BRITISHHOM EOPATH ICAS SOCIATION
INCORPORATING THP. HOAIIiGPATHIC TRUST
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2012
H HOMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
CONTENTS
Report of the Trustees
Report of the Independent Auditors
Statement of Financial Activities
12
14
Summary of Income and Expenditure 15
Balance Sheet 16
Notes Forming Part of the Financial Statements 17
TrusteesMr John KH Cook —Chairman
Mrs Georgina J ButcherMr John A Churchill
Dr Sara EamesMr Donald Gunn
Mr Richard O' Quinn
Prof Gurch Randhawa
Dr Helmut Roniger
Ms Lauren Vaknine
Mr James Williams
Dr Jenifer Worden (retired 5/7/12)
BankersHSBC Pic
63 George StreetLuton LU1 2AR
StockbrokersInvestec Wealth Ik Investment Limited
2 Gresham StreetLondon EC2V 7QN
Chief Executive, Secretary and registered officeMs Cristal sumner
Hahnemann House, 29 Park Street West, Luton, LU1 3BE
Company number102915 (England and Wales)
Registered charity number235900
AuditorsFKCA Ltd, Prospero House, 46-48 Rothesay Road, Luton LU1 1QZ
OMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
REPORT OF THE TRUSTEES
The trustees acting for the charitable activities of the British I-lomeopathic Association submit theirreport and financial statements for the year ended 31 August 2012, which have been prepared in
accordance with the Statement of Recommended Practice "Accounting and Reporting by charities"
(2005) and the Companies Act 2006. The trustees, who constitute the Council of the British
Homeopathic Association, are listed on the previous page.
StatusThe British Homeopathic Association is constituted by the Memorandum and Articles of Association
dated 1 September 2000 and is a registered charity (number 235900) and a company limited
(number 102915) by guarantee not having any share capital.
Every member of the British Homeopathic Association undertakes to contribute such an amount asis required (not exceeding f1) to the company's assets if it should be wound up while he or she is a
member of the company or within one year of ceasing to be a member.
The INIII(am Kadlei h Memorial Fund
The William Kadleigh Memorial Fund is an unincorporated connected charity whose capital funds areheld and managed by the British I-lomeopathic Association on behalf of the Kadleigh Committee. The
committee determine the disposition of funds and report at least annually.
Balance of Fund's assets at 1 September 2011Investment incomeCash Transferred to BHA
Kadleigh Bursary
Expenses paid on behalf of the Kadleigh CommitteeInvestment management feesUnrealised (loss)/gain
2012f
119,4365,759
12,000(3,350)
(16,294)(734)2,539
2011f
127,2155,558
10,137(5,335)(7,973)
(787)(9,379)
Balance of Fund's assets 119,357 119,436
Represented byInvestments
Money on depositAmounts due to British Homeopathic Association
116,086 117,168896 2,758
2,375 (490)
Balance of Fund's assets 119,357 119,436
The total funds held as at 31 August 2012 of f119,357 have not been included in the British
Homeopathic Association's accounts. The British Homeopathic Association has paid f19,644expenses on behalf of the Kadleigh committee of which f2,375 is outstanding as at 31 August 2012.
Hahnemann House TrustThe British Homeopathic Association is the trustee of the Hahnemann House Trust (RegisteredCharity IVo 252702). The financial statements of Hahnemann House Trust are not consolidated with
those of the British Homeopathic Association.
MEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
Statement of trustees' res onsibilitiesThe trustees (who are also the directors of The British Homeopathic Association for the purposes ofcompany law) are responsible for preparing the financial statements in accordance with applicable
law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice).
Company law requires the trustees to prepare financial statements for each financial year that give a
true and fair view of the state of affairs of the charitable company and of the outgoing resources and
application and fair view of the state of affairs of the charitable company and of the outgoingresources and application of resources, including the income and expenditure, of the charitable
company for that period. in preparing these financial statements the trustees are required to:~ select suitable accounting policies and then apply them consistently;~ observe the methods and principles of the SORP;~ make judgments and 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 company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonableaccuracy at any time the financial position of the charitable company and to enable them to ensure
that the financial statements comply with the Companies Act 2006. They are also responsible forsafeguarding the assets of the charitable company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.
in so far as the trustees are aware:~ there is no relevant audit information of which the charitable company's auditor is unaware; and
~ the trustees have taken all steps that they ought to have taken to make themselves aware of any
relevant audit information and to establish that the auditor is aware of that information.
TrusteesThe trustees are also directors for the purposes of the Companies Act 2006.
The method of appointment of trustees is contained in the governing documents. Trustees are also
members of the British Homeopathic Association Council and simultaneously guarantee members ofthe company.
Before new trustees are appointed, a review of the skills mix of the trustee body is undertaken and
appropriate measures taken to recruit new trustees with skills that will fill any identified gaps. New
trustees are invited to attend an induction meeting and receive a comprehensive overview of thecharity, its work and governance. Trustees regularly review their need for additional training to fulfil
their role.
