**REGISTERED COMPANY NUMBER: 03238938 (England and Wales) REGISTERED CHARITY NUMBER: 1057942**
## **BRITISH MEDICAL ACUPUNCTURE SOCIETY**
**REPORT OF THE TRUSTEES AND**
**AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|7|
|**Statement of Trustees' Responsibilities**||8||
|**Report of the Independent Auditors**|9|to|12|
|**Statement of Financial Activities**||13||
|**Balance Sheet**||14||
|**Cash Flow Statement**||15||
|**Notes to the Cash Flow Statement**||16||
|**Notes to the Financial Statements**|17|to|25|
|**Detailed Statement of Financial Activities**||26||
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The main purpose of the company is to stimulate and promote the use and scientific understanding of acupuncture as part of the practice of medicine for the public benefit.
## **Public benefit**
The Charities Act 2011 introduced the requirement for charities to show they provided public benefit. The trustees have reviewed the objects, goals, services and objectives of the charity in the light of this requirement and can confirm that British Medical Acupuncture Society serves the public benefit. This Trustees' Annual Report continues to evidence how the charity strived to meet need.
## **FINANCIAL REVIEW**
## **Reserves policy**
The Charity's policy for determining the level of income reserves, which it is appropriate to maintain in order to meet its needs effectively, is to maintain at least 1 year of expenditure costs in its reserves (excluding fixed assets).
The excess of expenditure over income for the year was £20,952 on the unrestricted general fund and the excess of income over expenditure for the year was £1,416 on the restricted fund.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The company is limited by guarantee, having no share capital. It is a registered charity. In the event of the company being wound up, the liability of each member is limited to £10. The company was incorporated on 16 August 1996 and is bound by its Memorandum and Articles of Association.
The Council of Management, a body of not less than five nor more than fifteen, two of whom must be trustees, control the company. Trustees and other members of the various committees are elected by a quorum of at least five Council Members from among the voting members of the society. All candidates for election must be proposed and seconded in writing to the secretary by a voting member.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
03238938 (England and Wales)
## **Registered Charity number**
1057942
## **Registered office**
Royal London Hospital for Integrated Medicine 60 Great Ormond Street London WC1N 3HR
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Trustees**
Dr H Mathew (Resigned 24/06/2020) Ms C Abisheganadan-Tiphanie Dr A I Sheikh Mr D P Lawler Dr V M Hardwick Dr F Campos Dr E Y K Cheung Dr T T Wong (Resigned 08/04/2020) Dr A Farrukh (Appointed 24/06/2020) Dr J D Ireland (Appointed 24/06/2020) Dr E Kul Panza (Appointed 24/06/2020) Ms M L Richardson (Resigned 21/02/2020)
## **Company Secretary**
Dr V M Hardwick
## **Auditors**
Murray Smith LLP Chartered Accountants Statutory Auditors Darland House 44 Winnington Hill Northwich Cheshire CW8 1AU
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **REPORT OF THE TRUSTEES**
President's Report - Amer Sheikh
This past year has been an unprecedented one of change for everyone around the World due to the COVID-19 pandemic. The crisis has caused unexpected challenges for BMAS and even threatened its survival as an organisation. At the same time, it has opened up new opportunities and there is great cause for optimism for the future.
One of our main revenue streams is the face to face teaching of the foundation and intermediate courses across the UK. Of course, this could not continue in the same way this year. We were quick to change our strategy and make all the lecture material available as online courses. We then organised practical days once lockdown rules were relaxed to allow delegates to complete the courses successfully. Instead of having fixed courses throughout the year, we now have a model in which courses continue all year round and are done at the pace and convenience of our delegates. So far, this new model is proving to be successful and will continue as our new normal way of operating. At the same time, we will remain responsive to the needs of our delegates going forward. Needless to say that the pandemic has impacted our finances this year but this been mostly offset by the new online learning environment.
