**REGISTERED COMPANY NUMBER: 01914825 (England and Wales) REGISTERED CHARITY NUMBER: 292569**
## **REPORT OF THE TRUSTEES AND**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 OCTOBER 2024**
**FOR**
## **ARTHRITIS ACTION**
LMDB Limited t/a LMDB Accountants Statutory Auditors Railview Lofts 19c Commercial Road Eastbourne East Sussex BN21 3XE
**ARTHRITIS ACTION**
**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024**
||**Page**|
|---|---|
|**Report of the Trustees**|1 to 12|
|**Report of the Independent Auditors**|13 to 15|
|**Statement of Financial Activities**|16|
|**Statement of Financial Position**|17|
|**Statement of Cash Flows**|18|
|**Notes to the Statement of Cash Flows**|19|
|**Notes to the Financial Statements**|20 to 33|
**ARTHRITIS ACTION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2024**
The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 October 2024. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** 01914825 (England and Wales)
**Registered Charity number** 292569
## **Registered office**
5 Cornfield Terrace Eastbourne East Sussex BN21 4NN
## **Trustees**
Prof S A Vickerstaff Interim Chair from 19 May 2025 Mr T O McLaughlan Chair from 10 February 2025. Resigned 13 May 2025 Mr G C Allen Resigned 21 November 2023 Mr C Beevor Mr R S Borges Miss L E Graham Resigned 28 October 2024 Ms C J Jones Resigned 14 February 2024 Ms C A Langley Appointed 13 August 2024 Mr R McNabb Mr M Myles-Brown Mr R H Nye Resigned 21 November 2023 Mr W Parker Resigned 13 February 2024 Ms S Powell Appointed 11 September 2024 Mrs D M C Rose Resigned 21 November 2023 Ms E Takyi Mr D G S Torjussen-Proctor Resigned 10 February 2025 Mr D Vennix Appointed 19 June 2025
## **Chief Executive**
Miss S Irwin
**Company Secretary** Mrs H Littler
**Auditors Accountants Solicitors Bankers Financial Advisors** LMDB Limited Cornfield Accountants So Legal NatWest Schroders t/a LMDB Accountants Limited 15 Gildredge Rd Eastbourne Branch 1 London Wall Statutory Auditors 5 Cornfield Terrace Eastbourne 96 Terminus Road Place Railview Lofts Eastbourne East Sussex East Sussex London 19c Commercial Road East Sussex BN21 4RB BN21 3LX EC2Y 5AU Eastbourne, East BN21 4NN Sussex, BN21 3XE
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**ARTHRITIS ACTION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2024**
## **TRUSTEES' REPORT**
## **Objectives and Activities**
Arthritis Action was founded in 1942 and is a charitable company limited by guarantee as defined by the Companies Act 2006. It is governed by its Articles of Association, which were last amended on 8 July 2025.
## Vision, Objectives and Priorities
Our vision is for people to live active lives, free from the impact of arthritis. We will relieve and promote the relief of people with arthritis and associated musculoskeletal (MSK) conditions by:-
- Helping and supporting people through the provision of the best available evidence-based approaches and techniques;
- Monitoring arthritis related developments and initiatives, and promoting efforts to gain a better understanding of the conditions and their impact on people's lives; and
- Raising awareness and disseminating evidence-based information about all matters relating to those conditions
## Overview of Activities
The Trustees have carefully considered the Charity Commission's guidance on public benefit, as well as its general advice, when determining the activities Arthritis Action should undertake.
During the year ended 31 October 2024, the Charity spent £648,268 (2023: £908,072) on delivering its selfmanagement health programme, £199,640 (2023: included in self-management) on raising awareness of arthritis and £20,607 (2023: £161,384) on research and other member grants.
Arthritis Action is the UK charity giving hands-on, practical help to improve the quality of life of people affected by arthritis. We offer an integrated self-management approach, which looks at both the physical and mental health impact of living with arthritis. Whilst we are a membership charity, we have transformed our services to benefit our membership and wider communities affected by arthritis and associated MSK conditions across the UK.
Last year, we launched our new three-year 2024-2026 strategy, which builds upon our previous strategy and elevates our efforts to support more adults affected by arthritis across the country.
Our 2024-2026 strategic priorities are:
- To empower people living with arthritis to better self-manage their condition.
- To reach more young adults across the UK and support more people in work of all ages.
- To have a self-management approach that attracts referrals from healthcare professionals.
- To raise awareness of the Charity and that of arthritis and MSK conditions.
- To actively reach out to and make a difference for diverse communities affected by arthritis across the UK.
- To achieve long-term financial sustainability.
## Self-Management Approach
Although over 10 million people live with arthritis in the UK, each person is unique in the way they manage their symptoms. Our approach enables people to choose the techniques that work best for them.
Our self-management approach includes:
- A Personalised Member Pathway, a service that helps Members access the services that meet their needs;
- Nutrition and weight management consultations with our registered Dietitian;
- Self-management educational events to learn about various techniques for managing both the physical and mental health impact of arthritis;
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## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2024**
-
Online Arthritis Action Groups;
- Running online exercise classes and providing resources for exercising safely, signposting to activities in communities and collaborations with activity providers;
- Free, easy to follow online self-management videos;
- Quarterly webinars and a Podcast with expert speakers, covering a wide range of topics;
- Subsidised clinical appointments with our registered osteopaths, physiotherapists and acupuncturists; and
- Factsheets, our Members' magazine, electronic newsletters and informational leaflets on a variety of topics including self-management, physical activity, and mental wellbeing.
## Raising Awareness of Arthritis
During the past year, we worked hard to raise awareness of arthritis and of the Charity’s work in supporting people with the condition, through our efforts in securing media exposure in top tier publications; digital campaigns on the website and social media platforms; and notably a wide-scale, 3-month-long, pro bono outdoor advertising campaign with Clear Channel’s generous support.
Our prominence in the MSK sector was also bolstered through our networking activity and supporting the influencing and policy work of umbrella organisations including the Arthritis and Musculoskeletal Alliance (ARMA) and National Voices, of which we are charity members.
We attended meetings to discuss policy developments including the NHS Constitution consultation and NHS Change; took part in influencing activities such as signing joint letters to policy makers to raise awareness of key issues affecting people with arthritis, and to ensure MSK is high on the agenda of healthcare reforms; and represented patients by feeding into reports that look at how MSK conditions affect health, work and wellbeing.
A highlight of the year was Interim CEO Noha Al Afifi representing the Charity at ARMA’s long-awaited health inequalities ‘Act Now’ report launch which was held in the UK Parliament in April 2024.
We also reached out to a diverse audience to raise awareness of Arthritis Action and its self-management approach. This included Social Prescribers in Hounslow, Afro-Caribbean Elders’ Groups, community groups in low-income areas in London and East Anglia, retired NHS staff members, carer’s groups and homeless support centres. We would like to thank our Trustee, Colin Beevor, for his continued support in delivering presentations to healthcare professionals and community groups.
We continued to connect with healthcare professionals through our awareness training sessions for NHS Talking Therapy Teams. Alongside this, we delivered presentations to members of the Institute of Podiatry, to nurses in the Rheumatology team at Luton and Dunstable Hospital, and to rheumatology students at The University of Manchester. Our team and volunteers helped us achieve this through their intensive research and networking efforts.
## **Achievements and Performance**
Our achievements and performance, against our six strategic priorities, are:
## - Empowering people living with arthritis to better self manage their condition
We continued to expand our services and the extent and methods by which we provide information to our Members and others living with arthritis, who are seeking help and advice.
We are pleased that 94% of our Members are satisfied with our services, based on our 2024 survey. “I appreciate you all very much. Being a member is probably the best £25 I have spent all year.”
We have directly supported over 9,000 people last year through our Groups and Self-Management Events; community presentations; clinical appointments with our network of physiotherapists, osteopaths, and acupuncturists; webinars; ‘Home Strength’ exercise classes; nutrition and weight management consultations; our podcast and the Personalised Member Pathway service.