The names of those trustees who served during the year are listed on the contents page. No trusteehad any financial interest in the British Homeopathic Association. No trustee has received any
remuneration, aside from out-of-pocket expenses, from the British Homeopathic Association.
ResultsNet movement in funds was a deficit of 672,354 (2011:6128,269). The total reserves of the British
Homeopathic Association (including the permanent endowments) stand at 61,017,131 (2011:61,089,484).
HOMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
OBJECTS AND ACTIVITIES DURING THE YEAR
Petit tt ttti titty
The principal objects of the charity are to promote and develop the study and practice ofhomeopathy and to advance education and research in the theory and practice of homeopathyprovided that the useful results of such research shall be published.
The British Homeopathic Association's overall priority is to ensure that homeopathy is available to all
by means of:
1.2.3.4.5.
Providing information about homeopathyDeveloping the evidence base for homeopathyEncouraging the education and training in homeopathy of healthcare professionals
Ensuring patients have access to homeopathyFundraising to support all of the above
The work of the Association is crucial for the health of homeopathy in the UK. The environment forhomeopathy remains difficult, with many challenges including increased pressure on NHS
homeopathy services due to the general burden on the NHS to reduce spending and restructureservices, while negative media coverage of homeopathy continued albeit lessened from prior years,and there was increased concerns around access of medicines through changes in legislation.
The Association confronted these challenges head on with a plan that embraced all its coreobjectives but focussed on providing information about homeopathy to the public via the web and
social media and embarked on its first ever national campaign with celebrities to build awareness,with great success. Given the falsehoods about homeopathy that are propagated in some sectionsof the media, it was critical that the Association addressed this issue with proactive communications
activities.
The Association took a leading role in working with organisations across the sector to maximise
communication strategies, and respond to shared challenges. The collaboration has reaped many
benefits including launching a website for the public to find a registered homeopath in the UK
(www. findahomeopath. org. uk) and provides useful information about homeopathy and links touseful websites. In addition a website with facts about the Science and Technology Committeereport on homeopathy was launched. (www. homeopathyevidencecheck. orgj
Trustees have been vigilant in monitoring investment performance and levels of reserves and as a
result the Association is financially healthy and able to invest in on-going work and vital projects as it
moves forward in the coming year. In reviewing and agreeing all planned activities the trustees have
been aware of public benefit requirement and given due consideration to the Charity Commission
published guidance on the operation of the Public Benefit Requirement.
HOMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
SUMMARY OF THE ASSOCIATION'S ACHIEVEMENTS AGAINST OUR PLANS
Providin information to the ublic
The Association significantly exceeded the targets it set for informing the public about homeopathy.The awareness campaign fronted by famous supporters of homeopathy had a reached
approximately 5 million people l It was featured in the Daily Mirror, Mail on Sunday, Yahoo Lifestyle,
Natural Health and other magazines and websites. The celebrities donated their time and personalstories about homeopathy. The coverage secured was valued at over f200,000. The Association
launched a simple micro-site for the campaign as well, www. celebhomeopathy. corn.
omeopa y or s...we should know, we uso it.
Celebnty Supporters
a~~acr
0QQA@4,
As a result of the national coverage, the Association's website (www. britishhomeopathic. org) was
for a good number of weeks the top search result on Google in the UK when using the search term'homeopathy'. Being the first result for such a search on Google has far reaching positive effects on
the number of people who will find the Association and the excellent informational resources we
have on the site about homeopathy.
The following are key results for year from our website and social media feeds:
Best Google ranking (on search term 'homeopathy' )
Unique visitors to website
Page views
Number of visits
Research landing pagePractitioner search
Twitter followers
Facebook pageYouTube channel —video views
109,368 76,551651,650 581,764
159,000 125,559
6,864 6,010
70,328 64,694860 422
386 135
12,249 NA
HOMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
Facebook page 'likes' increased steadily over the year:
450
Facebook: Rate of Likes (ssfz 22-auff 22]
350
250
150
100Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug—Likes
Over the year the Association created a you Tube channel and posted videos of health professionalsand patients speaking about homeopathy. There have already been over 12,000 views.
The BHA produced z-cards and postcards which were given out in doctors surgeries and
homeopathic pharmacies encouraging patients to get involved online and providing them with toolsto answer common arguments against homeopathy. Over 10,000 items have been distributed overthe year. The supporter magazine, Health & Homeopathy (published three times a year) continuedto be a valued resource for patients and homeopaths alike.
Develo in the evidence base for borneo athDeveloping the evidence base and robustly disseminating the most current evidence is a
fundamental priority for the Bl-IA. It is essential that accurate and easily understandable informationabout the evidence for homeopathy is easily available to the public to allow them to make informed
choices and help patients to secure homeopathic treatment on the NHS.
The BHA takes pride in providing balanced, accurate and easy to understand information on theevidence base for homeopathy. The website provides a superb vehicle for sharing information on
the latest research and sections are regularly updated. One of the most popular items is the two-
pag evidence summary.
