LUPUS UKCharity No's 1051610& SC039682

TRUSTEES' REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2016

REFERENCE AND ADMINISTRATION DETAILS OF THE CHARITY, IT'STRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2016

CHARITY REGISTRATION NUMBERS.

ADDRESS

1051610& SC039662

St James HouseEastern RoadRomfordEssex RM1 3NH

TRUSTEES:(throughout the year)

Mr K Weston (Chair)Mrs Y Norton (Vice Chair)Mr D Hopkins (Secretary)Mrs T Stamp (Treasurer)Mrs J RobertsMrs K NewbyMrs J McComiskeyMrs E Holland

DIRECTOR:

AUDITORS:

Mr C J Maker

Messrs Hilker Hopkins LLP51 Clarendon RoadWatfordHertfordshireWD17 1HP

BANKERS Barclays Bank picRomford Business CentreRomfordEssex RM1 1RF

LUPUS UK

REPORT OF THE TRUSTEESFOR THE YEAR ENDED 31 DECEMBER 2016

The Trustees present the annual report and the audited accounts of the Charity for the year ended 31December 2016. The financial statements have been prepared in accordance with the accountingpolicies set out on pages 13 and 14 and comply with the Charity's constitution and applicable law.

THE CHARITY

LUPUS UK is the National Charity for all people affected by lupus in England, Wales, Scotland andNorthern Ireland. Its objectives are to:

~ educate and support patients with lupus (in all its forms), there families and their carers, and toencourage those with the disease to be involved in managing their illness~ raise public awareness about lupus, particularly within the medical and health professions~ fund research into lupus, its causes, consequences and treatment~ fund specialist lupus nurses within the NHS.

The original Charity, British SLE Aid Group was founded in 1978 becoming LUPUS UK from 1996 withthe new constitution approved on 14 October 1995. The constitution has been amended periodicallysince then.

Vision

Mission

A world where people with lupus can lead full and active lives.

To empower people by providing information about lupus and offering support, so theirvoices are heard and their condition diagnosed and managed effectively

Trustees

The Trustees of the Charity who served during the year ended 31 December 2016 are shown on page 1.Trustees are elected by National Council, at their March and September meetings, by rotation and servea period of three years at which point they are eligible to either stand for re-election The National Councilinvites nominations for two Member Trustees in addition to the six Trustees who are National Councilmembers.

David Hopkins was re-elected Secretary and Karen Newby was re-elected as a Council Trustee, both on10 September 2016, the appointments taking effect 1 January 2017

Elaine Holland was elected a Member Trustee on 12 March 2016 taking office immediately being soelected until 31 December 2016 and was subsequently re-elected on 10 September 2016 with theappointment taking effect 1 January 2017.

All of the Trustees have been involved directly in the work of the Chanty prior to their electionOpportunities for training are circulated to the Trustees and to encourage best practice the Trustees eachhave a copy of the NCVO publication 'The Good Trustee Guide'. New Trustees are encouraged to readthe Charity Commission publication 'The Essential Trustee'.

Management The daily management of LUPUS UK is under the control of the CEO (see page1) who is responsible for staff and the running of National Office, and reports tothe Trustees.

OBJECTIVES, ACTIVITIES AND PERFORMANCE

Systemic Lupus Erythematosus (SLE) usually referred to as lupus, is an auto-immune condition wherethe immune system instead of protecting the body, can attack any part of it. At present there is no knowncure. The diversity and intensity of symptoms and damage to organs can make it a very difficult and

LUPUS UK

REPORT OF THE TRUSTEESFOR THE YEAR ENDED 31 DECEMBER 2016

potentially disabling disease to live with. Most people who have lupus require life-long medication, theside-effects of which can lead to potential problems,

As the disease is very complex, lupus will normally be diagnosed by a consultant following the criteriarecommended by the American College of Rheumatologists. It can sometimes affect one system of thebody more intensely than others. If the kidneys are affected it is usually referred to as lupus nephritis. Ifthe skin and hair are the dominant parts affected it is usually referred to as discoid lupus Other termsmay be used by clinicians to define particular aspects of the disease.

Being diagnosed with lupus can be a lonely expedience as the newly diagnosed are unlikely to knowanyone else with the condition. The main purposes of the Charity are to bring together, support and helppeople living with lupus, and their families, and to advance awareness and education of the public andparticularly the medical and health professions in all aspects of the disease. There are a number of keyways in which the Charity does this, including its telephone help-line, Group meetings in vanous parts ofthe country and information in a number of formats. LUPUS UK provides funding for medical researchinto the causes and consequences of lupus and improved medication and also grant-funds specialistLupus Nurses within the NHS.

