Company Registered Number: 0268S083 Charity Registered Numbers (England & Wales and Scodandl: 1009671 & SC043669 NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 111 *AA8A J7(3' 21yoer2021 COMPANIES HOLISE A14 #165 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) CONTENTS Page Reference and Administrative Details of the Charity. its TnBtees and Advisers Truste¢s' Report 2-11 Statement of Truslees. Responslbllities 12 Independent Auditors. Report on the Financial Statements 13-16 Consolidated Statement of Financial Activ6ties 17 Charity Statement of Financlal Activilies 18 Consolidat•d Balanc• Sheet 19 Charity Balanc• Sh••1 20 Consolidated Statem•nt of Cash Flows 21 Notés to the Flnan¢lal Statèments 22-48 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 Trustees Edward Davies. Chair Ellen Vincent. VI￿ Chair Stephen Pugh. Tieasurer Alexis Brooke (resuned 17 June 20201 Myrtle Johnston Suzanne Wats Catherine Escott Dr Cetia Moss James Prtayandrul {apwnted 18 Marth 20201 Company registered number 02685083 Charlty registered numbers 1009671 arrfl SC043669 Rogistered oifice 11 Murray Street London NW1 9RE Chief executive officer & Andrew Pr￿tOr Cornpany sKrelary Independ•nt audito MHA Mxlntyre H￿ts Chartered Accountan¢s Statutory Auditor 6th Floor 2 London Wall P London EC2Y SAU Prlnclpal Bankers CAF Bank Ltd National Westminster Bank plc Barclays Bank pk Status and Governlng Document National EeZ￿la Society is a chJitable company, limrted by guarantee. 11 was incorporated on 6 Febnjary 1992 and registe￿ as a charty on 10 Mar¢h 1992. It is govemed by its Articles ofAsso¢K3tKJn. Subsidiary Companies Eczema Trading ￿Mrted Page 1 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their Annual Report together wrth the ffinancwl statements of the Group and the Chanty for the year 1 January 2020 to 31 Oecember 2020. The Trustees confim) that the Annual Report and financi81 ststernenls of the company comply with the Current statutory rerjuirements, the requirements of the company's go¥eming document and the provisions of the Statement of Recommended Pra¢ti¢e ISORP), applicable to Charilies preparing their a¢￿￿nts in accordance with the Financial Reporting Siandard applicable in the UK and Republic of Ireknd IFRS 1021. Since the Chanty and the Group qualifies as small under sectK•n 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Directorfs Report) Reg￿latIonS 2013 is not required. Purpose and aims National E￿ema Society was estsblished in 1975 to support peopk with eczema and their famil￿5 and lo work on their behalf. We remain ded￿ated lo these founding prinCip￿S and today we continue to help people across the UK with evklence-based information and advice about eczema and ils management. We deliver this in various ways through our websrte. social media channels. publutions and nurse- supported Helpline. We also provKle a collectNe ¥0￿ for pewle wrth eczema. to inform research and inlluence heahh policy to improve Ca￿ and raise greater awareness and understanding ofthe condition among people affected by eczema aThJ the wider public. The prevalence of eczema has increased over recent decades. and around one in five children and one in ten adults are n¢JW impacted by this lrfew they are affected by eczema an¢J help break d(Mn Ihe tsolati￿ that can come fr￿7 the daily griThJ of living wfth a painfvl long-lemi ¢ondrtion. We achieved excellent ¢ampaign Coverage. inclLtding a spot on BBC Breakfast TV, several art￿leS on the BBC website. and stories in many regional and sorr* national newspapers. Engagement on scKial media was excellent too. We are grateful lo dermatologist Professor Andiew Wri9hl. who lent his support lo the campaign, and to ¢)ur courageous patient advocates Anna. Kymmene, Suzanne and Nicda who shared their experi&nce5 of etsema in the media. Due to Cor¢)navirus restri¢tion5, we did not encourage eczema awareness ￿tl¥rtY in hosprtd dermalobgy clinics this year. or organlse fxe-tO- face eczema infomiation events. We Continued lo InC￿aSe our s(Kial media ￿a¢h and activity durirfj the year. reffleding how poople increasingly seek and share information about eczema. The Socrety has over 20.000 followers on Faceboth, an Increase of 1 S71 over the year, and grew our support on Twitter. We also began posting on Instagiam in February and the Society had attracted ￿er 3000 Instagram followers by the end of 2020. Capacity constraints and competin9 pfTrorities conlinued to impact on the media work we are able lo undertake. The SOC￿ prowded press cclnment on a nurnber of eczema slo¥Tres in the media over the year, and focussed our media engagement ar(¥Jnd National Eczema Week. We secured excellent media coverage for the Eczema Unmasked campapJn at a time when it was hard lo get attention for rK>n-Covid health StOr￿S. Followir¥J many mor¢ths of pLanning and preparation. we launched the Society's new website in Maich, IL151 before the first of the Covid lockdowns were implemented. The web5rte is a core digrtal capabilrty. on wh￿h to buihj the Sc¢iety's reach and impact. We W0￿ed with d￿rtaI agency 81ueslone3651o desi9n the site. Growing income and building financial sustainability In 2020 we continued to frxus on gruwing oui In¢off￿ to ensure we have the resources to ¥hieve our charitable objectNes and lo build fijture financia sustsinabiity. We are immensely gratefvl to our Ihoughfful and generous SUPF*)rters wh) choose to leave a grft to National Eczema Soc*ty in their Wll. Our income from ￿gaCleS in 2020 was once again Considerably hsgher than in many prevKsLSS years. and this has been so important in buikjing a stronger financial footing lor the SoC￿ty during a period of change. P￿e6 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 We continue to develop partnerships with eompanies that share oui aims and are willing to support our work and engage in joint education and awareness-raising actNtty. During the year Abbvie. Demial Labor*ories, Eli kn'lty. Johnson & Johnson. LEO Phama. Re¢kiti Ben¢kiser IE451. Sanofi and Thornton & Ross were all corporate members. Among other inrtiali¥es, we were de1￿hted lo support Dermal Laboratories eczema 1n1omiat￿n resources and WO￿ wrth LEO Pham￿ on the Eczema Unmasked survey and report. There were many fundraisirvj h￿hlIghts during the year and also chalkThJes as a result of the ryact of Covid. One of our mainstay fvndraising events. the London Marathon. was postponed until October because of Coronavirus ¢oncerns. and then was changed to a virtual event as rt was cons*Jered too risky for so many people to gather around the iconi¢ London roLrte. We are grateful to NES runnèrs Lucy Ellis and Karen Stephen for taking on the virtual Challenge to raise much-needed funds for the Society. Many other events, like the Gfeat North Run, were cancelled in 2020. We were delighted to be awarded a grant of £60.000 the Coronavirus Communty Supwt Fund. to he￿ finance our Helplme SerV￿e during the pandemic. Our Helpline was busier than ever supporting people wth the additional chalknges and worries of managing their eczema during the pandemic. The Coronavirus Community Support Fund. distributed by The NatKJnal Lottery Corrmunity Fund, was created lo help third-sector organi5alions continue to delNer M￿l￿needed infomiation and $upport during the crisis. We are grateful to the Govemmerf for making this powble. The Society's West Surrey and North-East Hampshire Support Group had to cancel most of their local fundraising aclivty becaJJ$e of Covid concwns, but were slill able lo presenl a cheque for £2.500 at the Annual General IAeeting in September. The Society's members and donors generously supported our summer and Christmas lundraising appeals once again and we are gratelul to everyone who supported the Society in different ways wrth their donations over what ha5 been a chalknging year for all wrth Covid. 