We were also able to make good use of our social media platform that we had only started the year before. This has become a great asset during the lockdown months as people spend more time online and allows us to market our courses to a targeted audience.
An interesting development has been the increase in membership that we have seen by traditional acupuncturists. Although we are not aware of the real reasons for this, we hope that this trend will continue.
The NICE draft guidelines on chronic pain were launched in 2020 with the final guideline due to be released in 2021. We are optimistic that that the recommendations for the use of acupuncture will remain in the final guideline, and are hopeful that they will herald a renewed interest in acupuncture in the NHS.
In November 2020, our online experience allowed us to hold a successful Autumn Conference using Zoom for the first time, and to celebrate our 40 years as an organisation. I am confident that our response to the COVID-19 pandemic during the past year has sown the seeds for our continued success.
## Honorary Treasurer's Report - Catherine Tiphanie
We have all experienced an unprecedented year over 2020, with the onset of the COVID pandemic and the uncertainties, challenges and opportunities that shook our "usual best practice" - for both businesses and individuals. The BMAS staff and Trustees have collectively worked hard to manage these challenges and opportunities, whilst being more dependent upon technology for both administrative purposes and the continued teaching of Western medical acupuncture.
Membership numbers and the income generated from this demonstrated a slight contraction over the year. However, the BMAS rose to the challenge of providing more virtual learning for members, and 2020 was the year of increased online engagement from our active members seeking new learning experiences and CPD. This has been possible due to the hard work of all the BMAS staff, especially Mike Cummings, in preparing and presenting regular seminars and study sessions to keep the membership engaged.
The COVID restrictions also pushed forward another big change with regard to BMAS teaching methods. Whilst BMAS Trustees and staff had discussed the possibility of online courses over previous years, the 2020 new way of practice accelerated this development and the move to online courses. The BMAS Foundation Courses are usually the core of generating both income and membership for the Society, but with the face-to-face running of these significantly reduced over 2020, and with only 27 students able to attend on the courses we were able to operate in February and October 2020, we needed a new means of engagement with students.
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
The BMAS Council decision to grasp opportunity moved much of the teaching of Foundation Courses into an online format, resulting in an additional 120 students booked onto these. In total, this allowed 147 bookings over the entirety of 2020 - only a 29% decrease in numbers actually booked compared with the previous year. Accounting figures however, are only allowed to show two-thirds of the online fees in 2020, with the balancing one third to show in the 2021 accounts - when the students have completed the practical aspects of their new mode Foundation Course.
This new more flexible learning mode for students is now in place for the years ahead, with the lectures and theory component taught online, meaning students only attend in person for the practical sessions - reducing their need to be away from home or work for the full 4 days of a traditional Foundation Course. Financially, this new mode also reduces expenses for BMAS in terms of the expenses relating to running 4 day courses, with the online courses showing an increased surplus, which will contribute ongoing financial benefit in the years ahead.
The Autumn Scientific Meeting 2020 was deferred from its intended London date in September, with the hope of being able to host such an event later in the autumn. However, as the weeks progressed, it became increasingly clear that this would need to be an online event in 2020. The result of this decision was a resounding success: we were able to lower the cost of the event for our members; we had more members engaged with the event (86 in 2020, compared with 78 in 2019); and we made a 63% surplus on the event - primarily with the cost of a London venue and catering removed.
The year 2020 has once again seen the rewards of moving the journal Acupuncture in Medicine (AIM) to SAGE Journals. The increased revenue of just over £97,000- (seen in 2019) was matched once again in 2020. This income stream has significantly benefited the BMAS, leaving us with only a very small deficit after a year of COVID.
