rice · to be an old age psychiatrist to learn more about dementia-related research; it is...

RICE

The Research Institute for the Care of Older People

Annual Report and Financial Statements for the year ending 31 December 2014

Registered Charity 1042559

Registered Company 2979617

RICE

Annual Report and Financial Statements 2014

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Contents

Annual Report

Report of the Trustees.................................................................................................................................

About RICE……...............................................................................................................................................

Financial review............................................................................................................................................

Thank you .....................................................................................................................................................

Future Plans...................................................................................................................................................

Governance ..................................................................................................................................................

General Information....……………………………………………………………………………………………………………………………

Independent auditor's report ..................................................................................................................

Financial Statements

Statement of financial activities ................................................................................................................

Balance sheet ...............................................................................................................................................

Accounting policies ......................................................................................................................................

Notes to the Financial Statements ............................................................................................................

4 - 6

7 -8

9

10

11

12-14

15

16

17

18

19

20 - 27

RICE Annual Report and Financial Statements 2014

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Report of the Trustees The Trustees of RICE are pleased to present

their Annual Report, together with the

Financial Statements, for the year ended 31

December 2014. The Report covers pages 3-

13.

Review of the Year

2014 has been another successful year for RICE which included winning the Health and Social Care Partner Award from the Bath and North East Somerset Carers Centre. During the year the Charity was saddened by the death of one of its Trustees – Brian Roper who had given huge support to RICE over a number of years.

Memory Clinics Our Memory Clinics continue to be a focus for the assessment, diagnosis and management of people with memory problems and dementia and their caring relatives and friends. The main Medical Memory Clinics at RICE are supported by Community Memory Clinics that also see people who refer themselves and both types of clinic provide an important local resource. In 2014 there was a further increase in people referred to the RICE Clinics, mainly by local GPs but also from hospital-based specialists. There were also a number of referrals from Wales and elsewhere in the West Country because of our wider reputation as a Centre of Excellence including assessing and managing less common conditions such as Semantic Dementia and Posterior Cortical Atrophy. In 2014 we saw over 530 new patients and over 1100 follow-up patients. Medical assessment and treatment is only one part of the care and support that needs to be provided for people with dementia and their families. Our staff are widely praised for the general care and advice that they provide not only within the clinics but also at other times on the telephone or in person. This continuing support is often acknowledged by families following the eventual death of their relative with dementia by asking for RICE to receive donations in lieu of funeral flowers. However we recognise that we cannot

provide all of the advice and support that is needed and it is vital that we link up locally with all of the other services and help that are available. We were especially pleased therefore to receive the Partner Award from the Carers Centre. The citation for this award recognises those that have ‘gone the extra mile’ and acknowledged that at RICE “the views of carers and patients are given equal status….the commitment to supporting carers is seen throughout – with many RICE staff members going beyond what are expected of them”.

Knowledge and Experience Sharing our knowledge and experience is an important part of our work. We held two 6-week Carers’ Courses during the year. Our courses have the advantage that we can look after the person with dementia in the RICE Centre while their carer is upstairs attending the course. We also provided two Cognitive Stimulation Therapy group sessions for people with dementia and have explored whether shorter 4-week courses might be as effective as longer courses but it appears that longer courses are better. We continue to have a number of visitors to our clinics including medical students from Bristol. We believe that it is vital that these students learn more about assessing and helping people with dementia during their training so that they are more aware and better prepared when they qualify. This year we also hosted a doctor undergoing training to be an old age psychiatrist to learn more about dementia-related research; it is important that the specialists of the future

Professor Jones receiving the Carers Award

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understand and have a commitment to engaging with research so that improvements in care and treatment continue to be developed. Local educational sessions led by Professor Jones were given at the University of Bath to undergraduate students and at a meeting in Paulton to local GPs. National speaking commitments included educational meetings for elderly care physicians in Manchester, running a workshop and speaking at national meetings in London and speaking at the Older Minds New Ideas multidisciplinary conference in Cardiff, which is for a range of staff working with older people with dementia or mental health problems. Finally in September we hosted a public educational meeting in Bath as part of our commitment as an Alzheimer Research UK Joint Centre of Excellence with other colleagues in Bristol and at Bath University. RICE works in partnership with a number of other groups and organisations including the Bristol Dementia Research Collaborative, the Royal United Hospital Dementia Strategy Group, the European Alzheimer’s Disease Consortium, and as one of the selected centres within the International Association of Geriatrics and Gerontology (IAGG) Global Aging Research Network (GARN).