2021 Plans and development priorities Looking ahead, we aim lo ensure Natsonal Eczwna So¢*ty CU￿1nueS to achieve the greatest impact we can for members and other5 liwng with eczema. Our cyeraling plan proviles a strong platforrn lo deliver our charitsble pr￿ramrne. Whi￿ retaining an appropriale ￿ve1 of reserves in accordance with the SoCie￿s reserve$ policy. The Charty's core charitable work will continue. ak)ng with St￿teg￿allY important acliwty including building our dwital Gapabw. Ixw fundraising. supporting re5eaKh and strengthening our patient voice. Development Pr￿lit*S for 2021 inclLX*: Infomiation and advice Intr￿jU¢e a series of webin*s for pecole afected by covering diffwenl aspeds of eczema care Develop plans for an online forum on the NES website lo provKle peer support for people affected by eezema Publish past editions of Exchange magazine on the Sccthl's websrte. so content 15 available to hdp everyone affected by eczema. Page 7 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2020 Patient voice Contribute with patient persFectNes to ch.nvl guide11r￿ deVelO￿ent and the assessment of new t￿atMentS and policy ¢￿SU1t*10n$. working with re9￿￿tOry bctyyies in¢lLwJing the MHRA and NICE Continue to be a campaignbng voKe for peoplewith eczeiro, to challenge inequalities in health policy and practice. Communications and awareness4aising Lead the annual naliinal ljagship awareness evenl, National Eczema Week in September, with a focus on achwing strong media and so¢ial media cove(age Introduce a monthty email newsletter for peop￿ wrth eczema. lo provKle regular informat*)n update5 and h￿hlIght opwrtun1t￿S to supwt the Charity. Research and patient in¥ohTem•nt Grow our organisats.onal capacfy to support patient and public invofvement in shaping eczema research, by building a pand of pecyle wrth e￿ema who are willW￿ to share thew exp8rien¢e and view5 Wrth researcher5 Provide funding for a £10.000 award for thildh¢￿1 eczema research. in asscriation with the UK Derrnalology Clinical Trials Neh¥ort. Income and commercial partnerships Prioritise fundraising development on se¢Ltring grants from Charitab￿ trusts and foundations Develop and service partnerships wth companies that share our values and are willing to support our work and el￿age in I￿nt awareness•fai5ing and ed￿atIc￿al *tivty. Organisalion and gov•man Undertake a strategy ￿vIeW to set prKJrrties for the future direcl•)n of the SOc￿ty Establish a Multidisc￿[1nary Medical Advisory Board to support and Steer the Charity's wo)* Review our approach and poI￿Y lo support the Soe*ty's work towards greater equalty, diversity and Inclush)n Crjxp￿te the upgrade of wr SUPKKlrter dalabase SO￿*&. Financial Resuhs We planned fora mryJe$t budget surplus in 2020. consistent wrth our strategi¢ intenth)n to move towards sch￿vIng a balanced or suwus budget on an ongoing basis_ We have aclualty achieved a substant￿1 suwus for the year. largety as a resuft of better than expected income from legacy 9rfts. The outcome for year for the Gro￿) was a surplus of £186.521. Thi$ ¢ompares wrth a modest surplus of £3,420 in the year ended 31 December 2019. At 31 December 2020 our reseNes had increased to £536.369 (£349,848 at 31 De¢embeT 2019). The outcome for the year for the trading subsidiary was a net deftit of £3.2(￿ (£2,448 al 31 December 20191. AI 31 December 2020 the trading subsidiary h&J net liabilrtw of £25,333 (£22,127 al 31 December 20191. Page 8 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 We would like to thank the many people who. as in previous years, by joinirg or renewin9 their membership. supporting our appeals and fundraising in a var¢ety ofoften innovatwe ways. have enabled us to eonlinue our work. The effort$ and contribution of supporters and volunteers is invaluable to the Society. We are grateful also to those who remembered the Society in their Wills. the chaiitable tmsts and companie5 that have 5UPPOrted us during the year, and to all the heakhcare professM)na15 who have piovided us w.rth $0 much lime. advi￿ and 5UPPOrt. Reserves Policy The Truslees aim to mainlain free reserves ￿ un￿trth lunds at a Iwel. wh￿h eouales lo 4)p¥oximalety six months unrestrKled tharrtable eXpendrtV￿. The Trustees consider that this level will provide sufficient funds to respond to unforeseen b$s of income and give the Charty time lo build arternalive sources of income, ￿t￿jc1Ure actNrtte5 or ¢l¢)se or metge the Charty. The Trustees consider that thi5 level of six months is appropiiate and suffKient gr¥en the recurring natu￿ ol the Society's ¢ore income and historvl trends. The balance held in unrestfKted ￿ndS al 31 December 2020 was £523,881, of whKh £470,001 is regarded as free reserves, after albwing for fund5 lied up in tsngible assets and those funds allocated for specific purposes. Budgeted six-month expenditure over January-June 2021 totals approximately £227.352. The Cur￿1 level ol werves exceeds Ihe amount needed. and the Sou"ety's plans and budget for 2021 and beyond reflect the opportunty lo draw on reserves for in-year expendrture if required. RJ$k Manag¢mont The Trustees have taken steps lo idenlrfy and address major risks facing the Society. The principal uncertainty in respect lo the sOc￿ty's fu￿re is the abilty lo maintain sUff￿￿nI income lo deliver the Charity's services, and ensure the Sttiety has adequate resources to comply with regulatory changes affecting the voluntary sector. Greater f(Kus and investment ore being directed to fundratsing adwities, to ensure the S¢xiety generates sultKient income each year lo fund planned actNilies. The principal rtsk of financial sustainabilty for the Charrty is closety monitored by the Trustees M a regular basis. including reviewing management accounts * quarterly Board meetings. Attention also continues lo focu5 on non-financial Tisks including heaAh and safety. reputation. secunty, confKlenlialty and data protection, which ale supported by approprLate policies and procedures as well as management updates as needed. The Trustees and Organisalion The so￿ety 15 a charitable cGryary. Although called Trustees. ￿rnber5 ofour goveming body are the Direclors of the C(￿panY for the purposes of company Iww. The Trustees who served during th? ye and up to the date of this ￿port a￿ gNen on page 1. The SocEty's governance prwesses are set out in ts Arttcles of Assockalion. The Board of Trustees administers the Soc*ty, which meets roulinety four limes a year and additionally as circumstances demand. A Ch￿ executive is appointed by the Tnjslees to nwage the day-ltrday operations of the Society within a framewofk agreed by the Board. Page 9 NATIONAL ECZEMA SOCIETY (A Company Limited by Guarante•) TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 There musl be 8 minmnum of three Tnjslees but the￿ i8 no maximum number. and Trustees must be elected by the members of the Socth at its Annual General Meeting IAGMI. Trustees may be COvOPted onto the Board during the year and must then stand for ele¢tson by the members al the next AGM. At least a third of Trustee5 are required to retire from office each year bul may, if they wish. offer themselves for re418clion al the AGM. Trustees are recruited through the sOc￿ty,$ members, magazine. Exchary. I￿31 5UPPOrt groups and other supwler networks. In seekin9 Trustees, the Society has regard lo the need to ensure that the Trustee Board has an appropriate range of professional skills and experEn¢e. refie¢t$ equalty and divwsty. and also th* Truslees are ¢Jrawn fr¢)m different area5 of the UK. New Twstees are provided with an irrtroductK)n pack. which indudes the Scciety's governing documents. ¢op¢e5 of past yearfs accounts, arKI a br￿Ing on their duties and re5pon51bilrties and ofthe Society's governance processes_ Prior to Joining the Boafd. new Trustees will usually attend at least one Board meeting in an observer ¢apa¢ty. which gNes them the opportunty lo meet the Twslees and chief executive. Ongoing training opportunilies on Chanty govemance t¢Pi¢$ a￿ available to Trustees, along with briefing updates from professional bodie5 and sector regulators ￿ClUdIng the Charity Commission. Trustees receive ￿ remuneration and no Trusteè ha5 a beneficial interest in any of the group