The online resource of AIM continues to be valued by our members, and by our growing membership category of Academic Associates. In addition, we now see 'The Sharp End' weekly in our inboxes - keeping members updated on the latest online courses and learning material; whilst 'The Point' is issued twice a year, and includes summaries of Scientific meeting lectures. Additionally, Mike Cummings continues his reflections on recently published material in his BMAS blog, and also runs fortnightly evening BMAS Webinars, supporting online learners - accessibly by ZOOM and eligible for CPD; whilst the Forum continues to allow members to ask questions pertaining to numerous clinical scenarios, and provides an archive of this material for other members.
In summary, 2020 has been an exceptional year in many aspects. However, the BMAS staff and Trustees have risen to the challenges and embraced change. BMAS finances remain healthy, and with the significant income from SAGE for the 2020 Journal, the BMAS demonstrates only a small overall deficit - after a year of COVID and embracing the numerous changes that this has precipitated. A laudable achievement.
The work which the BMAS has achieved over 2020 continues to support the educational mission statement and aims of the BMAS Charity, and funds have been used appropriately and wisely in fulfilment of these aims. We remain in a financially secure position at the start of the new year 2021. This work could not have been possible without the team who worked adaptively and commendably, in very different circumstances over 2020. My sincere thanks to Julie Cummings and the administrative team, usually based in the Northwich office; to Medical Director Mike Cummings and Allyson Brown in London; and to the dedicated team of Trustees who have diligently contributed their time and energy over the course of the year.
## Professional Services Committee Chair's Report - Duncan Lawler
Income from foundation courses forms a key element of the BMAS finances; however as we know in 2020 the world was met with COVID 19. The BMAS faced adversity unprecedented in its forty years. William Arthur Ward once said "Adversity causes some men to break; others to break records." Perhaps no records broken but the BMAS survived and thanks to Mike Cummings the Foundation Course completed the transition to online. There were a total of 148 Foundation Course delegates for 2020 and whilst there were 213 in 2019, it is appreciated that 2020 was an exceptional year and this number of delegates is exceptional too.
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
The Society aims to support foundation course graduates by providing opportunities for professional development in the practice of medical acupuncture, and to this end offered seven Supplementary Days online on a variety of topics: back pain, headache, women's health, palliative care, osteoarthritis, electroacupuncture and mental health.
The Autumn Scientific Meeting was held online, and the Society celebrated its 40th anniversary with lectures from distinguished international speakers in the field of medical acupuncture. As with all recent scientific meetings, this event was recorded and made available to view on the BMAS website. BMAS members can earn CPD hours towards BMAS accreditation (and often towards other professional development) by viewing online learning and submitting reflective learning notes.
Course notes for other training days are also available to download from the website so that attendees are able to access these quickly and easily during the course and afterwards, whilst also making cost savings for the Society in terms of printing and postage. The aim is to extend the amount of material available online to facilitate professional development in the most streamlined and efficient way for members.
Other online developments were the popular 'What's the Point' series, the Wednesday Webinar and the increasingly popular Saturday Morning Breakfast Club which combines diploma mentoring and online Foundation Course delegate support. The BMAS blog is a weekly feature which is open to the public, highlighting research, showing that medical acupuncture has a strong evidence base, and perhaps persuading the more sceptical of its value.
Members are kept up to date with BMAS news and developments via The Sharp End weekly e-newsletter, whilst the BMAS online forum provides valuable interactive support not only to new members but to others who are active in other ways, such as regional group members, lecturers and trustees.
BMAS House and the BMAS Northwich teaching clinic also have their own presence on social media, in keeping with the digital trend. The Society continues to engage a social media company which gives a professional edge to publicity and promotes the Society both to health professionals and to the wider public.
The Professional Services Committee looks forward to supporting the Society in its mission in the coming year.
## Education Committee Chair's Report - Federico Campos
2020 has been a challenging year where acupuncture education was heavily affected by the COVID pandemic and the consequent difficulties in providing face to face teaching.
The BMAS has been able to effectively adapt to the new situation by transitioning supplementary courses to a new online format on Zoom combining lectures and small group discussion around practical elements. Although the online format clearly limits the practical element of the courses, it has been very well received.