We have continued the development of our Online Arthritis Action Groups which meet on a regular basis and enable like-minded people to share their experiences of living with arthritis. These Groups continue to support people who are isolated at home, giving them a space to meet and learn from each other and our speakers. We are pleased that 94% of Group attendees felt the Groups
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helped improve their confidence in managing their condition, and 93% felt they understood their arthritis better and are more in control of their symptoms. We look forward to continuing the Groups and ensuring a safe place for attendees to share hints, tips and experiences.
Arthritis Action remains committed to enhancing the lives of those affected by arthritis by providing access to clinical therapies. In addition, we offer a flexible, personalised approach to healthy eating and weight management, helping individuals to take control of their health and wellbeing.
We have been running the Arthritis Action Connect service, a volunteer-led peer support initiative, since the Covid-19 pandemic. However, with restrictions lifted and daily life returning to normal, demand for it has declined. As a result, we have decided to discontinue the service in 2024-2025.
We are pleased that our website provided advice and information to over 200,000 visitors, with ‘arthritis and disability benefits’ receiving 45,000 visits alone, highlighting the continuing need for financial support in the current economic climate. We introduced a ‘work and arthritis’ resource to help improve the working lives of people with arthritis whilst supporting their employers. Our electronic newsletter ‘eNews’ has 4,762 subscribers who receive it via monthly email.
We added four new videos to our popular Self-Management Video resource over the year, including Arthritis and Disability Benefits, and Food, Mood and Medication. The 31 evidence-based video resource aims to help people with arthritis self-manage different aspects of their condition and improve their daily life. Over the year, the videos have had over 6,450 plays, and our recorded webinars over 2,600 plays.
## Reaching more young adults across the UK and supporting more people in work of all ages
To address the different needs of younger people with arthritis, we continued to develop our tailored services including Groups, introductory self-management events, a dedicated newsletter, the Young Adult Hub on our website, WhatsApp service, specialist webinars and a new season of our popular podcast. We covered a variety of topics including hormones and the impact they have on arthritis; aids, adjustments and adaptations; and an interview with a Paralympian.
We also continued to disseminate ‘Arthritis & Me’, a quarterly newsletter, and produced more content for our Young Adult Hub on our website. Our website attracted over 24,000 visits from younger adults. Our podcast and webinar series remained successful, with over 6,000 listeners, and 521 registrants and 240 attendees, respectively. We also delivered two Introductory events for young adults with 10 attending each event and approximately 30 sign-ups for each one, and continued to run our Young Adult Group meetings, with 42 attendees and 62 registrations.
Moreover, our Corporate Partnerships Manager is actively engaging with companies to promote our wellbeing programmes, designed to support more employees with arthritis in the workplace.
## - Having a self management approach that attracts referrals from healthcare professionals
Over the year we have actively expanded our reach to healthcare professionals. We are very pleased to have introduced over 800 healthcare professionals to our self-management and wellbeing resources.
We delivered Arthritis Awareness Training to 30 Talking Therapy teams to include Staffordshire, Luton and Lincolnshire and communicated with 50 healthcare teams across the year. We continued to deliver talks to Social Prescribers and attended community events such as an International Women’s Day Event funded by a local Integrated Care System in the Midlands.
Alongside this, we delivered an additional 11 presentations reaching 243 Healthcare Professionals including podiatrists, social prescribers and rheumatology nurses. We continue to attend meetings with local communities across London and in the Midlands by attending health events, delivering presentations and working with other charities.
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## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2024**
## Raising awareness of the Charity and that of arthritis and MSK conditions
We have continued our efforts to raise awareness of arthritis and that of the Charity, reaching over 2 million people on our social media channels, and a combined audience of 150 million through media coverage and PR activities.
During 2024, we secured national media coverage in various outlets, including the Daily Telegraph, The Guardian, Daily Mail, and the Sun, with a PR reach exceeding 152.7 million.
To improve the way we communicate with external audiences, particularly to the younger cohort, we have continued developing our social media channels and tailoring our activity to increase engagement and grow our reach. These include X (formerly Twitter), Facebook, Instagram, LinkedIn, Health Unlocked and YouTube.
After a critical look at X’s practices over the course of the year, we deprioritised X as a social media platform and set up an account on Bluesky in December 2024.
## _Research_
We are proud to have worked with 98 leisure centres across the country to transform them into local community MSK hubs, alongside GoodBoost, ukactive, Orthopaedic Research UK, and ESCAPE-pain. The project ‘UKRI Transforming gyms into community MSK hubs: mobilising the UK leisure sector to deliver inclusive, accessible, personalised and gamified health services for Older Adults with MSK conditions’ concluded on 31 March 2024, culminating in an important report that was published in September 2024. The report demonstrated the success of the project in supporting more people with MSK conditions and its potential to relieve pressures on the NHS.
The consortium continued to actively engage with both the outgoing and new governments to secure further investment and support to continue this vital work. Despite the ongoing efforts and the proven impact of the project, long-term government funding has not yet been secured. However, we remain deeply committed to advancing this work as we explore every possible avenue to sustain and grow its reach and impact. Consequently, our research and grant expenditure has decreased, reflecting the funding challenges we have faced in maintaining the momentum of this important work.
Throughout the year, we have also collaborated with universities, other charities and nonprofit organisations, in order to increase our evidence base about the self-management of arthritis and to ensure we are following best practice and the latest guidance. We are also a National Institute for Health and Care Excellence (NICE) stakeholder group and engage in many of their research programmes. We are currently supporting them with their Health Tech Programme, which focuses on the evaluation of medical and diagnostic technologies to help the NHS adopt clinically and costeffective technologies. NICE is committed to involving national organisations that represent patients, like Arthritis Action, in the assessment of technologies.
Moreover, during the year, we were approached by 5 university undergraduates and postgraduates and 4 other researchers including EULAR and RAND Europe, on themes including the risk of developing psoriatic arthritis, the relationship between social support and exercise management, and experiences following knee replacement surgery. We also supported the University of York to deliver focus groups to address the administrative burdens of living with arthritis.
## Reaching out to and making a difference for diverse communities affected by arthritis across the UK
We are pleased to have delivered self-management presentations to over 2,000 people, of which over a third represented ethnic minority groups and low-income communities. Our work on Equality, Diversity and Inclusion (EDI) has not stopped there. As a key strategic objective, we have focused our efforts to reach underserved communities through our resources and services, both digitally and in person.
The Charity also set up a Health Inequalities Working Group in 2021, which includes the Executive Management Team and key members of staff. The Working Group helps achieve the Charity’s aims of: understanding the needs of diverse communities affected by arthritis; building a diverse and inclusive culture within the organisation; challenging racism and discrimination in its work internally and externally; and continuing to learn, improve and implement best practices in equality and inclusion.
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Our Area Coordinators are actively networking with diverse communities through our self-management presentations, ensuring our resources reach those who need them most. Meanwhile, our Working Group continues to track key performance indicators to measure and enhance our impact. We remain dedicated to prioritising low-income and ethnically diverse areas, striving to make a greater difference. By working with our staff, Trustees, and partners, we are committed to expanding our reach and providing meaningful support to diverse communities living with arthritis across the UK.
## - Achieving long term financial sustainability
## _Financial Sustainability Working Group_
The Board of Trustees established a Financial Sustainability Working Group in January 2024, which aimed to reduce the Charity’s annual deficits by developing new and existing sources of income, and, where possible, containing or reducing costs. This work culminated in a 5-year Financial Sustainability Plan that looks at investing in fundraising areas, such as trusts and foundations, philanthropy and corporate partnerships, and reducing operational expenditure.
## _Fundraising_
Arthritis Action is committed to good fundraising practice and is registered with the Fundraising Regulator. We voluntarily subscribe to the Fundraising Regulator's Code of Fundraising Practice and have a Donations Acceptance Policy approved by the Board of Trustees, which can be viewed on our website. Our Fundraising Manager and Corporate Partnerships Manager adhere to all applicable laws and codes such as the Fundraising Regulator's Code of Fundraising Practice and data protection laws. Both staff members report directly to our Executive Management Team who, with regards to all members of the public, ensure that all fundraising activities do not result in unreasonable intrusions, unreasonably persistent approaches or any undue pressure being exerted. We do not use any external fundraising organisations or professional fundraisers and did not receive any complaints about fundraising activities carried out by Arthritis Action during 2023/24.