companies. The TTustees set the r￿Un9￿al￿)n ofthe chiefexecutive and approvethe remuneration of other Society staff. Remuneration kniels are based on research of sirnilar rotes and benchmark salary data. Covid sLitement and r•spon National Eczema So¢Trety has been able to mantsin ts core services and olher charitab￿ a¢tMt dufing the Coronavirus crisis las of June 20211. most of whth a￿ delivered remotely Including our valued Eczema Helpline semce. t)emand has been higher as we strived to support people impacted st from Coronaviius. This has required changes in the way the Charrty operates. with stsff ioutinely rvjw working ￿Motety at h(Tr. We have invested in our IT and doutl computing ¢apabilty lo support remote working and now have an effective hybrid working mc*Jel. We have been cautious wrth planning lo re-introduce faCe-l￿face events. and have taken the decision not lo organise such events in 2021. We are now acceteraling plans lo deveky nvw, remote ways of svpporting people in ￿spOnSe lo the challenge of Covid. This rellects our core strategic objeclNe of reaching and supporting many mre FeGple affected by e￿Om0 Ihrough dYJital channels. Page 10 NATIONAL ECZEMA SOCIETY IA Company Lirnlt•d by Guarantee TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDEO 31 DECEM8ER 2020 The S￿Iety )er￿fitS from a dNerse range of incorne sources al￿ is therefore fTwe resih'ent lo significant unexpected events11(e C¢Ntd. Our inconewill be signfftant agaen In 2021 fromknown bequests. and e¢fpof8te partners have continued thw support durbng the p￿dern￿. We expect some traditional income sources lo be Irmer again in 2021. induding ￿COme from challenge events and donalions Imm uidividuals. and we have factored this into our bud9et planning. Hence. while rewnaining vigilanl lo the volatile external environm￿1. the Trustees do rk)t have reason to be ¢on¢etned over thè continued finanGlal sustain*"lty ol the Chaity from the vnmediate and longer4em economic impact of Covid. Reliecling the expected fina￿la1 position. the Trustees also do not consider it ￿t￿Ssary al this lime to arr*nd the reserves FKJhcy or deswnate funds for a fulure Covkl response. This ￿pOrt was •Jproved by the Board of TrLslees on signed on Iheir behalf tsy= and Stephe Treasurer ugh Page 11 NATIONAL ECZEMA SOCIErY IA Company Llmit•d by GuaraDt••) STATEMENT OF TRUSTEES. RESPONSI8ILmES FOR THE YEAR ENDED 31 DECEMBER 2020 The Truslees (who are also the DIre￿Or5 of the Charity for the pwr*)ses of c4xnpany I￿) are resp¢nsible lor prepar1￿j the Trustees, Report and financial statements ￿ xuydan¢e Yrfilh applKable law and Unite¢J Kingdom A￿untIng Stwbjards IUrMttiJ K￿￿d￿n Gener* Accepted A¢¢ounb"n9 Practice). Company law requires the Trustees to prepare finapKial statements for each financial year. Under company law. the TrLtstees m(rst not approve the financial sfatemenls unless they A￿ satssf*d ihat they give a true artd fair view of the state of affairs of Ihe Gioup and the Charity and of their incorning rèsources and application of resources, includin9 their in¢(rfne aThJ expenth"lure. lor that pwmyj. In weparing these fina￿141 statemenls, the Tnjstees are required lo.. $Eiect sulla￿e a¢¢wnl419 p)liaes and then appty Ihem consistently: observE the melh¢ds and prin¢¥les of the Charities SORP (FRS 1021; make jlKlgements and accwnling estimates thal are ￿as￿able and P￿￿ent state whelher ap￿￿ble UK Accountirtg StaThJards {FRS 1021 Itave been f01h￿l*d, subject lo ony material departures disclosed and explained in the financsal statements.. prepare th* financial statements on the 90in9 c1x￿ basis unless it is ￿apprOprIate lo presvmt Ihal the Group will contirmm in busine5 The Trustees are reSpOnsb￿ for keepirwj adeq[￿le &¢ounting records that rf1s¢loso with reasonable accuracy t any. time the financial po5rtTh of the Group enabkn them to ensure that Ihe financial statements comply with the Companies Act 20C6, the c￿lit￿$ and Trustee In￿stMent {Scotland) Act 2005 and the Charitie5 Accounts (Scollandl Re9uktions 20￿ la5 amended). They ar• a150 responsth for safeguarding the assets of the Grovp and ￿nce for I￿￿n9 leasonable steps for the pre¥enlfv￿ and delection of frxud and Dthtr irregularilies. In so far as the Trustees are awa￿. Ih¢re k8 no rèlev•rtt audit inlomwtbjn ofwlKh th¢ Group's auditor 1$ un84*are: and the Trustees have taken all steps Ihat they oughl to have t*en to make Ihem5elve5 aware of any relevant audil information and to establish that the a￿￿11￿ is ofthat infomati)n. Approved by order of the of the Board olTwstees and Sig￿ on ils behalf by.. Steph• Treasuref Date.. 16 l•L I Pap 12 NATIONAL ECZEMA SOCIETY {A Company Limited by Guarnntee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF NAnoNAL ECZEMA SOCIETY Opinlon We have audited the financ￿1 51atements of Nati￿al Eczema Socth (the 'parenl chaiilable companll and 115 subsidiaries Ithe 'Group'} for the year ended 31 De￿rnber 2020 which comprise the Consol¢dated Slalernent of Financial Adivrties, the consol￿ated Income and Expenditu￿ Account, the Consolidate(l Balance Sheet. the Chaity Balance Sheet. the Consolidated Stslement of Cash Fb%%s and the related notes. Including a summary of sonrficant accounting polictes. The financial repotts.ng framv&W)r* that has been applied in their preparation is applicable law and United Kingdom A￿nting Standards. including Financial Reporb'ng Slandard 102 'The Financial Reporting Slandard applicable in the UK ￿ Republ* of Ifeland. (United Kin9dom Generally A￿epted Accountin9 Practice}. In our opinion the financial statement5". give a true and fair v¢ew of the stale of the Gr￿p.S an¢J of the parent charrtable companls affairs a5 al 31 December 2020 and of the Group's incoming re$our¢es and applicatK￿ of resources. including rts income and expenditure for the year then ended.. have been Prtwerfy prepared ni &ctydance *ith Unrted Kin9&>11 Generalty Accepted Accounting Practice". and have been prepared in accordance wrth the requirements of the Companies Act 20C6. Chanties Act 2011, the CharIt￿S and Trustee Investment {Scotlandl Act 2005 and regulations 6 and 8 of the Charities Acc¢)unls Iscollandl Regulations 20￿. Basis for opinion We conducted our audrt in ac￿rdance with InternatKJnal Standards on ALMliting IUKI (ISAS IUKII and applicable law. Our responsibilit￿S under those starKlards are further described in the Auditors. re5ponsibilrties for the audit of the financial slalements sedion of our report. We a￿ irHJependent of the Group in accordance bwth the ethtcal requirements that are fele¥ant to our audit of the f￿a￿l81 statements in the Unrted Kingdom. including the Financial Reporting Council's Ethical Stsndard. and we have fuffilled our other elhKal responsibilit￿S in accordance with these requirements. We believe that the a￿jrt evpaence we have oblained 15 sufficient and aFPfopriale to provide a basis for our ownion. Con¢lusions velating to going concern In auditing the fina￿la1 statements. we have ¢(MKluded that the Truslees. use of the going concern basis of counting in the prepa￿tion of the fmwncial ststements is apprwriate. Based on the work we have performed. we have not identrf*d ary rnatel￿ uncertainties relating lo events or COr￿lt10n5 that, indiyidualty or ￿￿lectivelY. may cast signrfi¢anl doubt on the Grcwp's or Ihe parent charitable Company's ability lo continue as a going concem for a peric41 of at least month$ frt)m vthen the financi81 st*emerts are authorised for issue. Our ￿spon$￿'1rt￿s and the responsibilt*s of Ihe Trustees TATrth respect to wng ¢on¢em are described in the levant sections of this re￿rt. P•Je 13 NATIONAL ECZEMA SOCIETY IA Company Limited by Guaranteel INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF NATIONAL ECZEMA SOCIETY ICONTINUED) Other information The Trustees are responsible for the other infomi*w)n. The other infomiation comprises the infomiation included in the Annual Report. other than the financK41 statements and our Audrtors. Report thereon. Our opinion on the financial statements does not cover the othei infomiation