OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

amrc ASSOCIATION OF M.EDICAL RESEARCH CHARITI ACTIII FORA-T bloik Bliss •8RACE RÉAsr AwiThJ NF5FANt rEREfjRA (,:) DRF cicra4 opdtip*y '. 0¢ c4a MND ow trust n•rthw•5t ORICLE -)>>J PEIICAP4 REtIPlAuK YAY RN ,,pspi Tomrny's Annual report and accounts 2021-2022

Contents page

Foreword Foreword 2
Trustee’s report 3-12
• Who we are 3
• What we did this year 4-6
• What’s next 7
• Financial review 8
• Governance 9-11
• Statement 12
Auditor’s report 13
Financial report
• Statement of financial activities 16
• Balance sheet 17
• Statement of cash flows 18
• Notes to the financial statements 19-29
Administration 30

1

Foreword

Looking back, it’s clear that AMRC has achieved a huge amount in 2021/22 - a period of considerable external and internal uncertainty and change. I’m extremely proud of the excellent team and the way they have continued to show their talents and focus at every turn.

Throughout the last year AMRC has delivered impactful reports; engaged with stakeholders and partners across a range of issues; building on the #ResearchAtRisk campaign, influenced the government to provide some support to the sector financially through the pandemic; contributed to sector wide activities; hosted training events; all whilst continuing to deliver high quality support to our membership. We have reinforced our position as a trusted and expert sector voice worth consulting and listening to.

None of this is down to an individual success but strong leadership played a key role. It was a pleasure to recognise Aisling Burnand’s seven years of invaluable contribution to AMRC and to the sector by appointing her as an Honorary Fellow. My thanks also go to Hilary Reynolds and Nicola Perrin for guiding a seamless transition. I am confident AMRC and its membership will go from strength to strength.

I look forward to seeing AMRC continue to do good for its members, the sector and of course patients and our wider society over the coming years.

Lord Sharkey Chair of the Executive Council

2

Trustees’ report: Who we are

The Association of Medical Research Charities (AMRC) is the national membership organisation of leading health and medical research charities. The company is limited by guarantee and is governed by its Articles of Association.

Our mission

To help health and medical research charities save and improves lives through research and innovation.

Public benefit statement

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit’.

We are a membership-driven organisation with 85% of our income coming from membership and supporter subscriptions this financial year. Through supporting those in the charity sector with responsibility for allocating funds to medical and health research, we can help all charities maximise the use of their resources and make a greater impact for all their beneficiaries.

3

Trustees’ report: What we did this year

1. Championing the voice of our charities

----- Start of picture text -----
6
reports and
infographics
published
40+
news
pieces
generated
----- End of picture text -----

The scheme has supported…

----- Start of picture text -----
443 64 80
researchers institutions member
at… across… charities
45%
of all the ECRs receiving funding are
supported by charities with a
research spend under £1 million
14
of the charities benefiting from the
scheme focus exclusively on rare
diseases
52%
of the people receiving funding are at
No. of people supported in each institutions in the UK outside of the
UK region golden triangle
----- End of picture text -----

4

2. Influencing the research funding landscape

----- Start of picture text -----
20 36
consultation MPs and Peers
and inquiry met with
responses AMRC
----- End of picture text -----

3. Fostering collaborations and partnerships

----- Start of picture text -----
8
networks and
groups
convened
----- End of picture text -----

5

4. Supporting clinical research for benefit

5. Delivering high quality support

----- Start of picture text -----
73 95%
charity CEOs of members
met with received our
our CEO e-newsletters
1 38%
legal helpline of members
set up by vacancies
Mills & Reeve advertised
----- End of picture text -----

6

Trustees’ report: What next?

Over the next year we will prioritise…

7

Trustees’ report: Financial review

Results for the year

Income for the year totalled £1,198,646 (2021: £1,069,346). Income from continuing membership subscriptions and training was £1,028,582 (2021: £956,301) showing an increase of 7.6%.

After total expenditure of £1,024,155 (2021: £983,007) the year’s activities showed a surplus for the year of £174,491 (2021: £86,339) which, when accumulated with the funds brought forward from previous years, leaves the Association with total funds at the year-end of £787,383 (2021: £612,892).

All funds held at the year end are unrestricted (2021: all funds held were also unrestricted). As at the year end, £223,546 is designated for the purposes set out in Note 11 of the financial statements.