Our Fundraising Manager is focused on developing new fundraising activities to diversify our income streams, covering most areas of fundraising: individual giving, legacy fundraising, trust fundraising, and challenge events. Our Corporate Partnerships Manager is investing time in developing new corporate relationships and raising awareness of arthritis and its prevalence in the workplace.
Our largest income source continues to be legacies, making up 75% of our total income in 2023-2024; therefore, we are exploring new ways of leveraging this area of fundraising alongside other activities.
We were fortunate to receive funding from various corporates throughout 2024, including Amgen, for providing funding to help us develop more content for the Young Adult Hub; AbbVie, for funding our work with healthcare professionals and sponsoring one of our webinars, and UCB, for sponsoring one of our webinars and providing generous funding to help us advance our work with healthcare professionals.
We are also grateful to all our Members, donors, legators, and supporters for their dedication to making a difference to the lives of people affected by arthritis. We would also like to thank our fundraisers who took part in a variety of events, including the Edinburgh & Bournemouth Marathons, the Snowdon at sunrise challenge, a year-long series of 5k runs and to the Ladies of New Forest Golf Club for their year-long support.
## _Operational Savings_
As a result of a break clause new premises have been secured from April 2025 which will significantly reduce our fixed costs going forwards without negatively impacting our ability to achieve our aims.
## _Volunteers_
The Trustees volunteer their time and individual expertise freely to the governance and management of the Charity. The Charity also benefits from the help of a small number of volunteers. We benefitted from the valuable skills of our volunteers who made calls to Members through the Arthritis Action Connect service, especially during the Covid-19 pandemic. We also have a pool of expert patient volunteers who are interested in getting involved in research projects in their areas of expertise.
Arthritis Action maintains an Employer Supported Volunteering scheme designed to encourage staff to engage with a wide range of community activities, from local groups and charities to schools, supporting causes they care about. Our policy is dedicated to ensuring our team can contribute meaningfully both within and beyond our Charity.
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## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2024**
## **Financial Review**
Arthritis Action's financial performance is set out on page 16 and the key accounting policies remain unchanged.
Income for the year ended 31 October 2024 was £1,261,062 (2023: £602,004), an increase of £659,058. Expenditure amounted to £1,190,892 (2023: £1,221,356), a decrease of £30,464. Expenditure on research and grants decreased almost 90% in the year, reducing from £161,384 to £20,607 as a result of the end of the Leisure Centre grant as discussed above. Offsetting this reduction, expenditure on fundraising has more than doubled from £151,900 to £322,377. This is because of both the first-time allocation of IT and premises costs against fundraising and the Charity focusing on diversifying income streams as part of our sustainable growth strategy. It is anticipated that this will lead to more predictable income levels in future.
The significant increase in income is as a result of legacies which amounted to £917,408 (2023: £277,821), an increase of £639,587. Legacies remain the Charity's single most important source of income, but their very nature means their timing is unpredictable. As the Charity receives a relatively small number of individual bequests, volume fluctuations have a marked effect on the total value of legacy receipts from one year to the next. Over the last 10 years annual legacy receipts have averaged £445,000 (2023: £373,000). Income from Donations, including gift aid increased by £29,171 to £140,755 however our income from Grants awards decreased by £21,910 to £49,370. The decrease in grant awards was disappointing but reflects the current highly competitive nature surrounding grant funding requests. Income from investments also increased by £10,275 to £134,339.
Investments had a net unrealised gain of £416,177 (2023: £89,389 loss). This in-year growth, equating to 11.2% of invested capital, was significantly ahead of the objective to retain capital in real terms with inflation (CPI) at 3.2% for the year to 31 October 2024.
Overall the net surplus for the year ended 31 October 2024 was £486,347 (2023: £708,741, deficit). This resulted in Arthritis Action's total funds increasing to £4,533,906 (2023: £4,047,559) of which £141,638 is restricted (2023: £70,981). This outcome significantly exceeded the Charity’s 2024 deficit budget as a result of an exceptional year for legacy income.
## Reserves Policy
Arthritis Action aims to utilise its reserves to help people live active lives, free from the effects of arthritis and raise awareness of the impact of arthritis both now and in the long term. The Trustees' underlying policy is, therefore, to closely monitor the reserves position to ensure that the level of cash reserves is appropriate to the operating costs and other commitments of the Charity, and to maintain an adequate level of reserves to provide security, covering the inherent volatility and uncertainty surrounding legacy income, upon which the Charity is highly dependent. This includes maintaining a level of reserves to provide income to support a proportion of expenditure, as a secure source of income this helps enable the charity to maximise efforts on charitable activities. It also allows that income raised through other methods can be focussed on charitable activities. The Trustees will continue to review this policy to ensure that it reflects the Charity's circumstances, external climate, and future plans.
As we provide services that span several months in their delivery, the Trustees believe it is crucial to maintain a minimum level of free reserves. These reserves are intended to cover orderly wind-up costs and at least six months of operating costs if required. This approach ensures the continuity of our services, safeguards our ability to fulfil partnership commitments, and mitigates the risks associated with fluctuating income streams.
## _Designated Funds_
Designated funds have been created to ensure that the charity complies with the Charities’ Statement of Recommended Practice (SORP) and best practice, and will continue as a going concern in perpetuity, as long as those living with arthritis need our support. These designated funds are set aside by the Trustees for specific purposes.
- Our Young Adult Fund, which enables us to support more young adults living with arthritis, which is expected to cost £90,000 over the next three years.
- The funding of our Health Inequalities Greater Impact programme to reach more people in low-income communities in areas of unmet needs through expansion of our regional outreach, which is expected to cost £250,000 over the next three years.
- The funding for our five-year Sustainable Growth Plan as approved by the Board through investment into broadening our income streams and our underlying IT infrastructure to build organisational resilience, which is expected to cost £550,000 over the next five years.
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- An amount of £1m made available to support collaborative projects and initiatives that align with our strategic objectives.
The amounts allocated to the designated funds may be adjusted in response to changing priorities or circumstances and remain at the discretion of the Board of Trustees.
## Investment Policy
At 31st October 2024 the Charity had approximately £4.2m of reserves for investment. A portion of these (£3.4m at 31.10.24) is held in long-term reserves, with the remainder as shorter-term cash reserves. Where long-term reserves need to be drawn down to support regular operational costs, including designated funds, this can be done in 2-3 weeks. When making investment decisions and placing deposits, careful consideration is given to credit, liquidity and cash flow risk and the Charity seeks to obtain the best financial return within an acceptable level of risk throughout the year. The investment objective for our long-term reserves was to preserve capital in real terms whilst producing a reasonable income, with an intermediate attitude to risk. Schroders, our financial advisors, have discretion to manage our investment within this framework. The Charity also required during the year that our financial advisors, as part of their investment research and analysis process, to take account of social, environmental, ethical and governance considerations in the selection, retention and realisation of investments.
In May 2025 the Trustees agreed to move to Schroder’s Multi-Asset Sustainable Fund so that no income would be incurred from companies causing a negative social, environmental or ethical impact and actively invests in positiveimpact organisations. It was felt that this brought the investment policy more into line with other Arthritis Action policies. The investment objective for this new fund is for long-term reserves to preserve capital in real terms whilst producing a reasonable distribution, with a medium to high attitude to risk. The long-term reserves invest sustainably, excluding some sectors. There is also a separate short term reserve account which only holds cash, or close to cash, and has a low attitude to risk.