Research 2014 has been another very active year for our research programmes. Around 100 people have been recruited to the various on-going projects. The GREAT project, funded by the National Institute of Health Research (NIHR)

Health Technology Assessment (HTA) Programme, is looking at the potential benefit of cognitive rehabilitation for people in the early stages of Alzheimer’s disease and similar dementias (administered in Bath by our Research Occupational Therapist) and is moving forwards satisfactorily: this project will continue until at least 2016. Professor Jones is responsible for recruitment nationally to the IDEAL study funded by the Economic and Social Research Council (ESRC) as part of its “Living Well With Dementia” programme. Dr Krist Noonan, RICE’s Neuropsychology Research Fellow is the local Principal Investigator for the study which is in the process of recruiting 50-80 people from the Bath area with different types of dementia and, where appropriate, their family caregiver. This observational study is finding out what it is like for the person and their family living with dementia, what helps to make life easier and more satisfying and what makes things more difficult. The results of this study will help professionals and others have a better understanding of the effect of dementia on an individual; it will also hopefully suggest further research projects to explore new ways of helping people to live as well as possible despite having dementia, even in the absence of medical cures. Dr Noonan and Professor Jones are also working with a group in Bradford led by the NHS National Clinical Director for Integration and Frail Elderly, Professor John Young to investigate the effectiveness of two brief cognitive screening tools for detecting memory problems and mild dementia in a project also funded by the NIHR HTA programme. 2014 saw a change in the way research is managed through the NHS Research Networks. RICE is now part of the West of England Clinical Research Network (WoE CRN) and the previous work of DeNDRoN (The Dementias and Neurodegenerative Diseases Network) locally is now incorporated within the WoE CRN. In December Professor Jones was appointed as the Dementias Specialty Lead for the WoE CRN and continues in his role within the Networks to encourage

Cognitive Stimulation Group working in the RICE garden


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involvement and recruitment to dementia-related research within the West of England. He also continues as a member of the National Dementia Clinical Studies Group. An important part of our research continues to be the search for and evaluation of drug treatment for people with dementias such as Alzheimer’s disease (AD). Over the past few years, most of the potential drug therapies in research have been targeted at a protein called amyloid which is believed to be an important causative factor in the development of AD. So far this approach has met with limited success and no drugs have yet been approved for general prescription. Another important factor in the development of AD and some other dementias is the formation of so-called neurofibrillary tangles within the nerve cells in the brain. More recently a number of potential drug therapies have been identified that target reducing these tangles or removing them from the brain and the RICE team are at the forefront of the clinical trials necessary to evaluate these approaches. This is likely to be an exciting new area of research over the next few years. We continue to carry out clinical trials with a number of compounds that it is hoped will modify the underlying dementia or even potentially provide a cure and also with a number of drugs that are targeted at improving the symptoms of AD. Professor Jones continues to act as the International Chief Investigator of one clinical trial and the National Chief Investigator for several other studies as well as serving on the independent Data Monitoring and Safety Committees for a number of academic and pharmaceutical company clinical trials including one looking at the value of exercise for people with dementia.

Learning As in previous years, Professor Jones has been invited to take part in a number of international conferences and other meetings. He was part of an AD Environmental Evolution Working Group that met in Chicago in May and attended the AAIC International Alzheimer’s Conference in Copenhagen in July where he spoke at one symposium and chaired and spoke at another. In December he gave an invited lecture at a symposium in Dubai. Dr Mann also attended the AAIC conference in Copenhagen and other staff attended investigator meetings in a number of locations. Not only is it important that our research and learnings are presented at local, national and international meetings (including this year at the British Geriatric Society Autumn Meeting, the Royal College of Psychiatrists Faculty of Old Age Psychiatry Annual Conference and the International Alzheimer’s Conference in Copenhagen), but it is also important to be published in peer-reviewed scientific publications and other journal and books. This year RICE staff authored or co-authored 15 papers in journals including Alzheimer’s & Dementia, the Journal of Internal Medicine, the International Journal of Geriatric Psychiatry, and Dementia and Geriatric Cognitive Disorders whilst Professor Jones contributed a chapter on Preventing Alzheimer’s Disease to an international multi-author textbook.

“It’s Ok to ask about Research”

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About RICEThe Research Institute for the Care of Older People, known as RICE, is a charity based in Bath and undertaking clinical research into diseases experienced by older people. Since its establishment thirty years ago it has focused its activities in dementia research and has made a real contribution to national and international knowledge in this area, particularly in relation to Alzheimer’s disease. RICE is independent of both the NHS and Universities but works in partnership with them. RICE employs clinicians to undertake research within its purpose built facilities in Bath. This means that it is able to have full discretion over its ambition and activities at the same time as building effective links with relevant university research groups across the UK and with local NHS hospitals. RICE is also a provider of NHS services, offering memory clinic services to the population of Bath and North East Somerset under an NHS contract. RICE is a company limited by guarantee, a registered charity and a registered provider of NHS services and as such is regulated under company law, charity law and healthcare law. Its Council of Management, comprising its Trustees, is responsible for ensuring that it complies with the requirements of all of relevant regulators.

Why are we needed? The population of the UK is getting older. Average life expectancy for men grew from 72.1 to 79 years between 1986 and 2012 and is predicted to have risen to 83.3 years by 2037. For women the

growth was from 79.9 year in 1986 to 82.8 years in 2012 with a prediction of 86.8 years by 2037 (source: The King’s Fund). Improvements in cancer and cardiac disease treatments and improved prevention, mean that more people are surviving acute illnesses and going on to develop progressive chronic conditions such as dementia, Parkinson’s disease and worsening bone health and fragility problems as they age. Whilst it is generally accepted that the health of older people and the health services available to them, need to improve, the money and research effort put into this area is still very much a ‘poor cousin’. RICE is concerned with helping older people to live without disease and disability for longer – adding life to years rather than years to life. The benefit of this for the individual is that they remain independent and enjoy life for longer. This also benefits society as a whole by helping to mitigate the increasing costs of caring for a rising number of older people. The work of RICE remains essential if we are going to support our citizens to live well into older age.