and. except to the extent otherwise expli¢itly stated in our report, we do not expres$ any foftn of assurance condusion thereon.. In connection vmlh our audit of the financial statements, OUT res￿nsIbil￿ is to read the olheT information and, in doing 50, consider whether the othef informatton is malerialty incon515tent wrth the finarKial statements or our knowledge obtsined in the audit or otherwise appears lo be maleriaRy misststed. If we tdentrfy such material inconsistencies or apparent material misstatements. we are requI￿d to detemiine whether there is a material misstatement in the financial statements or a material mksstatement of the other inform*ion. If, based on the work we have perfom)ed. we condude th* there is a material misslatement of this other information, we are required lo report that fact. We have nothing to report in regard. Opinion on other matters prescribed by the Companies Act 2r*)6 In our opinion, based on Wofk undertaken in the course of the audrt.. the infomiation given in the Tnjslees. Report for Ihe financial year for which the financ￿￿ slatemenls are prepared is consistent with the finanrial stalement$_ the Trustees. Report has been prepared in accordan￿ with apphcabbe legal wuiremenls. Matters on whl¢h are required lo report by ex¢eptlon In the h'ghl of our knowledge and unde￿￿nding of the Group and parent ¢haiitable Compary and environment obtained in the course of the audrt, we have not Nkntffied m*erial misstslements in Ihe Tru$lees' Report. We have nothing to report in respect of the folltrM"ng matters in relatw to which Compan*s Act 2006 and the Charities Accounts Iscotlandl Regulalrons 2006 las amended) requi￿ us lo report to you rf. in OLFf opinion.. the Group and parent charrtable company has not kept adequate and sufficient accounting records, or relums adequate for our audit have nol been re¢eived from branches not vtsited by us.. or the Group and parent charitable company IinwKial statements are not in agreement wth the accounting ords and retums.. or certain disclosures of Trustees. remunefation specffied by1•4v we not made" c we have not received all the inf￿1(￿ and explanationswe require for our al￿11. Responsibilities of Trustees As explained more fulty in the Statement of Tnjstees. Responsibililies. the Tru$tees (who are also the Dire¢tors of the charitable company for the purposes of company law) a￿ ￿SponS￿l le for the P￿parat￿ of the financial statements and for being s*isfied that they give a true and fair vith¥. and for such intemal control as the Trustees detefmine is necessary to enable the preparat￿n of financial sL*emenls tr&3t are free from material misstatement. whether due to fraud or errol. Page 14 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarnntee} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF NATIONAL ECZEMA SOCIETY (CONTINUED) In preparing the financial slalemenls. the Trustee5 are responsib￿ for assessing the Group'5 and the parent Charitable companws abilty to continue as a going con¢em, dis¢k)sing. a5 applKable, rnatters related to going concern and using the going concern basis of a¢￿￿ntIng unless the Tfuslees eilher intend lo liquidate the Group or the pafenl charitable company Of to ¢ease operations. or have no realistic altemalive bul lo do so. Auditors, r￿ponsIbIlItIeS for the audit of the financial ststements We have been appointed as auditor under section 44111{c) of the Charities and Trustee Investment (Scotland) Acl 2005 and unt1er the compan￿ Act 2Crf)6 and repcmt in accordance wth the Act and relevant regulations made or having effect thereunder. Our c*jeclives are to obtain reason￿le assurance about wthether the financial slatemenls as a whole afe free from matefial mi5Statemenl, whether due lo fraud or error. and to issue an Auditors. Report that include$ our opinion. Reasonable assvrance is a hwJh level of assurance. but is not a gLJarantee that an audrt conducted in accordance wrth ISAS {UK) w41 akvays delect a rn*erial misStatem￿t when it e￿$t5. Misstatements can arise ftom fraud or error and are considered material if. indivtrJually or in the aggiegale, they could reasonabty be expected lo influence the econc¥nic decisK>ns of users taken on the basis of these financial statements. Irregularilie5, including fraud, are instances of non-compliarKe with laws and regulations. We design prccedures in line with our Te5ponSibil((￿s. outlined above. to detect material misslalements in respect of irregularf(ies. including fraud. The exlenl lo t)ur Pr￿edUr￿ are capable of detecting 1r￿guI0T1tLes, including fraud 15 detsiled belcAv'. Enquiry of management and those ¢harged with 9ovemance around actual and potential litigatK)n ar* claims., Enquiry of staff in tax and compliance funct￿5 to *Jenlrfy any instances of nonrycompliance laws and ￿gUlatIonS", Performing audit wor* over the risk ol managwnent oveNide of Controls, indLKling testing ofjournal enlries and other adju$tment$ for appropriateness, evaluating Ihe business rat￿nale of $ignrfi¢ant transactions outshle the nornial course of business and feviewing accounting estimates for bias., Rev1ewing minutes of meetings of those charged wrth govemafKe," and Reviewirtg financial stalemeftl disclosu￿$ aftd testing to sijpporting documentation lo assess complian with 8pplicable laws and regulalions. Because of the inherent l1mrtat￿S of afi audit. there is a risk Ihat we wil Th)t deled all irregularitÈs, including those leading to a material misstatement in the financial statements or nonilltles 611.665 435.356 C￿ltOrS.. amounts faurrvj (kje after rrwe than one year {49.8631 (63.281) Total net assels $61,802 372,075 Charity funds Restrided fvnds VnreslricW fuThAs 21 10.753 $51.04> 753 371,322 21 Total fund$ 561,102 372,-075 The Trustee3 acknowledy th￿( responsitxts for w￿p￿r¥￿ w*h the requirwnents of Ihe Acl wth respect a¢counting recwds and p￿paratI￿ offinartual ststemÈnts. The fiftan¢kn￿ sL*ements ha¥e t￿en prep*ed in accordarKe with me prob15itins appllcabl* lo entittes subject to the Small cornpan￿ re4ime. Theffi latements approved and •Lthorised for issue by tl* Tru$tees and signed on their behaKby.' Stephen Pugh. Treasurer Date: I&1￿ J!rte ￿11 The ftotes on pages 22 to 48 fom part ofthese fMKial st*menls. P4• 20 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) CONSOUDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 Note Ca$h fknys from operating activ•ties Net cash use¢J in operakn.ng actmkn.es 23 180.039 22.935 Cash flows from investing activities Investment income Purchase of intsngible assets Purchase of tangible fixed assets 2.143 17.9201 115,4381 1.323 (13,068) {4,804) 15 16 Net ¢a$h used in invesling a¢tivilios 121.2151 (16,549) Change in ¢a5h and cash equivalents in the year Cash and cash equivalents at the be9inniThJ of the year 158.824 6.386 18.931 432,545 Cash and cash equivalents at the end of the year 24 $97.755 438,931 Th8 notes on pages 22 10 48 form part ofthese ffinarKiat stalemenls. 21 NATIONAL ECZEW SOCIEr {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 General infomi*ion National Eczema Society is a chantable company limrted by guarantee and is registered with the Registrar of Companies (Company Registered Number". 