## Risk Management
The Trustees have a duty to identify and review the risks to which Arthritis Action is exposed and to ensure appropriate controls are in place to provide effective corporate governance and reasonable assurance against fraud and error. The Trustees maintain and regularly review a risk register which has identified that the principal risks are: -
- Loss of Funds: the majority of Arthritis Action's funds are managed by an accredited UK charity fund manager, and other funds are held with suitable first tier banks on a short-term basis. As a result, there is little risk in the short or medium term.
- Loss of Income: the Charity is dependent on income from legacies, donations, and membership fees, and remains actively engaged in fundraising activities in order to ensure the continuing flow of income from these sources. As discussed within this report efforts are being made to broaden the income sources to further reduce this risk.
- Loss of Reputation: the Charity takes great care to preserve the professionalism of the services it provides to its Members and others who seek help with their arthritis condition. It also actively monitors its interaction and relationships with 3rd parties and other stakeholders to ensure that high standards are maintained.
Other identified risks include cash flow management, health & safety of staff and Members, maintaining the IT infrastructure, and staff retention/development.
The Trustees are satisfied that appropriate internal control systems and risk management processes are in place to help to identify, evaluate and manage these risks. The Executive Management Team reviews key strategic and operational risks on a regular basis, and considers new and emerging risks.
## **Plans for the Future**
Our future plans, in relation to our strategic priorities, are:
- To empower people living with arthritis to better self manage their condition
We will continue to support people living with arthritis through our integrated self-management approach, ensuring that our services remain relevant and meet the evolving needs of our Members and service users. Our support will include the ongoing delivery of our Personalised Member Pathway service, nutrition and weight management consultations, self-management events, and Arthritis Action Groups. We will also continue to offer our online exercise classes and resources, subsidised clinical appointments, and a wealth of information through our podcast, webinars, and website resources, in order to provide practical, accessible, and impactful support for the people we serve.
In November 2024, we introduced Movement Snacks, a new service developed to support people with arthritis through a structured series of guided exercises. Delivered by email over five weeks, the resource focuses on key
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areas such as balance, core strength, upper body, and lower body exercises. The series is available in three progressive levels, with Level One launched in November, generating over 130 sign-ups from both our Members and the public. Levels Two and Three are scheduled for release in April 2025 at the British Society for Rheumatology Conference to further expand the programme’s reach and impact.
## To reach more young adults across the UK and support more people in work of all ages
To maximise our impact and engagement with young adults, we will continue to invest in our digital platforms. This includes enhancing our website, social media channels, and the Young Adult Hub, as well as maintaining our webinars, podcast, and distributing our self-management leaflets, all of which have demonstrated strong engagement.
Following a review of our young adult activities, the Executive Management Team made the decision to discontinue our Young Adult Groups and events due to consistently low levels of engagement and limited uptake. Feedback gathered from participants indicated that young adults prefer to access information that they can refer to and utilise at their convenience, rather than attending scheduled events. Therefore, we will focus on providing accessible, on-demand, evidence-based resources that better align with their needs
## To have a self-management approach that attracts referrals from healthcare professionals
We will continue to engage with healthcare professionals, to ensure that we offer the most relevant and up-to-date information and guidance on self-management for arthritis.
In November 2024 we commenced working with the strategic communications consultancy, Blue Lozenge, to address the communication needs of secondary healthcare professionals working with people who have inflammatory arthritis. This project has been kindly funded by UCB, enabling us to better understand the information needs and gaps for health professionals working in secondary care, to support them in signposting patients who live with arthritis. It will allow us to review the communication pathway for when an individual is diagnosed with arthritis and how they interact with healthcare professionals, in turn helping to improve the patient experience. UCB has had no influence over content or scope.
At the conclusion of this project, we will contact our extensive list of healthcare professionals, kindly compiled by volunteers, to disseminate key information about the Charity and arthritis. The resources and information we will provide will incorporate the key insights and recommendations from the project delivery report, to ensure our information makes a meaningful impact on care and support for those living with arthritis.
Our commitment to this strategic objective also includes the ongoing delivery of our presentations and training sessions, in line with our key performance indicators. Examples of upcoming talks to healthcare professionals include Physician Associates, healthcare students and Talking Therapies Teams.
## To raise awareness of the Charity and that of arthritis and MSK conditions
We will continue to enhance the Charity’s profile and raise awareness of arthritis and its impact on individuals and their communities at a national and regional level.
Through our close collaborations with ARMA and National Voices, we will advocate for people living with MSK conditions, working to influence policy on equitable access to healthcare, early diagnosis and prevention, surgical waiting times, mental health impact, and workforce challenges. Additionally, we will promote the importance of supported self-management, empowering those affected by arthritis to take an active role in their health and wellbeing.
In 2025, while we will maintain a presence on X, however our primary efforts in networking and audience engagement will focus on Bluesky, Meta (Facebook and Instagram), YouTube, Health Unlocked, and LinkedIn. This strategic shift aligns with the evolving digital landscape and the approach taken by peer organisations. We will also remain dedicated to strengthening our media presence at local, regional, and national levels to amplify awareness of arthritis and its impact on those with lived experience. By actively engaging with the media, we will ensure that the voices of those affected are heard, driving greater understanding and support for meaningful change and a better quality of life.
## To actively reach out to and make a difference for diverse communities affected by arthritis across the UK.
Our EDI strategy is driven by our ongoing commitment to creating meaningful change, both within our organisation and in the communities we serve.
Internally, we will:
- create an environment where all individuals feel valued and supported to contribute to our mission. continue to integrate equality, diversity, and inclusion into our governance structures and leadership practices, ensuring that inclusion is a fundamental consideration in all decision-making processes. By doing so, we will
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## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2024**
- strengthen our accountability and create a more representative organisation that reflects the communities we serve.
- continue to learn, improve and implement best practice in equality, diversity and inclusion. This will include engaging with expert guidance, listening to the voices of underrepresented groups, and evaluating our policies and practices to ensure they remain relevant and impactful.
Externally, we will:
- work closely across our organisation and in partnership with other charities, community groups, and stakeholders to identify areas of greatest need. Through these collaborations, we aim to develop services and initiatives that make a meaningful difference in improving the lives of people affected by arthritis and MSK conditions.
- disseminate self-management information and organise events in areas of unmet need, both online and offline.
- - deepen our understanding of the needs of diverse communities to further advance our work and increase our impact.
In January 2025 we appointed a new Area Coordinator in the Midlands who will be responsible for raising awareness of the Charity in the Midlands and making new contacts to promote our services. They will be delivering presentations and supporting our Groups and events. They are also working with a volunteer who will be supporting presentation delivery to Tamil communities in the region. Our aim for the year is for 25% of presentations to be dedicated to diverse communities. We have already exceeded this target in Q1 of 2025, achieving 33%.
## - To achieve long term financial sustainability.
Arthritis Action’s intention is to continue operating indefinitely, as we believe it is essential that we can fulfil our mission of supporting as many people with arthritis as possible over the longer term. Financial sustainability is an ongoing effort that requires effective financial management, continuous fundraising, and adapting to changing circumstances. As a result, consideration is always given to the long-term financial implications of our decisions and actions.
The Trustees’ aim is to reach a break-even position by 2029, anticipated to leave the Charity with sufficient resources to provide security and income for future years. As mentioned above, a new corporate fundraiser has been recruited and we are working with a philanthropy consultant which we anticipate will lead to increased income and reduced reliance upon legacies. The Trustees have also tasked the Executive Management Team to undertake a workforce planning exercise to consider further changes in structure to allow the Charity to keep meeting its aims in a sustainable way.
Throughout 2025, the Executive Management Team will commence a review of our IT systems and database to meet the evolving needs of our supporters, including Members, donors and prospects. This will not only facilitate the development of our fundraising and membership functions but also improve our ability to turn in-memory donors into legacy prospects, corporate donors into major donors, and one-off donors to repeat community fundraisers. The Sustainable Growth Plan will fundamentally improve efficiencies across the fundraising team whilst helping us to grow our income potential from legacies, corporate fundraising, community fundraising, and major donor fundraising. We aim to increase our efficiency and ability to reach more people and develop long-term relationships, by automating processes that are available with improved technology. The Sustainable Growth Plan also includes investment into our website and ongoing monitoring of developments in technology that would be beneficial to the Charity.