The Research Evidence Base for Homeopathy
Systematic reviews of randomlssd controlled trials (RCTs) of homeopathyFour of five major comprehensive reviews of RCTs In homeopathy have reached broadlypositive conclusions. "Based on a smaller selecllon of lrlals, a fifth review came to a negadvaconclusion sbcul homeopathy. '
Positive conclusions have been reported In 1 0 of 29 reviews of RCTs In specific calegorlss ofmedical condition llhe other 16 sre largely Inconclusive):
allerglss and upper respiratory tract Infections"
childhood diarrhosa'
influenza treatment'
posH&peratlve lleus"rheumatic diseases"seasonal allergic rhinitis""
vertigo. '"
OMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
Develo in the evidence base for homeo ath -continuedResearch papers which analyse use of homeopathy in both podiatric and dental practice werecompleted in the year and publication is anticipated in 2012-13. Also anticipated to be published in
2013, is a systematic review of randomised controlled trials in veterinary homeopathy.
The programme of work agreed last year on systematic reviews has been moving forward a pace and
collaborators were found to provide expert input to ensure the papers meet the highest scientificstandards. The first paper, 'Method for appraising model validity of randomised controlled trials ofhomeopathic treatment: multi-rater concordance study' was published in BMC Medical Research
Methodology in April 2012 and has attracted considerable interest. As a result of the paperspublished over the past years references in the Scopus database (which counts the number times a
paper is referenced in other scientific papers) has increased from well under a hundred to 121 atthe end of the year.
Encoura in the education and trainln In borneo ath of healthcare rofessionaisSince its inception in 1902 the BHA has recognised the importance of doctors and other healthprofessionals providing homeopathy for they are best placed to offer patients integrated care, using
homeopathy when it is most appropriate. It is also through doctors and other health carepractitioners working in the NHS that more of the public can, at no cost, be introduced to andbenefit from homeopathy. It is therefore critical that more health professionals are trained in
homeopathy, and to meet that goal the BHA supports the educational work of the Faculty ofHomeopathy through an annual grant.
Over the year the Faculty's recruitment efforts increased, through attending professionalconferences for doctors and midwives, placing adverts in professional journals, web advertising andvideos on its website and on its own YouTube channel.
A monthly column from a Faculty of Homeopathy dentist featured in the dental magazine Probe forall of 2012 and other editorial pieces have appeared in other professional magazines. Given theeconomic and professional challenges that healthcare practitioners undertaking homeopathictraining are now facing, it has become more difficult to recruit students on to accredited courses,however due to these efforts the numbers of students on courses have remained fairly static as have
Faculty membership numbers.
Ensurin atients have access to horneo athThe Association would like to see homeopathy easily accessible in the NHS at your neighbourhoodGP practice and in secondary care for all who could benefit from it. To help retain homeopathicservices currently on the NHS the Association has provided advice and support to local patient
groups and practitioners in their efforts to engage local decision makers, particularly PCTs in England
in retaining or commissioning new homeopathic services. This work over the year focussed in Bathand Northeast Somerset where the Association helped the local patient group retain services which
were under threat of closure.
Government support of homeopathy is critical to maintaining and building services for patients. In
March 2012 the BHA had the unique opportunity to hold an event at the Scottish Parliament, hosted
by Mr Jim Eadie MSP, to build awareness of homeopathy, its evidence base and its use in herd
animals. The event entitled 'Cleaning up the food chain —how homeopathy could help' featuredveterinary surgeon Geoff Johnson highlighting how homeopathy could be used to help decreasereliance on antibiotics for herd animals. The overuse of antibiotics in animals and humans and
resulting resistance to them is a very pressing topic for all governments and resulted in MSPs,
farming journalists and academics attending the event.
HOMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
Ensurin atlents have arcess to horneo ath - continuedThe Norwich clinic which launched in May 2011 continued providing free homeopathic treatmentevery-other Tuesday morning in the Mulbarton area. Although it is a free clinic, donations areencouraged and over the year we received E1,250 in support of the clinic. The clinic has beenadvertised locally through leaflets, and on Google and the Association is working with local
stakeholders to hold an event in the coming year for supporters and the public.
Fundraisin to su ort our aimsThe Association continued to work toward increasing its stream of annual income throughembracing more proactive fundraising. Taking the lead, the BHA's Chief Executive raised over
E3,000 running the Sussex Marathon on 1 April and wrote about her experiences to encourageothers to consider doing something to support the BHA. Materials were produced over the year toassist supporters with ideas about how to help raise money. A fundraising pack and aligned
promotional materials were produced as were bespoke materials for the patients of the Norwich
Clinic.
Totol income 2011-12by Source
9,050
599
~ Donations and gifts
~ Friends donations
~ Legacies
~ Royalties
~ Investment income
~ Other income
The Association had some success with new communication initiatives and events, and applying totrusts and other organisations to fund on-going projects. Legacies remain a vital part of theAssociation's income stream and as such investment has been made in membership of Remember a
Charity and advertising in targeted publications to solicitors.
