroline Stevens Resigned 12/02/2020
Chief Executive Officer: Claire Goodchild
Company Secretary: David Warren Appointed 11/02/2021
John Misselbrook Resigned 10/02/2021
Registered Office: CAN Mezzanine
7-14 Great Dover Street
London
SE1 4YR
Auditors: Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD
Bankers: Barclays Bank PLC
1 Churchill Place
London
E14 5HP
Investment Managers: Sarasin and Partners LLP
Juxon House
11 St. Paul's Churchyard
London
EC4M 8BU
Solicitors: Bircham Dyson Bell
50 Broadway
Westminster
London
SW1H 0BL
Company number: 00515174
Charity number: 216613

1

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

OBJECTIVES AND ACTIVITIES

The Royal Surgical Aid Society (RSAS) was established in 1862 to provide surgical aids for the poor, funded through subscriptions from philanthropists and industrialists who referred their workforce to the charity. The advent of the NHS meant that the state took responsibility for the provision of such services. In the early 1950s, the Trustees took the opportunity to divert the charities investments to provide care homes for older people.

In 2012, at the charity’s 150th anniversary, our Board of Trustees agreed our future focus should be on supporting family carers of people with dementia. This decision emerged from the findings of a number of commissioned pieces of research to advise on the state of services for our aging population.

In June 2018 Dementia Carers Count (DCC) was adopted as the working name for the Royal Surgical Aid Society to reflect this renewed mission and purpose.

There are 700,000 family and friends caring for a person with dementia in the UK. There are over 100 different types of dementia and each person’s presentation of dementia will be different, meaning that a person’s abilities and competence vary from day-to-day and the family carer is expected to flex and adapt to the person’s needs at any given time. Carers are as individual as the persons they care for.

Our mission is to provide space for family carers of people with dementia to inspire them to learn, connect and receive practical support to feel empowered in their caring role. We invest in research to understand family carers’ experiences, needs and desired outcomes, and campaign to improve the support they receive.

Our vision is to nurture a generation of family carers of people with dementia to feel confident, supported, and heard.

Dementia Carers Count is the national charity dedicated to family and friends who are caring for someone with dementia. Our range of face-to-face and online courses provide an opportunity to learn, connect and develop strategies which support the wellbeing of family carers and people with dementia. All our services are designed and delivered by expert qualified health and care professionals, in partnership with carers.

A Dementia Carers Centre is at the heart of our vision and will be a place that fully understands and empathises with what carers are going through. The aim will be for DCC courses to be delivered from this Centre, alongside other services for carers.

The 2019-22 delivery plan, endorsed by the Trustees, set out 4 key strategic priorities

  1. A long term and sustainable financial strategy : Create an organisation able to deliver impactful services at scale to dementia carers. The strategy includes managing DCC investments well, generating a diversity of income streams and, crucially, spending DCC assets prudently.

  2. Dementia Carers Centre: the place where dementia carers can drop their shoulders: The Dementia Carers Centre will be more than simply the building from which DCC delivers services. It will be the symbolic ‘home’ for family carers of people with dementia. The Centre, as a physical space, must reflect those aspirations through good design. The search for a suitable location has enabled DCC to refine the criteria that are essential against those that are desirable.

  3. Effective and far-reaching evidence-based services: Developing and delivering services to family dementia carers is the core purpose of DCC. In 2015, the charity stated its intent to be a small charity with big impact. That impact is being realised through innovative and good quality services that deliver longterm positive outcomes for individual.

2

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

The core DCC 3-day courses have been developed and piloted and independently evaluated. Having invested in the development of those services, DCC must now deliver those services at scale, increasing the frequency and range of 3-day and 1-day courses. Once transferred to the Centre it is the intention that DCC will continue to be a hub of innovation, incubating best practice and a beacon of inspiration to family carers, commissioners, policy makers and providers.

  1. DCC as the ‘go to place for dementia carers: To support the uptake of DCC services and attract investment from donors, DCC must establish a degree of awareness with target audiences, including family carers, commissioners and providers across the dementia and carers sectors and across the philanthropy sector. To achieve those aims, DCC will increase its public profile, promoting understanding of the organisation’s work and services it provides. A number of coordinated avenues will be executed, including thought leadership, marketing, visibility amongst dementia and carers networks at national level.

