Hyperlipidaemia Education & Atherosclerosis Research Trust ... · Hyperlipidaemia Education &...

Registered number: 02631049Charity number: 1003904

Hyperlipidaemia Education & Atherosclerosis Research Trust UK(HEART UK)

(A company limited by guarantee)

Trustees' report and financial statements

for the year ended 28 February 2014

Hyperlipidaemia Education & Atherosclerosis Research Trust UK (HEART UK)


Contents

Page

Reference and administrative details of the charity, its trustees and advisers

1

Finance report

2

Trustees' report

4 - 8

Independent auditors' report

9 - 10

Consolidated statement of financial activities

11

Consolidated income and expenditure account

12

Consolidated statement of total recognised gains and losses

12

Consolidated balance sheet

13

Charity balance sheet

14

Notes to the financial statements

15 - 27



Reference and administrative details of the charity, its trustees and advisersfor the year ended 28 February 2014

Trustees Dr R Cramb, ChairmanProfessor E A Hughes, Trustee (appointed 19 December 2013)Dr J D Reckless, TrusteeMs G Howells, TrusteeMr M Crozier, TrusteeMr S D Boley ACA, TrusteeDr D Neely, TrusteeMs T Ghosh, TrusteeDr A Rees, TrusteeDr M F Laker, Trustee (resigned 5 February 2014)Ms J Bennett, Trustee (appointed 2 October 2013)Ms Z A Merchant, Trustee (appointed 3 July 2013)

Company registered number

02631049

Charity registered number

1003904

Registered office

7 North Road, Maidenhead, Berkshire, SL6 1PE

Company secretary

Ms J Payne

Chief executive officer

Ms J Payne

Independent auditors

Haines Watts, Sterling House, 177-181 Farnham Road, Slough, Berkshire, SL1 4XP

Page 1



Operating and financial review


Plans for the future

Last year we talked about putting in place procedures, including a tough budgeting process, simplifiedmanagement reporting and using a realistic overhead recovery rate for projects. We said this would be ourcornerstone over the next 2-3 years. These plans are now in place and work well. Income has grown duringthe year as our focus remains on delivering sustainable activities with funding that allows us to pursue thisgoal.

Volunteers

We have 82 volunteers. We rely heavily on the generous donation of time and enthusiasm given byvoluntary support and acknowledge their contribution and that from healthcare professionals, patients,ambassadors, committee members and others, whose involvement has been critical to the success of ourwork, including office support.

Funding support

We do not receive any government funding and are funded through donations from individuals andorganisations. We would like to thank all our supporters for helping us to deliver our services.

Over the last 12 months all areas of the organisation have developed in a positive way and we have carriedout some really interesting projects with some fabulous outputs.

Raising awareness about the dangers of cholesterol and the services provided by HEART UK

We have revamped our website so it is more user-friendly. Specific work on search engine optimisation hasimproved results, shown by a doubling of the number of visitors, which in turn increased our profile andincreased our impact with many more enquiries coming through our help line.

Our online patient community, HealthUnlocked, has more than doubled in size and now has more than 2,400people talking.

Our Ambassador programme continues to go from strength to strength and we are very grateful for their helpand support – they are the HEART UK voice in the community!

We continue to hold patient meetings with updates on drug treatment, the latest views on the benefit ofcholesterol awareness and providing an opportunity for patients to meet each other. We are keen to increasethese events with a greater involvement of our ambassadors over the next year.

We held a very successful Annual Conference in 2013 and are looking forward to the 2014 AnnualConference covering Hot Topics in Hyperlipidaemia – The Impact of Personalised Medicine which is beingheld at Warwick University in Coventry.

Lobbying for cardiovascular disease to be one of the Government’s top health priorities

We continue to influence health policy on a local and national level by engaging with key opinion leaders on arange of lipid subjects, these include NHS England, Public Health England, Clinical Commissioning Groupsand Directors of Public Health.

We are working with NHS England and other key stakeholders on the Governments aspiration to increase thenumber of Familial Hypercholesterolaemia (FH) cases identified from 15% to 50%. The National ClinicalDirector for NHS England has established a steering committee to address the matter and HEART UK is partof that. We have developed a network of clinical champions to help with promoting the need for an FHcascade screening service.

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Operating and financial review


We have carried out a range of projects around identifying FH, including a pilot project in Medway Kent whichis aiming to demonstrate that FH can be identified most effectively through primary care.