In the current financial climate maintaining levels of annual giving is challenging for any charity. The
Association over the year has worked to retain and build the number of Friends. The BHA hoped torecruit new Friends as a result of the celebrity campaign and by providing Health & Homeopathy (theFriends magazine) through the Organic Pharmacy. The Association recruited 55 new Friends which
was similar to last year and 1337 Friends at year end which reflects a 9' decrease in numbers from
the year prior.
MEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
Fundraisin to su ort our aims - continuedThe Association is extremely grateful for the continuing support of our Friends who are pivotal to its
vitality. Friends' donations came to E41,642. Other donations totalled E9,050. We are very grateful
to all our Friends and donors including the Tanner Trust, Inachape Foundation and the Honyman
Gillespie Trust for their support.
Legacies worth f96,622 (2011:f10,610) were receivable during the year including those from theestates of Beryl Elizabeth Obee, Geoffrey Walter Avery, Gisela Huebsch, Esme A Maxfield Cotter,Margaret 5 Stolber. The trustees are extremely grateful to each of these generous benefactors.
Gift aid of E5,840 was receivable this year, slightly down from 2012. This is reflective of a decreasein regular annual giving.
Royalties this year equalled E599 (2011:E1,095).
Facul of Homeo athMuch of the Association's work is closely connected with the Faculty of I-lomeopathy, whosemembers support the BHA by providing their professional expertise. The Faculty is the only
professional body that represents statutorily registered homeopathic practitioners — doctors,dentists, nurses and midwives, pharmacists, podiatrists and vets qualified in homeopathy. It ensuresthe highest standards of homeopathic training, education and practice and has over 900 memberswho find the quality of their patient care and professional satisfaction has been improved by
learning about and using homeopathy in their daily work. It is also the leading authority on
homeopathic medicine, working to convince government, the medical establishment and decision—
makers of the need for homeopathy to be fully integrated in healthcare systems in the UK and
around the world in order ensure that the benefits of homeopathy are as widely available as
possible.
Future develo mentsThe Association will continue its work in its four key areas of activity —information, access, researchand training underpinned by fundraising. In the coming year fundraising to support our activitiesand effectively promoting homeopathy will be core objectives.
Key aims during the coming year are:~ to work with patrons and supporters to raise awareness of homeopathy to the public
~ to strengthen strategic working relationships with other organisations to increase impact ofproactive messages
~ to invest in high quality data analysis and research work in homeopathy~ to increase the number of healthcare professionals undertaking homeopathic training
through new recruitment and education efforts~ to continue to support regional groups and patients in securing NHS homeopathic services~ to create a greater fundraising culture and identity for the Association
Cor orate overnanceThe trustees, acting as the Council for the BHA, meet four times a year to consider the performanceof the British Homeopathic Association against its business plan, to consider matters specifically
reserved for their attention as laid down in the governing documents and to direct the executiveofficers of the Association as they consider appropriate.
A small sub-group of the trustees act to advise Council on financial matters, including theappointment of financial advisers and guidance on financial controls. There is also a small sub-group
of the trustees who advise on marketing and communications matters.
OMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
Cur orate overnance- continuedIn addition, the staff team of the British Homeopathic Association, led by the Chief Executive meets
regularly to discuss and implement strategic issues as directed by the trustees and to monitor and
control the performance of the charity on the authority delegated by the trustees, including researchdevelopment activities, with appropriate external input when required.
Or anisational structureThe Association and Faculty of Homeopathy have six full-time and two part-time staff between them
the majority of who work for both organisations. The CEO, Research Development Adviser and
Communications Manager comprise the management team. In addition, the Association buys in
freelance expertise as required for specialist work.
~R
The charity relies on fully funding its planned level of activities from either legacies and donations orretained reserves. Since legacy income, which is the Association's main source of income, is very
unpredictable in both amount and timing, the trustees have formed the view that it would beprudent to maintain reserves at a level which would support the activities of the charity projectedthree to five years forward.
The charity determines an operating deficit by deducting sustainable income from the cost of its
planned activities level for a three to five year period. It ensures that sufficient reserves are retained
by the charity to meet this operating deficit. In this way planned increases or enforced decreases in
activity levels can be managed smoothly.
Free reserves are those funds which are unrestricted and not designated to a particular purpose and
can be freely used to pay for day-to-day operations. The level of free reserves at the end of 2012was f767,332. The forecasted operating deficit for the next three years is E485,000 which is well
within the amount of free reserves.
t tThe trustees have established an Investment Policy appropriate to the needs of the charity.
Consequently investments have been made through a variety of short and medium funds managed
by fund managers, Investec Wealth grlnvestment Limited.