Our Purpose The charitable purpose of RICE as described in its Articles of Association is: “To relieve sickness and to promote and advance medical knowledge with particular reference to all aspects of the care of older people, to undertake research and to publish the useful results of such research.”

RICE notice board

RICE waiting room

RICE information wall


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Our Principal Activities RICE:

Undertakes academic research as part of national projects (multi-centre) funded in part by NHS research money and Research Council money. In general, projects of this sort fund direct project costs at centres but do not provide funding for the lead researcher and some other ‘infrastructure’ costs which are assumed to be funded by the centre’s own money

Undertakes its own academic research projects including pilot studies that may highlight areas for future research projects

Undertakes research on new drugs in development for the treatment of dementia and Alzheimer’s Disease funded by pharmaceutical companies

Provides a memory assessment and diagnosis service for the population of Bath and North East Somerset funded by an NHS contract

Delivers Cognitive Stimulation Therapy courses for patients with dementia and carers courses for people looking after relatives or friends with dementia, both of which are funded by charitable donations

Publishes and presents on its research findings and contributes to the growth in knowledge in the areas in which it works

Seeks to influence national and local policy and deliver improvements in the way health and care services are provided

Supports staff to develop skills and expertise which enhances their personal development and future employability

Undertakes fundraising to support its activities

Our Public Benefit At RICE we are able to demonstrate that in 2014 we delivered against our public benefit requirement in the following ways:

We took part in research projects designed to further knowledge in the care of people with dementia

We published (as primary or contributing author) articles in academic journals and made presentations to academic conferences in relation to our research activities

We delivered our commitment to relieving sickness through the delivery of memory assessment and diagnostic services to new patients and existing patients as part of their continuing care

Services were provided in line with our NHS contract and met requirements in relation to equality of access to care, recognising the specific needs of those with cognitive impairments which resulted in many of our patients being assessed as vulnerable adults

We worked with other voluntary organisations to support patients and their carers following a diagnosis of dementia in order to support their mental and emotional well-being

RICE Carers Course

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Financial review

Financial review 2014 Trustees are able to report a positive financial position as at 31 December 2014 with an overall surplus of £86.5k for the year (2013 - £270k surplus). This is after taking into account £37.3k of gains on investments in this period (2013 - £53k). There was a surplus of £82.9k, before investment gains, on unrestricted activity compared to a surplus of £97.2k in 2013. There was an increase in income from unrestricted legacies and donations and a successful renegotiation of the Memory Clinic contract with Bath & NE Somerset CCG allowed a more realistic recovery of the direct costs incurred by RICE in operating the clinics. Income from research activities amounting to £250k was slightly down on the previous year, but this is simply a reflection of the timing of new funding streams starting and existing ones completing. At any one time RICE is engaged in multiple research projects and these vary in size, duration and complexity so that the income streams generated will vary from year to year. At RICE the successful delivery of charitable objectives depends entirely on specialist staff and staff costs represent 73.5% of total costs. RICE continues to invest in and seek funding to develop its staff resource further. Overhead costs are tightly controlled. As a consequence of the surplus for the year net assets have increased to £2.1m (2013 - £2.0m). The majority of these assets are represented by restricted funds totalling £1.44m (2013 – £1.47m) which in the main relate to the purpose built facility where RICE is now based. The rest of the reserves are represented by free unrestricted funds totalling £726.2k (2013 - £605.9k). Of these £346.9k relate to a revaluation reserve fund (2013 – £309.6k). Trustees continue to be prudent in setting budgets and, as part of the Strategic Plan, seek to build on

current financial strength in order to take RICE forward on an increasingly sound financial footing.

Reserves Policy The key indicator of the financial health of a charity is the level of the free unrestricted reserves. The Reserves Policy previously adopted by the Trustees required RICE to have free unrestricted reserves equivalent to at least 8 months operating costs. At 31 December 2014 free unrestricted reserves amounted to £726k, of which £100k has been placed in a designated fund for future organisational development. Based on increased budgeted activity levels for 2015, 8 months operating expenditure amounts to £555k. In line with the strategic development plan, commitments to enter into contracts for the appointment of 2 senior clinical academics will arise in 2015 and these will be financed initially from available financial reserves, but with an on-going need to raise further funds in addition to these. A fundraising strategy for doing this is already under way. In addition, whilst RICE has had two very positive financial years in 2013 and 2014, Trustees are mindful that continued financial stability depends on maintaining appropriate levels of reserves to weather future fluctuations in existing income streams in a continuing uncertain financial climate.

Investment Policy

RICE’s investment portfolio is managed by external advisors who provide Trustees with professional advice as to investment strategy, within parameters set by Trustees. Trustees are satisfied with investment performance in the year.


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Thank you RICE would not be able to continue its work without the support of community groups, companies, local and national grant making trusts and literally hundreds of individuals (many of whom are patients), their families and carers. We are extremely grateful to everyone who supports RICE by taking part in a fundraising challenge, helping to organise an event or simply by making a donation.

Volunteers

Our volunteers play an incredibly important role as they provide support for our small fundraising and administration team and help organise and run fundraising events – their contribution is invaluable.