Primary care has been a focus for us over the last year. We had a series of articles featured in the PrimaryCare Cardiovascular Journal and we are also developing an online learning tool with the Royal College ofGPs to be launched later this year.

We have also supported the Government’s Health Check programme and we consider this important in theearly identification of both inherited and non-inherited high cholesterol problems.

We have participated in Government and other health consultations

Providing support, guidance and education to people diagnosed with raised cholesterol and theirfamilies

The demand for our services continues to grow and we continuously review our information to ensure it is asup to date as possible.

Over the coming year we are looking to grow our services, in particular education for patients, healthcareprofessionals, including pharmacists and Clinical Commissioning Groups.

Page 3



Trustees' report


The Trustees (who are also directors of the charity for the purposes of the Companies Act) present theirannual report together with the audited financial statements of Hyperlipidaemia Education & AtherosclerosisResearch Trust UK (the charity) for the ended 28 February 2014. The Trustees confirm that the Annual reportand financial statements of the charity and the group comply with the current statutory requirements, therequirements of the charity and the group's governing document and the provisions of the Statement ofRecommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005.

Structure, governance and management a. CONSTITUTION The charity is constituted as a charitable company limited by guarantee and is governed by its Memorandumand Articles of Association. It is registered with The Charities Commission (number 1003904) under theCharities Act. The charity is constituted under a Trust deed and is a registered charity number 1003904. Overall responsibility rests with the Board of Trustees who are also appointed as Directors of the charitablecompany. The Trustees meet formally four times a year. In addition, the Trustees hold an annual 'away day'when the future strategy of the charity is discussed. b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES Trustees are appointed in accordance with the Articles of Association, including receipt and approval of anapplication for membership.

New Trustees are briefed on their legal obligations under charity and company law, the content of theMemorandum and Articles of Association, the business plan and recent financial performance of the Charity.

During the induction they meet key employees and other trustees. Trustees are encouraged to attendappropriate external training events where these will facilitate the undertaking of their role. c. ORGANISATIONAL STRUCTURE AND DECISION MAKING Certain authority from the Trustees is delegated to the Chief Executive, who is responsible for the day-to-dayrunning of the charity. d. RELATED PARTY RELATIONSHIPS A number of Committees and Working Groups operate to assist in the delivery of our objectivesand report directly to the Trustees, these are:

The Medical and Scientific Research Committee (MS&R)Oversees the Annual Conference, the development of research and speciality training programmes,allocation of research awards and clinical guidelines development and updating of factsheets.

The following sub-committees and working groups report to the MS&R:

The Laboratory Scientific Sub-CommitteeThe key areas of interest are:• The accuracy of lipid measurement in UK pathology laboratories• To define core laboratory investigations for Lipid Clinic assessment of patients with dyslipidaemia. To

Page 4



Trustees' report (continued)


develop standards for lipid analysis and reporting. • To promote the highest standards in point of care testing for cholesterol measurement. • To help complete pathways for specialist lipid analysis, including research on difficult/unusual patients.

The Simon Broome Register Scientific Sub-CommitteeIs responsible for directing research based on a national cohort of over 3,500 patients with familialhypercholesterolaemia (and severe hypertriglyceridaemia).

Familial Hypercholesterolaemia Guideline Implementation Team (FH GIT)The key areas of interest are:• Involvement in the implementation of the NICE FH Guideline • Production of the FHIT Toolkit supporting commissioning and delivery of FH services• Supporting implementation of the CVD Outcomes Strategy’s aspiration to diagnose and treat more

cases of FH. • To provides input to Government and other health consultations. • To promotes FH Audit. • To contributes to Children’s FH register and support development of Lipid Clinic specialist networks.

Lipoprotein Apheresis Working GroupThe key areas of interest are:• To promulgate guidance for the clinical indication for lipoprotein apheresis • To review and recommend the criteria of efficacy of performance in the UK (Assessment to be based

on Registry data jointly formed by HEART UK and the Royal College of Physicians. • To educate society in general about Apheresis as a treatment.

The Health Care CommitteeThe key areas of interest are:• To promulgate guidance for the clinical indication for lipoprotein apheresis • To review and recommend the criteria of efficacy of performance in the UK (Assessment to be based

on Registry data jointly formed by HEART UK and the Royal College of Physicians. • To educate society in general about Apheresis as a treatment.