The balance sheet as of 31 March 2022 includes a creditor for the agreed deficit reduction payments on the charity's defined benefit pension plan. The total creditor at the year ended 31 March 2022 was £6,756. For further details, see Note 18.

Reserves policy

AMRC must ensure its long-term sustainability, viability, and success, and in determining its reserves policy the trustees have taken into account the current economic conditions and the risks to key funding sources (in particular membership income). The trustees have also considered the organisation’s core financial responsibilities.

It was agreed that, excluding restricted expenditure, AMRC requires reserves of no less than three and no more than six months’ normal operating expenditure, to meet its operational needs and to enable reorganisation should key sources of revenue decline.

As of 31 March 2022, AMRC possessed general reserves (being total reserves less restricted and designated funds) of £563,837, representing approximately 6 months’ normal operating expenditure based on 2022/23 budget (31 March 2021: general reserves were £560,246). AMRC aimed for - and achieved - this high-end level to ensure that the delayed impact of the pandemic on our income in future years could be mitigated and our charitable activities protected.

As of 31 March 2022, the charity also held £223,546 in designated funds. More details of the use of designated funds are given in Note 11.

8

Trustees’ report: Governance

Structure

AMRC is a registered charity and a company limited by guarantee, not having share capital. The charity’s governing document is in the form of Articles of Association dated 23 September 2008 and amended by Special Resolution dated 7 December 2021.

AMRC is governed by an Executive Council, which meets formally at least four times each year and determines the overall strategic direction of the charity.

The trustees are responsible for planning and policymaking for AMRC and, accordingly, policy decisions are referred to the Executive Council for approval.

The day-to-day management of AMRC is entrusted to the Chief Executive and the senior leadership team, who have delegated authority from the Executive Council to administer the affairs of the charity.

The Chief Executive and senior leadership team are invited to the trustees’ meetings and provide them with regular reports on the work of AMRC.

– – AMRC has an appointed Data Protection Lead Jocelyn LeBlanc to deal with any queries about our privacy notice.

Members

Full members are registered charities that fund medical and health research in the UK and meet all of AMRC’s criteria. Introductory members are registered charities that fund, or intend to fund, medical and health research in the UK as one of their principal activities and are actively working towards meeting the AMRC’s full membership criteria.

To preserve AMRC full membership as the hallmark of quality research funding, a membership-wide audit of peer review processes takes place every five years and was undertaken most recently in 2021/22.

AMRC’s membership criteria are described in our Standing Orders and kept under regular review by the Executive Council and were updated in 2021.

AMRC membership at the end of the year stood at 151, including nine new full members that joined during the year: Cancer Research Wales, Kidscan, The Little Princess Trust, Kennedy Trust, Myrovltis Trust, Healthcare Infection Society, Grace Kelly Childhood Cancer Trust, Cerebra, Leukemia and Myeloma Research UK. One new introductory member also joined: Action for Pulmonary Fibrosis.

Supporters

Our supporters are organisations operating in the health and medical research ecosystem with an interest in the activities of AMRC and our members, and whose activities can be of real support and value to our members. These supporters play an important role in the AMRC network and their membership brings an opportunity to work more closely on areas of mutual benefit.

Our Articles of Association were amended at the AGM held in December 2019 to allow for one supporter member representative to be elected to the Executive Council.

9

Supporter members who are research funders will not attract the financial benefits to their – research that follow from full AMRC membership such as eligibility for the Charity Research Support Fund (CRSF) and AcoRD.

In 2021/22 we welcomed LifeArc, IQVIA and Fluent Technology.

Trustees

Nine members of the Executive Council are nominated and elected by AMRC members. One is nominated and elected by supporter members. These trustees may serve for a period of three years, with the option of re-election or nomination for a further three-year term. Nominating members are designated in the Standing Orders and may each appoint one nominated trustee who may be a trustee, officer, employee, or other representative of the nominating member.

Elected trustees are elected from amongst the categories (set out in the Standing Orders). All members of AMRC are entitled to nominate individuals as trustees, who may be eligible individuals from their own organisation or another member charity. Any person standing for election as an elected trustee must have their nomination approved by the Executive Council. If any post is contested, the elections take place shortly before the AGM. The Executive Council can from time to time establish guidelines in the Standing Orders to ensure that the composition of the Executive Council properly reflects the membership of the Association.

