british hom eopath ic as sociation...amounts due to british homeopathic association 116,086 117,168...

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.


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


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. '"


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.


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.


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.


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


~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


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


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


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


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


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



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



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


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



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



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



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



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



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

british hom eopath ic as sociation...amounts due to british homeopathic association 116,086 117,168...

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