Our beneficiaries

DCC aims to benefit the public so that all carers of people with dementia can access our services. The experience of being a dementia carer impacts on individuals in different ways, regardless of class and socio-economic status.

Public benefit

The Trustees have considered the Charity Commission’s general guidance on public benefit including its guidance “Public Benefit: Running A Charity (PB2)” when reviewing the charity’s aim and objectives and planning future activities. We aim to structure our business model so that we can fully fulfill our charitable purpose and make our ground-breaking services accessible to everyone who will find benefit in participating in them.

ACHIEVEMENTS AND PERFORMANCE

Primary achievements

The Annual Review of Strategic Progress conducted in August 2020 against the backdrop of an easing of Lockdown 1 restrictions and an unknown economic and social future, detailed select achievements to date against the four strategic priorities (SP’s) including:

SP1: A long term and sustainable financial strategy

SP2: Dementia Carers Centre; the place where dementia carers ‘drop their shoulders’

3

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

SP3: Effective and far-reaching evidence-based services

SP4: DCC as the ‘go to’ place for dementia carers.

Financial Review and Reserves Policy

As at 31 December 2020 the Society remains in a financially healthy position with total funds of £9,985k (2019: £10,265k). Net operating expenditure of £725k (2019: £845k) represents a period of investment in evolving the development of the service model, of building capability and infrastructure necessary for the future delivery of our mission, and of navigating the varied impacts of the pandemic.

All funds are currently held as unrestricted. Of these, £9,098k (2019: £9,221k) are designated funds segregated to achieve capital investment and to finance the development of the services and activities which form the charity’s aims and objectives.

The Trustees have committed funds to capital investment in the DCC Centre. The DCC Centre purchase of land, build and development will be partly financed from reserves with the balance through capital fundraising. The remaining reserves will be utilised in the continued development of a sustainable model, following which residual funds, together with income from service delivery and operational fundraising, will be at a level sufficient for the ongoing delivery of our objectives.

PLANS FOR FUTURE PERIOD

Priorities for the coming period include:

4

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

GOVERNANCE AND MANAGEMENT

Governing document

Royal Surgical Aid Society RSAS operates as a company limited by guarantee number 00515174, incorporated 15 January 1953, according to the terms of the Articles of Association dated November 2017. It is also a charity registered with the Charity Commission, number 216613.

The Charity’s objects are restricted specifically to the relief of need and the promotion of health and wellbeing among persons affected by dementia and other degenerative neurological disorders, including carers of people with dementia and such disorders, their families and friends, particularly but not exclusively by:

RSAS Trading Limited, the RSAS 100% owned trading subsidiary, remained dormant during the year.

Appointment of Trustees

Trustees are openly recruited according to the skills and experience required to fill vacancies and their appointment is confirmed by the Board of Trustees. An independent recruiter, experienced in the charity sector, manages the headhunting and recruitment process. The Chair is elected by fellow trustees.

The Board may also co-opt additional qualified persons to the Board to act as Honorary Advisors, including filling a vacancy in the Board, who are then confirmed in office at the next Board meeting.

Trustee induction and training

Development needs and additional appointments are identified through skills audits. All new trustees are offered a ‘buddy’ to assist their induction. Trustees have access to the RSAS Governance Handbook and to training where required. All trustees have committed to engaging with the Carers Advisory Panel.

5

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

Pay Policy for senior staff

Senior management are remunerated in line with sector benchmarks (reviewed annually) and all senior staff appointments, pay and award changes are approved by the Board of Trustees.

Organisation

The Board of Trustees, which can number between 6 and 20 members, currently consists of 10. The Board meets every 3 months. In addition there is a Finance, Investment and General Purposes (FIGP) Committee that meets 4 times a year and is delegated with the task of overseeing the finances, including investments, and risk register, for the organisation. The Building Development Committee (BDC) meets 4 times a year, or more frequently if required, and is tasked with securing suitable premises from which to operate the NRCC.