Legacies

Support from legacies is particularly touching and we are grateful to those individuals who decide to support RICE in their will. It is also moving that friends and family make donations to RICE in memory of their loved ones.

Financial support

It is simply not possible for us to name all our donors, but we would like to take this opportunity to publicly thank everyone who has supported RICE over the last year including;

Donald Forrester Trust

Edgar E Lawley Foundation

Essex Trust

Medlock Charitable Trust

Murphy-Neumann Charity

Verdon-Smith Family Charitable Trust Smith Charitable Trust Stephen Clark 1957 Charitable Trust The Raven Pub Robert Roaf Charitable Trust

The Discworld Emporium

The Raven Pub

Partis College, Norton

Radstock U3A

Bath Multi Racial Club

Jemima and Bruce before completing the Bath Half Marathon

The Discworld Foundation

The Discworld Emporium

Partis College

Norton Radstock U3A

Bath Multi Racial Club

Volunteers Margaret and Teri selling Christmas Cards and merchandise

And special thanks to Individual supporters for their additional support through donations, give-as-you-earn, legacies and support for appeals.

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Future Plans

Today RICE has a team of 12 expert Doctors, Nurses, Psychologists and an Occupational Therapist based in the purpose built RICE Centre on the Royal United Hospital (RUH) site in Bath and through the Memory Clinics sees around 500 new patients each year, many of whom are invited to participate in a research study and/or clinical drug trial. There is no cure for dementia, primarily because our understanding of how the disease develops is still limited. With an ageing population the number of people living with dementia is expected to double within the next 20 years and whilst increasing awareness will add pressure to increase publicly funded research the demands on public money mean it’s unlikely to be at the scale the problem requires.

Strategic development plan

During 2014 the RICE Trustees spent time reviewing its strategic direction. As a result the charity has confirmed its commitment to both deepening its expertise in dementias and broadening its research portfolio to include other neuro-degenerative diseases common in older people. RICE will continue to provide;

Clinical research studies

Local memory clinics

Carer support courses

Cognitive Stimulation Therapy for

patients

Clinical drugs trials

Additionally RICE has ambitious plans to significantly increase its clinical research programme by recruiting 2 senior researchers at Senior Lecturer, Reader or Professorial level. Collaboration is vital to effective research so these positions will be recruited by Bristol University and jointly funded by RICE and the RUH Bath. In this way the independent research conducted at RICE will benefit from access to the

Medical School community in Bristol and the clinical activity undertaken at the RUH.

The third floor of the RICE Centre, which is currently used for storage, will be developed to provide additional research and patient consultation space and a dedicated General Manager will be appointed to oversee the operation of the Institute in order to release the Director to focus more time on research. Through this plan of growth, RICE intends to increase its impact in delivering health improvement for those with neuro-degenerative diseases. These developments will require a substantial increase in funding that will partly be met by a fundraising appeal which will be launched during 2015.


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Governance

Legal Status RICE is:

A Charity registered with the UK Charity Commission (Charity Number 1042559)

A Company limited by Guarantee registered at Companies House (Company 2979617)

A provider of services to the NHS under NHS Standard Contract

A provider of research activities under specific research contracts with Universities, NHS organisations, UK research bodies and commercial companies

As such it is required to comply with governance and reporting requirements of:

Charity Commission in England and Wales

Companies Act 2006

UK Financial Reporting Council

HMRC

Care Quality Commission

NHS England (through operation of Clinical Commissioning Groups)

Department of Health Research Governance Framework

Individual funders of research projects and trials

Constitution The governing document of RICE is its Memorandum and Articles of Association. This can only be amended by special resolution at a General Meeting of Trust members.

Governance The Governing Body of RICE is its Council of Management which comprises its Trustees is supported by the Director of RICE, acting as Board Secretary. The Council of Management meets on a quarterly basis to consider the strategic direction and framework of the charity and to review management information as determined by the

Director. Risks are reviewed on a six monthly basis. The Trustees provide the following personal areas of expertise to RICE in its oversight and leadership: Financially qualified Trustee Legally qualified Trustee Medical research leadership Medical clinical leadership Academic and research leadership Business management Fund-raising Strategic management External auditors are engaged to review the Charity Annual Accounts and Annual Report and to provide an opinion upon them. The External Auditors present directly to the Council of Management on their findings. External investment advisors oversee the charities invested funds and report annually to the Council of Management with recommendations for changes and improvements to optimise the charities assets and appropriately manage investment risks.

Learning and Improving The Charity has been in existence for 30 years and in 2014 it was decided that there should be a full review of its governance arrangements to ensure the charity continues to deliver good practice and compliance with statutory requirements. RICE began this review in November 2014 and it will be concluded by October 2015. This review has been supported by (a) a self-assessment by Trustees of current arrangements using the Charity Commission’s Hallmarks of an Effective Charity as a framework and (b) an external, independent charity legal expert working with the Trustees.

Trustees RICE currently has seven Trustees who have been appointed on the basis of their personal and professional expertise. There is no limit to the

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term served by any Trustee (subject to re-election). A vacancy exists for a Trustee with good commercial and business links following the sad death of Brian Roper in 2014. During 2014 the financial Trustee, Nick Brown, retired. The Trustees wish to acknowledge the valuable contribution that Nick made to RICE over a very long period. A new financial Trustee, Ian Turner, has been appointed since the year end.