026850831, the Charty Comrnission in England and Wales (Chairty Registered Number". lo￿71) and Ihe Scott15h Charity Regulator (Charity Registered Number. SC043669}. In the evenl of the Chanty being M)und up. the Ik*M"lrty in respect of the guarantee is limrted lo £1 per Member of Ihe Charty. The address of the registered Off￿ is given in the Charty irhfom)ation on pa9e 1 of these financial statements. The nature of the Charrtls operations. and principal activities are deladed in the Trustees, Report. The signrficant accounting poliC￿S applied in the preparation of these financial statements are set out beh)w. These policies have been consi5tenlly applied lo al yew5 presented unless otherwise slated. Accounting pofKies 2.1 Basis of preParat￿n of financial $tat¢ments The financral slalemenls have been prepared in accordance wrth the CharIt￿S SORP IFRS 102} - Accounting and Reporting by Charrties". Ststemerrt of Recommended Practice applicable lo charrlies preparing their accounts in a¢cordan¢e vthh the FinancKql Reporting Standaid applicable in the UK and RepublK of Ireland IFRS 102). the Financial Reporting Standard appl￿ble in the UK and Republ￿ of Ireland IFRS 1021, the Charrties and TTuslee Investment (Scollandl Act 2005. the Charities Acc￿nts (S¢c4land) Regulati¢X$ 20C6 and the Companies Act 2006. Nalional Eczema Souety meets the definrtion of a publK benefft entity under FRS 102. Assets and liabilit￿S are inrtialty recognised al htstorical cost or transact￿￿n value unkss otherwise st*ed in the relèvant a¢coiJnting polty. The finanaal ststements are prepared in sterling which is the fun¢tional an¢J presentstKJnal ¢urrency of the Group and are rounded to the nearest pound. The Consolidated Statement of Financial Actwrt¢e5 (SOFA} and Consolidated Balance Sheet Consol￿ate the financial statements of the Chanty and its S￿s￿lIary undertaking. The resuf(s of the subsHI￿ry are consolidated on a line by line basis. The Income and Expenditure Ac¢ounl for the year dealt with in the accounts of the Chafity showed a surplus of £189,72712019: surplus of £5,868)- 12 Going concern The Trustees have assessed the use of going concern and have considered possible events or conditKJns that mwht cast signfKanl doubt on the abilty of the Group lo continue as a going concern including the Impact of COVID-19. The Trustees have made this assessment for a period of al least one year from the dale of the approval of these financial slalemenls. The Trustees have ¢oncluded that there is a reasonable expe￿at￿n that the Group has adequate re50ur¢es to continue in opefational existence lor the foreseeable fvlure. and that material un¢ertaInl￿$ exist. The Group therefore continues to adopt the going concem basis in preparing these financial slalemenl5. Page 22 NATIONAL ECZEMA SOCIE {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounling policies {continuedl 2.3 Income All income is recconised once the Group has ent￿ement to the incclne. rt is probable that the InC￿e will be received and the amount of inccrfne receivable can be [r￿SUred reliabty. For donat￿nS and grft lo be recogntsed the Group wil have been nOtif￿d of the amounts and the settlement dale in wilting. If there are conditions att￿hed lo the donation and this fequires a level of performance before entitlement can be obtained then income is deferied until those condilKJns are fully met or the fulfilmenl of Ihose condrtions is within the control of the Group and rt is probable that they wll be fthlled. The recognitKJn of income fr(yn ￿a¢￿S is dependent on establishing entrtlement. the probabilty of receipt and the abilty to estimate with surr￿lent accuracy the amount receivab￿. Evidence of entitlement to a legacy exists when the Group has sufficient evidence that a grft has been left to them (through knowledge of the existence of a valKI wll and the death of the benefactor} and the exeeutor is satisfied that the property in qUest￿n wll not be required lo salisfy claims in the eslale. Receipt of a *acy must be recognised when rt is WObab￿ that rt will be receTved and the fair value of the amount re¢eNable, which wll generalfy be the expected cash amount to be distributed to the Group, can te reliabty measured. subsciipt￿n income is received in full arKI rectsjnised evertly over the course of the subscfiption. The amount recognised in the Consoltdated St*emenl of Financol Activrt*s rel*e5 to the financial period in questK)n. Income from tr&Jing actmties includes income eamed from fundraising events and trading adiwties to raise furKls for the Group. Incwne is received in exchange for supplying go￿5 and services in order to wse funds arKI is recognised vthen entrtlement has occurred. 2.4 Expenditurn All expendrture Is arcounted for on an accrua15 basis and has been classrfied under headings that aggregate all costs related to the calegorte5. EXper￿rture rs recoanwl once there is a legal or con5tructwe obligation lo transfer economK benefft to a third paty. il is probable that a transfer of ecr)fiomic benefrts will be required in settlemenl and the amount of the obligalion can be rnea5u￿d reliabty. Expenditufe is classrfied by actmty. The costs of each actmty afe made up of the total of direct costs and shared costs. incIL￿ing support costs involved in undertaking each activity. Direct costs attributable to a single actmty are allocated direclty to that adivity. Shared costs which contribLrte to more than one actNrty and support costs which are not attributable lo a single activrty are apporthjned befv￿n Ihose actNrtie$ on a basis consistent wrth the use of resources. Central staff costs are all¢xated on the basi5 of time spent, and depreciation char9es allocated on the portion of the asset's use. Expenditure on raising funds int￿deS all expenditu￿ incurred by the Group to raise funds for ils chartable pu￿ and indudes costs of all fundraising ac1jvrt￿S events and non-charilable trading. Expenditu￿ on charrtable a¢tMties is incurred on diwtty undertaking the activities %thi¢h further the Group's obJ'e¢tNes. as well as any asxKiated support costs. All experKliture is inclusive of irrecoverabk VAT. Page 23 NATIONAL ECZEMA SOCIETY IA Cornpany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies I￿ntinued) 2.5 Intsresl re¢eivabl• Interest on funds held on d¢￿stt Is included ￿en recepRble and the amount can be measured Teliabty by the Group.. this is normally upon nolfftal￿n of the interest paid or payable by the institut￿n wrth whom the hjnds are deposiled. 2.6 Taxation The Charity 15 considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and the￿fOre rt meets the definitb)n of a charitable ¢￿1panY for UK corporalion tsx purpose5. AC￿r￿1n9ty, the Charity 1$ potentwlly exempt from taxation in respect of F￿orne or ¢aprtal gains re¢ewed wthin categories covered by Chapter 3 Part 11 of the Corporatson Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gains are applEd exelLtsively to charrtable purpose5. 2.7 Intangibk assets and amortisation Intangible assets costiry £500 or more are capitah'sed and recognised when future economic benefits we probable arKI the cost ty value of the asset can be measured reliably. Intangible assets are initially fe¢ogntsed at cost. After recognrtion, under the cost modd. intsngible assets are measured at cost any aCcumulat￿j amortisalion and any accumulated impairment 10sse5. Amortisalion is provided on intangible assets at rates ￿kulated to wrrte off the cost of each asset on a 5traighl.line basi5 over rt5 expecte(l useful lrfe. Assets under constructK)n are not aThylised until ready for use. 2.8 Tangible fixed assets and depreciation Tangible fixed assets costing £SOO or more a￿ capitalised and wogntsed when futu￿ economic benefjls ale probable and the ¢ost or value of the assel can be measured reliably. Tangible fixed assets are Init￿1￿ recc¥3nised at cosl. After rec0gnrt1￿, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment h)sses. Al costs incurred to bring a tangible fixed asset inlo rt5 inlerKled workir condition shoukl be included in the mea5ufemenl of ￿5t. At each reporting dale the Group assesses TAhethw there is any indicatton of tmpaimienl. If such indication exists. the recoverable amount of the asset is determined lo be the higher of ils fair value less costs to sell and its value in use. An impairment kjss Is recognised where the carrying amount exceeds the recoverable amouht. p￿24 NATIONAL ECZEMA SOCIETY {A Company Limited by Guarantoel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2020 Accounting policies {continuedl 2A Tanglble fixed assets and depreciatlon l¢ontinu•d) Depreciation is charged $0 as to albcate the cost of langtile fixed assets less their residual value over their estimated useful INes. using the slraight4ine method. DepreCiat￿n is pfovided on the follw.ng bases.. Leasehohj improvements Fumilure and fittings Office equipment Computer equipn*nl - over 10 years - over 10 years - ¢)¥er 10 years - over 3 years 2.9 Investm•nts The inveslrnent in the subsbjiary coryny is v*ued at cosl less provision for impaim*rrt. 2.10 Debto Trade and other debtots are recogntsed at the settlement amount after any trade discount offered. Pfepayments are valued at Ihe anK)unt prepaid net of any trwJ8 d￿OuntS due. 111 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments wth a short malurrty of three months or ￿5$ from Ihe date of acquisit￿N or openin9 of the deposit or similar account. 