Activities

A very important part of the work of LUPUS UK is to bring people together and social media plays an everincreasing part in this. At the end of the year the number of followers on social media was: Facebookwas 21,965 (2015:16,938), on Twitter 6,472 (2015: 5,292) and on HealthUnlocked 13,761 (2015: 9,881)There were 431,354 unique visits to the LUPUS UK website during 2016, a year on year increase of 9%There were also 15,178 information downloads. Video clips were produced during the year and featuredon our website for World Lupus Day and Lupus Awareness Month. The latest, released in October is ananimation 'Lupus: An Invisible Monster' that has attracted nearly 15,000 views.

LUPUS UK has a nationwide network of over one hundred telephone Contacts, mainly members whohave lupus themselves, or others whose partner has lupus and are Carers, who offer help-line advice toenquirers. The leaflet 'Listening Ear' is available from LUPUS UK National Office and is sent to allenquirers and distributed through rheumatology and lupus clinics in order to make people aware of theservice.

Lupus Information Days were held in Glasgow and Cambridge during the year and both events wereIt d d kd t *d t tk LUPUSUK dtt ~tk . k

Funding

The charity receives no funding from Government or any of its departments. Our income is derived froma variety of sources and we receive tremendous support from various activities and events, which areoften prompted by the personal interest of a family member or friend. LUPUS UK will not add anyone toits database unless they specifically ask to be included. The Charity does not pass on such personalinformation to any third party or use it for marketing purposes and does not use call centres forfundraising.

People continue to make an incredible effort in support of LUPUS UK undertaking numerous challengessuch as: climbing mountains, cycling, running, swimming and parachuting out of planes. In particular weacknowledge the efforts of our London Marathon runners who once again excelled themselves, alongwith participants in many other runs and events. We are very appreciative of everyone who showedcommitment to the Charity by participating in these activities and many others, to raise lupus awarenessand funding for the Charity's Grants programme.

LUPUS UK

REPORT OF THE TRUSTEESFOR THE YEAR ENDED 31 DECEMBER 2016

Lupus Awareness Month in October focuses many members and supporters on a vanety of ways in whichto publicise lupus and the Charity. Awareness and fundraising go together in many ways, as with Go thatExtra Mile which continues to be popular with members, family and friends with everyone taking part andhaving a great time.

To raise lupus awareness within the medical profession the publication 'Lupus Diagnosis & Treatment'continues to be distributed to GPs around the country and to Medical Schools in Devon and Glasgow.

Information

Ph UitPUPUK P it ~tk. . ki p k d ithi t ti d d i dh i kt thEclipse —Light Sensitivity area for those with light sensitivity issues. LUPUS UK is accredited by theInformation Standard that enables the Charity to display information on NHS websites and also helps thepublic and patients identify reliable sources of evidenced-based information During the year a number ofpublications were reviewed and updated. Each month a discussion topic is posted on the LUPUS UKwebsite. During the year a wide range of subjects were covered offering tips gained from personalexperiences from lupus patients collected from social media. Subjects included Brain Fog, Insect Bites,Exercise and many more.

LUPUS UK keeps in regular contact with lupus specialists and lupus nurses who may via the LUPUS UKwebsite link into the section 'information for medical professionals', which includes information and theprocedure for grant applications. The Charity is grateful for the advice and help of its Scientific andMedical Advisory Peer Review Panel for assessing grant applications and on additional matters and thesupport of a number of other medical professionals. Recognising the importance of lupus awarenesswithin both the medical profession and the wider public, one of the Charity's aims is to provide literatureand information to all people with lupus via lupus and rheumatology clinics. To increase awareness theCharity is represented at various conferences, exhibitions and seminars countrywide by the Staff,Trustees and Group members; this gives us valuable introductions to medical and health professionals.

LUPUS UK works closely with the UK Juvenile SLE Cohort Study a collaboration between over 20paediatric hospitals around the UK, looking into the incidence, causes and treatment of lupus in childrenand young people of which over 550 are now enrolled on its various research projects. This will givefurther information about how they are affected by lupus, standards of care and best treatment.