Trustee training and development Prospective Trustees are invited to observe a meeting of the Council of Management and to meet Trustees as part of their appointment process. Upon appointment, all Trustees meet with the Chair, Director and other relevant senior staff for an introduction to the Charity and its operations. Declarations of fitness to act as a Trustee are secured upon appointment and confirmed on an annual basis. The review of governance currently being undertaken at RICE includes an assessment of on-going Trustee training and development requirements.

Risk Management The Council of Management has in place the following arrangements for the identification, management and reporting of risks within its operations:

A risk management policy

A risk register, which reviews risks by their likelihood and severity and which identifies controls and actions to manage them appropriately

For each risk, an identified risk owner who is best able to manage the risk and who is responsible for ensuring that controls are in place and that actions are taken

Six monthly review of all key risks by the Council of Management

Director The Council of Management has delegated full authority to the Director for the management of RICE on a day to day basis within the strategic framework and policies set by it. The authority of the Director is set within the Articles of Association. The governance review currently underway and the appointment of a charity manager will result in changes to the current scheme of delegation.

The Chair of Council of Management The Chair of Trustees is responsible for appraisal and performance management of the Director.

Management Team The Director is supported by the following key posts in the delivery of his role: Memory Clinic Lead (medically qualified) Finance Manager (ACA) Head of Fund-raising Development These managers work with the Director and with identified Trustees to ensure delivery of objectives and maintenance of professional, statutory and best practice standards in the Charity’s operations.

Staffing During 2014, RICE employed 20 people (16.1 whole time equivalents) of whom 15 (12.5 wte) were directly engaged in research and service activities. All staff receive an annual appraisal from the Director and are supported in training and continued professional development as required by their roles and their relevant professional bodies. As all staff are based within one building in Bath, communication and engagement is easy and informal as staff work closely with one another in small teams related to specific projects or service commitments. More formal communication occurs through staff meetings, weekly journal club (sharing research knowledge and experience), clinic meeting (reviewing the operation of the memory clinic on a weekly basis)


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and general communications meeting (sharing diary commitments and planning time). In addition, RICE has monthly educational meetings with the Older People’s Unit of the Royal United Hospital to share clinical learning and regular meetings with radiologist colleagues to discuss brain scans and brain imaging.

Trustee’s responsibilities in relation to the financial statements Company law requires the Trustees to prepare financial statements that give a true and fair view of the state of affairs of the charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the Trustees are required to:

Select suitable accounting policies and then apply them consistently

Make sound judgements and estimates that are reasonable and prudent

Prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the charity will continue in business

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In accordance with company law, as the company’s directors, we certify that:

So far as we are aware, there is no relevant audit information of which the company’s auditors are unaware

As the directors of the company we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information

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General information As at 31 December 2014

RICE is a registered charity in England and Wales and a registered company limited by guarantee.

REGISTERED CHARITY 1042559

REGISTERED COMPANY 2979617

PRINCIPAL ADDRESS AND REGISTERED OFFICE The RICE Centre Building 8, Royal United Hospital Bath, BA1 3NG

PRESIDENT Professor Sir John Grimley Evans

TRUSTEES The following Trustees, who are also Directors of the Company, served on the Council of Management

throughout 2014, except as noted:

Dr C Dyer – Chair

Mr N R Brown (Resigned January 2015) Dr M Jelley (App 22 September 2014)

Professor K A Edge Mr T Sheppard

Professor C Harland

Mr Ian Turner (App 27 April 2015)

Mrs E Terrett

Mr Brian Roper (Resigned 28 April 2014)

SECRETARY

Professor R W Jones

KEY PERSONNEL

Professor Roy Jones – Director

SOLICITORS PRINCIPAL BANKERS AUDITORS Thrings LLP Barclays Bank O’Hara Wood 2 Queen Square 4-5 Southgate Street 3 Northumberland Bldgs Bath Bath Bath BA1 2HQ BA1 1AQ BA1 2JB

INVESTMENT ADVISORS Ashcourt Rowan 2 Queen Square Bath BA1 2HD


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Independent auditor’s report

We have audited the financial statements of RICE for the year ended 31 December 2014 which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes. The financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the company's share-holders, as a body, in accordance with Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's shareholders 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 company and the company's shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND

AUDITOR

The responsibilities of the Trustees (who are also Directors of the company for the purposes of company law) – for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards and for being satisfied that the financial statements give a true and fair view – are set out in the Statement of Trustees Responsibilities on page 2.

We have been appointed auditors under the Companies Act 2006 and section 43 of the Charities Act 1993 and report to you in accordance with those Acts. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you as to whether the financial statements give a true and fair view, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the Companies Act 2006 and the Charities Act 1993. We also report to you whether, in our opinion, the information given in the Report of the Trustees is consistent with those financial statements.

In addition we report to you if, in our opinion, the charity has not kept adequate accounting records, if the financial statements are not in agreement with the accounting records and returns, if we have not received all the information and explanations we require for our audit, or if certain disclosures of trustee remuneration specified by law are not made.