An informal fundraising committee has been established to ensure Trustees are fully informed and invested in the activity.

The Board of Trustees appoints a Chief Executive Officer with delegated responsibility to manage the operations and conduct of the organisation.

Risk Management

The Director of Finance is tasked with presenting and updating a risk assessment and management register to the FIGP for detailed analysis and then reporting exceptions to the Board. The principal risks facing the charity, and the policies and procedures in place to mitigate them are as follows:

  1. Navigating the ongoing and varied challenges of the coronavirus pandemic which includes:

  2. Development of a Virtual Carers Centre as a means of delivering content to service user beneficiaries when unable to provide face to face courses;

  3. Development of new fundraising channels to mitigate reliance on capital fundraising for the DCC Centre;

  4. Managing operating costs carefully and delaying certain projects where appropriate to do so; and

  5. • Keeping staff safe, fully informed and ensuring that their wellbeing is fully managed.

  6. Ensuring that the purchase and development of the DCC Centre is cost effective and meets the needs of service users and beneficiaries most appropriately. Activity to inform this includes:

  7. Commissioning external analysis focused on consumer attitudes to learning preferences post pandemic;

  8. Appointment of a trustee lead for the project who has experience of capital projects;

  9. Continued operation of a Building Development Committee, chaired by a trustee and accountable tothe Board; and

  10. Ongoing dialogue with experts in building development to appraise the options of purchase or lease, new build or re-fit and to present recommendations to the Board.

  11. DCC is a relatively new brand in the dementia and carers sector. Awareness of the brand needs to be developed and the following measures designed to mitigate risk and to boost fundraised income have been put in place:

  12. Commissioned an external, independent market awareness study from a reputable market research agency;

  13. Develop and promote the ‘Every Step Counts’ fundraising and awareness campaign;

  14. • Internal Communications and Marketing will continue to implement a brand awareness strategy including building digital content and boosting online and social media presence;

6

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

and

7

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

Statement of Trustees’ responsibilities

The Trustees (who are also directors of the Royal Surgical Aid Society) 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. Under that law the Trustees have elected to prepare the financial statements 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 charity and of the surplus or deficit of the charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

8

Royal Surgical Aid Society Report of the Trustees for the period ended 31 December 2020

Auditors

Moore Kingston Smith LLP were auditors during the year. They have indicated their willingness to continue in office and, in accordance with the provisions of the Companies Act, it is proposed that they be reappointed auditors for the ensuing year.

Approved by the Board of Trustees on 16 June 2021 and signed on its behalf by:

Darren Garner Darren Garner (Jul 10, 2021 19:41 GMT+1)

Darren Garner Treasurer

9

Royal Surgical Aid Society Independent Auditors Report To the Members of The Royal Surgical Aid Society

Opinion

We have audited the financial statements of Royal Surgical Aid Society (‘the company’) for the period ended 31 December 2020 which comprise the Statement of Financial Activities including the Summary Income and Expenditure Account, the Balance Sheet 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

Conclusions relating to going concern

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.

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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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.

10

Royal Surgical Aid Society Independent Auditors Report To the Members of The Royal Surgical Aid Society

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, 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 determine 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

11

Royal Surgical Aid Society Independent Auditors Report To the Members of The Royal Surgical Aid Society

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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

12

Royal Surgical Aid Society Independent Auditors Report To the Members of The Royal Surgical Aid Society

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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. Our audit work has been undertaken so that we might state to the company’s members 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

…………………………………………………………..