The objectives of the investment policy are to ensure creation of sufficient income and capital
growth to enable the charity to carry out its purposes consistently year by year with due and properconsideration for future needs and maintenance of and if possible enhancement of the value ofinvested funds. Performance is reviewed regularly with the fund managers who provide
benchmarking of fund performance against the market in all their quarterly reports.
The trustees believe that the funds have been managed in accordance with the established policy.
Grant makin olic
The BHA has a clear policy that it does not have the resources to be a public grant making body atthis time. We encourage partners and those of compatible objectives to our own to call on theexpertise of Bl-IA staff and Faculty members. For example, rather than funding a piece of researchstaff may provide advice on putting together a research proposal that attracts funding from another
body.
The main exception to this principle will be grants awarded to other organisations to fulfil coreBHA/Faculty of Homeopathy functions on a 'contract' basis at the agreement of trustees.
10
MEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
~tkk tThe Association conducted its first assessment of the major strategic, business and operational risks
facing it in 2001 and implemented systems to mitigate those risks and review key risks everymeeting and regularly review the full schedule of risks. Significant risks addressed each meetingfocus on issues of financial security of the charity, appropriate staffing and retention oforganisational knowledge to ensure the Association meets objectives and appropriate governance toensure the charity meets statutory and organisational obligations.
~t
The Association is committed to equal opportunities. Conditions of employment are set out in theStaff Handbook.
AuditorsFKCA Ltd have indicated their willingness to continue in office and in accordance with the provisionsof the Companies Act.
The above report has been prepared in accordance with the special provisions relating to small
companies within part 15 of the Companies Act 2006.
On behalf e Trustees
John KH CookChairman
11
MEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRITISH HOMEOPATHIC ASSOCIATION
We have audited the financial statements of the British Homeopathic Association for the year ended31st August 2012, which comprise the Statement of Financial Activities, the Summary Income and
Expenditure Account, the Balance Sheet and the related notes. The financial reporting frameworkthat has been applied in their preparation is applicable law and the United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charitable company's trustees, as a body, in accordance with
Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we
might state to the charitable company's members those matters we are required to state to them in
an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the charitable company and the charitablecompany's members as a body, for our audit work, for this report, or for the opinions we have
formed.
Respective Responsibilities of Trustees and AuditorsAs explained more fully in the Trustees' Responsibilities Statement set out on page 3, the trustees(who are also the directors of the British Homeopathic Association for the purposes of company law)
are responsible for the preparation of the financial statements and for being satisfied that they give
a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us
to comply with the Auditing Practices Board's (AP8's) Ethical Standards for Auditors.
Scope of the Audit of the Financial StatementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statementssufficient to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or error. This includes an assessment of; whether theaccounting policies are appropriate to the charitable company's circumstances and have beenconsistently applied and adequately disclosed; the reasonableness of significant accountingestimates made by the trustees; and the overall presentation of the financial statements. In
addition, we read all the financial and non-financial information in the Trustees Annual Report toidentify material inconsistencies with the audited financial statements. If we become aware of any
apparent material misstatements or inconsistencies, we consider the implications for our report.
Opinion on financial statementsIn our opinion the financial statements:~ give a true and fair view, of the state of the charitable company's affairs as at 31 August 2012
and of its incoming resources and application of resources, including the income and
expenditure for the year then ended;~ have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and~ have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other rnatter prescribed by the Companies Act 2006In our opinion the information given in the Report of the Trustees for the financial year for which thefinancial statements are prepared is consistent with the financial statements.
12
OMEOPATHIC ASSOCIATION —REPORT OF THE TRUSTEES
Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006requires us to report to you if, in our opinion:~ the charitable company has not kept adequate accounting records; or~ the financial statements are not in agreement with the accounting records and returns; or~ certain disclosures of trustees' remuneration specified by law are not made; or~ we have not received all the information and explanations we require for our audit.
Miss Tara Aldwin FCCA —Senior Statutory Auditorfor and on behalf of FKCA Limited, Statutory Auditor
Prospero House46-48 Rothesay Road
Luton LU1 1QZ
Date;
13
British Homeopathic Association
Statement of Financial Activities for the year ended 31 August 2012
Note
Unrestricted
Funds
PermanentRestricted Endowment
Funds Funds
E E
Total
2012Total
2011Incoming resources
Incoming resources from generatedVoluntary income
Donations and gifts
Friends donations
Legacies
funds
3 5,050 4,00041,642
96,622
9,05041,642
96,622
8,755
50,03010,610
Incoming resources from activities
for generating funds
Royalties
Investment income
Other incoming resources
Total incoming resources
5994 38,200 1,521
9,608
191,721 5,521
599 1,09539,721 42,2369,608 13,911
197,242 126,636
Resources expended
Cost of generating funds
Investment management feesFundraising and publicity
Charitable Activities
Training of healthcare professionals
Provision of information
Increasing public accessResearch and development
Governance costs
4,5765,534
48,026101,09953,484
65,4176,899
977
16,0094,0005,943
6,470
1,108 5,684 6,7336,511 3,572
64,034 73,016105,099 101,75159,426 46,17271,887 63,674
6,899 7,174
Net (outgoing) resourcesbefore revaluation of investments
Realised gains (losses)Unrealised gains (losses)
Net (outgoing)/incoming resources
Bad Debt Provision released 2011
285,035 33,398 1,108 319,541 302,093
(93,315) (27,877) (1,108) (122,300) (175,457)
9 25,957 (6,621) 19,336 44,9669 10,662 19,948 30,610 (6,262)
(56,696) (27,877) 12,219 (72,354) (136,753)
8,485
Net movements in funds (56,696) (27,877) 12,219 (72,354) (128,268)
Fund balances brought forward
at 1 September 2011 824,027 56,691 208,767 1,089,485 1,217,753
Fund balances carried forward
at 31 August 2012 13 767,332 28,814 220,986 1,017,131 1,089,485
The notes on page 17 to 25 form part of these financial statements.All incoming resources and resources expended derive from continuing activities.