LUPUS UK gives its Centres of Excellence award in recognition of the excellent care of lupus patientsand productive research into the disease. Six hospitals have so received this recognition: QueenElizabeth/City Hospitals, Birmingham, Manchester Royal Infirmary, Alder Hey Children's Hospital,Liverpool, University College London Hospital, the Louise Coote Lupus Unit, Guy's 8, St Thomas'Hospital, London and the Royal National Hospital for Rheumatic Diseases, Bath. To ensure thatstandards are maintained or improved periodic visits are to each centre.

LUPUS UK continues to be an active member of LUPUS EUROPE.

Risk management

The LUPUS UK Risk Map is reviewed each year by the Trustees to examine the major strategic, businessand operational risks that the Charity faces so that any necessary steps can be taken to review andlessen these risks. During 2016 there were some minor adjustments to the Risk Map.

UPUS UK has a robust reserves policy to ensure ongoing financial viability. Please see below

LUPUS UK

REPORT OF THE TRUSTEESFOR THE YEAR ENDED 31 DECEMBER 2016

Grant Making Policy

During 2016 the Trustees approved Grants totalling E456,351, following recommendations of the PeerReview Panel in respect of research grant applications and at the end of 2016 the Charity's commitmentto fund Grants over the next five years stands at f1,398,445. However, we continue to receive moreapplications than we have funds available.

The Trustees are very pleased to report that from 1992 to the end of 2016 LUPUS UK and itspredecessor has committed Research and Specialist Lupus Nurse funding of over f7.8 million. This is atremendous achievement for which we are so grateful to our supporters, who have made it possible

The Charity invites applications for the funding of research projects and specialist lupus nurses.Applications for research funding are reviewed against specific criteria and research objectives by thePeer Review Panel, who make their recommendations to the Trustees.

As LUPUS UK does not have sufficient funding available for large-scale research projects; it will continueto support applications that focus on the following:~ smaller pilot studies, which may lead to apphcations to major funders for large-scale researchtrials~ enabling grants for basic science support, which would enable larger projects by providingessential data for large grant applications~ medical meetings that would facilitate improvements to the understanding of the causes,prevention and treatment of lupus and its research.

LUPUS UK is a partner of the National Institute for Health Research (NIHR) and a patient's group partnerof the Scottish Medicines Consortium.

The Charity funds specialist nurses within the NHS and seeks a commitment that these posts will becomepermanently funded by the particular Hospital Trusts at the end of the five year funding period ElevenSpecialist Lupus Nurses are currently being funded or funding has been agreed. During 2016 funding wasconfirmed by the Trustees for Specialist Lupus Nurse position's in the East of Scotland of 0.9WTE splitbetween Fife and Lothian.

LUPUS UK is prudently run and Research and other Grants are only approved by the Trustees if fundsare already held. Once the commitment has been announced the funding is placed in special reserve.Like most other charities LUPUS UK has been affected by the current economic climate and the Trusteeshave taken account of this with regard to future budgets and will ensure that the Charity tailors itscommitments to its resources.

FINANCIAL REVIEW OF ACCOUNTS

The state of the Charity's affairs at 31st December 2016, with comparative information for the previousyear, is shown in the accompanying financial statements.

Total funds received during the year were 61,074,479 against 6920,747 in the previous year. Voluntaryincome (Donations received, Membership and Gift Aid) was up by 6204,602 on the previous year, due tohigher than anticipated legacy income. Investment income (Interest and Dividends) was up E2,591, dueto increased investment income. Charitable Activities (Fundraising) were down by 853,038 on theprevious year and income from charitable activities (Sales) was down by 8423.

The costs of generating funds were up overall (see notes 3 and 4). The costs of generating Voluntary

LUPUS UK

REPORT OF THE TRUSTEESFOR THE YEAR ENDED 31 DECEIIIIBER 2016

Income and Fundraising costs were down by 641,799 with Charitable Activities - Support andAdministration costs down by 536,249 (see note 5). Grants attnbutable for the year were down byF315,214, to F456,351.

Overall there is a surplus of income over expenditure of F206,257 for the year before including a surpluson the investments. The value of the investments at 31st December 2016 stood at f279,804 and asurplus of 635, 151 has been accounted for (see note 8). The financial markets continue to be turbulentbut we would anticipate the value to rise in the coming years as the investments are of a long termnature.

