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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 04164949 REGISTERED CHARITY NUMBER: 1085867

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 FOR MERTON VOLUNTARY SERVICE COUNCIL

MERTON VOLUNTARY SERVICE COUNCIL

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Legal and administrative information 1
Report of the Trustees 2 to 12
Report of the Independent Auditor 13 to 15
Statement of Financial Activities 16
Balance Sheet 17
Cash Flow Statement 18
Notes to the Financial Statements 19 to 36
Detailed Income and Expenditure Account 37

MERTON VOLUNTARY SERVICE COUNCIL

LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04164949 (England and Wales)

Registered Charity number

1085867

Trading Name

Merton Connected

Registered office

The Vestry Hall London Road Mitcham Surrey CR4 3UD

Auditors

Myrus Smith Chartered Accountants Norman House 8 Burnell Road Sutton Surrey SM1 4BW

Bankers

Unity Trust Bank Nine Brindleyplace 4 Oozells Square Birmingham B1 2HB

Investments CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London EC4V 4ET

Solicitors

Russell-Cooke 3 Putney High Street Putney London SW15 6AB

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also directors of the charitable company for the purposes of the Companies Act 2006) are pleased to present their annual Trustees Report, together with the audited financial statements for the year ending 31 March 2021, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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) and UK Generally Accepted Accounting Practice.

PRINCIPAL ACTIVITY

The charitable company’s principal activity for the year, which is ultimately the objects set out in the Articles of Association was to provide practical support to voluntary and community organisations, liaison and advocacy, community engagement, development, standard setting, strategic partnership working and fund management.

Public Benefit

The Trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. We believe that we have complied with this; and seek to demonstrate this within this report. Our objects and funding limit the services we provide to those detailed in our charitable objectives.

A detailed review of the Charity’s activities is set out further in this report.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Merton Voluntary Service Council (MVSC) is a registered charity and company limited by guarantee. MVSC has ensured effective governance throughout the year, following all provisions and procedures in its Memorandum and Articles of Association.

Membership of MVSC is open to local voluntary, community and faith organisations, which meet the criteria for membership. There are currently 144 formal organisation members each of whom agree to contribute £1 in the unlikely event of the Charity winding up and being insolvent.

Appointment of new Trustees

The Trustee Board is made up of not less than five and no more than fifteen persons elected by MVSC members. The Trustee Board is also able to co-opt additional members and appoint up to two Trustees to fill skills gaps. Members of the Trustee Board are nominated by MVSC member organisations and are elected at Annual General Meetings. Trustees co-opted by the board during the year must be confirmed in post at the AGM. The Trustee Board elects a Chair, Vice-Chair, Honorary Treasurer, Company Secretary and any other officers it wishes.

Trustee recruitment and induction

New Trustees are provided with an induction programme led by the Chief Executive Officer and are also provided with a copy of the Memorandum and Articles of Association and the latest Annual Report and Financial Statements. The induction programme includes a briefing on their obligations under company and charity law, the decision-making processes within MVSC, the Business and Strategic Plans, and information relating to operational and financial management. They also have the opportunity to meet all employees. Trustees are also encouraged to participate in appropriate external training events where these will facilitate the undertaking of their role. A Register of Interests for Trustees and paid staff is maintained and updated annually.

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT - continued

The Board of Trustees governs the Charity. The Board meets every 8-12 weeks with task and finish groups being established to look at specific issues and report back. All task and finish groups have clear terms of reference, which are agreed by the Board before they are established.

All Trustees give their time voluntarily and receive no benefits from the Charity apart from reimbursed expenses set out in Note 11 in the accounts. The Trustees serving during the year and to the date of this report were as follows: -

Susanette Mansour Resigned 19 March 2021
Brian Dillon Chair from 19 March 2021
Nuzhat Ali Resigned 19 March 2021
Abisola Fafolu
Barbara Price Resigned 19 March 2021
Ben Wilkins Treasurer from 19 March 2021
Annie Wilson
Robert Lightfoot
Wendy Pridmore
Kate Wignall Appointed–19 March 2021

A scheme of delegated powers is maintained, detailing how powers and decision-making are delegated to the Chief Executive Officer and Senior Management Team.

