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2021-03-31-accounts

Registered number: 03012351 Charity number: 1044013

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1
Trustees' report 2 - 13
Independent auditor's report on the financial statements 14 - 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19
Company balance sheet 20
Notes to the financial statements 21 - 32

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Dr F MacKenzie
Ms C Hodgson
Dr R Hastings(resigned 18 November 2020)
Dr P L Chiodini
Mr A Dodson
Dr B De la Salle
Mr L Whitby,Chair
Dr S Rughooputh(resigned 18 November 2020)
Mrs D A Williams
Mrs D Patel
Dr R Marrington
Mrs D Pritchard
Ms F Khawaja(resigned 19 June 2020)
Ms J Henderson(appointed 16 December 2020)
Ms R Treacy (appointed 16 December 2020)
Company registered
number
03012351
Charity registered number
1044013
Registered office
2 Rutland Park
Sheffield
S10 2PD
Company secretary
Mrs J Gelder
Independent auditor
BHP LLP
Chartered Accountants
2 Rutland Park
Sheffield
S10 2PD
Bankers
Barclays Bank Plc
Leicester
LE87 2BB

Page 1

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the company for the 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Objectives and activities

United Kingdom National External Quality Assessment Service (UK NEQAS) aims to advance education and promote the preservation of good health by providing or securing the provision of external quality assessment services for clinical laboratories.

The UK NEQAS consortium has significant experience in provision of External Quality Assessment (EQA), having been established in 1969. Throughout its history UK NEQAS has led the way in the introduction of EQA programmes for numerous analytes, new types of EQA for qualitative, quantitative and interpretational aspects of clinical laboratory testing and is recognised as the world leader in provision of EQA.

The UK NEQAS organisation is governed by a Board of Trustees, elected from the membership and with one external member. In addition to directing the organisation, the Board of Trustees regularly review the organisation to ensure that UK NEQAS continues to meet its charitable aims, delivers a benefit to the public and meets the requirements of the Charity Commission. The Board of Trustees also implement new initiatives and direct the UK NEQAS organisation to promote harmonisation in working practices, development of EQA services, promotion of UK NEQAS and ensure adherence to the Code of Practice.

To direct and promote the aims of UK NEQAS, the membership appoints a President to be the Chair of the Board of Trustees. The President is elected by the membership in a closed ballot with candidates being members of or associated to a UK NEQAS centre. The current President, Mr Liam Whitby, took up the role at the UK NEQAS annual consortium in November 2018, he was re-elected for a second term of office ending in 2024. The President is supported in their role by 4 Vice-Presidents, the Board of Trustees and staff from UK NEQAS Central Office.

All members of the Board of Trustees receive no personal remuneration from the Charity for the time spent on UK NEQAS Board business, other than reimbursement of expenses and an agreed fixed backfill reimbursement to the employer of the President, to release time to undertake Presidential business as authorised by the Charity Commission.

Page 2

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

The EQA services provided by UK NEQAS are essential to supporting health services worldwide in their assessment and management of patients. Within the UK alone the NHS performs over one billion clinical laboratory tests a year, and over 95% of all clinical pathways rely on clinical laboratory results. As such, given the importance of clinical laboratory testing, the provision of a high standard EQA service is essential to healthcare. The EQA programmes operated by UK NEQAS not only support clinical laboratories in monitoring the quality of their results, but they also allow laboratories to benchmark their performance against users of other technologies and colleagues nationally and internationally. In addition, the programmes also provide laboratories with the tools necessary for continual audit of their services and for the education of staff.

The EQA services provided by UK NEQAS are open to all laboratories (public, private, research, veterinary) both within the UK and overseas. Instrument manufacturers, diagnostic reagent producers and pharmaceutical companies are also participants in UK NEQAS programmes, to enable them to monitor their products when they are used in the clinical laboratory environment or to assist in the development of new products. Allowing all laboratories to use UK NEQAS services means that patients worldwide can benefit from EQA delivered concurrently with educational aspects to inform users of best practices, resulting in improvements in healthcare delivery for all.

The membership of the UK NEQAS consortium consists of 18 expert centres located around the UK and hosted by a variety of institutions (NHS Trusts, Universities, Public Health England). All UK NEQAS member centres are accredited to ISO 17043 and operate according to the UK NEQAS Articles of Association and Code of Practice which require all EQA services to be provided on a not-for-profit basis with any operating surplus reinvested into EQA services.