Reserves policy

The Charity's reserves at 31st December 2016 were F592,593 (2015: 5351,185). LUPUS UK needsreserves to maintain its current activities and provide funding committed for longer term projects toprogress them to completion, as well as enabling the Trustees to meet their day to day responsibilitiesand ensure that the Charity can continue to operate as a going concern. The Trustees have consideredtheir policy in respect of the level of their reserves and aim to retain a minimum sum in the region of oneyear's expenditure, which will be held on deposit at the best available rate. Reserves as at 31 December2016 meet this policy.

Investment management

The Investment Portfolio is controlled by Rathbones Investment Management Ltd, and quarterlyvaluations are forwarded together with various reports. Our investments increased in value by 535, 151(see note 8), during 2016 Dividends received for the year were F5,332 and interest for the year ofF6,559 (see note 2).

PUBLIC BENEFIT

The Charity continues to work closely with the medical profession to raise awareness of the illness to allpatients. Membership of the Charity is open to all who are interested in supporting its work, whether theyhave lupus or not. Enquiries about the condition are regularly received from the general public; theCharity makes information and advice available freely to everyone.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission'sgeneral guidance on public benefit when reviewing the Charity's aims and objectives and in planmngfuture activities.

In order to maximise its effectiveness, LUPUS UK is actively involved with umbrella organisations such asNational Voices and the Arthritis and Musculoskeletal Alliance (ARMA).

LUPUS UK is a founder member of RAIRDA (Rare Auto-Immune Rheumatic Disease Alliance), along withScleroderma & Raynaud's UK, Vasculitis UK and The British Society for Rheumatology. Established toimprove care for people living with these conditions with the purpose of bringing together clinical andpatient organisations and other key stakeholders in order to raise the profile of rare autoimmunerheumatic diseases, influence policy and guide future research.

As a member of the World Lupus Federation, LUPUS UK aims to link up with other lupus organisationsaround the world to raise public awareness of the disease

VOLUNTEER INVOLVEMENT

The National Council of LUPUS UK is made up of the Trustees, a representative from each of the

LUPUS UK

REPORT OF THE TRUSTEESFOR THE YEAR ENDED 31 DECEMBER 2016

Regional Groups (which are managed by a volunteer committee of individuals, who are mostly lupuspatients) and Regional Co-ordinators, who are also lupus patients In total, and in addition to thenationwide network of telephone Contacts who offer a listening ear, around 100 people with lupus and asmaller number of other supporters conduct the affairs of the Charity at local and national levels acrossthe usual range of the Charity's educational, social and fund-raising activities.

The Trustees would like to record their thanks to those members who commit their time and energy to thecharity in a variety of ways, particularly those who assist in the running of its local Groups, especially theGroup Chairs and Regional Co-ordinators. We welcome offers of help from those willing to work with andsupport the Charity in this way.

The Trustees recognise the commitment and dedication of our many volunteers and are very grateful toall who take on these various roles.

DONATIONS

The Charity greatly appreciates the many people, companies, trusts and other organisations who havemade valued donattons in support of people with lupus during the year

Tina StampHonorary Treasurer and Authorised Trustee

Date 0 -5 . /7

Kevin WestonChair

Oats 5 5 / ~,

LUPUS UK

STATEMENT OF TRUSTEES' RESPONSIBILITIES IN RELATION TO THE FINANCIALSTATEMENTS AS AT 31 DECEMBER 2016

The Trustees are responsible for preparing the Annual Report and financial statements inaccordance with applicable laws and United Kingdom Accounting Standards (United Kingdomgenerally accepted accounting practice).

Law applicable to charities in England & Wales requires the Trustees to prepare finanmalstatements for each financial year, which give a true and fair view of the charity's financialactwities dunng the year and of its financial position at the end of the year. In preparingthese financial statements, the trustees are required to:

select suitable accounting pohcies and then apply them consistently,

observe methods and principles in the Chanties SORP;

make judgements and estimates that are reasonable and prudent,

state whether applicable UK accounting standards and statements of recommendedpractice have been followed, subject to any material departures disclosed andexplained in the financial statements; and

prepared the financial statements on the going concern basis unless it isinappropnate to presume that the charity will continue in operation

The trustees are responsible for keeping accounting records which disclose with reasonableaccuracy the financial position of the charity and which enable them to ascertain the financialposition of the charity and which enable them to ensure that the finanmal statements complywith the Chanties Act 2011. They are also responsible for safeguarding the assets of thecharity and hence for taking reasonable steps for the prevention and detection of fraud andother irregularities.