We read the Report of the Trustees and consider the implications for our report if we become aware of any apparent misstatements within it.

BASIS OF AUDIT OPINION We conducted our audit in accordance with the International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group's and the charitable parent company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

OPINION

In our opinion the financial statements: give a true and fair view of the state of the

company's affairs as at 31 December 2014 and of its surplus for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities;

have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 1993; and

the information in the Report of the Trustees is consistent with the financial statements.

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Statement of financial activities for the year ended 31 December 2014

Unrestricted

funds Restricted

funds Total funds

2014

Total funds 2013

Notes £ £ £ £

Incoming resources

GENERATED FUNDS

Voluntary income:

Income from donations and legacies 1 154,522 - 154,522 74,083

Activities for generating funds:

Fundraising income 2 167,809 680 168,489 344,939

Investment income 3 4,726 - 4,726 2,920

CHARITABLE ACTIVITY

Research and clinical activities 4 224,614 240,951 465,565 472,671

Total incoming resources 551,671 241,631 793,302 894,613

Resources expended

COST OF GENERATING FUNDS

Fundraising costs 5 43,237 - 43,237 29,876

CHARITABLE ACTIVITY

Research and clinical activities 5 422,919 244,904 667,823 614,016

Capital asset depreciation charge 5 - 30,488 30,488 30,488

GOVERNANCE COSTS 3 2,520 - 2,520 2,566

Total resources expended

468,676 275,392 744,068 676,946

Net incoming resources before transfers

82,995 -33,761 49,234 217,667

Transfers between funds in the year

- - - -

Net movement in funds for year 82,995 -33,761 49,234 217,667

Gains/(Losses) on Investments 10 37,300 - 37,300 53,001

Net movement in funds for year 120,295 -33,761 86,534 270,668

Balance b’fwd 1 January 2014

605,936 1,479,518 2,085,454 1,814,786

Balance c’fwd 31 December 2014 726,231 1,445,757 2,171,988 2,085,454

The notes on pages 19 to 26 form part of these accounts.


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Balance sheet at 31 December 2014

2014 2013

Note

£ £

Fixed assets

Tangible fixed assets-property (restricted) 9

1,255,546 1,286,034

Tangible fixed assets-equipment 9

26,246 23,823

Investments 10

426,894 389,594

1,708,686 1,699,451

Current assets

Debtors 11

183,468 96,930

Cash at bank and in hand

397,530 423,492

580,998 520,422

Creditors

Amounts falling due within one year 12

117,696 134,419

Net current assets

463,302 386,003

Net assets

2,171,988 2,085,454

Funds

Unrestricted funds - designated 14

100,000 100,000

Unrestricted funds - general 14

279,241 196,246

Unrestricted funds – revaluation fund 14

346,990 309,690

726,231 605,936

Restricted funds 13/14

1,445,757 1,479,518

Total funds

2,171,988 2,085,454

The Financial Statements and notes set out on pages 16 to 26 have been prepared in accordance with the

special provisions of Part 15 of the Companies Act 2006 relating to small companies and were approved by

Trustees on 15 June 2015 and were signed on behalf of the Trustees by:

RICE


19

Accounting Policies For the year ended 31 March 2014The Financial Statements have been prepared under the historical cost convention, and in accordance with: the Financial Reporting Standard for Smaller Entities (effective April 2008); Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) issued by the Auditing Standards Board and the Charity Commission in April 2005; and Companies Act 2006.

The principal accounting policies adopted by the Charity in drawing up its Financial Statements are as follows:

a) INCOMING RESOURCES

Donations Voluntary income received by way of donations and

gifts is included in full in the SOFA when receivable. The value of services provided by volunteers has not been included.

Grants and fees Grants and fees for contracts are recognised in full

in the SOFA in the year in which they are receivable. When donors specify that donations or grants are

for a particular restricted purpose, this income is included in incoming resources of restricted funds when receivable.

Legacies Legacies are included when the charity is advised by

the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

Investment income Investment income is accounted for in the period in

which the charity is entitled to receipt.

b) RESOURCES EXPENDED

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.

General overheads Resources expended are allocated to the particular

activity where the cost is clearly identifiable as relating to that activity. General overheads and support costs are apportioned to activities in proportion to the number of staff in each area of activity.

Operating leases Rentals payable under operating leases are charged

to the SOFA as incurred over the term of the lease.

c) TANGIBLE FIXED ASSETS AND DEPRECIATION Depreciation is calculated to write down the cost of

fixed assets over their expected useful lives, on the following basis:

Leasehold land and buildings – 2% straight line

Research equipment - 25% reducing balance

Office equipment – 25 % reducing balance

d) INVESTMENTS The investments held by the Charity are stated at

their open market value at the balance sheet date. Gains and losses on disposal and revaluation of investments are credited or charged to the Statement of Financial Activities.

e) PENSION COSTS Pension costs are charged on the basis of amounts

due for the year (see note 16).

f) FUNDS ACCOUNTING Funds held by the charity are: Unrestricted general funds – these are funds which

can be used in accordance with the charitable purposes at the discretion of the Trustees.

Designated funds – these are a portion of the unrestricted funds that have been set aside for a particular purpose by the Trustees. Restricted funds – these are funds that can only be used for particular restricted purposes within the purposes of the charity. Restrictions arise when specified by the donor or when funds are secured for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the Notes to the Financial Statements (see note 13).