112 Liabilitie$ and provl$ions Liab11rt￿ are rwnL%ed when IheTe is an oblwJatv)n at the Balance Sheet date as a resutt of a past event. it probable that a transfer of econom￿ benefrt ￿1[ be requi￿ in settlement, and the amount of Ihe settlement can be estimated reliabty. Liabilrties are reco9nised at the amount that the Group anth"cipates rt wll pay to settle the debt ¢X the amount il has received a5 advanced payments foi the goods or seNices it must provide. Provisions are measured at the best estrmate of the amounts required to settle the obligation. Whe the effect of the tsme value of money is materral, the Pfomsion is based on the present value of those amount5, discounled al the prfrtax discount rale that reflects the risks SpeCrf￿ to the liabilty. The unwinding of the discount is recognised in the Consoljdaled Slalernenl of Financial Activities as a finance cost. Paye 25 NATIONAL ECZEMA SOCIETY {A Company Limited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies {continuedl 2.13 Financial instwments The Group onty hokls bas￿ F￿￿n¢￿1 Instruments. The fK)ancial assets and finan¢ial Ipbil(ties of the Group are as f￿10￿$.. Deblors - (Aher debtors a￿ bas￿ f￿a￿la1 #￿trUMents and afe debt instruments measured at amortised cost as delailed in Note 18. Cash at bank- is daSsIf￿ as a bas￿ financial instrument arKI 15 measured at face value. Liabili(ies- accruals are Classif￿d as financial instrumenls. and are measured at amortised cosl as detsiled in Notes 19 èrKI 20. 2.14 Operating leases Rentals papJ under opw*ing we charged to the Consolidated Statement of Financial ActNrties on a straght line basis over the lease temi. 115 Pensions The Group 1$ part of the Series 3 Growth wthich ts a mutti-employer pension Scheme which ckjsed in 2013. The Scheme adminislrators have confirnied that It is not possible to separatety idenlrfy the asseis and 1obilth"e5 of particip*ing employer5 on a consistent and reasonable basis. The assets of the S¢heme ao ctFmingled for investment purposes and benefrts a￿ paid from total Scheme assets. A defut feduth'on plan has been agreed. The Group accounts for rts participat￿n in this Plan as a defined conlnbution plan. as there is insufficient informat•)n available to account for IhL5 as a defined benefrt plan, as the share of Èts assels and liabilitEs cannot be ￿ertI￿ed. To avoid ¢rystallizing an immediate payment of the apparent under-fundiThJ in the Serigs 3 Scheme. the Group is parbcipating in the Ser￿s 3 Recovery Plan and the liabilty is included in Notes 17 and 18. The Gr￿￿p reccgnises its I￿lIty lo make payments to fund the def￿1t Telaling to past service under an agreement lo make those payments. It recogn15es the full Iiabilty for the present value of contributions payable that resutts Irom the agreement for funding the mulli employer plan. The Group also parts"¢tpates in a defined COntrrbut￿ pensron scheme for its emptyees. The Group pays fixed o)ntrsbutions into a separate scheme. on￿ Ihe defined contribution payments have been made. the Group has no further payment obligations in respecl of this scheme. The contributions are recognised as an expense in the Consdidated Statement of Financial Activittes as they fall due. Page 26 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEPIJBER 2020 Accounting policlès Icontinuedl 2.16 Fund accounting Gener81 fvnds are unrestricted fun(ts which are avaitable for use * the discretion of the Trustees in furtherance of the general objectives of the Group and vtht¢h have not been designated for other purposes. Oesignate(I funds comprise Unrest￿ted funds Ihat have been set astsJe by the Trustees for particular purposes. The awn and yse of eath deswjwed fund is set out in the notes lo the financial slalements. Restficted funds are funds we lo be used in aceordarte with specific restrietKJns imposed by donors or which have been raised by the Group for particular purposes. The costs of Taising and administering such fvnds are ¢harged against the sFeufic fund. The aKn and use ol each restricted fund is set out in the notes to the financial st*ements. InveStff￿1 income. gains and losses are aJkx*ed to the apprOpr￿te fvnd. Crltlcal accounting estAmates and areas of Judg￿nent Estimates and I￿￿geMentS are conkn"nualty evak￿led and are based cffj historical experience and other factors. including expectatsons cl future evwits lh* are believed to be reasonable under the circumstan￿. Crrtical accounting estimates and assur1pl￿nS". The Group makes estimates and assumptions conceming the future. The resulting accounting estimates and assumptions will. by definrt￿n. seldom equal the related xtual results. The eslimales and a55umplions that have a S￿n￿￿3￿t risk of causing a rnalerial adiustmenl to the carrying amounts of a55ets and Iiabilrties wrthin the next financial year are listed beknv. Allocatson of SLtpport costs Depreciat￿ rates for tangble fixed a55ets Useful economic Itves of assets The discount rale used in valuing the year4nd PenSIc￿ Scheme deficit. The Board th not considef the Cov#J-19 P•M1wnic to ha¥e had a material impact on these accounting eslimates and areas ofiudgemenl. Page 27 NATIONAL ECZEMA SOCIErY IA Company Limiied by Guarant•&) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Income from donations and legacies Unrestricted Restricted funds funds 2020 2020 Total funds 2020 Donations arwj Similar inccffie Legacies SubscriptrJns Grfl aid 143,976 199.3C6 149.389 24. 28,810 172,786 199,306 149,389 24.406 Total 2020 517,077 28,810 545.887 Unrestricted funds 2019 Total funds 2019 Donations and simdar income Legacies SubscrptK)ns Gift aid 148,050 140.897 106.225 20,484 148,050 140,897 106,225 20,484 Tot812019 475.656 415,656 Incom¢ from charitable activities Total funds 2020 Membership serth￿S Unr8slricted funds 2019 Total funds 2019 Membership serwces {60J (60) P•Je 28 NA710NAL ECZEMA SOCIEr IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2020 Income from othor tradlng a¢ti¥itie5 Incorne from fundraising events Unrestricted lunds 2020 Total funds 2020 Other cOrp￿ale inccrrte Other actiVrt￿S 587 734 734 Total 2020 1,321 1,321 Un￿${¥1¢ted funds 2019 Total lunds 2019 Other corporate incc¥ne Other ath"vibes 9,037 1. 159 9,037 1, 159 Tolal 2019 10. 196 10, 196 In￿m0 from tradlng activities Unrestrl¢ted funds 2020 Total fufids 2020 Trading sUbS￿l8ry 1.809 1.809 Unrgs¢ncled funds 2019 Tot81 funds 2Q19 Trading SUbs￿lary 3.612 3,612 Page 29 NATIONAL ECZEMA SOCIEr IA Company L•mited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2020 Income from Investments Unrestricted funds 2020 Totsl funds 2020 Bank interest weivable 2.143 2,143 Unrnstricted funds 2019 Total funds 2019 Bank interest re¢eiYable 1,323 1,323 Page 30 MATIONAL ECZEMA SOCIETY (A Company Lirnited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Expenditsre on raising lund$ 2020 2019 Fundraising costs Direcl costs Support costs 28,685 26,QOS 5,499 20.690 54.690 26.189 Analysis ol support costs- fundraising costs 2020 2019 Staff ¢osts Depre¢Btion Premises costs 7.390 72.547 421 7,286 429 198 1,361 1. 