Tina Stamp Treasurer

Date W - 5 - / 7

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LUPUS UK FOR THKYEAR ENDED 31DECEMBER 2016

Independent Auditor's Report to the trustees of Lupus UK

We have audited the financial statements of Lupus UK for the year ended 31 December 2016 which comprise theStatement of Financial Activities, the Balance Sheet and the related notes. The financial reporting frameworkthat has been applied in their preparation is applicable law and United Kingdom Accounting Standards (UnitedKingdom Generally Accepted Accounting Practice).

This report is made solely to the charity's trustees, as a body, in accordance with regulations made under section154 of the Charities Act 2011, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 andregulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has beenundertaken so that we might state to the charity's trustees those matters we are required to state to them in anauditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for thisreport, or for the opinions we have formed.

Respective responsibilities of trustees and auditor

As explained more fully in the Trustees' Responsibilities Statement set out on page 8, the trustees areresponsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of theCharities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made undersection 154 of that Act. 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 standardsrequire us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether caused byfraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity'scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates 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 to identify materialinconsistencies with the audited financial statements and to identify any information that is apparently materiallyincorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing theaudit. If we become aware of any apparent material misstatements or inconsistencies we consider theimplications for our report.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the stats of the charity's affairs as at 31 December 2016, and of its incomingresources and application of resources, 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 Charities Act 2011, the Charities andTrustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations2006 (as amended).

INDEPENDENT AUDITOR'S REPORT TO THK TRUSTEES OF LUPUS UK FOR THEYEAR ENDED 31 DECEMBER 2016

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 and Charity Accounts(Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

~ the information given in the Trustees' Annual Report is inconsistent in any material respect with the financialstatements; or

~ sufficient accounting records have not been kept; or

~ the financial statements are not in agreement with the accounting records and returns; or

~ we have not received all the information and explanations we require for our audit.

Hillier Hopki LLPChartered AccountantsStatutory Auditor

51 Clarendon RoadWatfordHerffordshireWD17 1HP

Date: IE HhY 30'(7

10

LUPUS UK

STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31 DECEMBER 2016

Income and endowments fromDonations and legaciesCharitable activitiesInvestmentsOther trading activities

UNRESTRICTED

FUNDS

677,288363,530

2 11,89121,770

RESTRICTED

FUNDS

E

TOTAL

FUNDS

677,288363,530

11,89121,770

2015

472,686416,568

9,30022, 193

Total 1,074,479 1 074 479 920 747

Expenditure on:Cost of generating fundsCosts of generating voluntaryincomeFundraising costs.Charitable activities

3 40,9284 124,9435 702,351

40, 928124,943702, 351

43,725163,945

1,053,814

Total 868,222 888,222 1,261,484

Net income/(expenditure) 206,257 206,257 (340,737)

Other recognised gains/(losses):Gains/(losses) on investmentassets 8 35,151 35,151 7,033

Net movement in fundsFund balances January 2016

241,408299,338

241,408 (333,704)51,847 351,185 684,889

Fund balances December 2016 13 540,746 51,847 592,593 351,185

LUPUS UK

BALANCE SHEET AS AT 31 DECEMBER 2016

12

UNRESTRICTED RESTRICTED

FUNDS FUNDS

Note f f

TOTAL

FUNDS

f2015

FIXED ASSETS

INVESTMENTS 8 279,804

445

279,804

1,515

244,653

280,249 280,249 246, 168

CURRENT ASSETSStockDebtorsCash at bank and in handCash at bank and in hand

held by Regional Groups 40,014 40,014 57,996

1,724,662 51,847 1,776,509 1,610,204

9 18,861 18,861 24,37210 81,370 81,370 35,683

1,584,417 51,847 1,636,264 1,492, 153

CREDITORS: AMOUNTS FALLINGDUE WITHIN ONE YEAR 11

NET CURRENT ASSETS

685,312 685,312 686, 172

1,039,350 51,847 1,091,197 924, 032

NET ASSETSCREDITORS: AMOUNTSFALLING DUE AFTERMORE THAN ONE YEAR 12

1,319,599

778,853

51,847 1,371,446 1,170,200

778,853 819,015

540,746 51,847 592,593 351,185

REPRESENTED BY:

FUND BALANCES 13 540,746 51,847 592,593 351,185

The notes on pages 11 to 20 form part of these financial statements.