The face-to-face to online transition culminated in the design of the new online Foundation Course, now consisting of online pre-recorded modules and a 2-day face-to-face block entirely dedicated to the practical aspects. The new format has proven more cost efficient and it allows more flexibility around the lectures as well as more time dedicated to needling.
We have been working on developing new courses and the new Mental Health Day was delivered for the first time in September with good uptake and very positive feedback. The Medical Director has been designing a course on chronic pain which will also incorporate self-acupuncture. With the prospect of acupuncture being included in the new NICE guidelines on chronic pain, we expect a good uptake of this course in the coming months.
Due to the transition to online learning, we have updated the accreditation guidelines to include webinars and updated our feedback forms which are now submitted using Microsoft Forms.
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
The Education Committee has been working around strategies to generate interest amongst GPs due to the significant loss of members in this category. Targeted advertising to GPs was trialled with limited success; however, we are optimistic that there will be more interest, should acupuncture be included in the revised NICE guidelines on chronic pain.
In the effort to find ways to promote Medical Acupuncture in medical schools, the Education Committee has been discussing the feasibility of offering structured student placements and electives as well as formal lectures in different universities.
Overall, the BMAS has been able to efficiently adapt to the new environment and make the most out of the difficult situation in which it found itself this year. There is great potential for development in the near future, and the Education Committee looks forward to an exciting 2021.
## Medical Director's Report - Mike Cummings
2020 was the 40th anniversary of the origin of the BMAS, and what a year of change it proved to be. We had been facing more than 5 years of contraction in membership and nearly the same in annual financial deficits, and then the restrictions imposed by a pandemic created a significant challenge to our educational activity.
Luck and technology were on our side; however, and thanks to a colleague's advice the previous year, we had become quite familiar with the use of Zoom for both meetings and for small webinars. This was invaluable experience, so that when I was restrained from running my clinics, I immediately set about recording a daily weekday video series called "What's the point". There are 50 videos in the series and many of them include both anatomical images alongside 3 different camera views of a demonstration of needling or examination. There were some hiccups, but on the whole, I was astonished at how easy it was to produce these using technology designed primarily for virtual meetings.
We started running our supplementary day courses via Zoom, and these went well, although they were quite hard if you found yourself lecturing all day single handed via Zoom. Luckily, I discovered the virtual breakout rooms, which are fabulous for getting lots of interactions between attendees, and good to give the presenters a little break.
When it seemed that the pandemic would drag on we set about developing the online Foundation Course. The necessary work to the website took most of the month of June, and then by mid-July we were ready to launch. It was and is still a great success. It allowed us to get almost 150 participants either through the course or to have started the online elements. We were able to get some practical courses run in between the waves of the pandemic, and this was enough to demonstrate that this new blended system seems to work.
We will have some catching up to do with the practical elements, as we have carried over nearly 100 foundation course students who will need to get their practical training in 2021.
After much consideration and delay, we finally decided that the annual meeting of our 40th year would have to be online. We had pushed it to late in November and held it as a Zoom meeting. It went remarkably well, and I especially enjoyed our group toast to the BMAS anniversary at the end of the speaker panel session when all the attending members turned on their cameras and raised a glass in front of their webcams. The appearance on my screen was fabulous as more and more happy faces appeared in the Zoom window.