167 820 1.826 635 3.388 889 Carriage and postaje Design and print Professional fees Bought-in serw¢es Website, database and computing Other costs Govemance costs 2.086 498 3,082 4.349 2.279 26.005 20.690 2020 2019 Trading Costs Trading subsid￿ry- Oirect costs 15 1,060 In both the curient and previous financia years all Expenditure on raisiNJ funds was from Unrestricted fvnds. Page 31 NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEM8ER 2020 Analysis of expendIlu￿ on Charitsble activities- by fur Unrestricted funds 2020 Restricted funds 2020 Total funds 2020 Helpline Membership seM¢es lnfomiats.on services 97,641 120.172 73,925 97.641 120.172 91.000 17.075 Total 2020 291.738 17.075 308.813 UnRstiicted funds 2019 Tot funds 2079 Helpline Membership seryices Infom)alion serv￿5 145,330 180.415 73,112 145,330 180,415 73,112 Tolal 2079 398,857 398,857 Page 32 NATIONAL ECZEMA SOCIETY IA Company Lirnited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 10. Anatysis of expenditure ofi charitable activities- by typt Activities undertaken directly 2020 Support costs 2020 Totsl funds 2020 Helpline Membership serw¢es Informats"on serV￿eS 50.806 63.047 47.743 46,835 57,125 43,257 97.641 120,172 91,000 Tolal 2020 161,596 147.217 308.813 Adivtss undertaken diredly 2079 Support costs 2079 Total funds 2019 Helpline Membership seNces InfomlatK￿ Ser￿￿eS 29.7n 37.884 1&352 115,553 142.531 57.760 145,330 180,415 73.112 Total 2019 83.013 375.844 398,857 Paye 33 NATIONAL ECZEMA SOCIETY IA Company Limited by Guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 10. Analysis of èxpenditure on charitable a¢tivities- by type {continu•dl Analysis of support costs Total funds 2020 Total lunds 2019 Slaff costs Depreciation Premises costs Carriage ar￿ postage Design and prinl Professional fees Bought•in sermces Website. database and Ctyryuling Olher costs Governance ￿$ts 41.608 11.506 19,077 S,003 190,656 6,396 19,544 6,515 11,746 2,802 17.354 25.290 12,831 20,678 17,740 12,465 29.193 9,653 147.217 315.844 Govemance c¢>sts 2020 2019 Audrtors, rernuneration Independent Examine¢$ remuneratioYÈ Rent & r*es Insurance Tnjstees expenses Legal fees Genefal expense$ 9.000 3,680 1602 6.151 6,￿9 27 15,110 10,289 Total Govemance costs above comprise É2.279 (2019 - £635) of Expendrture on raising funds and £12.831 {2019 - £9,653) of Expendrlure on charrtats￿ actiwtie5. Page 34 NATIONAL ECZEMA SOCIETY {A Company Limited by G￿rantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 DECEMBER 2020 12. Auditor&' remuneration 2020 2019 Auditors. remuneration- Audit of the Group and the Trading Subsidiary Audrtors, remuneration - p￿paratIOn of the sL*utory accounts for the Group and the Trading Subs¥Jiary Independent Examinerfs remuneration- Examination of the financol statements 2,100 Independenl Ekniminees remuneration- TaxatKJn 5eThices 1, 100 13. Staff costs Group 2020 Group 2019 Charity 2020 Ch8rily 2019 Wages and Salaries Social securty costs Pension costs 154.610 12.728 7.010 181.583 14.636 6.984 154.610 12.728 7.010 181.583 14,636 6,9841 174.348 203.203 174.348 203,203 Included in Wages and salaries above are redundancy costs of £NIL 12019.. £32,0271. Of this amount. £NIL {2019. £17.0981 relates lo statutory redundancy. £NIL {2019." £13,473) relates to voluntary dundancy and £NIL12019." £1.456) relates to ccryulsory ￿dUndanCy. The average number of per￿S employed by the Gr￿p the year was as folk)ws'. Group 2020 No. Group 2019 No. Direct charitable xtiiriknes Fundraising anil ¢ommunKation Support and g¢)vernance Page 35 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 13. Stsff costs {continuedl The number of employees T*4hose empbyee benefts recewed (exduding anptyer pension costs) exceeded £60,000 was". Group 2020 No. Gft)up 2019 No. In the band £60,001 - £70.000 The lolal amount of ern￿Oyee benefts. including empfoyers natK)nal insuiance and pension conlribulion5, received by Key Management Per￿)nnel is £72.330 {2019." £71.2841. The Charity considers ils Key Management Personnel comprise the Trustees and the Chief Executive Officer. 14. Trustees. remunerdtion and expenses During the year, no Tru31ees received any reMurteratK￿ or other benefits (2019- ÉNIL). During the year ended 31 December 2020. expenses tolalling r30 were reimbursed or pa*J dwty lo 2 Trustees (2019- £1,086 10 4 Tnistees). The expenditure was to cover travel costs. Page 36 NATIONAL ECZEMA SOCIETY IA Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 DECEMBER 2020 1& Intsngible assets Group and Charity under constTuction Website Total Cost Al 1 January 2020 Addittons Trnnsfer bets¥een eL%ses 13.068 13,068 7.920 7,920 13.068 113,068) At 31 December 2020 Amortisation Charge for the year 5.160 5.160 At 31 December 2020 &160 5,160 Net l)ook value At 31 Decwnber 2020 15.828 1S,828 At 31 Decemter2019 13.068 13.068 Page 37 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 16. Tangible fixed assets Group and Chaiity Leasehold Furniture Improvements and fixtures Office Computer equipment equipment Total Cost or vI￿ation At 1 January 2020 Additions Disposals 41.470 1493 4,140 12.149 15,438 15.544) 60,2S2 15,438 15,8111 {2671 At 31 December 2020 41.470 2.493 3.873 69,879 Depreciation At 1 January 2020 Charge for the year On disposals 17.637 4.147 29.248 8,390 15.8111 249 387 126n 3.607 {S.$44) At 31 De￿mber 2020 21.784 6.663 31,827 Net book Value At 31 December 2020 19,686 1.063 1.923 1S.380 38.052 Al 31 De¢emlJer2019 23.833 1,312 2.310 3,549 31,004 Page 38 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarnnlee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 17. Fixed assel inv•stments Inve$tment subsidiary cornpany Charity Cost or valuati(In Al 1 January 2020 100 At 31 December 2020 100 Page 39 IA C￿pa￿ Gu¥arrt••) r•)TES ro THE FINANC￿LsTATEmENTS FOR ThE YEAR ENOEO 310E¢EMBER2ty20 17. Fiud aJs•t invo•trn￿ Prfneip41 subsM14•iigS Thg Narn• Compw Rwp#•r•d offic• or Hold* *Kllld•d nwnber pri￿¢1￿ plJEèoW con5011datlon EczernaTrèJin9 Lonrted C6899)48 11 Stw. 1t)A Y•$ Name Net yo•r Tr&*iNJ {3.2Q61 12S3331 The resukn & Eczerna Tradr4 Lmtrd are YKbJded ￿ UWcoMc￿ EczemA Tr•Jry Lmbj meetthty at¥J It*tsfore require * a￿l￿fi￿the yw9nded 31 OBcgTOer2020. Ee28rna S¢KXty $thtantivp operah)7s. wrrwty Chtwtrna5 CuThenity. the therttsiro revenL* from Our guanety membttship is *tsunied fDr In E(2Erna Lvnled. fANng f¢Thptd. tre Sm ￿ Wiryio Intr￿UC* J'kne math. of endL￿ment scheme forPr￿u¢r$ rnoresuited to peOeiMth eczema be *ca￿￿￿*fOr ￿ Ewma Tr*ry Lmt9d hence TFason l(w re￿Ining P4*40 . NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 18. Debto Group Group 2019 Charity 2020 Charity 2019 Du• within one year Trade debtors Amounts owed by groLV ufKlert*ings Other debtors Prepayments and ac(yued incl 30.840 45.837 48.047 37,5(K) 37,865 13. 10,798 48,047 11.711 13.5 10.798 90.598 63,648 136,435 99,713 19. Creditors: Amounts falling due TA7thin one year Group 2020 Gmup 2019 Charity 2020 Charity 2019 Trade credilors Other laxation and SIX￿ security Other creditors Accruals and deferred income 6.004 11571 15.490 121.936 12.520 4764 14,956 97.282 12, 520 8, 764 14,956 92,8TO 12.571 15.490 121,936 156.001 133.522 156.001 129, 110 Group 2020 Gmup 2019 Charty 2020 Charity 2019 Oeferred in¢ome Deferred income at 1 January Resources deferred during the year Amounts released ftorn previous periods 85,119 103.016 185.1191 66.463 85.179 (66,463) 83,319 103.016 183,319) 63.263 83,319 {63,263) Def•rred in¢omg at 31 Oecember 103,016 85.119 103,016 83,319 Deferred in¢c￿e consists of membership incm relating to fvture periods. Page41 NATIONAL ECZEMA SOCIETY IA Company Limited by Guaran18•) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Creditors: Arnounls falling due aft•r more than one year Group 2020 Grcwp 2019 Charty 2020 Chaiity 2019 Pension Scheme defic(( 49.863 63,281 49.863 63,281 The Charity is particip*ing in a reo)very plan to elimin*e *s Series 3 scheme def￿11 over a ten year period. The Pensions Trust. the scheme administrator. has hO¥￿er. admsed that the amount of employer debt on the allemative of wthdrawal from the Series 3 scheme has been estimated by actuaries to have been £200,161 as al 31 December 2016. As the Charrty intends lo continue participating in the recovery plan. no provisK)n has been made for this potential wrthdrawal debt however, the Society acc¢wnled for the present value of all remaining conlributrons under the recovery plan in the 2017 a¢eounts at their present ￿alue of £120.000. a$ ajwsed by the scheme administr*or. This liabihty