Each UK NEQAS member has a dedicated Organiser responsible for the delivery of EQA services from that centre and accountable to the UK NEQAS Board of Trustees for ensuring their centre meets the UK NEQAS Articles and Code of Practice. Each Organiser is a registered scientist or clinician, with extensive experience in their field of EQA. In addition to an Organiser, each UK NEQAS centre is staffed by a dedicated team of scientists and administrative support staff working to ensure the delivery of the EQA services. Additional support and advice on development and operation of EQA programmes is provided by an independent steering committee of unpaid experts. These committees ensure that all UK NEQAS programmes remain clinically relevant in a developing laboratory environment and maintain the educational ethos that is at the heart of the organisation’s values. Funding for the expert panels is met by the relevant UK NEQAS centre, with members of the steering committees receiving no personal remuneration from the Charity for their time other than reimbursement of expenses.

Additional external support and assistance is provided to UK NEQAS Organisers by the National Quality Assessment Advisory Panels (NQAAPs) and the Quality Assurance in Pathology Committee (QAPC). These stakeholder bodies, provided in partnership with other EQA providers and the Royal College of Pathologists (RCPath), ensure that any performance issues occurring in UK laboratories are dealt with in a robust, consistent and supportive manner. Most of the operational funding of these panels in the UK is facilitated by the UK NEQAS Board of Trustees on behalf of the consortium and is paid for from member centres’ precepts. However, it should be noted that to ensure operational independence members of the NQAAPs and the QAPC receive no personal remuneration from UK NEQAS. Whilst the NQAAP framework only applies to UK laboratories, UK NEQAS also works with regulatory oversight organisations in other countries to ensure that where such mechanisms exist, that they are used for the benefit of laboratories and patient safety to ensure any issues found as a result of EQA programmes are rapidly resolved for the good of all.

Page 3

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

In addition to updating content on the UK NEQAS website (www.ukneqas.org.uk), the staff at Central Office continue to be responsible for the UK NEQAS Twitter feed (@UKNEQAS) and enhancing the UK NEQAS profile on LinkedIn by increasing the regularity of posts. UK NEQAS Central Office have been responsible for the delivery of UK NEQAS pandisciplinary webinars and have facilitated the delivery of specialist online scientific meetings, ensuring that education remains the primary objective of the charity. Furthermore, Central Office continues to support the promotion and marketing of UK NEQAS services both nationally and internationally by producing harmonised marketing materials. Staff from Central Office are members of each UK NEQAS working group (I.T., Logistics, Marketing and Promotions, Point of Care Testing and Quality Management) and this ensures that the requirements of the charity are foremost in any developments, but also ensures consistency and promotes harmonisation across the organisation.

Communications between the UK NEQAS Board and the Pathology Quality Assessment (PQA) board (the trading company of UK NEQAS) is facilitated by regular meetings of both Boards and by having 3 members of the UK NEQAS Board of Trustees also being members of the PQA board.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Activities and performance

c. Events

Page 4

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

d. Working Groups

The I.T., Logistics, Marketing and Promotions, Point of Care Testing and Quality Management working groups all had online meetings in the period 2020-2021. This allowed them to continue to share experience across the organisation and co-ordinate new work packages to improve service delivery and promote harmonization.

We have continued to support and assist our scheme Organisers in their local arrangements with their hosts during the year.

The past year has seen the retirement of the following Organiser and Manager from their roles within several UK NEQAS centres:

UK NEQAS and Board has supported this centre in their transition to new leadership by ensuring that any appointments of organisers followed the UK NEQAS Articles of Association and the Code of Practice, confirming that the appointees were sufficiently qualified to meet the high professional standards needed to be a UK NEQAS organiser.

Through our members, we have continued the expansion of our EQA repertoire for the benefit of the participants. The Board has approved 22 new pilot programmes in 2020-2021

.

The Board of Trustees held 7 meetings during the year (meetings 179 - 185) online.

International collaborative working has continued through both members and Board of Trustees with collaborations in place with international bodies such as:

Page 5

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

The UK NEQAS Consortium hosted a number of virtual scientific meetings during 2020-2021, reaching over 15,000 delegates worldwide:

Page 6

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

Page 7

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

Page 8

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

Page 9

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

Achievements and performance

a. Investment policy

Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish. The trustees, having regard to the liquidity requirement of operating the charity and to the reserves policy, have operated a policy of keeping available funds in an interest bearing deposit accounts with UK Banks and seeking to achieve the maximum possible rate of interest.