14
British Homeopathic Association
Summary Income gr expenditure Account for the year ended 31 August 20122012
E
2011E
Gross income from continuing operations (Excludes Endowments) 197,242 126,636
Total income of continuing operations
Total expenditure of continuing operations (Excludes Endowments)
197,242
(318,433)126,636
(301,004)
Net (losses) before transfers
Realised gains on fixed asset investments
(121,191) (174,368)
25,957 38,703
Bad Debt Provision released 2011 8,485
Net movement in funds (95,235) (127,179)
Total income comprises 6191,721 (2011:6117,571) for unrestricted funds and E5,521 (2011:E9,065)for restricted funds. A detailed analysis of income by source is provided in the Statement of Financial
Activities. Total expenditure for the year was 6318 433 (2011:f302 093) comprising 6285 035 (2011:6264, 558) of unrestricted funds and f33,398 (2011:E36,446) expenditure of restricted funds, as shown
in the Statement of Financial Activities. A detailed analysis is provided in the Statement of Financial
Activities and the notes.
The Summary Income and Expenditure account is derived from the Statement of Financial Activities,
which together with the notes to the accounts provides full information on the movements during
the year on all the funds of the charity.
All activities relate to continuing activities.
The notes on page 17 to 25 form part of these financial statements
15
British Homeopathic Association
Balance Sheet as at 31 August 2012Note 2012
62011
6
Fixed assetsTangible assetsInvestments
1,783857,985
2,661981,945
Current assetsDebtors
Cash at bank and in hand
10
859,768
117,77684,811
984,606
69,93169,271
Creditors: amounts falling due within one year
202, 587 139,202
45,224 34,325
Current assets less current liabilities 157,363 104,877
Total Net assets 1,017,131 1,089,484
Income funds
Unrestricted funds
Restricted funds
Permanent Endowment
767,33228,814
220,986
824,027
56,691208.767
13 1,017,131 1,089,485
The financial statements been prepared in accordance with the provisions applicable to companies
subject to the small companies regime with Part 15 of the Companies Act 2006.Company registration 102925
The notes on page 17 to 25 form part of these financial statements
The financi nts were approv by the Board on .rR? (-ll-5. and signed on its behalf by:
John K H Cook
Chairman
16
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
1 Accounting policies
Accounting policies have remained unchanged from the previous year,
Basis ofpreparation.
The financial statements have been prepared under the historical cost convention, as modified
by the revaluation of fixed asset investments, and are in accordance with (i) applicable
accounting standards and (ii) the Statement of Recommended Practice "Accounting and Reporting
by charities" (2005) and (iii) the Companies Act 2006, including Part 15 relating to small companies
Income
Income from subscriptions, donations and legacies are included in the financial statements on a
receivable basis. All other income is accounted on an accruals basis.
Resources expended
The Association incurs four categories of expenditure, they are: cost of generating funds,
charitable activities, support costs and governance. All categories of expenditure are accounted
for on an accruals basis.
A cost for generating funds includes fundraising and publicity costs as well as investment
management fees. Charitable expenditure includes the direct costs of planning, staffing and
operating activities. The cost of generating funds and support costs include administration,
depreciation, staffing and other overheads, which have been allocated to the other main categories
on a staff time basis. Governance expenditure includes audit fees and council expenses and an
allocation of indirect costs, all being incurred for the constitutional offices of the charitable company.
Grants awarded
Provision is made for grants when approved by the trustees. Grants approved but not paid at the
balance sheet date are included in liabilities.
Tangible fixed assets
Tangible fixed costs with a value of 6500 or more are capitalised.
Depreciation
Depreciation is provided to write off the cost or valuation, less estimated residual values, of all
fixed assets, over their expected useful lives. It is calculated at the following rates:
Office equipment, fixtures and equipment
Computer equipment
10' ol' 339o reducing balance
33'Yo
17
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
Accounting policies (ContinuedJ
Fund accounting
General funds are available for use at the discretion of the trustees in pursuing the general charitable
objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular
purposes.