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
Acupuncture in Medicine, Journal Editor's Report - David Coggin-Carr
2020 was a year of major challenges as we all felt the impact of COVID-19 and clinical work was quite appropriately prioritized over research for those of us engaged in both pursuits. Despite this re-prioritization and the suspension of most laboratory-based and clinical research (while the medical community pivoted toward COVID-19 research, which completely dominated the mainstream clinical journals), it was refreshing to see a constant stream of new submissions to Acupuncture in Medicine, which is a likely reflection of the endurance of our worldwide authorship, and perhaps the opportunity to write up projects left on the back burner whilst the whole world was in lockdown! One of the silver linings of the COVID-19 pandemic has been the rise of teleconferencing, which has broken down geographical barriers and facilitated widespread collaboration and dissemination of information, notwithstanding the Zoom and Teams fatigue! In all seriousness, I have no doubt this connectivity will benefit the journal and its engagement with our growing readership/authorship moving forwards. Finally, I am grateful for our flourishing partnership with SAGE Publishing, and I am particularly appreciative of Sarah Larkin (senior project editor) and Martin McDonald (publishing editor), who replaced Helena Engstrand and Will Rushton, respectively, this year. Following the transitional backlog generated by our switch from the BMJ Group, we have banked a large amount of high-quality content, enough for us to begin considering the possibility of moving to monthly issues from 2022.
## **AUDITORS**
The auditors, Murray Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 2 June 2021 and signed on its behalf by:
A I Sheikh - Trustee
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
The trustees (who are also the directors of British Medical Acupuncture Society for the purposes of company law) are responsible for preparing the Report of the Trustees 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 year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Page 8
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **Opinion**
We have audited the financial statements of British Medical Acupuncture Society (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 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.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, 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 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 9
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **Matters on which we are required to report by exception**
In the light of the 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 Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
Page 10
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **Our 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 a Report of the Independent Auditors 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:
The audit procedures designed to identify irregularities included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims
- Enquiry of company staff with responsibilities for tax and compliance matters to identify any instances of non-compliance with laws and regulations
- Reviewing any minutes available of meetings of those charged with governance
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
There are inherent limitations in the audit procedures described above 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or through collusion.
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 Report of the Independent Auditors.
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## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Benson (Senior Statutory Auditor) for and on behalf of Murray Smith LLP Chartered Accountants Statutory Auditors Darland House 44 Winnington Hill Northwich Cheshire CW8 1AU
2 June 2021
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**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
Courses and conferences
Subscriptions
Certificates
Teaching clinic
Other income
Investment income
3
**Total**
**EXPENDITURE ON**
Raising funds
5
**Charitable activities**
6
Courses and conferences
Office costs
Other costs
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
-
84,228
140,724
2,460
14,330
135,989
5,170
382,901
49,082
191,287
145,183
18,301
403,853
(20,952)
990,735
969,783|Restricted
fund
£
-
-
1,416
-
-
-
-
1,416
-
-
-
-
-
1,416
53,907
55,323|2020
Total
funds
£
-
84,228
142,140
2,460
14,330
135,989
5,170
384,317
49,082
191,287
145,183
18,301
403,853
(19,536)
1,044,642
1,025,106|2019
Total
funds
£
18
173,160
153,020
1,680
25,387
147,517
6,949|
|---|---|---|---|---|
|||||507,731
47,582
271,701
162,078
19,626|
|||||500,987|
|||||6,744
1,037,898|
|||||1,044,642|
The notes form part of these financial statements
Page 13
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **BALANCE SHEET 31 DECEMBER 2020**
|Notes
**FIXED ASSETS**
Tangible assets
11
**CURRENT ASSETS**
Stocks
12
Debtors
13
Cash at bank
**CREDITORS**
Amounts falling due within one year
14
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
17
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|2020
£
497,828
3,720
119,769
518,545
642,034
(114,756)
527,278
1,025,106
1,025,106
969,783
55,323
1,025,106|2019
£
512,260
4,775
108,591
548,956
662,322
(129,940)
532,382
1,044,642
1,044,642
990,735
53,907
1,044,642|
|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 2 June 2021 and were signed on its behalf by:
A I Sheikh - Trustee
The notes form part of these financial statements
Page 14
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash used in operating activities
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning**
**of the reporting period**
**Cash and cash equivalents at the end of the**
**reporting period**|2020
£
(30,411)
(30,411)
(30,411)
548,956
518,545|2019
£
(38,096)
(38,096)
(38,096)
587,052
548,956|
|---|---|---|
The notes form part of these financial statements
Page 15
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020**
**1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**ACTIVITIES**|||
|---|---|---|
|**Net (expenditure)/income for the reporting period (as per the Statement**
**of Financial Activities)**
**Adjustments for:**
Depreciation charges
Decrease in stocks
(Increase)/decrease in debtors
Decrease in creditors
**Net cash used in operations**|2020
£
(19,536)
14,432
1,055
(11,178)
(15,184)
(30,411)|2019
£
6,744
14,461
1,724
2,608
(63,633)|
|||(38,096)|
2. **ANALYSIS OF CHANGES IN NET FUNDS**
||At 1.1.20|Cash flow|At 31.12.20|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|548,956|(30,411)|518,545|
||548,956|(30,411)|518,545|
|**Total**|548,956|(30,411)|518,545|
The notes form part of these financial statements
Page 16
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Income**
Income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Subscriptions**
Income in respect of subscriptions is accounted for on an accruals basis.