Neil Finlayson, Senior Statutory Auditor

for and on behalf of Moore Kingston Smith LLP, Statutory Auditors

Devonshire House 60 Goswell Road London EC1M 7AD

Date: Jul 15, 2021

13

Royal Surgical Aid Society Statement of Financial Activities for the year ended 31 December 2020

Note
Income and Endowments
Donations and legacies
2
Investment income
3
Total Income
Expenditure
Raising Funds
7
Fundraising
Charitable activities
Total Expenditure
4
Net Operating Expenditure
Net gains on investments
10
Net movement in funds
Total funds brought forward
Total funds carried forward
14
Financing costs
Service Development		 Total
2020
£'000s
67
253
320
(8)
3
1,050
1,045
(725)
445
(280)
10,265
9,985		 Total
2019
£'000s
11
222
233
2
1
1,075
1,078
(845)
767
(78)
10,343
10,265

All current year and prior year expenditure is unrestricted

14

Royal Surgical Aid Society Balance Sheet

for the year ended 31 December 2020

Note
Fixed Assets
Intangible fixed assets
8
Tangible fixed assets
9
Investments
10
Current Assets
Debtors
11
Cash at bank and in hand
12
Net Current Assets
Net Assets
Funds
Unrestricted Funds:
14
Designated funds
General fund
Total Funds
15
Creditors: Amounts Falling
due within one year		 2020
£'000s
23
580
603
(76)		 2020
£'000s
25
3
9,430
9,458
527
9,985
9,098
887
9,985		 2019
£'000s
26
468
494
(60)		 2019
£'000s
51
6
9,774
9,831
434
10,265
9,221
1,044
10,265

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The notes at pages 16 to 27 form part of these accounts

Approved and authorised by the Board on and signed on their behalf by:

Catherine A'Bear (Jul 12, 2021 07:51 GMT+1)

Jul 12, 2021

Catherine A'Bear, Chair

Company number: 00515174

15

Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

1 Accounting Policies

Company Information

The Royal Surgical Aid Society is a private company limited by guarantee incorporated in England and Wales under the Companies Act 2006. The address of the registered office is CAN Mezzanine, 7-14 Great Dover Street, London, SE1 4YR. The nature of the company's operations in the year are stated in the Trustee's Report. The company's registration number is 00515174.

Basis of Accounting

These notes have been prepared on a going concern basis, under the historical cost convention modified for investments which are accounted for at market value.

The financial statements have been prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements of the charitable company have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The charitable company is a public benefit entity for the purposes of FRS102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Trustees have considered the charitable group’s forecasts and projections and have taken account of pressures on donation and investment income. After making enquiries the Trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. At the date of sign off, the Trustees confirm there are no material uncertainties in relation to the going concern assumption. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

The principal accounting policies adopted in the preparation of the financial statements are set out below:

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to income, the economic benefit is probable and the amount can be reliably estimated. The following accounting policies are applied to income:

Donations and Legacies

Legacies and donations are accounted for and recognised when the charity becomes entitled to them, when the receipt is probable and when the amount can be measured reliably.

Investment Income

Investment income is accounted for when it becomes receivable.

16

Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

Other Income

Other income is accounted for on an accruals basis providing for income receivable in the year. Any income due for the year but not received is accrued and held within debtors.

Expenditure

All expenditure is recognised in the Statement of Financial Activities (SOFA) when the services or goods have been received by the year end.

Fundraising and Publicity

Fundraising and publicity costs represent expenditure relating to the fundraising department.

Charitable Expenditure and Allocation of Costs

Resources expended are accounted for on an accruals basis. All costs are allocated between expense categories in the SOFA on a basis that reflects the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on a direct cost basis.

Governance

Governance costs comprise the cost of running the charity, including external audit, Trustees' legal advice and constitutional and statutory compliance costs.

Fund Accounting

The charity maintains various types of funds as follows:

Unrestricted Funds

Designated funds are amounts which have been put aside at the discretion of the Trustees, and comprise a development fund equivalent to net proceeds arising from sale of care homes. This has been designated by the Trustees to be invested in strategic review and new initiatives that may result from this.

General unrestricted funds represent funds which are expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

Operating Leases

Operating lease costs are charged to the statement of financial activities on a straight line basis over the period of the lease. All operating leases were in respect of plant and machinery.

Employee benefits

i. Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

ii. Pension Costs

The Society operates a defined contribution pension scheme. Contributions are charged to the statement of financial activities in the year in which they fall due. At the year end contributions totalling £2,748 (2019 - £nil) were outstanding.

17

Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

Accounting Policies (continued)

Fixed Assets and Depreciation

Fixed assets are included in the financial statements at their cost, less accumulated depreciation.