Restricted funds are created when funds (whether income or capital in nature) are given to, or raised
by, the charity for use in a particular area or for a specific purpose only.
Endowment Funds
These are assets, which must be held permanently by the British Homeopathic Association. The
changes to the value of the fund are reflected in the SOFA as realised and unrealised gains or losses.The income from the endownment funds is for the promotion of Homeopathy.
Gifts in kind
The Association includes individual gifts in kind where these are worth in excess of ES00.
Investments
Investments are shown at market value. The unrealised movement in market value from one year toanother is taken to the appropriate fund. The market value of investments is determined by
reference to stock exchange prices at the balance sheet date. Gains or losses arising during the yearare disclosed in the Statement of Financial Activities (SOFA).
Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership
remain with the lessor are charged to the statement of financial resources.
Taxation status
The Association as a registered charity does not incur corporation tax and reclaims any recoverable
tax suffered on investment income.
Pensions
The company contributes to individual staff's pension schemes, whose assets are maintained
separately from those of the Association. The pension charge represents the amounts payable by the
company to the funds during the year.
Emoluments
The Council Members who are the directors of the company do not receive emoluments for their services
nor do contracts of services exist between the council members and the company.
18
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
2 Resources expended
Resources expended are stated after charging:
2012 2011E E
Depreciation
Auditors remuneration
Pension costs
878 2,4004,800 4,800
8,500 6,640
3 Donations
Trust and corporate
Special Appeals
Permanent
Unrestricted Restricted Endowment
f E E
1,500 4,0003,550
2012 2011
E E
5,500 8,755
3,550
5,050 4,000 9,050 8,755
4 Investment income
Rental income
Dividends and interest on investments
2012 2011E E
1,42438,298 42,235
39,721 42, 235
19
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31August 2012
5 Analysis of total resources expended
Direct Deprec-
costs iation
E
Staff Grants
costs payable
E E
Other
E
2012 2011Total Total
E E
Cost of generating funds
Fundraising and publicity
Investment management fees1,873 9 1,574 3056 6,511 3,572
5,684 5,684 6,733
1,873 9 1,574 8,740 12,195 10,305
Charitable activities
Training of healthcare professionals
Provision of information
Increasing public accessResearch & Development
22,78525,099
6,879
53 9,436 54,545369 62,911149 26,736298 53,473
64,034 73,01619,035 105,099 101,7517,441 59,426 46,172
11,237 71,887 63,674
54,763 869 152,556 54,545 37,713 300,447 284,613
Governance costs 3,754 3,145 6,899 7,174
3,754 3,145 6,899 7,174
Total resources expended 60,390 878 157,276 54,545 46,453 319,541 302,093
6 Grants payable
Funding of the Faculty of Homeopathy's educational work
2012 2011E E
50,000 50,000
Local homeopathic clinics — Norwich Clinic 4,545 4,546
Bath Clinic 10,000
54,545 64,546
20
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
7 Staff costs
Wages and salaries
Social security costsPension costs
2012 20116 6
140,757 124,6608,018 7,469
8,500 6,640
157,276 138,770
The average monthly number of employees
(including casual and part-time staff)
during the year
was made up as follows: 2012 2011
Direct charitable activities 9 8
The Trustees received no emoluments during the year (2011:nil). However, all Trustees had
travel expenses to and from Trustee's meetings during the year reimbursed totalling 61,096(2011:61,699).
No employee earned over 660,000 per annum in the year. Aggregate salary costs for the British
Homeopathic Association and the Faculty of Homeopathy amounted to 6315,441 of which
f127,762 has been recharged to the Faculty of Homeopathy, 630,403 recharged to Royal London
Hospital for Integrated Medicine leaving 6157,276 charged to the British Homeopathic
Association as set out above.
8 Tangible fixed assetsOffice equipment
fixtures and Computer
fittings equipment
f f
Total
Cost
At 1 September 2011 6,800 13,672 20,472
As at 31 August 2012 6,800 13,672 20,472
DepreciationAt 1 September 2011Charge for the year
6,007 11,805 17,811262 616 878
As at 31 August 2012 6,268 12,421 18,689
Net book va/ue
At 31 August 2012 532 1,251 1,783
At 31 August 2011 793 1,867 2,661
21
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
9 Fixed asset investments
20126
20116
Market value
At 1 September 2011Acquisitions
Disposals at market value
Realised and Unrealised gains
981,945 1,013,306129,995 248,419
(303,901) (318,483)49,946 38,703
At 31 August 2012 857,985 981,945
Split of market value
Investments listed on a recognised stock exchange
UK fixed interest
UK equities
Overseas equities
Alternative assets
Property
134,893 135,125
585,956 466,83459,258 279,47324, 375 25,65453,503 74,859
Investments at market value 857,985 981,945
Historical cost
At 1 September 2011Disposals
Acquisitions
1,002,523 1,027,622
(286,815) (273,518)129,995 248,419
At 31 August 2012 845,703 1,002,523
Investments greater than 5% of the portfolio
There were no investment holdings greater than 5% of the portfolio
at 31 August 2012.