The Patients and Supporters CommitteeThe key areas of interest are:• To represent the interests and needs of patients with cholesterol (lipid) conditions. • To oversee:• Communications• Non food and pharmaceutical corporate relationships

The Income Generation Sub-CommitteeThe key areas of interest are to oversee the fundraising activities of the organisaiton.

The Campaigning CommitteeA coalition of stakeholders with commitment to raise awareness levels in the UK to influence Governmentand other organisations about the risks associated with raised cholesterol.

The Finance and Risk CommitteeThe key areas of this committee are:• To be responsible for financial and general business affairs of the charity including:• Risk Management• Financial Control Management• Audit and presenting final accounts to the AGM following Board approval. • Reviewing annual accounts prior to Board and then AGM approval.

Page 5





Product Approval Working GroupOperates within an ethical and scientific policy framework to evaluate products for approval.

Lipid Interest GroupIs a networking group for healthcare professionals either working in lipids or with an interest in lipids.

Policy Development GroupOperates to develop, oversee and review the policies of the organisation. e. RISK MANAGEMENT The Trustees have assessed the major risks to which the charity is exposed, in particular those related to theoperations and finances of the charity, and are satisfied that systems and procedures are in place to mitigateour exposure to the major risks.

The Trustees accept their responsibilities in the management of risk and have a risk management strategywhich comprises:

• A quarterly review of the risks the Charity faces• The creation of internal controls, systems and procedures to mitigate those risks identified in the review

• The implementation of procedures designed to minimise any potential impact on the Charity shouldthose risks materialise

In addition to these formal reviews there are ongoing operational management decisions that makeadjustments and amendments as and when risks are identified in everyday operations.

Objectives and Activities a. POLICIES AND OBJECTIVES The principal objects of the Charity are:

• To relieve those suffering the effects of heart disease and in particular lipid disorders, familial hyperlipidaemias and related conditions

• To promote the relief of sickness and the preservation and protection of health by reducing the incidence of cardiovascular disease in the general population of the UK;

• To provide counselling and advice to relatives of those diagnosed with inherited heart disease;• To promote the study of causes, diagnosis and treatment of lipid disorders and associated metabolic

diseases.• The subsidiary company objects are to support the charity through the sale of publications and other

such commercial activities. Achievements and performance a. GOING CONCERN After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequateresources to continue in operational existence for the foreseeable future. For this reason they continue toadopt the going concern basis in preparing the financial statements. Further details regarding the adoption ofthe going concern basis can be found in the Accounting Policies.

Page 6





Financial review a. RESERVES POLICY The Charity reviews the level of reserves each year. The Trustees have established that the level of reservesthe Charity needs should be sufficient to cover at least six months of its forecasted “core” cost base. Atpresent this level currently approximates to £200,000. The reason for the six months is to ensure back-upfunding is available, should our existing funding sources reduce either suddenly, or over a period of time. Touse these reserved funds would allow us to continue to deliver our services, whilst looking to bring furtherincome into the organisation. It has been recognised by management that the level of reserves at the end ofthis period is almost sufficient to fulfil the reserves policy. Once six months is achieved we will continue towork towards 9-12 months, however the last 3 months of these funds will be reserved for research purposes.The Trustees continue to review this policy. b. INVESTMENTS POLICY Under the Memorandum and Articles of Association, the charity has the power to invest in any way theTrustees see fit. During the past twelve months the investment shown on the balance sheet has decreased invalue as capital has been used to support activity in the North East of England. This is in accordance with thedonor's legacy. TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who are also directors of Hyperlipidaemia Education & Atherosclerosis Research Trust UK forthe purposes of company law) are responsible for preparing the Trustees' report and the financial statementsin accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under companylaw the Trustees must not approve the financial statements unless they are satisfied that they give a true andfair view of the state of affairs of the charitable company and the group and of the incoming resources andapplication of resources, including the income and expenditure, of the charitable group for that period. Inpreparing these financial statements, the Trustees are required to: • select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP; • make judgments and accounting estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material

departures disclosed and explained in the financial statements; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that

the charitable group will continue in operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explainthe charitable company and the group's transactions and disclose with reasonable accuracy at any time thefinancial position of the charitable group and enable them to ensure that the financial statements comply withthe Companies Act 2006. They are also responsible for safeguarding the assets of the charitable companyand the group and hence for taking reasonable steps for the prevention and detection of fraud and otherirregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information

Page 7





included on the charitable group's website. Legislation in the United Kingdom governing the preparation anddissemination of financial statements may differ from legislation in other jurisdictions. DISCLOSURE OF INFORMATION TO AUDITORS Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the charitable group's

auditors are unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of

any information needed by the charitable group's auditors in connection with preparing their report and

to establish that the charitable group's auditors are aware of that information

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided bysection 415A of the Companies Act 2006.