Depreciation is provided on all other assets to write off the cost or valuation of each asset over its estimated useful economic life as follows:

Freehold and Leasehold Buildings - 2% per annum on a straight line basis Furniture and fittings: - 20% per annum on a straight line basis Computer equipment - 33% per annum on a straight line basis

Individual items costing less than £250 are written off as an expense on acquisition.

Intangible Assets and Amortisation

Intangible assets are included in the financial statements at their cost, less accumulated amortisation.

Amortisation is provided on all other assets to write off the cost or valuation of each asset over its estimated useful economic life as follows:

Systems and software development

Investments

Investments are stated at market value. Dividends, other investment income and interest are accounted for on a receivable basis. Realised and unrealised gains and losses are shown as 'net gains/(losses) on investments' in the Statement of Financial Activities.

Financial Instruments

Cash and Cash Equivalents

Cash and cash equivalents include cash and cash at banks and in hand and short term deposits with a maturity date of three months of less.

Debtors and Creditors

Debtors or creditors receivable or payable within one year of the reporting date are claimed at their transaction price. Debits and credits that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payments discounted at a market rate of interest.

Financial instruments

The Company only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

18

Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

19

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

2
Donations and legacies
Other donations and legacies individually under £5k
3
Investment Income
UK investment income and bank interest
All of current year and prior year donations income is unrestricted		 2020
£'000s
67
67
2020
£'000s
253
253		 2019
£'000s
11
11
2019
£'000s
222
222

All investment income is derived from quoted investments listed on the London Stock Exchange or unit trusts which are UK based.

All of current year and prior year investment income is unrestricted.

4
Expenditure
Year to 31 December 2020
Charitable activities
Service development
Cost of generating funds
Finance costs
Fundraising
Year to 31 December 2019
Charitable activities
Service development
Cost of generating funds
Finance costs
Fundraising		 Staff
Costs
£'000s
653
-
-
653
Staff
Costs
£'000s
438
-
-
438		 Other
Costs
£'000s
397
(8)
3
392
Other
Costs
£'000s
637
2
1
640		 2020
Total
£'000s
1,050
(8)
3
1,045
2019
Total
£'000s
1,075
2
1
1,078		 2019
Total
£'000s
1,075
2
1
1,078
2018
Total
£'000s
890
11
2
903

20

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

5 Staff Costs
Staff Costs
Wages and salaries
Social security costs
Pension costs
Other staff costs		 2020
£'000s
430
47
13
163
653		 2019
£'000s
350
24
8
56
438

Included within other staff costs are payments made to individuals who are not employees of the Society but who are contracted for services, amounting to £126k (2019: £56k)

The average number of staff employed during the period was 12 (2019: 10) including 4 part time employees (2019: 4) working less than 35 hours per week.

Analysis of staff employed during the year
Analysis of staff employed during the year 2020 2019
Service Delivery 5 5
Fundraising 3 2
Finance 1 1
Administration 3 2

Key management personnel include the Trustees and the Chief Executive who acted during the period. The total employee benefits (including employer national insurance contributions) of the Charity's key management personnel was £98,314 (2019: £100,293). There was one (2019: one) key management employee in the year. A severance payment of £nil (2019: £5,704) was made to no (2019: one) member of staff during the year.

Number of employees that earned in the period:
Number of employees that earned in the period: 2020 2019
£60,000 - £69,000 1 -
£80,000 - £89,999 1 1

Retirement benefits totalling £6,114 (2019: £2,112) were paid to a defined contribution scheme on behalf of the higher paid members of staff disclosed above.

None of the trustees received remuneration or benefits in 2020 or 2019. Travelling expenses of £302 (2019: £3,176) were reimbursed to 9 Trustees (2019: 8)

Net Expenditure 2020 2019
£'000s £'000s
Net expenditure for the financial period is stated after charging:
Auditor's remuneration
Audit fees (net of VAT) 12 11
Other services 3 11

21

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

7
Financing Costs
Bank charges
8
Intangible Fixed Assets
Cost
At 1 January 2020
Additions
As at 31 December 2020
Depreciation
At 1 January 2020
Charge for year
As at 31 December 2020
Net Book Value
At 1 January 2020
As at 31 December 2020		 2020
£'000s
(8)
(8)
Systems		 2019
£'000s
2
2
2020
£'000s
Development
78
-
78
27
26
53
51
25

Intangible assets represent costs associated to the development of DCC Website (CMS) and Customer Relationship Management systems.