Financial review

a. Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

b. Financial performance

The charity had a surplus of £33,303 (2020: £72,286 deficit) in the year ended 31 March 2021. At 31 March 2021, it has reserves to carry forward of £181,946.

c. Reserves policy

The trustees have previously agreed that the minimum level of unrestricted reserves should be the equivalent of 60% of one year’s operating costs.

Given an average yearly operating cost of approximately £260,000, the 60% reserve would equate to £156,000. Thus, at the beginning of financial year 2021-22 we will be operating with an actual reserve of 116.6% of the ideal figure.

Consideration was given to the reserve figure at 31 March 2021 and the fact that it is not in line with the stated target of 60% of expenditure. It was concluded that the COVID pandemic and the unforseeable corresponding effects it had on the Charity's activities have caused a temporary decrease in expenditure. This was particularly associated with the suspension of all face-to-face meetings including the annual consortium, steering and advisory board meetings. A reinstatement of some meeting and their associated costs in the forthcoming year will have a redressing effect on reserves going forward.

Page 10

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

a. Constitution

The company and the group is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

The company and the group is constituted under a Memorandum of Association and is a registered charity number 1044013

b. Methods of appointment or election of Trustees

The management of the company and the group is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

The directors of the company, who are also trustees for the purposes of charity law and under the company’s Articles, are known as members of the Executive Committee. Under the requirements of the Memorandum and Articles of Association, the members of the Board of Trustees holding office under either Article 25.1.2 or 25.1.3 shall retire from office at the 4th (fourth) annual general meeting following the commencement of his or her term of office. When considering co opting trustees, the Executive Committee has regard to the requirement for any specialist skills needed and wider experience of the charity sector.

c. Policies adopted for the induction and training of Trustees

Most trustees are already familiar with the work of the charity and have knowledge of work that the charity undertakes and charity governance. New trustees are given an information pack containing information from the various Charity Commission Publications along with the Memorandum and Articles of Association.

d. Organisational structure and decision making

The Executive Committee are responsible for setting the strategic objectives and establishing policy. The Committee meets up to six times a year and delegates the day-to-day running of the organisation to the Executive Manager and staff at the UKNEQAS office in Sheffield.

e. Risk management

The directors have assessed the risks to which the charity is exposed, in particular those related to the operations and finances of the company, and are of the opinion that systems are in place to minimise the charity’s exposure to these risks. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of all staff, clients and visitors.

Page 11

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Plans for future periods

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Page 12

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Mr L Whitby

Date:

Page 13

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

Opinion

We have audited the financial statements of United Kingdom National External Quality Assessment Service (the 'parent charitable company') and its subsidiary (the 'group') for the year ended 31 March 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 14

(A company limited by guarantee)

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 15

(A company limited by guarantee)

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charitable company and considered the risk of such regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.

We focused on laws and regulations relevant to the charitable company which could give rise to a material misstatement in the financial statements. Our testing included discussions with management with direct responsibility for the compliance of laws and regulations and agreeing financial statement disclosures to underlying supporting documentation. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Page 16

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Allsop (Senior statutory auditor)

for and on behalf of

BHP LLP

Chartered Accountants Statutory Auditor 2 Rutland Park Sheffield S10 2PD

Date:

Page 17

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
Other trading activities
2
Investments
Total income
Expenditure on:
Cost of commercial trading operation
Charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
156,849
77,526
77
234,452
81,319
119,830
201,149
33,303
148,643
33,303
181,946		 Total
funds
2021
£
156,849
77,526
77
234,452
81,319
119,830
201,149
33,303
148,643
33,303
181,946		 Total
funds
2020
£
149,732
140,940
(20)
290,652
150,246
212,692
362,938
(72,286)
220,929
(72,286)
148,643

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

Page 18

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

REGISTERED NUMBER: 03012351

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
7
Current assets
Debtors
8
Cash at bank and in hand
Creditors: amounts falling due within one year
9
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
10
Unrestricted funds
10
Total funds		 57,854
273,750
331,604
(154,987)		 2021
£
5,329
5,329
176,617
181,946
181,946
-
181,946
181,946		 86,681
203,417
290,098
(148,580)		 2020
£
7,125
7,125
141,518
148,643
148,643
-
148,643
148,643

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr L Whitby

Date:

The notes on pages 21 to 32 form part of these financial statements.