These financial statements were approved by the Trustees on: .EL/. u /2017

TIna StempAt t dt

LUPUS UK

NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER„2016

13

ACCOUNTING POLICIES

1 01 Basis of re aration of the financial st tements

The finanaal statements are prepared on the accruals basis and under thehistorical cost convention with the exception of investments, which are includedat market value. The financial statements have been prepared in accordance withthe Statement of Recommended Practice, Accounting Standards and Reportingby Charities SORP (FRS102) effective 1 January 2015, and applicableaccounting standards and the Charitics Act 2011.

LUPUS UK is a charity registered in England and Scotland. The address of the charityis detailed on page one of the accounts. The nature of the charity's operations is tohelp relieve persons who have lupus and to advance the education of the public andthe medical profession in all aspects of the disease

The financial statements have been prepared on a going concern basis as thetrustees believe that no matenal uncertainties exist. The trustees have consideredthe level of funds held and the expected level of income and expenditure for 12 monthsfrom authorising these financial statements. The budgeted income and expenditure issufficient with the level of reserves for the charity to be able to continue as a goingconcern.

1.02 Ilail ~

Donations & Legacies, Charitable Activities, Investments and Other Trading Activitiesare included in incoming resources when they are receivable, except when the donorsspecify that they must be used in future accounting periods or donors conditionshave not beeen fulfilled, then the income is deferred, The income and fundraisingventures are shown gross, with the associated costs included in fundraising costsGrants are treated as income irrespective of the source of the grant

1.03 RRRER d d

Resources expended Cost of generating voluntary income, Fundraising costs andChantable activities are included in the Statement of Financial Activities on anaccruals basis, inclusive of the disallowable portion of VAT.

Expenditure which is directly attributable to specific activities, has been includedin these cost categories. Where costs are attributable to more than one activity,they have been apportioned across the cost categories on a basis consistentwith the use of these resources.

Grants payable are charged in the year when the conditions attaching to thegrant is fulfilled. Grants offered sublect to conditions which have not been metat the year end are noted as a commitment, but not accrued as expenditure

LUPUS UK 14

NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2016(Continued)

1.04

1 05

Stock

Stock is valued at the lower of cost and net realisable value

Debtors

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

1 08 Creditors

Creditors and provisions are normally recognised at their settlement amount afterallowing for any trade discounts due.

1.07 T~id A* d A

Depreciation is provided on all tangible fixed assets at rates calculated to wnteoff each asset over its expected useful ecconomic life as follows

1.08

Furniture, fittings & equipment 33.3F% straight line basis

Investments

Investments are stated at market value at the balance sheet date The statementof financial activities includes the net gains and losses ansing on revaluationsand disposals throughout the year.

1.09 ~Fd

Generally funds are unrestncted which are available for use at the discretion of theTrustees in furtherance of the general objectives of the charity and which have notbeen designated for other purposes.

Designated funds comprise restricted funds that have been set aside by theTrustees for a particular purpose.

Restncted funds are those which are only to be used for specific purposes aslaid down by the donor. Expenditure which meets the criteria is charged to the fund,together with an equitable allocation of management and support costs

1.10 Taxation

The chanty's surpluses are derived from, and are applied towards, the maintenanceof charitable activities and as such are not subject to taxation

~ddi A

Rentals under operating leases are charged to the statement of finanmal activitieson a straight line basis over the lease term

NOTES TO THE FINANCIAL STATEINENTS 31ST DECEMBER 2016(Continued)

2 VOLUNTARY INCOMEDonationsLegaciesMembership IncomeGift Aid Income

2016E'

264,286313,838

54,82344, 341

677,288

15

2015

262, 39794,79161,93053,568

472, 686

INVESTINENT INCOMEListed investment incomeBank interest

2016E

5, 3326,559

11 891

2015E

2,6856,6159,300

2016E

2015F

3 COST OF VOLUNTARY INCOME 40,928 43,725

4 FUNDRAISING COSTSCost of goods soldFundraising costs:Staff salaries and national insurance (note 6)(30%)Fundraising and publicity costsPrinting, stationery and postage (30%)

5 CHARITABLE ACTIVITIESSupport Costs

Rent, rates, service charge and insuranceStaff salaries and national insurance (note 6) (70%)Printing, stationery and postage (70%TelephoneElectricity (Light & Heat)National Office OverheadsDepreciationProfessional fees"News & Views" magazineMember Survey CostsAudit Fee

Research and Welfare Grants (Details below)