9 Tangible Fixed Assets

Tangible Fixed Assets
2020
£'000s
Computer Equipment
Cost
At 1 January 2020 16
Additions 2
As at 31 December 2020 18
Depreciation
At 1 January 2020 10
Charge for year 5
As at 31 December 2020 15
Net Book Value
At 1 January 2020 6
As at 31 December 2020 3

22

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

10 Investments

Investments
Total Investments
Market value at 1 January 2020
Acquisitions at cost
Disposals at brought forward market value
Unrealised investment gains
Movement of cash held in investment portfolio
Market value at 31 December
Historic cost at 31 December
Investments, at market value, are held in the following funds:
Sarasin Endowments Fund Class A Inc
Market value at 31 December
Investments representing more than 5% of holding:
ICS - Sterling Liquidity Fund Acc
Sarasin Income and Reserves Fund Class A Inc
Sarasin Endowments Fund Class A Inc		 2020
£'000s
9,774
3,398
(4,251)
445
64
9,430
8,444
2020
£'000s
9,430
9,430
Units
9,470
1,844,402
5,199,959		 2019
£'000s
8,796
16,219
(16,000)
767
(8)
9,774
9,232
2019
£'000s
9,774
9,774
Value
995,304
2,167,173
6,203,551

At 31 December 2020 the charity held 100% of the issued share capital of RSAS Trading Limited, an unquoted investment, the cost of which is £1. The company was dormant in 2020 and 2019. It is incorporated in England and Wales. At 31 December 2020, the aggregate capital and reserves of RSAS Trading Limited were £1 (2019: £1)

11
Debtors
Other debtors
Prepayments
12
Creditors: Amounts falling due within one year
Trade creditors
Pension contributions unpaid
Social security and other taxes
Accruals and other creditors		 2020
£'000s
14
9
23
2020
£'000s
32
3
14
27
76		 2019
£'000s
9
17
26
2019
£'000s
20
-
2
38
60

23

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

13 Taxation

The Royal Surgical Aid Society is exempt from tax on income and gains falling within Chapter 3, Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

14 Reconciliation of Movement in Funds

As at 31
December
2019
£'000s
Designated Funds
Dementia carers centre:
Property fund
4,000
1,417
Pilot programme fund 107
Research fund
165
92
500
Funds generation fund
440
1,000
Bursary fund
1,000
500
Designated Funds
9,221
General Fund
1,044
10,265
Business
implementation fund
Professor of family care
in dementia
Supplementary support
fund
Assistive technology
fund
Business development
fund		 Income
Expenditure
£'000s
£'000s
-
-
-
(56)
-
(21)
-
-
-
(46)
-
-
-
-
-
-
-
-
-
-
(123)
320
(922)
320
(1,045)		 Transfers
£'000s
-
-
-
-
-
-
-
-
-
-
-
-
-		 Investment
Gains
£'000s
-
-
-
-
-
-
-
-
-
-
-
445
445		 As at 31
December
2020
£'000s
4,000
1,361
86
165
46
500
440
1,000
1,000
500
9,098
887
9,985

24

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

As at 31
December
2018
£'000s
Designated Funds
Dementia carers centre:
Property fund
4,000
1,417
Pilot programme fund 187
Research fund
165
142
52
500
Funds generation fund
440
1,000
Bursary fund
1,000
500
Designated Funds
9,403
General Fund
940
10,343
Supplementary support
fund
Business development
fund
Business
implementation fund
Professor of family care
in dementia
IT resource
development fund
Assistive technology
fund		 Income
Expenditure
£'000s
£'000s
-
-
-
-
-
(111)
-
-
-
(50)
-
(30)
-
-
-
-
-
-
-
-
-
-
-
(191)
233
(887)
233
(1,078)		 Transfers
£'000s
-
-
31
-
-
(22)
-
-
-
-
-
9
(9)
-		 Investment
Gains
£'000s
-
-
-
-
-
-
-
-
-
-
-
-
767
767		 As at 31
December
2019
£'000s
4,000
1,417
107
165
92
-
500
440
1,000
1,000
500
9,221
1,044
10,265