Page 19

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

REGISTERED NUMBER: 03012351

COMPANY BALANCE SHEET

AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
7
Current assets
Debtors
8
Cash at bank and in hand
Creditors: amounts falling due within one year
9
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
10
Unrestricted funds
10
Total funds		 44,240
186,651
230,891
(60,595)		 2021
£
5,210
5,210
170,296
175,506
175,506
-
175,506
175,506		 49,462
171,999
221,461
(80,719)		 2020
£
6,476
6,476
140,742
147,218
147,218
-
147,218
147,218

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr L Whitby

Date:

The notes on pages 21 to 32 form part of these financial statements.

Page 20

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

United Kingdom National External Quality Assessment Service meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

1.2 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

1.3 Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

1.4 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The following specific policies are applied to particular categories of income:

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 21

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.6 Basis for consolidation

The financial statements consolidate the accounts of United Kingdom National External Quality Assessment Service and its wholly owned subsidiary company, Pathology Quality Assessment Limited.

The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account.

The net income for the year dealt with in the accounts of the parent was £28,288 (2020: £60,020 net expenditure).

1.7 Tangible fixed assets and depreciation

All assets costing more than £200 are capitalised.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

1.8 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the bank.

Page 22

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.10 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

1.11 Debtors

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

1.12 Cash at bank and in hand

Cash at bank and in hand includes cash.

1.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation.

1.14 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Page 23

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.16 Amounts held on behalf of WHO Collaborating Centre

On 22 March 2000, monies held by the Wolfson EQA laboratory Fund were transferred to the charity at request of the Charity Commission. The purpose of these funds were to enable the Wolfson EQA laboratory to function as a World Health Organisation Collaborating Centre for Research and Reference Services in Clinical Chemistry, and to advance education and promote the presentation of good health through quality assurance and assessment services in laboratory medicine worldwide. United Kingdom National External Quality Assessment Services is acting as custodian of these funds. Its trustees have no control over where the monies are spent and the charity charges a management fee for holding these funds. The monies are shown separately within creditors as amounts held on behalf of WHO Collaborating Centre, are held in a separate bank account and transactions relating to these funds are not included within the income and expenditure of the charity.

2. Income from other trading activities

Income from non charitable trading activities

Precept subscriptions
Other income
Fund management fees
Participant's meeting sales		 Unrestricted
funds
2021
£
59,517
4,814
1,050
12,145
77,526		 Total
funds
2021
£
59,517
4,814
1,050
12,145
77,526		 Total
funds
2020
£
70,895
1,454
2,550
66,041
140,940

Page 24

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

3. Total expenditure

Trading
operation		 Charitable
activities		 Total
funds		 Total
funds
2021 2021 2021 2020
£ £ £ £
Participant meetingcosts 17,556 - 17,556 62,962
Advisory panels - - - 14,617
Cost of the executive - 441 441 4,684
President's reimbursements - 20,000 20,000 20,323
Cost of working groups - 1,020 1,020 2,488
Cost of SteeringCommittees - 41 41 19,550
Annual Meeting - - - 39,669
Advertisingandpromotion 8,457 - 8,457 30,342
Wages and salaries 32,784 60,713 93,497 75,674
Temporarywage costs 2,382 6,672 9,054 34,070
Staff training 8,100 - 8,100 476
General office expenses 118 6,016 6,134 12,173
Operatinglease rentals - land and buildings 2,639 3,959 6,598 6,414
Computer costs 1,687 4,881 6,568 7,542
Subscriptions - 722 722 615
Bank charges 176 - 176 2,015
Sundryexpenses 314 189 503 3,589
Auditor's remuneration 5,465 7,020 12,485 10,262
Auditor's remuneration - non audit fees 1,110 - 1,110 2,278
Depreciation 531 3,845 4,376 3,730
Professional fees - 4,311 4,311 9,332
Hotels,travel and subsistence - - - 133
Total 2021 81,319 119,830 201,149 362,938
Total 2020 150,246 212,692 362,938

Page 25

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

4. Net income/(expenditure)

This is stated after charging:

2021 2020
£ £
Depreciation of tangible fixed assets: - owned by the charitable group 4,375 3,730
Fees payable to the company's auditor in respect of:
Auditor's remuneration - audit 12,485 10,262
Operating lease rentals - land and buildings 6,598 6,414

5. Auditors' remuneration

The auditor's remuneration amounts to an audit fee of £12,485 (2020: £10,262) and non-audit services of £2,730 (2020: £1,110).