This Plan is likely to incur some short terms costs for longer term improvements, and therefore, designated funds have been set aside for this work.
## **Structure, Governance & Management**
## Trustees
The Trustees who served on the Board of Trustees during the year are shown on page 1. The Trustees did not receive any remuneration in their capacity as Trustees during the year ended 31 October 2024; (2023 £nil ) however, they have the option of being reimbursed for costs incurred in attending meetings on behalf of Arthritis Action.
## Governance and Management
Members of the Board of Trustees are responsible, on behalf of the Members and people living with arthritis, for the good governance of the Charity. Board Members set and review the Charity's strategic objectives on a regular basis and establish policy for staff to implement in a manner that is in keeping with Arthritis Action's objectives.
Page 10
**ARTHRITIS ACTION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2024**
The Articles of Association permit the appointment of up to 15 trustees, one of whom should be the Chair of the Board of Trustees. The Chair is elected by the Trustees for a period of three years and can be re-elected by mutual consent. All Trustees are elected by Members at the Charity's Annual General Meeting and are appointed for a period of three years. In accordance with the Articles of Association, new trustees can be appointed by the existing trustees during the year, but must then stand for election by the Members at the next Annual General Meeting. Trustees can put themselves forward for re-election at the end of each three-year period.
On appointment to the Board of Trustees, each trustee completes a "Register of Interests" and receives an appropriate induction. Further training needs are met, both individually and collectively, through regular Board training sessions and by trustees attending training days conducted by external training providers when appropriate.
The Board of Trustees is committed to continually improving its governance of the Charity and meets as a whole on a minimum of four occasions each calendar year. For efficient operational purposes, the Board of Trustees is divided into two working Committees - the Finance & Risk Committee and the Remuneration & Nominations Committee. The Board also established a Financial Sustainability Working Group in 2024.
The Finance & Risk Committee ("FRC") oversees and briefs the Board of Trustees on all aspects of financial, budgetary and risk management.
The FRC ensures that effective systems of accounting and internal control are established and maintained, and that the Board of Trustees is aware of any matters that might have a significant impact on the financial condition or affairs of the Charity.
The Remuneration & Nominations Committee ("RNC") oversees and briefs the Board of Trustees on all aspects of Human Resources. It is also required to advise and make recommendations to the Board of Trustees with regard to appointments to the Board, its Committees and Working Groups, and to ensure that the skills and experience required for these roles are identified.
The RNC regularly appraises the employee remuneration structure and makes recommendations to the Board regarding salary reviews and any other proposals which affect pay, benefits and conditions. The RNC also leads on appraising the Chief Executive's performance and salary. Any changes in organisation structure are proposed by the Chief Executive to the RNC before being submitted to the Board of Trustees for approval.
During the year the Trustees temporarily created the Financial Sustainability Working Group to review Arthritis Action’s long-term vision and strategic roadmap, and to help it develop diverse and reliable income sources to reduce dependency on legacy income in the long run. The Working Group also identified strategies to reduce operating deficits and identify cost savings where possible. The Working Group merged with the FRC in September 2024.
The Trustees have delegated the day-to-day management of the charity to the Executive Management Team (EMT). The EMT was led by Shantel Irwin, CEO of Arthritis Action, until she went on Maternity leave in December 2023 at which point the Board appointed Noha Al Afifi, Director of Fundraising and Communications, as Interim CEO for the year. Shantel Irwin returned in December 2024.
## Trustee Changes
This year brought positive developments to our Trustee Board, including the welcome addition of two skilled trustees - Caroline Langley and Susan Powell - whose skills, insights, and passion for our cause are already making a meaningful impact.
We extend our heartfelt thanks to Dan Torjussen-Proctor, who stepped down as Chair on 10[th] February 2025. Since joining the Board in June 2014, Dan has generously contributed his time, wisdom, and leadership, and we are deeply grateful for his many years of service. Tom McLaughlan, who joined the Board of Trustees in February 2022, was appointed by the Board to succeed Dan on 10[th] February 2025. Tom stepped down from the Board for personal reasons on 13[th] May 2025, and we sincerely thank him for his leadership and valuable contributions to Arthritis Action during his tenure.
Other trustees to step down (as noted on page 1) included long standing trustees such as Robin Nye, who had served as a trustee for 12 years, including 11 as Chair. We thank them all for their dedication and commitment to the Charity and to those we serve.
We are always looking to recruit Trustees with a suitable skill set in order to maintain an efficient, effective and diverse Board of Trustees. Please contact Shantel Irwin, our CEO, if you are interested in finding out more.
Page 11
ARThRms ACTION
REPORT
THE TRUSfEES
R THE YEAR ENOED 31
BE
024
sTATEmEP OF TRUSTEES, RESPONSIBILMES
The Trustees (who are also the dlrector5 of Arthrltis Action for the purposes of Company lawl are responslble for
preparing the Report of the Trustees and the financial statements In accordance with applicable law and United
Kingdom Accountln£ Standards Iunlted Kingdom GenerallyAccepted Accountlng Practlcel, Includlng Financlal Reporting
Standard 102'Yhe Financial Reporting Standard applleable in the UK and Republic of Ireland..
Cornpany law requires the Trustees to prepare financial statements for each financial year which give a true and fair
vlew of the state of affairs of the charltable company and of the Incorning resource5 ond appllcatlon of resources,
ncludlng the Income and expenditure, of the tharitsble company for that period. In preparing those th'nantlal
ststements, the Trustees are requlred io
select sultable accounting policies and then appty them con45tently:
observe the methods and prSnclples in the Charity SORP,.
make judgements and estimates that are reasonable and prudent..
prepare the financSal st31ements on the going concèrn basis unless it is Inapproprlate to presume that the
charitable company wlll contlnue In buslness.
The Trustee5 are responslble for keeping proper accountlng records whlch dlsd05e wlth reasonable at¢uracy at any
tlmethe f
Inanclal posltlon of the tharrtable companyand to enablethem to ensurethatthe flnanclal statements Compty
wlth the Companies Act 2C(J6. They ale alsg responslblè for 5afe8uardln8 the assets of the charitable company and
hen for taklng reasonable steps for the preventlon and detecuon of fraud and other Irre8ulart¢le5.
In so far a5 the TrustÈe5 are aware..
therè is no relevant audit informatlon of whlch the Charable company's audltors are unaware.. and
the Trustees have taken all Steps that they ought to have taken to make themselves awaTe of any relevant audlt
Informatlon and to e5tabllsh that the audltors are aw•e of that Infom*ion.
AUOITORS
The Audltors, LMDB Accountants, wlll be proposed for re••ppolntment at the forthcomlng Annual General Meetlng.
Report of the Tru
dlrertor5, on.....
es Incorporatin
strategic reporL approved by order of the Board of Trustees, as the company
- and $18ned on the Board's behabv.
Sarah Anne Vlckerstaff, Interlm Ch3lr
PaBe 12
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ARTHRITIS ACTION**
## **Opinion**
We have audited the financial statements of Arthritis Action (the 'charitable company') for the year ended 31 October 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
- In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 October 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 Auditors' responsibilities for the audit of the 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 basis for our opinion.
## **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 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 Report of the Independent Auditors thereon.
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 this gives rise to a material misstatement in the financial statements themselves. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 13
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ARTHRITIS ACTION**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
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:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' 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 Statement of Trustees' Responsibilities, 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.
## **Our 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 a Report of the Independent Auditors 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.
- The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Enquiry of management and those charged with governance on the actual and potential litigation and claims, and also any instances of non-compliance with laws and regulations.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- Professional scepticism in the course of the audit and with audit sampling in material audit areas.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 14
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ARTHRITIS ACTION**
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **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 charitable company's Members those matters we are required to state to them in an auditors' 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 and the charitable company's Members as a body, for our audit work, for this report, or for the opinions we have formed.