This report was approved by the Trustees on 2 July 2014 and signed on their behalf by:

Ms J PayneCompany Secretary

Page 8



Independent auditors' report to the members of Hyperlipidaemia Education & Atherosclerosis

Research Trust UK (HEART UK)

We have audited the financial statements of Hyperlipidaemia Education & Atherosclerosis Research Trust UK(HEART UK) for the year ended 28 February 2014 which comprise the group Statement of financial activities,the group Summary income and expenditure account, the group and charity Balance sheets, the groupStatement of total recognised gains and losses and the related notes. The financial reporting framework thathas been applied in their preparation is applicable law and the Financial Reporting Standard for SmallerEntities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to SmallerEntities). This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of theCompanies Act 2006, section 145 of the Charities Act 2011 and regulations made under section 154 of thatAct. Our audit work has been undertaken so that we might state to the charity's members those matters weare required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility to anyone other than the charity and its members, as a body,for our audit work, for this report, or for the opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors ofthe charity for the purposes of company law) are responsible for the preparation of the financial statementsand for being satisfied that they give a true and fair view. We have been appointed as auditors under the Companies Act 2006 and section 145 of the Charities Act2011 and report to you in accordance with those Acts. Our responsibility is to audit and express an opinion onthe financial statements in accordance with applicable law and International Standards on Auditing (UK andIreland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards forAuditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficientto give reasonable assurance that the financial statements are free from material misstatement, whethercaused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate tothe group's and the parent charity's circumstances and have been consistently applied and adequatelydisclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overallpresentation of the financial statements. In addition, we read all the financial and non-financial information inthe Trustees' report to identify material inconsistencies with the audited financial statements and to identifyany information that is apparently materially incorrect based on, or materially inconsistent with, the knowledgeacquired by us in the course of performing the audit. If we become aware of any apparent materialmisstatements or inconsistencies we consider the implications for our report.

Page 9



Independent auditors' report to the members of Hyperlipidaemia Education & Atherosclerosis

Research Trust UK (HEART UK)

OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: • give a true and fair view of the state of the group's and the parent charity's affairs as at 28 February

2014 and of the group's 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 applicable to Smaller Entities; and

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities

Act 2011. OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' report for the financial year for which the financialstatements are prepared is consistent with the financial statements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 and theCharities Act 2011 requires us to report to you if, in our opinion: • the parent charity has not kept adequate and sufficient accounting records, or returns adequate for our

audit have not been received from branches not visited by us; or • the parent charity 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; or • the Trustees were not entitled to prepare the financial statements in accordance with the small

companies regime and to take advantage of the small companies' exemption from the requirement to

prepare a Group strategic report or in preparing the Trustees' report.

Jonathan Moughton (Senior statutory auditor) for and on behalf of Haines Watts Statutory Auditors and Chartered Accountants Sterling House177-181 Farnham RoadSloughBerkshireSL1 4XP9 July 2014

Page 10



Consolidated statement of financial activities


Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

Note2014

£2014

£2014

£2013

£

INCOMING RESOURCES

Incoming resources from generated funds: Voluntary income 3 - 293,455 293,455 216,876 Activities for generating funds 4 - 472,025 472,025 380,529 Investment income 5 1,451 456 1,907 3,028Incoming resources from charitable activities 6 - 53,599 53,599 78,989

TOTAL INCOMING RESOURCES 1,451 819,535 820,986 679,422

RESOURCES EXPENDED

Costs of generating funds: Fundraising expenses and other costs - 271,811 271,811 255,835Charitable activities 31,258 329,408 360,666 324,606Governance costs 8 - 13,662 13,662 14,274

TOTAL RESOURCES EXPENDED 7 31,258 614,881 646,139 594,715

NET INCOMING RESOURCES /(RESOURCES EXPENDED) BEFOREREVALUATIONS (29,807) 204,654 174,847 84,707

Gains and losses on revaluations ofinvestment assets 14 4,424 - 4,424 4,428

NET MOVEMENT IN FUNDS FOR THEYEAR (25,383) 204,654 179,271 89,135

Total funds at 1 March 2013 47,120 90,063 137,183 48,048

TOTAL FUNDS AT 28 FEBRUARY 2014 21,737 294,717 316,454 137,183

All activities are continuing.