6. Staff costs

Wages and salaries
Social security costs
Pension costs		 Group
2021
£
87,825
4,020
1,652
93,497		 Group
2020
£
70,232
4,009
1,433
75,674		 Company
2021
£
57,144
2,412
1,157
60,713		 Company
2020
£
42,376
2,405
1,027
45,808

The average number of persons employed by the group during the year was as follows:

Group Group
2021 2020
No. No.
2 2

No employee received remuneration amounting to more than £60,000 in either year.

Page 26

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

7.
Tangible fixed assets
Group
Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Office
Equipment
£
31,193
2,579
33,772
24,068
4,375
28,443
5,329
7,125

Page 27

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

7. Tangible fixed assets (continued)

Company

Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Fixtures and
fittings
£
29,076
2,579
31,655
22,600
3,845
26,445
5,210
6,476

8. Debtors

Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2021
£
56,173
-
-
1,681
57,854		 Group
2020
£
79,370
-
109
7,202
86,681		 Company
2021
£
32,353
11,286
-
601
44,240		 Company
2020
£
31,174
16,684
109
1,495
49,462

Page 28

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

9. Creditors: Amounts falling due within one year

Payments received on account
Trade creditors
Amounts held on behalf of WHO Collaborating
Centre
Other taxation and social security
Other creditors		 Group
2021
£
56,067
51,550
21,673
10,595
15,102
154,987		 Group
2020
£
59,366
4,144
22,261
2,150
60,659
148,580		 Company
2021
£
-
28,818
21,673
-
10,104
60,595		 Company
2020
£
-
2,303
22,261
-
56,155
80,719

Page 29

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

10.
Statement of funds
Statement of funds - current year
Unrestricted funds
General funds
Statement of funds - prior year
Unrestricted funds
General funds		 Balance at 1
April 2020
£
148,643
Balance at
1 April 2019
£
220,929		 Income
£
234,452
Income
£
290,652		 Expenditure
£
(201,149)
Expenditure
£
(362,938)		 Balance at 31
March 2021
£
181,946
Balance at
31 March
2020
£
148,643

Page 30

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

11. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
5,329
331,604
(154,987)
181,946
Unrestricted
funds
2020
£
7,125
290,098
(148,580)
148,643		 Total
funds
2021
£
5,329
331,604
(154,987)
181,946
Total
funds
2020
£
7,125
290,098
(148,580)
148,643

12. Operating lease commitments

At 31 March 2021 the Group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
6,599
17,047
23,646		 Group
2020
£
6,414
22,303
28,717

Page 31

UNITED KINGDOM NATIONAL EXTERNAL QUALITY ASSESSMENT SERVICE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

13. Related party transactions

There were 15 directors/ trustees (2020: 15) who served during the period. No directors' trustees received remuneration during the period.

During the year, there were no expenses reimbursed to trustees (2020: £5,444 reimbursed to 9 trustees for attendance at executive meetings and other activities).

During the year, the company paid £20,000 (2020: £20,000) to Sheffield Teaching Hospital NHS Foundation Trust for the services of L Whitby, trustee.

The majority of the trustees of the charity are also employees of the schemes which contribute £235,531 (2020: £235,531) to the charitable group's income. Disclosure of each individual transaction would result in unnecessary costs and delay due to the number of transactions between the charity and the schemes.

The charitable company owns 100% of its subsidiary Pathology Quality Assessment Limited. During the year, expenditure was recharged of £13,420 to the subsidiary company (2020: £14,066). At the year end amounts totalling £11,286 (2020: £16,684) are included in debtors owed to the parent charitable company.

14. Principal subsidiaries

The following was a subsidiary undertaking of the company:

Name Company Holding
number
Pathology Quality Assessment Limited 05423205 100%
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/(Loss)/ Net assets
£ £ Surplus/ £
(Deficit) for the
year
£
Pathology Quality Assessment Limited 77,586 (72,570) 5,016 6,440

Page 32