## **Courses and conferences income**
Income from courses and conferences is accounted for on an accruals basis with adjustments being made for income received in advance.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Tangible assets are depreciated on a straight line basis over their estimated useful lives, at the following rates:
Acupuncture equipment 25% Office equipment 15% Computers 25% Freehold property 2%
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
The society has two types of fund for which it is responsible and which require separate disclosure. These are as follows:
## **a)** Restricted funds
Donations received which the donor earmarks for specific purposes. Such purposes are within the overall aims of the organisation. Each year the society allocates 1% of the total subscriptions received during the year to the restricted fund.
**b)** Unrestricted fund
continued...
Page 17
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. ACCOUNTING POLICIES - continued**
## **Fund accounting**
Funds which are expendable are at the discretion of the trustees in the furtherance of the objects of the charity.
## **Pension costs and other post-retirement benefits**
Pension contributions are made by the charity to the employee's personal pension schemes at an agreed percentage of gross salaries.
## **Donations**
Donations received from members are accounted for in the year they are received and allocated to a restricted or unrestricted fund subject to the donor's wish.
## **Grants payable**
Grants payable are accounted for in the year they are due for payment. All grant applications are reviewed by the committee and then allocated accordingly.
|**DONATIONS AND LEGACIES**
Donations and gifts
**INVESTMENT INCOME**
Investment income
**INCOME FROM CHARITABLE ACTIVITIES**|2020
£
-
2020
£
5,170|2020
£
-
2020
£
5,170|2019
£
18
2019
£
6,949|2019
£
18
2019
£
6,949|
|---|---|---|---|---|
|||2020||2019|
|||£||£|
|Courses and conferences|84,228|||173,160|
|Subscriptions|142,140|||153,020|
|Certificates|2,460|||1,680|
|Teaching clinic|14,330|||25,387|
|Other income|135,989|||147,517|
||||||
||||||
||379,147|||500,764|
||||||
||||||
## **2.**
## **3.**
## **4. INCOME FROM CHARITABLE ACTIVITIES**
continued...
Page 18
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **5. RAISING FUNDS**
## **Other trading activities**
|**Other trading activities**|**Other trading activities**|||||||
|---|---|---|---|---|---|---|---|
|Fundraising and publicity
**CHARITABLE ACTIVITIES COSTS**|||||2020
£
49,082||2019
£
47,582|
||Staff costs|Depreciation|Other costs|Total 2020||Total 2019||
||£|£|£|£||£||
|Course and conferences|166,386|-|24,901|191,287||271,701||
|Office costs|89,959|-|55,224|145,183||162,078||
|Other costs|-|14,432|3,869|18,301||19,626||
|||||||||
||256,345|14,432|83,994|354,771||453,405||
|||||||||
## **6. CHARITABLE ACTIVITIES COSTS**
## **7. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||2020|2019|
|---|---|---|
||£|£|
|Depreciation - owned assets|14,432|14,461|
|Auditors' remuneration|3,997|3,937|
## **8. TRUSTEES' REMUNERATION AND BENEFITS**
No remuneration was paid to the trustees during the year. Lecture fees totalling £740 (2019: £20,080), were paid to seven of the trustees.
