Report of the Trustees 2005/2006: Page Five
Financial review
2005/06 saw strong financial performance with total income of £3,873,000 – an increase of 20% compared with 2004/05 – once again resuming a strong growth trend after a slow down in the previous year. Total expenditure was £2,878,000. After gains on investments of £265,000, the surplus for the year was £1,260,000. Total funds stood at £2,175,000, up by 138% compared with the figure of £915,000 at the end of the previous year.
The reduced expenditure figure in 2005/06 compared with the previous year reflects the fact that a major research grant of £1,667,000 was awarded in 2004/05 which was not repeated in the year under review. The strong reserves position now available however, coupled with increasing income, will enable the Charity to fund new research grants and a significant growth programme in 2006/07.
The research grant made to Hammersmith Hospital in 2004/05 comprised commitments for research projects over a period of three to five years, resulting in a deficit at the end of that year totalling £973,000, on the restricted general research fund. During the course of 2005/06, restricted income of £146,000 was received specifically against these projects and, additionally, £428,000 was transferred from the Research Action Fund. The outstanding deficit on the Hammersmith restricted funds at the end of 2005/06 remains therefore at £400,000. This deficit is expected to be met by a mix of current pledges and planned fundraising income. In the meantime, a designated fund has been created to cover the full amount of the deficit at the balance sheet date and this will be reduced in line with the reduction of this deficit in future years.
Within the designated funds, the sum of £750,000 has been specifically identified for a new grant round to be carried out in 2006/07 in accordance with the Charity's new research strategy – funding the highest quality research wherever it is to be found in the UK, on a fully competitive, peerreviewed basis.
The Charity continues to administer a joint Governmentvoluntary sector project, on behalf of partner organisations, to develop and operate UK Prostate Link – a website portal to quality rated Internet information on prostate cancer. A separate bank account exists for the project, into which £49,000 was transferred during the year. During the same period, £51,000 was transferred out to the independent website host provider, Minervation. The project is planned to run for three years, to the end of 2007.
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