10 Debtors
Debtors
Prepayments and accrued income
Related party debtors
2012 2011f f
64,133 45,8537,162 3,213
46,482 20,865
117,776 69,931
22
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
11 Creditors: amounts falling due within one year 2012f
20116
Other creditors
Accruals and deferred income
Social security and other taxes
Related Party Creditors
Grants (Note 16)
1,07123,9618,0182,173
10,000
242
14,8957,9691,220
10,000
45,224 34,325
12 Movement in funds Balance at Incoming Outgoing Gains/
1st September resources resources (losses)2011
g 6 6 6
Balance at31st August
20126
Permanent endowments
Phillips Memorial Charity
(Ch a rity N o. 235902)Samuel Goodenough Trust
Homeopathic Post Graduate
145,09637,29926,372
(879) 10,474 154,691(229) 2,853 39,922
26,372
208,767 (1,108) 13,327 220,985
Restricted
Veterinary teaching & research fund
Clinics Appeal
John Ede Restricted fund
Nelson Barcapel Research Fund
Mervyn Madge Fund
Tanner Trust
3,45934,2584,043
2,322
12,608
1,521 (3,729)(22,593)
(753)(2,322)
4,000 (4,000)
1,25111,665
3,290
12,608
56,690 5,521 (33,397) 28,814
Unrestricted
General 824,027 191,721 (285,035) 36,619 767,332
824,027 191,721 (285,035) 36,619 767,332
1,089,484 197,242 (319,541) 49,946 1,017,131
23
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
12 Movement in funds (continued)
The Permanent Endowment Phillips Memorial Charity (income) is for the promotion of homeopathy.
The Homeopathic Post Graduate Teaching and Educations Fund (income) is for educational work.
The Veterinary Teaching and Research Fund is for research into veterinary homeopathy.
The Clinics Fund is for homeopathic clinics.
The John Ede Fund is for travel bursa ries for doctors and pharmacists to attend conferences and
Seminars abroad.
The Nelson Barcapel Research Fund is for the work of the International Consensus Group on Research
Methods. This fund was established, in agreement with the donor, by transferring unspent bursary funds
from The Nelson Barcapel Fund.
The Mervyn Madge Fund is for 1) the naming of a section of the BHA's library focused on homeopathic
pharmacy in memory of the late Christina Brenda Madge and 2) assisting pharmacists on advanced
homeopathic training by providing bursaries to pharmacists enrolling on DF Hom and MFHom courses.
Blackie Foundation Fund gift from the Blackie Foundation Trust for educational and research endeavours.
Tanner Trust gift is targeted toward materials for promotion of homeopathy to the general public.
13 Analysis of net assets
Funds balances at 31st August 2012
Represented by:
Permanent
Unrestricted Restricted endowment
funds funds funds
6 E 6767,332 28,814 220, 986
Total
funds
61,017,131
Tangible fixed assets
InvestmentsCash at bank and in handOther net current assets
1,783
664,97377,58722,989
2,9374,089
21,788
190,0773,135
27,774
1,783
857,98684,81172,551
767,332 28,814 220, 986 1,017,131
24
British Homeopathic Association
Notes forming part of the financial statements for the year ended 31 August 2012
14 Related parties
Ultimate controlling partyThe Board of Trustees are the ultimate controlling party as set out by the governing document.
(i) The Faculty of Homeopathy is a connected non-profit organisation, which shares certainstaff with the British Homeopathic Association and shares a number of Council Members.
During the year the British Homeopathic Association made a grant of f50,000 to the Faculty ofHomeopathy. At the Balance sheet date BHA was owed f44, 106 (2011:f20,375).
(ii) The William Kadleigh Memorial Fund is an unincorporated connected charity whosecapital funds are held and managed by the British Homeopathic Association on behalf of theKadleigh Committee. As at the Balance sheet date BHA was owed f2,375 [2011:(f490)]
(iii) Hahnemann House Trust is an unincorporated connected charity with The British HomeopathicAssociation and shares a number of Council Members. At the year end Hahnemann House Trustwas owed by the British Homeopathic Association 62,173 (2011f1,219)
(iv) Bath Homeopathic Hospital and Dispensary Trust is an unincorporated connected charity withthe British Homeopathic Association and shares trustees. At the year end the Bath HomeopathicHospital owed f29, 168 (2011:i 19,165) to the British Homeopathic Association and is includedwithin debtors.
15 Pension
The British Homeopathic Association contributes to individual defined contribution schemes atthe rate of 896 of salary. The pension cost charge represents contributions payable by theBritish Homeopathic Association to these schemes and amounted to f8,500 (2011:66,640).There were no outstanding pension contributions as 31 August 2012 (2011:nil).
16 Grant commitments
Commitments Commitments
8/F C/Fwd
Bath Clinic 10,000 10,000
10,000 10,000
25