Trustees receive an induction pack when they begin, including information about Trustee duties, AMRC governance and strategy. They receive regular data protection training. In addition to regular meetings, the Executive Council has an annual strategic away day.

At the AGM in December 2021 Lord Sharkey and Charles Mayo were reappointed as a Coopted Trustees and Sonya Babu-Narayan was reappointed as the Nominated Trustee by the British Heart Foundation.

Risk Review

AMRC maintains a risk register of the major operational and business risks and challenges it faces. The trustees confirm that controls are in place to mitigate the current major risks identified which are:

identified which are:
Risk Category Risk Mitigation
Finance/income Reduction in
income as a
result of the
COVID-19
pandemic		 We created the Pandemic Impact Fund in
2021/22. We will continue to work with members
to understand and model impact of the pandemic
on research expenditure. We have reviewed the
subscription model and moved to a banded
approach to make subscription income more
predictable.
People and Culture Loss of key staff We will increase focus on training opportunities,
continue talent management, carry out an annual
staff survey to gauge the situation. We will do
succession planning where possible, maintain
competitive salary and benefits by benchmarking
regularly, conduct exit interview, seek
opportunities for secondments, job shadowing etc
where appropriate.

10

Complaints

We have received no complaints.

Subscriptions

Under our Articles of Association and Standing Orders, the Executive Council can increase subscriptions in line with inflation.

The Executive Council approved a 1.3% rise in this year’s subscription rate, in line with RPI. As a result, the 2021/22 subscription rate was 0.1688914%% of each member’s 2020/21 UK research spend. The minimum subscription fee was £397.

Our three largest members (also the largest medical research charities in the UK) – the – Wellcome Trust, Cancer Research UK and the British Heart Foundation pay a fixed subscription which increases by an agreed inflationary amount each year. To safeguard the independence of AMRC, not one member contributes more than 25% of our income.

Funding

Funding comes from members and supporters of the charity through their subscriptions and support of our events. We do not fundraise directly from the public and we have no third-party contracts for fundraising services. There is a ‘donate’ button on our website and occasional donations are made through this route. The charity is not registered with the Fundraising Regulator. We adjusted the budget in 2021/22 to factor in additional cost savings where we can, to increase general reserves to help the Association through a leaner spell in the 22/23 and 23/24 years.

Pay and remuneration

AMRC has a process for setting the pay and remuneration for all staff, we

11

Trustees’ report: Statement

The trustees, who are also the directors of the Association of Medical Research Charities for the purposes of company law, are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company, for that period.

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

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Approved by the Executive Council on 20 July 2022, signed on their behalf by: _____ Sharkey Lord Sharkey, Chair of the Executive Council, Association of Medical Research Charities (AMRC) Charity no. 296772, Company no. 02107400

12

Independent auditor’s report to the members of the Association of Medical Research Charities

Opinion

We have audited the financial statements of Association of Medical Research Charities for the year ended 31 March 2022 which comprise the Statement of Financial Activities, Balance Sheet, 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of 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 the financial statements section of our report. We are independent of the charity 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 Trustees’ Annual Report. 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.

13

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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 12, 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Charity Commission regulation, health and safety, data protection legislation and employment (including taxation) and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

14

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls. Audit procedures performed by the engagement team included:

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.

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 auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Siobhan Holmes (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London Date: 26 July 202220 July 2022 EC4R 1AG

15

Association of Medical Research Charities Statement of financial activities

(Incorporating the Income and Expenditure Account) For the year ending 31 March 2022

Note
INCOME
Income from:
Donations and legacies
2
Charitable activities:
Subscriptions and training
Other income
Investments: Bank interest
TOTAL INCOME
EXPENDITURE
Expenditure on:
Charitable Activities:
Policy
Research
Data analysis
Membership
TOTAL EXPENDITURE
3
Funds brought forward
11
Funds carried forward
11
Net income &
Net movement in funds		 Total
Total
Funds
Funds
2022
2021
£
£
1,135
2,803
1,028,582
956,301
168,814
109,799
115
443
1,198,646
1,069,346
445,014
362,851
149,613
180,272
86,694
94,922
342,834
344,962
1,024,155
983,007
174,491
86,339
612,892
526,553
787,383
612,892

All of the above results are derived from continuing activities.