The notes on pages 15 to 27 form part of these financial statements.

Page 11



Summary income and expenditure accountfor the year ended 28 February 2014

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

Note2014

£2014

£2014

£2013

£

TOTAL INCOME 1,451 819,535 820,986 679,422

LESS: TOTAL EXPENDITURE 31,258 614,881 646,139 594,715

NET (EXPENDITURE)/INCOME FORTHE YEAR 19 (29,807) 204,654 174,847 84,707


Consolidated statement of total recognised gains and lossesfor the year ended 28 February 2014

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

Note2014

£2014

£2014

£2013

£

NET (EXPENDITURE)/INCOME FORTHE YEAR 19 (29,807) 204,654 174,847 84,707

Gains and losses on revaluations ofinvestment assets 4,424 - 4,424 4,428

TOTAL GAINS AND LOSSESRECOGNISED SINCE 1 MARCH 2013 19 (25,383) 204,654 179,271 89,135

There is no difference between the (expenditure)/income on ordinary activities for the year stated above andits historical cost equivalent.


Page 12


(A company limited by guarantee)Registered number: 02631049

Consolidated balance sheetas at 28 February 2014

2014 2013Note £ £ £ £

FIXED ASSETS Tangible assets 13 27,812 28,683 Investments

14 14,511 42,303

42,323 70,986 CURRENT ASSETS Stocks 15 - 5,562 Debtors 16 132,296 97,203 Cash at bank and in hand 434,774 179,591

567,070 282,356 CREDITORS: amounts falling due within

one year 17 (280,189) (193,209)

NET CURRENT ASSETS 286,881 89,147

TOTAL ASSETS LESS CURRENT LIABILITIES 329,204 160,133 CREDITORS: amounts falling due after

more than one year 18 (12,750) (22,950)

NET ASSETS 316,454 137,183

CHARITY FUNDS Restricted funds 19 21,737 47,120 Unrestricted funds 19 294,717 90,063

TOTAL FUNDS

316,454 137,183

The financial statements have been prepared in accordance with the provisions applicable to smallcompanies within Part 15 of the Companies Act 2006 and in accordance with the Financial ReportingStandard for Smaller Entities (effective April 2008).

The financial statements were approved by the Trustees on 2 July 2014 and signed on their behalf, by:

Dr R CrambChairman

Mr S BoleyTreasurer


Page 13


(A company limited by guarantee)Registered number: 02631049

Charity balance sheetas at 28 February 2014

2014 2013Note £ £ £ £

FIXED ASSETS Tangible assets 13 27,812 26,894 Investments

14 14,513 42,305

42,325 69,199 CURRENT ASSETS Stocks 15 - 312 Debtors 16 131,379 21,470 Cash at bank and in hand 240,597 154,058

371,976 175,840 CREDITORS: amounts falling due within

one year 17 (59,758) (59,568)

NET CURRENT ASSETS 312,218 116,272

TOTAL ASSETS LESS CURRENT LIABILITIES 354,543 185,471 CREDITORS: amounts falling due after

more than one year 18 (12,750) (22,950)

NET ASSETS 341,793 162,521

CHARITY FUNDS Restricted funds 19 21,737 47,120 Unrestricted funds 19 320,056 115,401

TOTAL FUNDS 341,793 162,521

The financial statements have been prepared in accordance with the provisions applicable to smallcompanies within Part 15 of the Companies Act 2006 and in accordance with the Financial ReportingStandard for Smaller Entities (effective April 2008).

The financial statements were approved by the Trustees on 2 July 2014 and signed on their behalf, by:

Dr R CrambChairman

Mr S BoleyTreasurer


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1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, with theexception of investments which are included at market value, and in accordance with the FinancialReporting Standard for Smaller Entities (effective April 2008). The financial statements have beenprepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting andReporting by Charities' published in March 2005, applicable accounting standards and theCompanies Act 2006.

The Statement of Financial Activities (SOFA) and Balance sheet consolidate the financialstatements of the charity and its subsidiary undertaking. The results of the subsidiary areconsolidated on a line by line basis.