20

Notes to the Financial Statements for the year ended 31 December2014

1. Income from donations and legacies

Unrestricted

funds Restricted

funds

Total funds 2014

Total funds 2013

£ £ £ £

Donations 25,429 - 25,429 16,394

Gifts in Memoriam 13,070 - 13,070 8,447

Corporate Donations 540 - 540 -

Legacies 115,483 - 115,483 49,242

154,522 - 154,522 74,083

2. Fundraising income

Unrestricted

funds Restricted

funds

Total funds 2014

Total funds 2013

£ £ £ £

Charitable Trusts 119,065 680 119,745 155,798

Newsletter 5,237 - 5,237 8,206

Other Fundraising 37,609 - 37,609 180,935

Other income 5,898 - 5,898 -

167,809 680 168,489 344,939

3. Investment income

Listed investments 1,291 - 1,291 2,915

Bank interest 3,435 - 3,435 5

4,726 - 4,726 2,920

4. Research and clinical activities

Research income 155,830 - 155,830 165,827

Academic grant income 24,744 69,345 94,089 108,709

Memory clinic income 44,040 171,606 215,646 180,782

Other income - - - 17,353

224,614 240,951 465,565 472,671

RICE


21

Notes to the Financial Statements [continued]

5. Total resources expended

Direct staff costs

Allocated staff cost

Other direct costs

General support

costs Total 2014 Total 2013

£ £ £ £ £ £

Fundraising costs 17,556 6,895 12,367 6,419 43,237 29,876

CHARITABLE ACTIVITIES

Research and clinical activities 418,666 103,421 49,450 96,286 667,823 614,016

Capital asset depreciation (restricted)

- - 30,488 - 30,488 30,488

GOVERNANCE COSTS - - - 2,520 2,520 2,566

436,222 110,316 92,305 105,225 744,068 676,946

Direct expenditure has been allocated to the appropriate activity. Indirect staff costs and general support costs have

been allocated to activities in accordance with accounting policies note b). General support costs for the year ended

31 March 2014 are made up as follows:

2014 2013

£ £

Recruitment and training 1,216 1,641

Rent 14,774 14,775

Heat & Light 7,066 7,109

Repairs & Renewals 1,605 1,564

Premises Expenses 20,605 21,857

Equipment Hire & Maintenance 4,620 4,156

Cleaning 5,120 4,957

Printing, Postage & Stationery 7,280 4,690

Telephone 2,732 2,718

Insurance 16,522 16,820

Legal & Professional 4,022 5,567

Subscriptions 2,093 1,548

Other overhead costs 1,610 1,927

Bank Charges 514 381

Unrecoverable VAT 8,084 -

Depreciation (unrestricted assets) 4,872 2,742

Governance costs 2,520 2,742

Total 105,225 95,018


22


6. Trustees' remuneration

The Trustees neither received nor waived any emoluments during the year (2013 - £Nil). No expenses were

reimbursed to the Trustees during the year (2013 - £Nil).

7. Staff costs

2014 2013

£ £

Wages and salaries 485,276 442,857

Employers’ national insurance 44,022 42,444

Pension costs 17,240 25,227

546,538 510,528

One employee earned more than £60,000 a year. The remuneration of this employee was in the £100,001 to

£110,000 band. Pension costs in respect of this employee were £10,301 (2013 £10,301).

The average number of employees, based on full-time equivalents and analyses by function, was:

2014 2013

Research and clinical activities 11 10

Management and administration

5

5

Total 16 15

8. Net movement in funds

The net movement in funds is stated after charging:

2014 2013

£ £

Depreciation (unrestricted) 4,872 2,742

Auditors’ remuneration 2,520 2,566

Operating lease rentals – leasehold land and buildings 14,774 14,775

Operating lease rentals – equipment 2,859 2,859

RICE


23


9. Tangible fixed assets

Leasehold Premises

Office Equipment

Research Equipment

Total

£ £ £

£

Cost

At 1 January 2014 1,495,480 150,739 102,698

1,748,917

Additions - 11,248 -

11,248

Disposals - - -

-

At 31 December 2014 1,495,480 161,987 102,698

1,760,165

Depreciation

At 1 January 2014 209,446 127,962 101,652

439,060

Charge for year 30,488 8,540 285

39,313

Disposals - - -

-

At 31 December 2014 239,934 136,502 101,937

478,373

Net book value

At 31 December 2014 1,255,546 25,485 761

1,281,792

At 31 December 2013 1,286,034 22,777 1,046

1,309,857

As a result of the RICE’s investment in relocating to a new site in 2008, there is a significant annual depreciation

charge on restricted assets that is included in the Statement of Financial Activities each year as resources expended

on restricted funds. This depreciation charge amounted to £30,488 in the year ended 31 December 2014 (2013 -

£30,488.) The annual depreciation charge reduces the value of the restricted fund asset in the Balance Sheet as in

note (c) of the Accounting Policies.

10.