14 Reconciliation of Movement in Funds (continued)

Dementia Carers Centre Fund

The Dementia Carers Centre (DCC) will provide direct services to carers of people with dementia. This strategic development will be a building based service. The Dementia Carers Centre Fund facilitates the implementation of this initiative within the following categories:

• DCC Property Fund

The DCC Property Fund represents the expected net cost of the purchase and refurbishment of the premises and land to house the DCC and its operations. The purchase of this property is planned to be completed within the next 12 to 24 months with an estimated cost of £6m. The fund allocation is net of £2m target fundraising income.

• DCC Business Implementation Fund

The DCC Business Implementation Fund represents the forecast net DCC Centre deficit for the first five years, allowing development of a sustainable business model.

• DCC Pilot Programme Fund

The DCC Pilot Programme Fund represents the delivery of a programme of pilot services over the coming year to assess and refine the range of services that will be provided through the DCC.

Research Fund

The Research Fund represents the 3 year funding commitment to research the experiences, needs and outcomes for dementia carers to enable the charity to constantly improve its services.

25

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

Professor of Family Care in Dementia Fund

The Professor of Family Care in Dementia Fund represents the 3 year funding towards the salary costs of a jointly funded post with the Association of Dementia Studies, University of Worcester.

IT Resource Development Fund

The IT Resource Development Fund enables funding for the implementation of a platform to provide online resources to dementia carers. This is expected to be developed over the next 12 to 18 months.

Assistive Technology Fund

The Assistive Technology Fund provides resource to enable the development of a showcasing facility for assistive technology for dementia carers. In line with the DCC Property, this is planned to be operational within the next 12 to 24 months.

Funds Generation Fund

The Funds Generation Fund provides resource to build income channels for fundraising over the next two years.

Supplementary Support Fund

The Supplementary Support Fund provides financial resources over a five year period enabling respite breaks for dementia carers.

Bursary Fund

The Bursary Fund exists to provide financial resources towards the cost of travel, accommodation and fees for dementia carers attending courses provided by DCC.

Business Development Fund

The Business Development Fund will allow investment over the next five years for the development of new product and services to both further the activities of the Charity as well as to provide income generation for future funding.

Unrestricted funds

The General unrestricted fund represents funds which are expendable at the discretion of the Board in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

Transfers in year

There were no transfers in 2020.

In 2019 a transfer of £9K was made out of general funds to fund new designated fund requirements approved within the year.

26

The Royal Surgical Aid Society Notes to the Financial Statements for the year ended 31 December 2020

15 Allocation of Net Assets between Funds

Year to 31 December 2020
General Fund
Designated Funds
Year to 31 December 2019
General Fund
Designated Funds		 Fixed
Assets
Investments
£'000s
£'000s
28
332
-
9,098
28
9,430
Fixed
Assets
Investments
£'000s
£'000s
57
553
-
9,221
57
9,774		 Current
Assets
£'000s
603
-
603
Current
Assets
£'000s
494
-
494		 Current
Liabilities
£'000s
(76)
-
(76)
Current
Liabilities
£'000s
(60)
-
(60)		 2020
Total
£'000s
887
9,098
9,985
2019
Total
£'000s
1,044
9,221
10,265

16 Leasing Commitments

At 31 December 2020, the Charity had the following future minimum lease payments under non-cancellable operating leases:

Leases expiring:
Less than one year		 2020
£'000s
4		 2019
£'000s
9

17 Liability of the Members

The charity is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute the sum of 25p in the event of the Society being wound up. The society provides and pays for professional liability insurance.

18 Related Party Transactions

There were no related party transactions in 2019 or 2020

27