Certain comparative figures within the Statement of Financial Activities have been amended toreflect a more appropriate classification of income and expenditure. There is no net effect on theresults for the comparative period.

No separate SOFA has been presented for the charity alone as permitted by section 408 of theCompanies Act 2006 and paragraph 397 of the SORP.

1.2 Company status

The charity is a company limited by guarantee. The members of the company are the Trusteesnamed on page 1. In the event of the charity being wound up, the liability in respect of theguarantee is limited to £1 per member of the charity.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees infurtherance of the general objectives of the charity and which have not been designated for otherpurposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed bydonors or which have been raised by the charity for particular purposes. The costs of raising andadministering such funds are charged against the specific fund. The aim and use of each restrictedfund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

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1. ACCOUNTING POLICIES (continued)

1.4 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficientreliability. For legacies, entitlement is the earlier of the charity being notified of an impendingdistribution or the legacy being received. Such income is only deferred when the donor specifies itmay only be used in future accounting periods or the donor has imposed conditions which must bemet before the charity can use the income.

Gifts in kind donated for distribution are included at valuation and recognised as income when theyare distributed to the projects. Gifts donated for resale are included as income when they are sold.Donated facilities are included at the value to the charity where this can be quantified and a thirdparty is bearing the cost. No amounts are included in the financial statements for services donatedby volunteers.

Donated services or facilities, which comprise donated services, are included in income at avaluation which is an estimate of the financial cost borne by the donor where such a cost isquantifiable and measurable. No income is recognised where there is no financial cost borne by athird party.

Income tax recoverable in relation to investment income is recognised at the time the investmentincome is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods havebeen provided or on completion of the service.

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been included under expensecategories that aggregate all costs for allocation to activities. Where costs cannot be directlyattributed to particular activities they have been allocated on a basis consistent with the use of theresources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costsof disseminating information in support of the charitable activities. Support costs are those costsincurred directly in support of expenditure on the objects of the charity and include projectmanagement carried out at Headquarters. Governance costs are those incurred in connection withadministration of the charity and compliance with constitutional and statutory requirements.

1.6 Going concern

After making enquiries, the trustees have a reasonable expectation that the charity has adequateresources to continue its activities for the forseeable future. Accordingly, they continue to adopt thegoing concern basis in preparing the financial statements.

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1. ACCOUNTING POLICIES (continued)

1.7 Basis of consolidation

The financial statements consolidate the accounts of Hyperlipidaemia Education & AtherosclerosisResearch Trust UK (HEART UK) and its subsidiary undertaking.

The charity has taken advantage of the exemption contained within 408 of the Companies Act 2006not to present its own Income and Expenditure account.

1.8 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at ratescalculated to write off the cost of fixed assets, less their estimated residual value, over theirexpected useful lives on the following bases:

Office equipment - 15% reducing balance

1.9 Investments

Investments (including listed and unlisted shares) are stated at market value where there is areadily identifiable market value. Where there is no readily identifyable market value they arerecorded at the Trustees' valuation. Movements in value arising from investment changes orrevaluation, together with profits on disposal of investments, have been recognised in theStatement of Financial Activities.

(i) Subsidiary undertakingsInvestments in subsidiaries are valued at cost less provision for impairment.

1.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks.

1.11 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents theamounts payable by the charity to the fund in respect of the year.

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2. HEART UK Trading Company Limited

The wholly owned trading subsidiary, HEART UK Trading Company Limited, which is incorporated in theUnited Kingdom, pays its taxable profits to the charity by Gift Aid. Its results are consolidated with thoseof HEART UK. The charity owns the entire share capital of 2 ordinary share of £1. A summary of thetrading results is shown below.

2014 £

2013 £

Turnover 411,741 328,486Cost of sales and administrative expenses (273,801) (260,445)Interest receivable 48 43

Net profit

137,988

68,084Amount gifted to charity (137,988) (68,084)

Retained in the subsidiary - -

The assets and liabilities of the subsidiary were: Fixed and current assets 314,565 116,400Creditors: amounts falling due within one year (339,901) (141,736)

Total (25,336) (25,336)

3. VOLUNTARY INCOME

Totalfunds

Totalfunds

2014£

2013£

Corporate donations and grants 69,387 52,510Legacies 193,612 139,749Gift aid 13,899 19,448Public donations 16,557 5,169