Samuel David Jaquet FCCA (Senior Statutory Auditor) for and on behalf of LMDB Limited t/a LMDB Accountants Statutory Auditors Railview Lofts 19c Commercial Road Eastbourne East Sussex BN21 3XE
Date: 15 July 2025
Page 15
## **ARTHRITIS ACTION**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OCTOBER 2024**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
4
**Charitable activities**
5
Research and other grants
Membership subscriptions
Income from investments
6
**Total**
**EXPENDITURE ON**
Raising funds
7
**Charitable activities**
8
Research and development
Self-management health programme
Raising awareness of Arthritis
**Total**
Net gains/(losses) on investments
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
960,719
5,000
19,190
134,339
1,119,248
322,377
20,607
579,111
197,640
1,119,735
416,177
415,690
3,976,578
4,392,268|Restricted
funds
£
97,444
44,370
-
-
141,814
-
-
69,157
2,000
71,157
-
70,657
70,981
141,638|2024
Total
funds
£
1,058,163
49,370
19,190
134,339
1,261,062
322,377
20,607
648,268
199,640
1,190,892
416,177
486,347
4,047,559
4,533,906|2023
Total
funds
£
389,405
71,280
17,255
124,064
602,004
151,900
161,384
908,072
-
1,221,356
(89,389)
(708,741)
4,756,300
4,047,559|
|---|---|---|---|---|
The notes form part of these financial statements
Page 16
ARTHRITIS AclloN
STATEMENT OF FINANCIAL P05rtlON
I OCTOBER 2024
2024
Total
fvnds
2023
Totsl
funds
Unrestricted
funds
Restricted
funds
Notes
FixeD AsseTS
Tanglble assets
Inveslments
14
15
4.840
3,377,713
17,350
3,629.629
3.377.713
3.382,553
3,382.553
3,646,979
CURRENT ASSETS
Debtors
Cash at bank and In hand
16
164,289
944.135
164,289
1,085,773
99,341
450,623
141.638
1,108.424
141.638
1.250.062
549,964
CREDITORS
Amounts falllng due wlthln onè year
17
197.0321
197,0321
1147,6341
NET CURREHf ASSErs
1,011,392
141,638
1,153.030
402,330
TOTAL ASSEfs LESS CURRENT UABIUTIES
4,393.945
141,638
4,535,583
4,049,309
PROVISIONS FOR LIABILrnES
19
11.677)
11,6771
11,7501
NET ASSETS
4,392.268
141.638
4.533.906
4,047,559
FUNDS
Unrestricted funds:
General fund
General fund- deslgnated reserves
Revaluatlon reserve
20
1,849,512
1,890.OC
652,756
3,572,368
58,952
345,258
4,392,268
141.638
3.976,578
70,981
Restrlcted funds
TOTAL FUNDS
4,533.9C
4,047.559
The fina
cl I stateme
werè approved by the Board of Trustees and authorlsed for s5sue on
and were slgned on fjts behalf by..
Sarah Vltkerstaff - Intèrlm Chalr
Rlcardo Borg
Trustee
The notes form part of these financial statements
Page 17
**ARTHRITIS ACTION**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2024**
|Notes
**Cash flows from operating activities**
Cash generated from operations
A
Provisions for liabilities
**Net cash used in operating activities**
**Cash flows from investing activities**
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Dividends received
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning**
**of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**
**Cash and cash equivalent comprises the following:-**B
Fixed asset investments – other deposits
Cash at bank and in hand|2024
£
(163,223)
(73)
(163,296)
(3,987)
(677,245)
1,327,807
10,832
123,507
780,914
617,618
479,040
1,096,658
10,885
1,085,773
1,096,658|2023
£
(670,726)
400
(670,326)
(3,014)
(848,696)
847,698
6,449
117,615
120,052
(550,274)
1,029,314
479,040
28,417
450,623|
|---|---|---|
|||479,040|
The notes form part of these financial statements
Page 18
**ARTHRITIS ACTION**
## **NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2024**
|**A.**|**RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW**|**FROM OPERATING ACTIVITIES**|**FROM OPERATING ACTIVITIES**|
|---|---|---|---|
|||2024|2023|
|||£|£|
||**Net (expenditure)/income for the reporting period (as per the**|||
||**Statement of Financial Activities)**|486,347|(708,741)|
||**Adjustments for:**|||
||Depreciation & impairment charges|16,497|7,216|
||Losses/(gain) on investments|(416,177)|89,388|
||Interest received|(10,832)|(6,449)|
||Dividends received|(123,507)|(117,615)|
||Decrease/(increase) in debtors|(64,949)|12,754|
||Increase/(decrease) in creditors|(50,602)|52,721|
||**Net cash used in operations**|(163,223)|(670,726)|
|**B.**|**ANALYSIS OF CHANGES IN NET FUNDS**|||
||At 1.11.23|Cash flow|At 31.10.24|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank and in hand|479,040|617,618|1,096,658|
The notes form part of these financial statements
Page 19
**ARTHRITIS ACTION**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024**
## **1. STATUTORY INFORMATION**
Arthritis Action is a Charity registered in England and Wales. The Charity's registered number and registered office address can be found within the trustee report.
The financial statements are presented in £ Sterling.
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
## **Going concern**
There are no material uncertainties that cast doubt on the charity's ability to continue as a going concern.
## **Income**
All income is recognised in the Statement of Financial Activities once the Charity has entitlement to the funds and it is probable that the income will be received, except where it cannot be measured with sufficient certainty.
Donations, legacies and other forms of voluntary income are recognised as incoming resources when receivable, except in so far as they cannot be measured with sufficient certainty. Tangible fixed assets donated or left in legacies are recognised at market value at the time title passes to the Charity.
Subscriptions received and Interest receivable is calculated on an accruals basis.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.
## **Allocation and apportionment of costs**
The Charity's operating costs include staff costs, premises and other related costs. Such costs are allocated between different expenditure categories including fundraising, management and administration. Where costs cannot be directly attributable to direct charitable expenditure or other expenditure, they have been apportioned based on an estimate of time spent in each of these categories.
The cost of generating funds is the direct cost spent on fundraising activity. A proportion of central support cost is allocated to the cost of generating funds.
continued...
Page 20
**ARTHRITIS ACTION**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **2. ACCOUNTING POLICIES - continued**
## **Allocation and apportionment of costs**
Governance costs are the costs associated with governance of the Charity which relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity.
Support costs, which comprise central office functions such as general management, administration, budgeting and accounting, information technology and human resources are allocated across the cost of generating funds, grant making and charitable activities costs.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 20% on cost Fixtures and fittings - 20% on cost Computer hardware - 50% on cost Computer software - 20% on cost
Tangible fixed assets are included at historical cost and assets are capitalised on a historical cost basis of value. Items costing less than £500 are generally not capitalised.
Bequeathed and donated assets are recognised at market value at the time title passes to the Charity. Gains or losses are recognised on disposal.
The Charity holds title to financial assets subject to life tenancy interests held by third parties. Therefore no values for these assets are shown on the balance sheet.
At each balance sheet date, the company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash generating unit which the asset belongs.
Impairment losses are recognised in the year of impairment.
## **Taxation**
The Charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
General funds are unrestricted funds which can be used at the discretion of the trustees in furtherance of the general objectives of the charity and have not been designated for other purposes.
Restricted funds are funds which have to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.
continued...
Page 21
**ARTHRITIS ACTION**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **2. ACCOUNTING POLICIES - continued**
## **Pension costs and other post-retirement benefits**
The Charity operates a defined contribution pension scheme. Contributions payable to the Charity pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Pension costs are allocated to activities on the same basis as set out in the allocation and apportionment of costs policy stated above.
## **Investments**
Investments are initially recorded at cost and thereafter restated to market value as at the relevant reporting date. The aggregate value of these investments may fluctuate significantly in line with prevailing market conditions.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value.
## **Provisions**
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated.
## **Financial instruments**
The Charity recognises a financial asset or liability when it becomes party to the contractual provisions of the instrument. It initially measures the financial instrument at fair value.