Management of MVSC

The Trustees provide policy and strategic leadership and guidance to the organisation. Day to day management and decision making of the Charity is delegated to the Chief Executive Officer who works closely with senior and other staff to fulfill the Charity’s objectives and ensure the smooth and effective running of the organisation. The Chief Executive Officer reports to the Chair and the Board.

Senior Management Team

Simon Shimmens Chief Executive Officer
Adwoa Fadahunsi Head of Development and Volunteering
Dave Curtis Head of Healthwatch Merton
Ben Halschka Head of Social Prescribing

Pay policy for the Senior Management Team

All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in Notes 11 and 13 to the accounts.

The pay of the senior staff is reviewed annually and normally increased in line with a rate set by the Board of Trustees, considering available funding. In view of the nature of the Charity, the Trustees benchmark against pay levels in other voluntary organisations, other voluntary sector infrastructure organisations across London as well as with the public sector.

Related parties and co-operation with other organisations

None of our Trustees receive remuneration or other benefit from their work with the Charity. Any connection between a Trustee or a senior manager of the Charity with a supplier, funder or charitable organisation in the borough is disclosed to the full board of Trustees in the same way as any other contractual relationship with a related party. Further details of any related party transactions can be found in Note 13 of the accounts.

Use of volunteers

One of the aims of the Charity is to match expressions of interest in volunteering to volunteer opportunities offered, with a focus on providing additional capacity to local voluntary and community organisations. MVSC continues to provide Home Visit Libraries volunteers under contract to the London Borough of Merton and has utilised its volunteer database to help initially resource the Merton Covid-19 Community Response Hub. MVSC is grateful for the support of the many volunteers who support local organisations and MVSC itself.

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT – continued

Risk and internal control

The Board of Trustees oversee a risk management policy, which is underpinned by:

The Risk Register includes both strategic and operational risks. Examples of strategic risks are stability and security of funding streams, adequacy of cash flow, impact of Covid-19 across all aspects of MVSC activities, financial challenges arising from future government spending reviews and in particular the impact of Brexit on government grant funding. The current risk register was updated 6 November 2020 and is due for review at the next Board meeting in December 2021.

The Board of Trustees is confident therefore that its established risk management regime enables it to identify and quantify the major risks to which the Charity is exposed and that MVSC has established systems to mitigate those risks. It is of the view that MVSC has the necessary stable financial and operational structure needed to monitor and manage effectively the ongoing changes and uncertainties in its local operating environment for the medium-term.

AIMS

Over the past year, MVSC has continued to inspire, support and develop the voluntary and community sector in Merton to enrich the lives of residents of the Borough.

Our key aims for the year were to very much to continue existing key aims:

Our strategic aims looking forward to 2021/2022 were summarised in the MVSC Annual Review (2019-2021) as follows:

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRATEGIC DIRECTION

Some changes in our strategic direction and some key highlights for the year are as follows:

Trustee Board

Following a number of planned resignations and retirements at the 2019/20 AGM held on 19 March 2021 the Board has been looking to maintain its diversity and collective strength. One new trustee, Kate Wignall, was formally appointed at the AGM. Further recruitment activity for new trustees will be ongoing through the 2021.

Susanette Mansour stood down at the AGM from her position as Chair. Brian Dillon, the current Treasurer, was voted by the AGM to take on that role to devise and supervise an orderly process for the recruitment in due course of a new Chair.

Ben Wilkins was voted as Treasurer to replace Brian Dillon while Brian carries out the role of Chair.