Voluntary income 293,455 216,876

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4. ACTIVITIES FOR GENERATING FUNDS

Totalfunds

Totalfunds

2014£

2013£

Sponsorship income 211,195 216,339Other fundraising events 106,542 88,300Product approval licence fees 100,640 66,500Literature and misc sales 53,648 9,390

472,025 380,529

5. INVESTMENT INCOME

Totalfunds

Totalfunds

2014£

2013£

Dividend income 1,491 2,954Interest received 416 74

1,907 3,028

6. CHARITABLE ACTIVITIES

Totalfunds

Totalfunds

2014£

2013£

Awareness, Education and Patient Support 43,284 54,609Membership 10,315 24,380

53,599 78,989

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7. TOTAL RESOURCES EXPENDED

Staff costs

Grants &Direct

funding Support Total Total2014

£2014

£2014

£2014

£2013

£

Fundraising expenses 82,798 82,304 106,709 271,811 255,835

Costs of generating funds 82,798 82,304 106,709 271,811 255,835

Awareness, Education andPatient Support 195,467 17,350 134,989 347,806 307,896

Membership 4,535 8,325 - 12,860 16,710

Charitable activities 200,002 25,675 134,989 360,666 324,606

Governance - - 13,662 13,662 14,274

282,800 107,979 255,360 646,139 594,715

Costs are allocated in accordance with where they are incurred. Fundraising expenses are the costs incurred in HEART UK Trading Company Limited, split inaccordance with the nature of the expenditure. All staff costs included in HEART UK relate to Awareness, Education and Patient Support, with theexception of one third of one staff members time which relates to Membership. Grants and direct fundingare the costs incurred on fundraising and events. The membership costs relate wholly to the costsincurred by HEART UK on Cholesterol News. Governance costs are as presented in the note below. Allother costs incurred are support costs.

8. GOVERNANCE COSTS

Totalfunds

Totalfunds

2014£

2013£

Audit and accountancy fees 11,150 12,128Insurance 2,342 1,930Trustee expenses 170 216

13,662 14,274

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9. STAFF COSTS

2014 £

2013 £

Wages and salaries 220,896 173,854Social security costs 22,327 17,021Pension costs 10,409 9,471

253,632

200,346Consultancy / Self employed 29,168 19,772

Total 282,800 220,118

10. STAFF NUMBERS

The average number of full-time equivalent employees (including casual and part time staff) during theyear was made up as follows:

2014 £

2013 £

Charitable operations 4 4Management and central services 1 1Consultancy 1 1

Average number of employees 6 6

No employee received remuneration greater than £60,000 in the year (2013: none).

11. NET INCOMING RESOURCES / (RESOURCES EXPENDED)

This is stated after charging:

2014 2013 £ £

Depreciation of tangible fixed assets:- owned by the charitable group 11,149 5,076

Auditors' remuneration 8,250 8,000Pension costs 10,409 9,471

During the year, no Trustees received any remuneration (2013 - £NIL).During the year, no Trustees received any benefits in kind (2013 - £NIL).

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12. TAXATION

The company is a registered charity and no provision is considered necessary for taxation, as it fallswithin the various exemptions available to registered charities. The subsidiary company pays anytaxable profits or surpluses to the charity each year under gift aid.

13. TANGIBLE FIXED ASSETS

Officeequipment

Group £

Cost

At 1 March 2013 58,300Additions 10,278Disposals (6,872)

At 28 February 2014 61,706

Depreciation

At 1 March 2013 29,617Charge for the year 11,149On disposals (6,872)

At 28 February 2014 33,894

Net book value

At 28 February 2014 27,812

At 28 February 2013 28,683

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Officeequipment

Charity £

Cost

At 1 March 2013 51,428Additions 10,278

At 28 February 2014 61,706

Depreciation

At 1 March 2013 24,534Charge for the year 9,360

At 28 February 2014 33,894

Net book value

At 28 February 2014 27,812

At 28 February 2013 26,894

14. FIXED ASSET INVESTMENTS

Listedsecurities

Group £

Market value

At 1 March 2013 42,303Disposals (32,216)Revaluations 4,424

At 28 February 2014 14,511

Historical cost 73,049

Group investments at market value comprise:2014 2013

£ £

Listed investments 14,511 42,303

All the fixed asset investments are held in the UK

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14. FIXED ASSET INVESTMENTS (continued)