10. Fixed assets -Investments

- Invest

2014 2013

£ £

Market value at 1 January 2014

389,594 336,593

Additions/(withdrawals) during the year

- -

Realised and unrealised investment gains

37,300 53,001

Market value at 31 December 2014

426,894 389,594

Historical cost at 31 December 2014

175,926 175,926

All the investment funds are held in UK Unit Trusts or Open Ended Investment Companies and are managed by

external investment advisors.


24


11. Debtors – amounts falling due within one year

2014 2013

£ £

Research grants and other income

85,688 22,839

Other debtors and accrued income

97,780 74,091

183,468 96,930

12. Creditors – amounts falling due within one year

2014 2013

£ £

Trade creditors

5,167 13,113

Other creditors and accruals

28,720 8,169

Taxation and national insurance

18,221 20,454

Grants received in advance

65,588 92,683

117,696 134,417

The movement in Grants received in advance during the year ended 31 December 2014 is as follows:

£

Balance at 1 January 2014 92,683

Grants released during year 27,095

Grants received during year -

Balance at 31 December 2014 65,588

RICE


25


13. Restricted funds

01-Jan Incoming Resources Transfers 31-Dec

2014 Resources Expended

2014

£ £ £ £ £

REVENUE FUNDS

GREAT Project (B&NES PCT) 5,685 22,740 22,740 - 5,685

GREAT Project (Bangor) 11,920 27,224 27,224 - 11,920

Academic Grant – IDEAL - 12,797 12,797 - -

Academic Grant – BRADFORD - 4,894 4,894 - -

Academic Grant – IDEAL

1,690 1,690 - -

B&NES CCG - 171,606 171,606 - -

MOD Care - 680 - - 680

BBC Lifeline Appeal 1,554 - - - 1,554

The Roper Family Charitable Trust 150,000 - - - 150,000

CAPITAL FUNDS

The RICE Centre - building 1,286,034 - 30,488 - 1,255,546

The RICE Centre – equipment 22,432 - 3,479 - 18,953

Equipment – Friends of St Martin’s 1,893 - 474 - 1,419

Total 1,479,518 241,631 275,392 - 1,445,757

The purpose of each fund is as follows:

REVENUE FUNDS:

GREAT Project (B&NES PCT) To assess cognitive rehabilitation in early stage Alzheimer’s disease

GREAT Project (Bangor) To assess cognitive rehabilitation in early stage Alzheimer’s disease

Academic Grant – IDEAL To study patients with dementia and their family carers, aiming to improve the experience of dementia and enhance an active life

Academic Grant – BRADFORD To investigate the effectiveness of two screening tools for mild cognitive impairment

Academic Grant – IDEAL To study patients with dementia and their family carers, aiming to improve the experience of dementia and enhance an active life

B&NES CCG To support the Memory Clinic Service

MOD Care To fund purchase of 3 Test Kits for clinical use

BBC Lifeline Appeal To support RICE

The Roper Family Charitable Trust To fund the strategic development of senior staff at RICE

CAPITAL FUNDS: The RICE Centre - building To fund the construction of the new RICE Centre (2008) The RICE Centre – equipment To fund the fittings and research equipment at the new RICE Centre Equipment – Friends of St Martin’s To fund equipment for use by patients

ADDITIONAL NOTES: During the year a net transfer of £Nil (2013 - £Nil) has been made between unrestricted to restricted funds.


26


14. Analysis of net assets between funds

Tangible Fixed Assets Other Net

Assets Total

£ £ £

REVENUE FUNDS

GREAT Project (B&NES PCT) - 5,685 5,685

GREAT Project (Bangor) - 11,920 11,920

Academic Grant – IDEAL - - -

Academic Grant – BRADFORD - - -

Academic Grant – IDEAL - - -

B&NES CCG - - -

MOD Care - 680 680

BBC Lifeline Appeal - 1,554 1,554

The Roper Family Charitable Trust - 150,000 150,000

CAPITAL FUNDS

The RICE Centre – building 1,255,546 - 1,255,546

The RICE Centre – equipment 18,953 - 18,953

Equipment – Friends of St Martin’s 1,419 - 1,419

Total Restricted Funds 1,275,918 169,839 1,445,757

Unrestricted Funds – designated - 100,000 100,000

Unrestricted funds – general 5,874 273,367 279,241

Unrestricted Funds - revaluation fund - 346,990 346,990

Total Unrestricted Funds 5,874 720,357 726,231

Total Funds 1,281,792 890,196 2,171,988

The designated fund of £100,000 represents an amount set aside, from general reserves, by Trustees in 2013 to fund

future organisational developments at RICE and this will contribute in part to funding the future plans of the Charity

as it implements the Strategic Plan for expansion and development of the work and impact of Rice in the next few

years.

The revaluation fund relates to the recognised gains and losses in investments held by RICE over the years as per note

10 of the accounts.

RICE


27


15. Commitments under operating leases

The Trust has annual commitments under non-cancellable operating leases as follows:

Other than Land and Buildings 2014 2013

£ £

Due within 1 year 2,859 2,859

Due within 2-5 years 8,577 11,436

11,436 14,295

16. Pension scheme

RICE operates defined contribution pension schemes for its employees and the assets are held and managed

independently from the charity. The pension costs disclosed in Note 7 represent contributions payable for the year.

At 31 December 2014, there were no outstanding pension contributions accrued in respect of employees not yet set

up under the pension scheme (2013 – £Nil).

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