All income and expenditure in the year and the previous year is unrestricted and there were no recognised gains and losses other than those stated above.

The annexed notes form part of these financial statements.

16

Association of Medical Research Charities Balance Sheet As at 31 March 2022

2022 2021
Note £ £ £ £
FIXED ASSETS
Tangible assets 8 16,831 26,207
16,831 26,207
CURRENT ASSETS
Debtors 9 1,108,306 1,102,562
Cash at bank and in hand 831,892 711,891
1,940,198 1,814,453
Creditors: amounts falling due
within one year 10 (1,165,352) (1,204,534)
NET CURRENT ASSETS 774,846 609,919
Creditors: amounts falling due
after more than one year:		 18 (4,294) (23,234)
NET ASSETS 787,383 612,892
FUNDS
Unrestricted funds
Designated funds 11 223,546 52,646
General fund 11 563,837 560,246
Total unrestricted funds 787,383 612,892
787,383 612,892

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

The financial statements were approved, and authorised for issue, by the trustees on 20 July 2022 and signed on their behalf by:-

Sharke y

Company registration no. 02107400

The annexed notes form part of these financial statements.

17

Association of Medical Research Charities Statement of Cash Flows For the year ending 31 March 2022

Cash provided by operating activities
Net movement in funds
Add back depreciation charge
Less interest income
(Increase) in debtors
(Decrease) / increase in creditors
Net cash provided by
operating activities
Cash flows from investing activities
Interest income
Purchase of tangible fixed assets
Net cash (used in)
investing activities
Cash and cash equivalents at the
beginning of the year
Total cash and cash equivalents at
the end of the year
Increase in cash and cash
equivalents in the year
Analysis of changes in net debt
Cash at bank and in hand		 £
174,491
10,624
(115)
(5,744)
(58,122)
115
(1,248)
2022		 £
174,491
10,624
(115)
(5,744)
(58,122)
115
(1,248)
2022		 £
121,134
(1,133)
120,001
711,891
831,892
Balance at
1 April
2021
£
711,891
711,891		 £
£
86,339
10,843
(443)
(585,976)
561,665
72,428
443
(12,030)
(11,587)
60,841
651,050
711,891
2021
Balance at
31 March
Cash flows
2022
£
£
120,001
831,892
120,001
831,892

The annexed notes form part of these financial statements.

18

Notes to the financial statements For the year ending 31 March 2022

1. ACCOUNTING POLICIES

Statement of Compliance

These financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity is a public benefit entity for the purposes of FRS 102 and therefore has also prepared the financial statements in accordance with the Statement of Recommended Practice (second edition - October 2019) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP) and the Charities Act 2011.

General Information

The charity is a private company limited by guarantee, incorporated in England and Wales (company number: 02107400) and a charity registered in England and Wales (charity number: 296772). The charity’s registered office address is: Fanz House, 99 Grays Inn Road, London, WC1X 8TY.

Going concern

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. The trustees have reviewed our forecasts and concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Subscription income is recognised in the period for which the subscription relates to.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

19

1. ACCOUNTING POLICIES (continued)

Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's activities. These costs have been allocated between the direct activities of the charity on the basis of staff time.

Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Fixtures and fittings 3 years straight line IT equipment 3 years straight line Leasehold fit out 5 years straight line

20

1. ACCOUNTING POLICIES (continued)

Financial instruments

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

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Pensions

The charity provides a defined contribution pension scheme to current employees, the assets of which are held separately from those of the company in an independently administered fund with The Pensions Trust. Contributions are charged to expenditure as they fall due.

One member of staff is part of a defined benefit pension scheme which the charity previously provided. That scheme is also administered by the Pensions Trust. For further details see Note 18.

Employee benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Significant judgements and sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the charity’s accounting policies. The key judgements that have been applied by management relate to depreciation rates.