New Trading Name for MVSC

A project was progressed during the year, working with the Trustee Board and the staff team, to consider re-branding MVSC after celebrating 35 years. As a result of the process Merton Connected was agreed to become the trading name of MVSC from April 2021. MVSC remains the legal entity and there is no intention to change this in the short term. In parallel with this, as mentioned in last year’s report, a new website and database has been produced, launched in conjunction with the new trading name.

Wilson Wellbeing initiative

MVSC continues to support the plans to create a wellbeing hub on the Wilson Hospital site in Mitcham. It has key influence as a member of the Wilson Steering Group and provides a bank account to handle funds made available to progress the initiative. Considerable refurbishment of the wellbeing space took place in late 2020 prior to the pandemic requiring the space as a vaccination centre. The refurbished wellbeing space has had the benefit of providing a very positive experience for residents being vaccinated.

Social Prescribing

MVSC were successful in being awarded a year 2 contract in October 2020 for the team of 9 Social Prescribers supporting the 22 GP surgeries in the borough. The Social Prescribing team have modified their service during the pandemic, providing a largely over the phone service to patients.

Merton Community Hub

The Merton Community Response Hub was established on 23rd March 2020 to help isolated households and those at risk from Covid-19. MVSC, Wimbledon Guild, Age UK Merton and London Borough of Merton (LBM), plus local voluntary sector organisations, provided a helpline to support residents with services including:

LBM initially provided funding for the first year and subsequent funding has been provided to continue the Community Hub service for a second year.

Merton Giving Fund

In April 2020 the Merton Giving Coronavirus Fund was instigated to support local voluntary, community and faith organisations to adapt to Covid-19 restrictions and the challenges they were facing as a result of the pandemic. A total of 24 grant panels were held between April 2020 and March 2021, distributing £338,162 via 106 grants to 68 organisations. See Note 7.1 for full details.

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE

Each year the Charity develops an annual review, which details the key highlights and achievements to date. These accounts should be read in conjunction with that review.

Providing support to voluntary, community, faith and social enterprise organisations:

MVSC continues to provide significant support to other organisations, including:

Build social capital by supporting, developing and recognising volunteering and community action:

Enhancing the diversity of social capital is key to MVSC activities and support provided to local organisations. Examples include:

Identify changing and emerging need and respond with development:

Evolving the services, we provide to respond to the needs of organisations and the wider operating environment. Examples include:

Promote, support and develop liaison, advocacy, joint working and strategic partnership between sectors:

Being a strong advocate of partnership working and the power of collaboration. Examples include:

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE - continued

Healthwatch

MVSC continued to deliver the Healthwatch service in Merton. Highlights included:

Social Prescribing

MVSC has been delivering and developing the Social Prescribing model since 2016. 2020/2021 highlights include:

CURRENT PERFORMANCE PRIORITIES

The Covid-19 pandemic impacted throughout the financial year, which heavily influenced short-term priorities, including:

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FUTURE PLANS

MVSC’s Mission

To inspire and develop an excellent voluntary and community sector in Merton

MVSC’s Objects are:

  1. To promote any charitable purposes for the benefit of the public, principally but not exclusively in the local government area of the London Borough of Merton, in particular the advancement of education, the furtherance of health, and the relief of poverty, distress and sickness

  2. To build the capacity of third sector organisations and provide them with the necessary support, information and services to enable them to pursue or contribute to any charitable purpose.

  3. To promote, organise and facilitate co-operation and partnership working between third sector, statutory and other relevant bodies in the achievement of the above purposes within the area of benefit.

The impact of the pandemic on the voluntary sector has remained significant during the last financial year, with many services unable to operate during lockdown periods and with continued restrictions. MVSC has continued to focus its efforts and resources to support the sector, with continued Development and Volunteering team support, the continued activity of Healthwatch Merton and providing flexibility in the way the Social Prescribing team continue to support GP surgery teams and patients. In addition, the resource investment in the Community Hub and the Merton Giving scheme have provided important support for residents and organisations.