2016F

2015F

19,713 16,374

50,02544, 70510,500

124,943

57,90879,61410,049

163,945

2016F45,550

116,72724, 500

1,1801,442

11,0091,070

80240,493

2015

45,076135,11923,447

1,1431,516

10,7781,0706,856

47,0515,9974, 1963,228

246, 000456,351

282,249771,565

702,351 1,053,814

Research and Welfare Grants

Sister S Brown, RNHRD, Bath (New)Dr F Hall Addenbrooke's Specialist Lupus NurseLupus Nurse East of ScotlandDr Y loannou UCLH Transition CoordinatorProf C Gordon Birmingham SLICC Research NurseWest Scotland Lupus NurseProf M Beresford 0.6wte Clinical PsychologistDr R Ai-Jayyousi Specialist Lupus Nurse LeicesterDr Y Ahmad, Spec Lupus Nurse, North WalesDr H Harris S&E Scotland Spec Lupus NurseProf D Isenberg UCL-SLICCDr's Walker & Price Hull Uni Transitions to IllnessProf C Gordon Birmingham Metabolomics sle studyDr E Jury UCL immunopathogenesis jsle target lipidsProf A Rahman UCL CVR in patients with sleDr J loannou UCL investigating cardiac injury in sle 8 aplDr N Basu, Uni Aberdeen Unravelling sle fatigueDr H Cohen UCLH C resistance in APLProf I Bruce Uni Manchester/MRI SLE/BILAGDr A Zayat, Uni Leeds/NIHR USEFUL/ultrasoundDr B Parker Uni Manchester endothelial microparticleProf A Rahman UCL Monocytes & Cardio DiseaseDr I Giles UCL Pregnancy & Factor (F)XaProf M Beresford Uni Liverpool LUK & BPSU StudyDr S van Leuven Guy's Endothelial PermeabilityProf D Isenberg UCL-London SLICC MeetingProf M Beresford JSLE 10 Yr EventDrs Cohen & Efthymiou UCLH & UCL IgM/APLProf K Payne et al Man Uni stratified medicine/lupusDr M Wittman et al Uni Leeds cutaneous lupusDr J loannou UCL fatigue & psychological healthDr E Ntatsaki & Prof A Salama Royal Free nephritisDrs C Ciurtin & E Jury UCL serological phenotypesDr M Gray & J Simpson Uni Edinburgh lymphocytesS Ainsworth Invisible LupusPeer Review Panel ExpensesLupus Nurse Network GroupWelfare GrantsPaid during 2016Opening commitments at 1 January 2016Commitment at 31 December 2016TOTAL CHARGE FOR 2016

Paid 2016E7, 118

23,76415,7706,287

21,71722,83234,781

4,593

10,0001,502

35,96018,095

10,61223,368

41,29728,91649,59734,18549,80610,288

5,000

7,62117,00514,72018,6608,367

1,000121

1,3642, 181

526,5271,468,6211,398,445

456,351

1 YearE

12,63621,71724, 071

42,40447,56849,28410,000

1,09317,98010,64113,171

11,68426,90742, 50721,687

34, 184

38,48920,000

2,50042, 98230,48217,00544, 161

6,2208,367

21,852

619,592

16

FutureCommitments

E

38,67232,57552,222

120,695186,959201,803

5,000

13,45421,472

46,407

21,49138, 103

778,853

17

6 EMPLOYEESStaff Costs:Wages and salariesSocial security costs

2016 20156

178,75614,271

156,16410,589

166 753 193,027

The average number of employees,by function, was: No. No.

FundraisingSupport

254.5

254.5

The Charity considers its key management personel compnse the trustees and ChiefExecutive Officer. The total employment benefits including employer pensioncontributions of key management personnel were 656,497 (2015: F53,658)

No employee earned over F60,000 in either year.None of the Trustees received any remuneration for their services.Expenses incurred by the Trustees for travel, accomodation and subsistencetotalled 616,444 (2015: 612,262) were reimbursed by the charity.