2. DONATIONS AND LEGACIES

Donations Total
Total
Funds
Funds
2022
2021
£
£
1,135
2,803
1,135
2,803

21

3. EXPENDITURE

CURRENT YEAR

Charitable activities:
Policy
Research
Data analysis
Membership
PRIOR YEAR
Charitable activities:
Policy
Research
Data analysis
Membership		 Direct Staff
costs
£
342,161
99,975
71,530
282,193
795,859
Direct Staff
costs
£
283,574
142,979
77,083
282,305
785,941		 Direct
costs
£
27,251
24,775
280
6,857
59,163
Direct
costs
£
12,204
596
280
8,401
21,481		 Support
costs
£
75,602
24,863
14,884
53,784
169,133
Support
costs
£
67,073
36,697
17,559
54,256
175,585		 Total
2022
£
445,014
149,613
86,694
342,834
1,024,155
Total
2021
£
362,851
180,272
94,922
344,962
983,007

Details of support costs are given in Note 4.

4. SUPPORT COSTS

Governance costs:
Trustee meetings
Audit fee for the year
Other support costs
Staff
Premises
Legal and professional
Information technology
Other office expenses		 2022
2021
£
£
13
138
8,160
7,680
8,173
7,818
11,537
23,606
68,068
67,998
2,606
1,748
44,488
43,244
34,261
31,171
169,133
175,585

5. NET INCOME FOR THE YEAR

This is stated after charging:
Operating lease rentals: Premises
Depreciation
Auditor's remuneration: Audit Fees		 2022
£
43,688
10,624
8,160		 2021
£
43,688
10,843
7,680

22

6. EMPLOYEE AND KEY MANAGEMENT PERSONNEL

The key management personnel of the charity comprise the trustees (“Directors” for the purposes of the Companies Act) and Senior Management Team. The total amounts paid in respect of the key management personnel of the charity (including employer's National Insurance contributions and employer's pension contributions) were £372,034 (2021: £299,124). The increase was the result of unexpected leadership transition during the year. None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

The aggregate payroll costs were:
Wages and salaries
Social security costs
Employer pension contributions
TPT Pension plan- (reduction) / increase in liability (see Note 18)		 2022
£
693,875
75,552
42,909
(16,477)
795,859		 2021
£
674,176
72,878
36,996
1,891
785,941

The number of employees earning over £60,000 in the year (exclusive of employer's National Insurance contributions) were as follows:

Including employer pension contributions

£60,000 < £69,999
£70,000 < £79,999
£80,000 < £89,999
£100,000 < £109,999
£60,000 < £69,999
£70,000 < £79,999
£90,000 < £99,999
Excluding employer pension contributions		 2022
No.
2
1
1
-
2022
No.
2
2
-		 2021
No.
-
1
1
1
2021
No.
1
1
1

No trustees were reimbursed any expenses in the year or the previous year.

The average monthly number of staff employed by the Association during the financial year amounted to:

Policy
Research
Data analysis
Membership		 2022
2021
No.
No.
6.4
5.3
2.3
2.8
1.4
1.5
5.1
5.0
15.2
14.6

7. TAXATION

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

23

8. TANGIBLE FIXED ASSETS
Fixtures
IT
and fittings
equipment
£
£
Cost
At 1 April 2021
10,996
28,935
Additions in the year
-
1,248
Disposals in the year
-
(13,772)
At 31 March 2022
10,996
16,411
Accumulated depreciation
At 1 April 2021
10,996
20,089
Charge for the year
-
4,837
Disposals in the year
-
(13,772)
At 31 March 2022
10,996
11,154
Net book value
At 31 March 2022
-
5,257
At 31 March 2021
-
8,846
9. DEBTORS
Trade debtors
Other debtors
Prepayments
Accrued income
10. CREDITORS: amounts falling due within one year
Trade creditors
Taxation and social security
Pension payable (see Note 18)
Other creditors
Accruals
Deferred income (see below)
Deferred income
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year:
Subscriptions invoiced in advance
Digital Health Project
Balance at the end of the year		 Leasehold
fit out
£
28,936
-
-
28,936
11,575
5,787
-
17,362
11,574
17,361
2022
£
1,049,065
-
52,725
6,516
1,108,306
2022
£
35,641
17,457
2,461
8,007
35,233
1,066,553
1,165,352
2022
£
1,005,085
(1,005,085)
1,066,553
-
1,066,553		 Total
£
68,867
1,248
(13,772)
56,343
42,660
10,624
(13,772)
39,512
16,831
26,207
2021
£
1,027,992
34,434
38,309
1,827
1,102,562
2021
£
110,311
24,568
7,871
14,267
42,432
1,005,085
1,204,534
2021
£
457,749
(457,749)
980,085
25,000
1,005,085