has been adjusted annually lo unwnd the relevant discount applied_ In order lo meet their share of the shortfall, the Chanty has been asked to pay additional contributions lo the scheme untsl 2025. A full actuarial valuation was Carried out by the actuaries al 30 September 2017 and the funding shortfall cakulaled at Ihat ¢Jate gave rise to a remeasvremenl reduth.on of £15,824 in the defi¢it as at 31 December 2018. The deficit of the scheme is £65.19612019.' £78.168) at 31 December 2020. The payment by the Char¢ty in the year was £14.88712019. £14,636) with an interest payThenl of £79412019". £1,438) and a remeasurement expense of £1.121 (2019." £1.201). In addition. the Charity elected to s￿tCh. WTth effect from 1 October 2013. frc¥n Series 3 to Series 4. a defined contnbulion scheme. The pension eost in the account5 replesenls amounts payable by the charty 35 ordifiary employer contributK)nS to Ihe Series 4 defined Contribution fvnd. During the year employer Contributions of £7.010 12019.. £6,983), inleresl of £794 12019.. £1,438) an¢J actuar￿1 losses of £1,121 {2019." £1,201) have been Charged to the Consol¢dated Statement of Financial Athvities. Thefe were no accnjed ¢ontributs"ons at 31 December 202012019." £NILI bul there is a liability of £65.19612019." £78. 1681 lor fvture contributrons under the Series 3 Recovery Plan. Of this £15.333 {2019.' £14.8871 is reported in Creditor$.' Amounts fallir¥J due w<(hin one year as part of Other creditors and £49,86312019.' £63,281) 1$ remed in Credrtors.. AJnounls fallry due after more then one year. Page 42 NATIONAL ECZEMA SOCIETY (A Company Llmited by Guarante8D NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 21. Statement of funds Statement ol funds- current year Balan¢e at 31 Gainsl December (Lo$sesl 2020 Balance at 1 January 2020 Transfers inlout Incomè Expenditure Unrestriclod funds Designated funds Fixed asset fund 44,072 113.5501 53,880 Pensh?n 178.168) 17941 14,887 165,1961 134.0961 114.344) (1.1211 111.316) General funds General fvTrJs 383.191 522.350 1332.099) (38.245} 535.197 Totsl Unrestrkted funds 349.095 S22.350 1346.443) 523.881 Restricted funds Research ThankQ Laptops 753 11.735 13.800 3.275 12,488 (13,800} 13,275} 753 28.810 117.0751 12,488 Total of funds 349,848 $51.160 1363,518) 11,121) 536,369 Page 43 NATIONAL ECZEMA SOCIETY {A Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 DECEMBER 2020 21. Statement of funds (continued) ststement af funds- prior year Balance 81 31 December 2019 Balance al 1 January 2019 Trnnsf8 i￿0￿1 Gain (Losses) Income ExperM*"tu Vnrestri¢ted funds Deslgnated funds Fixed asset fund 33.019 (6,819) 17.872 44,072 Pensic reserve (90. 165) (1.438) 14.636 {1.201J f78, 168) (57, 146) (8,257) 32, 11.201) (34,096) General funds General funds 402.821 430. 727 (417.849J (32.￿) 383, 191 Total Unreslricted funds 345,675 430.727 I4￿.1(￿) (1.201) 349,095 Restricted funds Research 753 753 Total of funds 346.428 430. 727 r426. 106) (1,201) 349.848 Pwje 44 NATIONAL ECZEMA SOCIETY IA Company Llmited ty Guaranteel NOTES TO THE FINAMCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 21. Statement of funds (continued) nated fvftd The Pension reserve has been estabh'shed to show the future penS￿n deficrt payments in regards to a defined benefft pensh)n scheme. This pensM)n scheme is being treated as a defined contribution pension Scheme as a felrable estimate canr￿1 be made of the liability al the year end. The transfer of £14.887 was made to separate the deficrt payments due as at 31 December 2020 frorn the Unreslricled general frjnd. Actuarial gains I (losses) are charged to thi5 furHI as they arise. The Fixed asset fund has been estsblished to refle¢t the fvnds t*d up in Tangible an<1 Intangible fixed a55els and agrees back to the Nel Value presented on the th)solidated BaLa￿e Sheet. The transfef of £23.358 was made to represent the net of ￿pital additk)ns and disposal$ during Ihe ye¥. Depreciotton is charged to this fund a$ expendrtyre. Unrestricted funds General funds reflects fvnds which are available for use * the diwetion of the Twstees in fvrtherance of the geneial objeclwes of Ihe Charity and whKh have not been designaled for other purposes. Restricted funds The Research fund exi$ts to provide resources for rese*th into the causes of E￿erna. ￿th the aim of developing more effecfive treatments or a cure. The Society 1$ 9ratefvl to ¢orporate members. AbbvKg and Sanofi, which provtded restricted funding to upgrade the sO¢￿s supporter database $Of￿are, ThankQ. and implement cloud-based hosting. This worl4 was essenkn.al in SUPForkn"ng more effictent Temote w(¥king by the staff team, which was needed in response to the Covid-19 pandemic. The Swety is graleful to the British Ass¢Ki¥tion of Dermatologisls Tr*tho prwded fundin9 for the sthre IKence and hoslirrfj fees for the first year of use the S¢xiety's upgraded supporter database. The Society is grateful to the company Aimirall, whrh provided restricted funding for new laptop computers and ￿lated costs. needed to fa¢ilrtate home working by the staff team in response to the Covhd-19 pandemic. The Sctietys 2020 Christmas fundrai8iThJ was for donations lo take loThvard the Charity's plans to start funding research into eczema. Donations m*Je to thTS specrf¢ fundraisrng appeal are ￿stnCted for the purpose of funding research. Page 45 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 22. Anatysis of n•t assets betr￿n funds Anatysis ol net assets b•tween fvnds - Current year Untestricted Restricted lunds tunds 2020 2020 Total lunds 2020 TarvJble fixed assets Intangible fiwj assels Current assets Creditors due within one year C￿d￿Or$ due in rn0￿ than one year 38.052 15,828 675,865 I156,￿1) 149,8631 38.052 15.828 688.353 1156.0011 149.8631 12.488 Total 523,881 12,488 536.369 Anatysis of net assets betW￿n funds- prlor year UnTrstrtted Resiricled ffunds funds 2019 2019 Total lurrds 2019 Tangible fixed assets Intangible fixed assets Current assets Creditors due vthin one year Credilofs due in nThJre than one year 31.004 13. 501.826 1133,5221 (63,2811 31,6 13,068 )2.579 (133,522J (63,281J 753 Total 349,095 753 349,848 Page 46 NATIONAL ECZEMA SOCIETY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEM8ER 2020 23. Reconciliation of net mo¥oment in lunds lo net cash flow from operating activities Group 2020 Group 2019 Net inc¢)me for the peri¢>J (as per Stslement of Financial Activities) 187,642 4, 621 Adjustments for: Depreciation ¢hanJes Amortisation charge5 Investment income Increase in debtors In¢rease in ¢reditrirs 16 8,390 5,160 12.1431 126.9501 6.819 15 fl,323) f892J 13. 710 18 19 Net Cash Provid￿ by o￿lating activities 180.039 22,935 Analysis of cash and cash equivalents Group 2020 Group 2019 Cash in hand 597.755 438.931 Total cash and cash equivalenls 597.755 438,931 25. Anatysts of changes in net debt At31 December 2020 January 2020 Cash flo Cash * bank and in hand 438.931 158.824 597.7S5 438,931 158,824 597,755 Page 47 NATIONAL ECZEMA SOCIETY IA Cornpany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 26. Cap•tal commitments Group 2020 Gmup 2019 Charity 2020 Charity 2019 Contrncted for but not provided in these rinancial statements AcqUiSrt￿n of intangible assets 6.534 6,534 27. Operating lease commitments At 31 Decerntr*r 2020 Ihe GfOUP ￿ the Charity had cc*nmiln*nts to make future minim￿7 lease payments under non-canCdIab￿ operatin9 leases as folbxs. Group 2020 Gmup 2019 Charity 2020 Charity 2019 Not later than 1 year Later than 1 year and not later than S years Later than 5 years 20.833 20,833 66.500 20,000 3.333 3,333 87.333 103.333 87,333 103.333 The following lease payments have been recc•3nised as an expense in the Consolidated Slalemenl ol Financial Aclivilies". Gmup 2020 G￿￿p 2019 Charity 2020 Chaiity 2019 Operating lease renlals 20,000 20,000 20.000 2a. Related party transa¢tions In the year ended 31 December 2020 there were no related party transactions other than the Trustee arKI Key Management Personnel transactions delaiied in Notes 13 and 14 {2019." None). P•3e 48