## **Subsidiary Undertakings**
Arthritis Action has two subsidiary companies, The Arthritis Association and The Arthritic Association. These subsidiaries have no assets or liabilities and are both dormant. As a result, the Charity is exempt from preparing group accounts under the Companies Act 2006 and under FRS 102.
## **3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates are underlying assumptions and are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Following a review of the financial statements it is deemed there are no areas of estimation uncertainty.
continued...
Page 22
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **4. DONATIONS AND LEGACIES**
|2024
£
Donations
124,331
Gift aid
16,424
Legacies
917,408
1,058,163|2023
£
98,497
13,087
277,821|
|---|---|
||389,405|
## **Contingent Legacy assets**
The Charity has received notification of 22 (2023: 28) legacies which are regarded as contingent assets and for which income is expected to be received in future years but which had not met the income recognition criteria as at 31 October 2024. The actual timing of receipt and amounts to be received are unknown. The Charity maintains a record of expected legacies receivable based on the most recent correspondence received in relation to the estate. The value of legacies receivable has been estimated at £428,000 (2023: £546,000).
## **5. INCOME FROM CHARITABLE ACTIVITIES**
|**INCOME FROM CHARITABLE ACTIVITIES**|||
|---|---|---|
|Research and other grants
Membership subscriptions|2024
£
49,370
19,190
68,560|2023
£
71,280
17,255|
|||88,535|
Grants received, included in the above, are as follows:
|Abbvie
Amgen
Leisure Centre Project Arthritis Action
Cambridge Community project
UCB Biopharma
J Ainslie Trust
**6.**
**INCOME FROM INVESTMENTS**
Income from listed investments
Interest receivable|2024
£
5,000
3,200
34,170
-
2,000
5,000
49,370
2024
£
123,507
10,832
134,339|2023
£
-
-
67,970
3,310
-
-
71,280
2023
£
117,615
6,449
124,064|
|---|---|---|
continued...
Page 23
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **7. RAISING FUNDS**
## **Raising donations and legacies**
|**Raising donations and legacies**|||
|---|---|---|
|Cost of generating donations and legacies
Investment management costs
Support costs|2024
£
146,915
18,093
157,369
322,377|2023
£
17,257
19,312
115,331|
|||151,900|
## **8. CHARITABLE ACTIVITIES COSTS**
|Direct
Costs
£
Research and development
12,260
Self-management health programme
358,050
Raising awareness of Arthritis
103,659
473,969
**GRANTS PAYABLE**
Net subsidies paid to assist with physical therapy|Grant
funding of
activities
(see note
9)
£
-
5,057
-
5,057|Support
costs (see
note 10)
£
8,347
285,161
95,981
389,489
2024
£
5,057|Totals
£
20,607
648,268
199,640|
|---|---|---|---|
||||868,515|
||||2023
£
5,650|
## **9. GRANTS PAYABLE**
During the year ended 31 October 2024 subsidies paid to Members in respect of physical therapy consultations amounted to £5,130 (2023 £5,250) and the provision to cover unclaimed subsidies was decreased from £1,750 to £1,677.
continued...
Page 24
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **10. SUPPORT COSTS**
|Information
Management
technology
£
£
Raising donations and
legacies
79,083
6,913
Research and development
4,194
368
Self-management health
programme
Raising awareness of
Arthritis
143,302
48,233
12,527
4,217
274,812
24,025|Governance
Premises
costs
£
£
48,530
22,843
2,574
1,211
87,939
29,599
41,393
13,932
168,642
79,379|Totals
£
157,369
8,347
285,161
95,981|
|---|---|---|
|||546,858|
Support costs, included in the above, comprise the following in note 11:
## **11. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||2024|2023|
|---|---|---|
||£|£|
|Auditors' remuneration|6,616|6,006|
|Depreciation - owned assets|5,762|7,216|
|Impairment – owned asset|10,735|-|
## **12. TRUSTEES' REMUNERATION AND BENEFITS**
None of the Trustees received remuneration or received any other benefits in respect of the performance of their duties as a Trustee for either year ended 31 October 2024 or for the year ended 31 October 2023.
## **Trustees' expenses**
|**Trustees' expenses**|||
|---|---|---|
||2024|2023|
||£|£|
|Trustees' expenses|329|827|
During the year, three (2023: four) Trustees were reimbursed for travel and subsistence expenses which were incurred wholly, exclusively and necessarily in the performance of their duties as a Trustee.
continued...
Page 25
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **13. STAFF COSTS**
|**STAFF COSTS**||||
|---|---|---|---|
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Executive staff
Support staff|2024
£
701,984
59,751
59,753
821,488
2024
3
13
16|2023
£
731,659
71,595
52,635||
||||855,889|
||||2023
3
15
18|
One employee was paid emoluments, including benefits in kind, of between £80,000 and £90,000 (2023 - One employee within the range £90,000 - £100,000 and two between £60,000 and £70,000).
This employee also participated in the defined contribution pension scheme and the employer's contributions for the year total £6,375 (2023: £4,888).
Included in defined contribution pension costs is an accrual for unpaid pensions of £5,735 (2023: £5,659). Pension costs are allocated between activities within the statement of Financial Activity based on staff hours dedicated to the relevant activity.
The only employee who is regarded as key management is the Chief Executive Officer for the purpose of FRS102. Whilst the Chief Executive Officer was on maternity leave, an existing employee has filled the role. The total remuneration paid to this employee and associated employer costs during the year was £101,850 (2023: £112,124 paid to the Chief Executive Officer).
During the year an ex gratia payment was made to an outgoing member of staff for £15,494 in relation to a settlement.
continued...
Page 26
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **14. TANGIBLE FIXED ASSETS**
|**COST**
At 1 November 2023
111,278
68,646
Additions
-
853
Disposals
-
-
At 31 October 2024
111,278
69,499
**DEPRECIATION**
At 1 November 2023
101,881
60,998
Charge for year
2,399
2,667
Impairment
5,799
4,936
At 31 October 2024
110,079
68,601
**NET BOOK VALUE**
At 31 October 2024
1,199
898
At 31 October 2023
9,397
7,648
Short
leasehold
Fixtures and
fittings
£
£|31,561
1,008
3,134
-
-
-
34,695
1,008
31,285
979
667
29
-
-
31,952
1,008
2,743
-
276
29
Computer
hardware
Computer
software
£
£
||212,493
3,987
-
Totals
£|
|---|---|---|---|
||||216,480
195,143
5,762
10,735
211,640
4,840
17,350|
|||||
|||||
## Impairment
The Charity exercised a break clause on a leased property at the end of the third year into a five year agreement, with the lease on the premises coming to an end in April 2025. Assets previously capitalised in relation to short leasehold and Fixtures and Fittings within the premises have been impaired to its deemed value in use.
continued...
Page 27
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **15. FIXED ASSET INVESTMENTS**
|**FIXED ASSET INVESTMENTS**|||
|---|---|---|
|Listed investments
Investment property|2024
£
3,343,963
33,750
3,377,713|2023
£
3,595,879
33,750|
|||3,629,629|
Additional information as follows:
|**MARKET VALUE**
At 1 November 2023
Additions
Disposals
Revaluations
At 31 October 2024
**NET BOOK VALUE**
At 31 October 2024
At 31 October 2023|Listed
investments
£
3,567,462
677,245
(1,327,807)
416,177
3,333,077
3,333,077
3,567,462|Other
deposits
£
28,417
-
(17,532)
-
10,885
10,885
28,417|Totals
£
3,595,879
677,245
(1,345,339)
416,177|
|---|---|---|---|
||||3,343,962|
||||3,343,962|
||||3,595,879|
Cost or valuation at 31 October 2024 is represented by:
|Valuation in 2024
There were no investment assets outside the UK.|Listed
investments
£
3,333,077|Other
deposits
£
10,885|Totals
£
3,343,962|
|---|---|---|---|
|||||
Listed investments are accounted for at market value. The historical cost of listed investments and unit trusts is £2,680,321 (2023 - £3,222,203).