The charity is controlled by the Council of Management.
## **Trustees' expenses**
In the year the company reimbursed the trustees as follows:
||2020|2019|
|---|---|---|
||£|£|
|Travel|413|2,123|
|Accommodation and subsistence|288|146|
|Other costs|-|590|
||||
||701|2,860|
||||
The expenses were incurred in relation to committee meetings and the trustees were reimbursed for their expenses. At 31 December 2020, expenses of £nil (2019 - £3,714) were due to be reimbursed to the trustees.
continued...
Page 19
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
|**9.**
**STAFF COSTS**
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Administration
The number of employees whose employee benefits (excluding employer pension costs)
£90,001 - £100,000
£100,000 - £110,000
**10.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
-
**Charitable activities**
Courses and conferences
173,160
Subscriptions
151,491
Certificates
1,680
Teaching clinic
25,387
Other income
147,517
Investment income
6,949
**Total**
506,184
**EXPENDITURE ON**
Raising funds
47,582
**Charitable activities**
Courses and conferences
271,701
Office costs
162,078
Other costs
19,626|2020
£
221,739
22,562
12,044
256,345
2020
8
exceeded £60,000
2020
1
-
1
Restricted
fund
£
18
-
1,529
-
-
-
-
1,547
-
-
-
-|2020
£
221,739
22,562
12,044
256,345
2020
8
exceeded £60,000
2020
1
-
1
Restricted
fund
£
18
-
1,529
-
-
-
-
1,547
-
-
-
-||2019
£
237,948
24,466
13,470
275,884
2019
9
was:
2019
-
1
1
Total
funds
£
18
173,160
153,020
1,680
25,387
147,517
6,949|
|---|---|---|---|---|
||||||
||||||
|||||507,731
47,582
271,701
162,078
19,626|
continued...
Page 20
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
|**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**
**11.**
**TANGIBLE FIXED ASSETS**
Freehold
Acupuncture
property
equipment
£
£
**COST**
At 1 January 2020 and
31 December 2020
642,881
164
**DEPRECIATION**
At 1 January 2020
134,039
164
Charge for year
12,858
-
At 31 December 2020
146,897
164
**NET BOOK VALUE**
At 31 December 2020
495,984
-
At 31 December 2019
508,842
-||Unrestricted
fund
£
500,987
5,197
985,538
990,735
Office
equipment
£
16,397
13,526
1,237
14,763
1,634
2,871||Restricted
fund
£
-
1,547
52,360
53,907
Computer
equipment
£
7,613
7,066
337
7,403
210
547||Total
funds
£|
|---|---|---|---|---|---|---|
|||||||500,987|
|||||||6,744
1,037,898|
|||||||1,044,642|
|||||||Totals
£
667,055
154,795
14,432
169,227
497,828
512,260|
continued...
Page 21
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
|**12.**
**STOCKS**
Stationery and journals
**13.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments and accrued income
**14.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
**15.**
**LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
Within one year
Between one and five years|2020
£
3,720
2020
£
2,609
3,236
113,924
119,769
2020
£
3,180
11,856
1,500
98,220
114,756
2020
£
7,475
5,400
12,875|2019
£
4,775
2019
£
1,899
-
106,692|2019
£
4,775
2019
£
1,899
-
106,692|2019
£
4,775|
|---|---|---|---|---|
|||108,591|||
|||2019
£
3,610
19,288
20,305
86,737|||
|||129,940|||
||||2019
£
7,475
9,000||
||||16,475||
continued...