24

11. STATEMENT OF FUNDS - CURRENT YEAR

Designated funds
1.
Strategic Projects
2.
IT Maintenance
and development
3.
Staffing and salary review
4.
Fundraising consultant
5.
Pandemic impact fund
Total designated funds		 Balance at
Balance at
1 April
31 March
2021
Income
Expenditure
Transfers
2022
£
£
£
£
£
7,411
-
-
-
7,411
9,723
-
-
-
9,723
6,412
-
-
-
6,412
29,100
-
-
(29,100)
-
-
-
-
200,000
200,000
52,646
-
-
170,900
223,546

Purposes of designated funds

  1. Strategic projects - representing funds set aside for strategic projects. The fund is expected to be spent in the next 3 to 5 years.

  2. IT Maintenance and development - representing funds set aside to ensure there is sufficient resource available for further IT investment. The fund is expected to be spent in the next 3 to 5 years.

  3. Staffing and salary review - representing funds set aside for benchmarking current salaries and benefits. T he fund is expected to be spent in the new financial year.

  4. Fundraising - representing funds set aside to generate future funds for AMRC projects. The fund was closed in the financial year.

  5. Pandemic impact fund - representing funds set aside for to provide for unplanned impacts from the covid19 pandemic over the coming 2 to 3 years. This fund helps mitigates some of the risks posed to AMRC arising from the pandemic, by providing for identified funding over and above budgeted expenditure.

CURRENT YEAR - SUMMARY OF FUNDS

General fund
Designated funds
Total unrestricted funds
Total funds		 Balance at
1 April
2021
£
560,246
52,646
612,892
612,892		 Income
£
1,198,646
-
1,198,646
1,198,646		 Expenditure
£
(1,024,155)
-
(1,024,155)
(1,024,155)		 Transfers
£
(170,900)
170,900
-
-		 Balance at
31 March
2022
£
563,837
223,546
787,383
787,383

25

12. STATEMENT OF FUNDS - PRIOR YEAR

Balance at
1 April
2020
£
Designated funds
Strategic Projects
10,411
IT Maintenance
and development
11,902
Staffing and
salary review
6,412
Fundraising consultant
29,100
Total designated funds
57,825
PRIOR YEAR - SUMMARY OF FUNDS
Balance at
1 April
2020
£
General fund
468,728
Designated funds
57,825
Total unrestricted funds
526,553
Total funds
526,553		 Income
£
-
-
-
-
-
Income
£
1,069,346
-
1,069,346
1,069,346		 Expenditure
£
(3,000)
(2,179)
-
-
(5,179)
Expenditure
£
(977,828)
(5,179)
(983,007)
(983,007)		 Transfers
£
-
-
-
-
-
Transfers
£
-
-
-
-		 Balance at
31 March
2021
£
7,411
9,723
6,412
29,100
52,646
Balance at
31 March
2021
£
560,246
52,646
612,892
612,892

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

CURRENT YEAR

Fixed assets
Net current assets
Creditors due after more than one year
PRIOR YEAR
Fixed assets
Net current assets
Creditors due after more than one year		 Designated
funds
£
-
223,546
-
223,546
Designated
funds
£
-
52,646
-
52,646		 General
fund
£
16,831
551,300
(4,294)
563,837
General
fund
£
26,207
557,273
(23,234)
560,246		 Total
funds
£
16,831
774,846
(4,294)
787,383
Total
funds
£
26,207
609,919
(23,234)
612,892

26

14. OPERATING LEASE COMMITMENTS

At the reporting end date the charity had the following future minimum lease payments under noncancellable operating leases which fall due as follows:

Less than 1 year
Between 1 and 5 years		 2022
Property
£
39,319
92,623
131,942		 2022
Equipment
£
385
-
385		 2021
2021
Property
Equipment
£
£
52,425
2,309
131,942
385
184,367
2,694

15. LEGAL STATUS

The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.

16. RELATED PARTY TRANSACTIONS

Due to the nature of the charity’s work, its trustees are often trustees or employees of member organisations. Member fees are always calculated in the ordinary course of business.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

17. FUNDS HELD AS TRUSTEE

During the year, the charity received funds on behalf of a separate charity, the Medical Research Council (MRC) for a project related to the members of AMRC. The project agreement is that AMRC will administer the funds on behalf of MRC and the AMRC members. The funds are not an asset of AMRC and have therefore not been shown in these accounts.