Investments (neither listed nor unlisted) were as follows:
||2024|2023|
|---|---|---|
||£|£|
|Investment property|33,750|33,750|
Investment property comprises land bequeathed to the Charity. The land was valued at market value in July 2009 when title passed to the Charity and the Trustees are satisfied that there has been no significant change in the fair value of the land since that date.
continued...
Page 28
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Legacies receivable
Rent deposits
Prepayments and accrued income
Other debtors|2024
£
76,938
24,150
46,742
16,459
164,289|2023
£
2,355
26,160
70,826
-|
|---|---|---|
|||99,341|
## **17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income|2024
2023
£
£
28,952
74,953
18,191
20,048
4,317
3,902
45,572
48,731
97,032
147,634|2023
£
74,953
20,048
3,902
48,731|
|---|---|---|
## **18. LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
|Within one year
Between one and five years|2024
£
60,956
-
60,956|2023
£
126,488
63,244|
|---|---|---|
|||189,732|
The Charity entered into a new five year operating lease agreement in respect of its London premises in April 2022. The lease contains a break clause at the end of the third year, which has been activated. The aggregate lease and service charge payment commitments until this date are £60,956 until the end of the break clause.
## **19. PROVISIONS FOR LIABILITIES**
|**PROVISIONS FOR LIABILITIES**|||
|---|---|---|
||2024|2023|
||£|£|
|Provisions|1,677|1,750|
All members are entitled to claim subsidies for physical therapy consultations. Everyone who was a member as at 31 October 2024 is entitled to claim for subsidies of up to £30 each for up to two physical therapy consultations until their next annual membership expiry date. The provision is an estimate, based on the latest uptake statistics, of the likely aggregate amount of subsidy claims that the Charity will be obliged to honour in respect of members as at 31 October 2024.
continued...
Page 29
## **ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **20. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
Revaluation reserve
Designated funds:
Young Adult Fund
Health Inequalities Greater Impact Programme
Sustainable Growth Fund
MSK Impact Fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|At
1.11.23
£
3,572,368
345,258
58,952
-
-
-
3,976,578
70,981
4,047,559|Net
movement
in funds
£
(1,722,856)
307,498
31,048
250,000
550,000
1,000,000
415,690
70,657
486,347|At
31.10.24
£
1,849,512
652,756
90,000
250,000
550,000
1,000,000|
|---|---|---|---|
||||4,392,268
141,638|
||||4,533,906|
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Revaluation reserve
Designated funds:
Young People Fund
Health Inequalities Greater
Impact Programme
Sustainable Growth Fund
MSK Impact Fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|Incoming
resources
£
1,119,248
-
-
-
-
-
1,119,248
141,814
1,261,062|Resources
expended
£
(1,086,957)
-
(32,778)
-
-
-
(1,119,735)
(71,157)
(1,190,892)|Gains and
losses
£
108,679
307,498
-
-
-
-
416,177
-
416,177|Transfers
between
reserves
£
(1,863,826)
-
63,826
250,000
550,000
1,000,000
-
-
-|Movement
in funds
£
(1,722,856)
307,498
31,048
250,000
550,000
1,000,000|
|---|---|---|---|---|---|
||||||415,690
70,657|
||||||486,347|
During the year realised investment gains amounted to £108,679 (2023: £19,061).
continued...
Page 30
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **20. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Revaluation reserve
Designated funds:
Young Adult Fund
**Restricted funds**
Restricted
**TOTAL FUNDS**
Comparative net movement in funds, included in the above are|At
1.11.22
£
4,131,709
453,707
79,946
4,665,362
90,938
4,756,300
as follows:|Net
movement
in funds
£
(559,341)
(108,449)
(20,994)
(688,784)
(19,957)
(708,741)|At
31.10.23
£
3,572,368
345,258
58,952
3,976,578
70,981
4,047,559|
|---|---|---|---|
|**Unrestricted funds**
General fund
Revaluation reserve
Designated funds:
Young Adult Fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|Incoming
resources
£
534,034
-
-
534,034
67,970
602,004|Resources
expended
£
(1,112,435)
-
(20,994)
(1,133,429)
(87,927)
(1,221,356)|Gains and
losses
£
19,060
(108,449)
-
(89,389)
-
(89,389)|Movement
in funds
£
(559,341)
(108,449)
(20,994)
(688,784)
(19,957)
(708,741)|
|---|---|---|---|---|
continued...
Page 31
**ARTHRITIS ACTION**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## **20. MOVEMENT IN FUNDS - continued**
The movement in funds for the 2 years between 1 November 2022 and 31 October 2024 is as follows:
|**Unrestricted funds**
General fund
Revaluation reserve
Designated funds:
Young Adult Fund
Health Inequalities Greater Impact Programme
Sustainable Growth Fund
MSK Impact Fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|At
1.11.22
£
4,131,709
453,707
79,946
-
-
-
4,665,362
90,938
4,756,300|Net
movement
in funds
£
(2,282,197)
199,049
10,054
250,000
550,000
1,000,000
(273,094)
50,700
(222,394)|At
31.10.24
£
1,849,512
652,756
90,000
250,000
550,000
1,000,000|
|---|---|---|---|
||||4,392,268
141,638|
||||4,533,906|
The movement in funds for the 2 years between 1 November 2022 and 31 October 2024, included in the above are as follows:
|**Unrestricted funds**
General fund
Revaluation reserve
Designated Funds:
Young Adult Fund
Health Inequalities Greater
Impact Programme
Sustainable Growth Fund
MSK Impact Fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|Incoming
resources
£
1,653,282
-
-
-
-
-
1,653,282
209,784
1,863,066|Resources
expended
£
(2,199,392)
-
(53,772)
-
-
-
(2,253,164)
(159,084)
(2,412,248)|Gains and
losses
£
127,739
199,049
-
-
-
-
326,788
-
326,788|Transfers
between
reserves
£
(1,863,826)
-
63,826
250,000
550,000
1,000,000
-
-
-|Movement
in funds
£
(2,282,197)
199,049
10,054
250,000
550,000
1,000,000|
|---|---|---|---|---|---|
||||||(273,094)
50,700|
||||||(222,394)|
continued...
Page 32
**ARTHRITIS ACTION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 OCTOBER 2024**
## Designated Funds
Designated funds have been created to ensure that the charity complies with the Charities’ Statement of Recommended Practice (SORP) and best practice, and will continue as a going concern in perpetuity, as long as those living with arthritis need our support. These designated funds are set aside by the Trustees for specific purposes.
- Our Young Adult Fund, which enables us to support more young adults living with arthritis, which is expected to cost £90,000 over the next three years.
- The funding of our Health Inequalities Greater Impact programme to reach more people in low-income communities in areas of unmet needs through expansion of our regional outreach, which is expected to cost £250,000 over the next three years.
- The funding for our five-year Sustainable Growth Plan as approved by the Board through investment into broadening our income streams and our underlying IT infrastructure to build organisational resilience, which is expected to cost £550,000 over the next five years.
- An amount of £1m made available to support collaborative projects and initiatives that align with our strategic objectives.
## **21. RELATED PARTY DISCLOSURES**
During the year one (2023: two) Trustee provided services to the Charity for which they received payment, whilst an acting Trustee.
R Nye received £163 (2023: £2,800) for human resource services in relation to his time as an acting Trustee.
## **22. SUBSIDIARY UNDERTAKINGS**
On 7 October 2014 Arthritis Action incorporated the following subsidiary companies:
The Arthritis Association The Arthritic Association
These subsidiaries ~~,~~ which were created to protect the trading names, have no assets or liabilities and were both dormant during the year. It is anticipated that these subsidiaries will remain dormant for the foreseeable future.
Exemption has been claimed from preparing consolidated group accounts under section 9 of FRS102.
## **23. OTHER FINANCIAL COMMITMENTS**
The charity has a contractual obligation in relation to IT related costs. The commitment totals £9,675 (2023 - £18,896) and ceases in November 2026.
Page 33