Page 22
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Fixed assets
Current assets
Current liabilities
**17.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**
Net movement in funds, included in the above are a
**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**|Unrestricted
fund
£
497,828
586,711
(114,756)
969,783
s follows:|Restricted
fund
£
-
55,323
-
55,323
At 1.1.20
£
990,735
53,907
1,044,642
Incoming
resources
£
382,901
1,416
384,317|2020
Total
funds
£
497,828
642,034
(114,756)
1,025,106
Net
movement
in funds
£
(20,952)
1,416
(19,536)
Resources
expended
£
(403,853)
-
(403,853)|2019
Total
funds
£
512,260
662,322
(129,940)
1,044,642
At
31.12.20
£
969,783
55,323
1,025,106
Movement
in funds
£
(20,952)
1,416
(19,536)|
|---|---|---|---|---|
||||||
||||||
||||||
continued...
Page 23
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **17. MOVEMENT IN FUNDS - continued**
**Comparatives for movement in funds**
|At 1.1.19
£
**Unrestricted funds**
General fund
985,538
**Restricted funds**
Restricted Fund
52,360
**TOTAL FUNDS**
1,037,898
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
506,184
**Restricted funds**
Restricted Fund
1,547
**TOTAL FUNDS**
507,731
A current year 12 months and prior year 12 months combined position is as follows:
At 1.1.19
£
**Unrestricted funds**
General fund
985,538
**Restricted funds**
Restricted Fund
52,360
**TOTAL FUNDS**
1,037,898||Net
movement
in funds
£
5,197
1,547
6,744
Resources
expended
£
(500,987)
-
(500,987)
Net
movement
in funds
£
(15,755)
2,963
(12,792)|At
31.12.19
£
990,735
53,907|At
31.12.19
£
990,735
53,907|
|---|---|---|---|---|
||||1,044,642||
||||Movement
in funds
£
5,197
1,547
6,744
At
31.12.20
£
969,783
55,323||
|||||6,744|
|||||At
31.12.20
£
969,783
55,323|
||||1,025,106||
continued...
Page 24
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **17. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Restricted Fund
**TOTAL FUNDS**|Incoming
resources
£
889,085
2,963
892,048|Resources
Movement
expended
in funds
£
£
(904,840)
(15,755)
-
2,963
(904,840)
(12,792)|
|---|---|---|
## **18. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2020.
## **19. SHARE CAPITAL AND MEMBERS LIABILITY**
The company is limited by guarantee. In the event of a company being wound up, the liability of each member is limited to £10.
## **20. RESTRICTED FUND**
The Research fund account holds £55,323 as at 31 December 2020. This fund can be used for research into any aspect of the use of acupuncture.
Page 25
**BRITISH MEDICAL ACUPUNCTURE SOCIETY**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations and gifts
**Investment income**
Investment income
**Charitable activities**
Courses and conferences
Subscriptions
Certificates
Teaching clinic
Grants
Other income
**Total incoming resources**
**EXPENDITURE**
**Other trading activities**
Fundraising and publicity
**Charitable activities**
Wages
Social security
Pensions
Other costs
Directors of education expenses
Trustee indemnity insurance
Auditors' remuneration
Freehold property depreciation
Office equipment depreciation
Computer equipment depreciation
Total resources expended
**Net (expenditure)/income**|2020
£
-
5,170
84,228
142,140
2,460
14,330
3,391
132,598
379,147
384,317
49,082
221,739
22,562
12,044
76,514
1,581
1,867
4,032
12,858
1,237
337
354,771
403,853
(19,536)|2019
£
18
6,949
173,160
153,020
1,680
25,387
-
147,517|
|---|---|---|
|||500,764|
|||507,731
47,582
237,948
24,466
13,470
155,164
2,147
1,851
3,898
12,858
1,266
337|
|||453,405|
|||500,987|
|||6,744|
This page does not form part of the statutory financial statements
Page 26