The agreement came to an end on 31 March 2022. With agreement of MRC, the remaining funds held at the end of the project of £20,727 were transferred to AMRC. The balance is included within 'other income' in the Statement of Financial Activities.

The transactions during the year are as follows:

The transactions during the year are as follows:
Brought forward
Received from MRC
Received AMRC members
Project costs
Paid out to Researchfish
Balance transferred to AMRC at the end of the agreement (see above)
Balance (paid) on behalf of MRC carried forward		 2022
£
(34,434)
105,194
-
(50,033)
-
(20,727)
-		 2021
£
(64,007)
101,504
83,100
(53,031)
(102,000)
-
(34,434)

The closing balance paid on behalf of MRC at 31 March 2021 is included within 'Other debtors' in Note 9.

27

18. PENSION LIABILITY

TPT Retirement Solutions – The Growth Plan

The Association participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the Association to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-person standing arrangement'. Therefore the Association is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the Association has agreed to a deficit funding arrangement the Association recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

PRESENT VALUES OF PROVISION

Due within one year
Due after more than one year
Total present value of provision		 2022
£
2,462
4,294
6,756		 2021
£
7,871
23,234
31,105		 2020
£
7,642
29,214
36,856

28

18. PENSION LIABILITY (continued)

RECONCILIATION OF OPENING AND CLOSING PROVISIONS

Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period
INCOME AND EXPENDITURE IMPACT
Interest expense
Remeasurements – impact of any change in assumptions
Remeasurements – amendments to the contribution schedule
ASSUMPTIONS
31 March
2022
% per annum
Rate of discount
2.35		 2022
£
31,105
179
(7,872)
(155)
(16,501)
6,756
2022
£
179
(155)
(16,501)
31 March
2021
% per annum
0.66		 2021
£
36,856
827
(7,642)
1,064
-
31,105
2021
£
827
1,064
-
31 March
2020
% per annum
2.53

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The following schedule details the deficit contributions agreed between the Association and the scheme at each year end period:

DEFICIT CONTRIBUTIONS SCHEDULE

Year ending 31 March 31 March 31 March
2022 2021 2020
£ £ £
Year 1 2,462 7,871 7,642
Year 2 2,462 8,108 7,871
Year 3 2,051 8,351 8,108
Year 4 - 7,168 8,351
Year 5 - - 7,168

The Association must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the Association's balance sheet liability.

29

Administration

Trustees

  1. Alyson Fox , Wellcome Trust (from 2019)

  2. Andrew Warren , Retired (Honorary Treasurer from May 2019)

  3. Ashley Bayston , The Lewy Body Society (from December 2020)

  4. Cathy Yelf , Macular Society (reappointed from December 2020)

  5. Charles Mayo , Secure Trust Bank PLC (co-opted from January 2015)

  6. Doug Brown , British Society of Immunology (from March 2020)

  7. Elizabeth Robertson , Diabetes UK (from December 2020)

  8. Henny Braund , Anthony Nolan (from December 2020)

  9. Hilary Evans , Alzheimer’s Research UK (from December 2020)

  10. Dr Ian Walker , Cancer Research UK (reappointed from December 2020)

  11. Jonathan Grant , Different Angles Ltd (reappointed from December 2020)

  12. Kate Adcock , Muscular Dystrophy UK (from December 2020)

  13. Lord Sharkey (Chair from May 2015)

  14. Dr Sonya Babu-Narayan , British Heart Foundation (reappointed from December 2020)

Senior Leadership Team Advisors Registration information CEO Auditors Office Hilary Reynolds (until Haysmacintyre LLP Fanz House November 2021) 10 Queen Street Place 99 Gray's Inn Road Nicola Perrin (from London EC4R 1AG London WC1X 8TY November 2021) Bankers Charity number Director of Membership HSBC plc 296772 Engagement Holborn Circus Carol Bewick 31 Holborn Company number London EC1N 2HR 02107400 Director of External Affairs Nisha Tailor Legal advisors Simmons & Simmons LLP Director of Research CityPoint Policy 1 Ropemaker Street Dr Catriona Manville London EC2Y 9SS

30