7 FIXED ASSETS Office Furnitureand Equipment

fCost01-Jan-16

DisposalsAdditions31-Dec-16

50,2846,982

43,302

Depreciation01-Jan-16

DisposalsCharge for the year31-Dec-16

48,7696,9821,070

42, 857

Net Book Amount31-Dec-16 445

31-Dec-15 1,515

8 INVESTMENTSCarried forward from previous yearAdd: Additions at costLess: Disposals at carrying valueAdd/deduct net gain/(loss) on revaluation

2015f

244, 65329,14044, 63750,648

279,804

182015f

237,62048,36219,34021,989

244, 653

Disposais during year Units price as at31-Dec-15

Total value31-Dec-15

Croda International PLCHerald Investment Trust PLCJohnson MattheyMarks & Spencer PLCMercantile Investment TrustMondelez Intl Inc (US%1.4739 = f1)Pearson PicRPC Group PLC

335820270120031083

390720

30.42007.4525

26.57004.5240

18.2600USD44. 84

7.36008.3300

10,1916,1117,1744, 1075,6612,5252,8705,998

44,637

Investments held as follows:Securities listed on UK Stock ExchangeCashUK Fixed interestOverseas EquitiesAlternatives

2018f

116,45421,91232,21682,92526,297

2015f

146,6371,922

30,62765,467

279,804 244, 653.00

MATERIAL INVESTMENTS2015f

2015f

Rathbone Unit Trust Management fixed interestCroda International PLCUnilever PLCFindlay ParkMercantile InvestmentPrudential PLCIshares PLCHerald Inv TrustRPC Group Pic

11,66210,86614,48722, 371

8,39913,02018,2208,649

12,780

11,27521,29412,87716,96914,60812,24813,83013,41513,328

Investments are held in a managed fund administered by Rathbone InvestmentManagement Limited.

19

9 STOCKSGoods for resale

2016618 861

2015624 372

10 DEBTORS DUE WITHIN ONE YEARDebtors and prepaymentsPrepayments and accrued income

20168

1,93379,437

20156

2,37033,313

81,370 35,683

Accrued income relates to legacies in 2016 and 2015

11 CREDITORS: AMOUNTS FALLING DUEWITHIN ONE YEAROther creditors and accrualsResearch Grants (Note 5)

20166

65,720619,592

2015f

36,565649,607

12 CREDITORS: AMOUNTS FALLING DUEAFTER MORE THAN ONE YEARResearch Grants (Note 5)

13 MOVEMENT IN FUNDS

685,312 686, 172

778 857 819 015

At Incoming Outgoing Gains and At01/01/2016 Resources Resources Losses 31/1 2/2016

6 6 f 6 6Restricted Funds:Helen RaynerNaomi Tate Memorial Fund (LUK)

Total restricted funds

10,47041,377

51,847

10,47041,377

51,847

Unrestricted Funds:General Funds 299,338 1,074,479 - 868,222 35, 151 540,746

Total Funds 351,185 1,074,479 — 868,222 35,151 592,593

Unrestricted funds comprise those funds which the Trustees are free to usein accordance with the charitable objects.

Purposes of restricted funds:

The Helen Rayner Memorial Fund is to be used to support training days for GPs.

The Naomi Tate Memorial Fund (LUPUS UK) is to be used for research relating toand information/publications in respect of lupus and pregnancy.

20

ANALYSIS OF NET ASSETS BY FUND AT 31 DECEMBER 2016

Tangible fixed assetsInvestmentsStockDebtors and prepaymentsCash at bank and in handCreditors due within one yearCreditors due after one yearNET ASSETS

51,847

540,746 51,847

Unrestricted RestrictedFunds Funds

445279,804

18,86181,370

1,624,431685,312778,853

TotalFunds

445279,804

18,86181,370

1,676,278685,312778,853592,593

OPERATING LEASE COMMITMENTS

At 31 December 2016 the charity had annual commitments under non-cancellableoperating leases as follows:

Expiry Date:Greater than five yearsDue 2 - 5 yearsDue in more than 5 years

Pension Contributions

2016Land andBuildings

6

25,850103,400

15,079

2015Land andBuildings

6

25,850103,40040,929

The charity operates defined contributions pension schemes. The assets of the schemesare held separately from those of the charity in independently administered funds. Thepension cost charge represents contributions payable by the charity to the funds andamounted to E2,254 (2015 - 61,123). At the balance sheet date, fnil (2015 - anil) isoutstanding.

Related Parties

Other than the expenses paid to the trustees, there were no other related partytransactions during the year (2015 - Enil).

First Time Adoption of SORP (FRS102)

The charity has adopted the SORP (FRS102) for the first time in the year ended 31December 2016. The effects of the transition from SORP FRSSE to SORP (FRS102) arenot considered to be material and have not impacted on reserves or gain or loss.