Listedsecurities

Sub totalcarried

forwardCharity £ £

Market value

At 1 March 2013 42,303 42,303Disposals (32,216) (32,216)Revaluations 4,424 4,424

At 28 February 2014 14,511 14,511

Historical cost 73,049 73,049

Sub totalbroughtforward

Shares ingroup

undertakings TotalCharity £ £ £

Market value

At 1 March 2013 42,303 2 42,305Disposals (32,216) - (32,216)Revaluations 4,424 - 4,424

At 28 February 2014 14,511 2 14,513

Historical cost 73,049 2 73,051

Charity investments at market value comprise:2014 2013

£ £

Listed investments 14,511 42,303Group 2 2

Total 14,513 42,305

All the fixed asset investments are held in the UK

15. STOCKS

Group Charity

2014 2013 2014 2013£ £ £ £

Finished goods and goods for resale - 5,562 - 312

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16. DEBTORS

Group Charity

2014 2013 2014 2013£ £ £ £

Trade debtors 82,586 63,609 - -Amounts owed by group undertakings - - 119,471 -Prepayments and accrued income 49,710 33,594 11,908 21,470

132,296 97,203 131,379 21,470

17. CREDITORS:Amounts falling due within one year

Group Charity

2014 2013 2014 2013£ £ £ £

Trade creditors 25,653 41,384 19,293 11,978Amounts owed to group undertakings - - - 8,095Other taxation and social security 43,703 10,079 7,280 5,471Other creditors 10,515 7,694 10,514 7,694Accruals and deferred income 200,318 134,052 22,671 26,330

280,189 193,209 59,758 59,568

18. CREDITORS:Amounts falling due after more than one year

Group Charity

2014 2013 2014 2013£ £ £ £

Other creditors 12,750 22,950 12,750 22,950

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19. STATEMENT OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Gains/(Losses)

CarriedForward

£ £ £ £ £

Unrestricted funds

General Funds - all funds 115,402 819,535 (614,881) - 320,056Reserves (25,339) - - - (25,339)

90,063 819,535 (614,881) - 294,717

Restricted funds

The Audrey & Eric BrentFoundation 5,242 - - - 5,242

Annie Herdman Legacy Fund 41,878 1,451 (31,258) 4,424 16,495

47,120 1,451 (31,258) 4,424 21,737

Total of funds 137,183 820,986 (646,139) 4,424 316,454

Name of fund Description, nature and purpose of fundThe Audrey & Eric Brent Foundation To support an annual memorial lecture to be given to patients with FH and patient supporters of the charity.

Annie Herdman legacy capital To advance the work of the charity in Northumberland and Newcastle.

SUMMARY OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Gains/(Losses)

CarriedForward

£ £ £ £ £

General funds 90,063 819,535 (614,881) - 294,717Restricted funds 47,120 1,451 (31,258) 4,424 21,737

137,183 820,986 (646,139) 4,424 316,454

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20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Tangible fixed assets - 27,812 27,812 28,683Fixed asset investments 14,511 - 14,511 42,303Current assets 7,226 559,843 567,069 282,356Creditors due within one year - (280,188) (280,188) (193,209)Creditors due in more than one year - (12,750) (12,750) (22,950)

21,737 294,717 316,454 137,183

21. OPERATING LEASE COMMITMENTS

At 28 February 2014 the group had annual commitments under non-cancellable operating leases asfollows:

2014 2013Group and Charity £ £

Expiry date:

Between 2 and 5 years 11,709 10,960

22. RELATED PARTY TRANSACTIONS

Some of the Trustees hold positions within medical organisations with which HEART UK has links.Some of those organisations make donations to, or seek product approval licenses from the charity orits trading subsidiary. The charity has a conflict of interest policy in place to ensure that potentialconflicts are identified and dealt with appropriately. The company has taken advantage of theexemptions allowed by Financial Reporting Standards for Smaller Entities, not to disclose transactionswith related party undertakings which are wholly owned by the group.

Mr M Crozier is a publisher and operates under the name Crozier Associates. Crozier Associates wereappointed to produce our membership magazine, Cholesterol News. During the year £8,000 (2013:£5,373) was paid to Crozier Associates for these services. The balance due at the year end was £nil(2013: £nil).

23. PRINCIPAL SUBSIDIARY

Company name CountryPercentageShareholding Description

HEART UK Trading CompanyLimited

UK 100 Trading subsidiary

Page 27

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