On a very positive note, the impact of voluntary sector organisations, volunteers and the way MVSC can communicate and engage with the sector has been widely recognized as a strength within the borough, with key funders of the sector such as LBM and CCG publicly valuing the contribution of the sector, with intention to help develop community based services which the voluntary sector provide as a key part of a preventative layer of support for residents.

Activity included setting up at very short notice a Coronavirus Community Hub in conjunction with partners from the public sector and voluntary/community sectors. Additionally, MVSC with its partner, the Chamber of Commerce, created a Coronavirus fund to assist local voluntary sector organisations to both adapt their services and survive through the lockdown period. These additional activities have been very successful since March 2020 and are a demonstration of MVSC’s ability to continue to deliver services in difficult times and support the local voluntary sector in line with its objectives.

Following the Trustee Strategy event on 25 September 2020 strategic planning for the 2020/21 financial year and beyond included confirming the underpinning aims of MVSC to:

  1. Provide support to voluntary, community, faith and social enterprise organisations

  2. Build social capital by supporting and developing volunteering and community action

  3. Identify changing and emerging need and respond with development

  4. Promote, support and develop liaison, advocacy, joint working and strategic partnership between sectors

  5. Promote quality through standard setting

  6. Ensure sustainability.

Appreciating that strategic outcomes may need to continue to be flexible due to the continuing impact of the pandemic, the key outcomes from 2020/21 remain for the 2021/22-year, namely:

  1. To utilise our connections, networks, partnerships and information gathering systems to identify local needs, understand what’s effective, create cohesive proactive plans, implement activities and measure change

  2. To announce clearly the changes in our service and new ways of working to ensure clarity to the people of Merton and our stakeholders

  3. To update and improve our communication channels and websites, social media and public presence

  4. To have clear internal leadership and structure for the team with transparent communication.

The overarching themes of Leadership, Partnership and Innovation, combined with recent experience of working even more closely in partnership with other organisations, has provided a useful blueprint for the coming year, albeit that the ability to plan accurately will be influenced by the continued impact of the pandemic. ICS will affect the sector over the coming years and importantly, MVSC is positioned at the ‘top table’ (transition team) to represent the sector.

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

Financial Statements

The financial statements, including the notes, have been prepared in compliance with the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102). The analysis of income and expenditure reflects the classification of activities, together with costs relating to administration.

Statement of Financial Activities

The Statement of Financial Activities is shown on page 16 with a more detailed analysis of income and expenditure within the notes to the financial statements. Total incoming resources for the year increased to £1,483,083 (2020: £1,578,878). Grants and contract income for this year was £1,367,568 (2020: £1,543,018) this is split between £669,066 (2020: £1,136,658) restricted funding, £698,502 (2020: £406,360) unrestricted funding and also a range of grants funds which MVSC manages on behalf of the public sector, including holding and distributing funds. The total of these grant for distribution to third parties is recognised as restricted income, however it is worthwhile noting that these funds are not used in direct charitable expenditure rather given to organisations as grants. During this year the total of this income was £357,324 (2020: £799,160).

Donations this year have increased significantly to £68,171 (2020: £525) due to the Covid-19 pandemic and the fundraising efforts made within our Merton Giving scheme, which is run in partnership with the Merton Chamber of Commerce.

The total expenditure for the year was £1,309,745 (2020: £779,930). The increase of £529,815 is attributable primarily to the significant number of Grants Given to Local Organisations of £338,162 (2020: £36,884), details of which can be seen in Note 7.1, Direct Project Costs £94,593 (2020: £76,343) and an increase in staff costs of £210,666.

Balance Sheet

The net effect of the above has led to an operating surplus of £173,338 before unrealised actuarial loss of £3,606 (2020: operating surplus of £798,948 before unrealised actuarial gains of £827). Overall reserves are £1,101,637 (2020: £931,905) with unrestricted reserves being £141,873 (2020: £51,869) after providing for the defined benefit pension liability of £59,283 as at 31 March 2021. This represents a significant improvement on the prior year.

Restricted Reserves - £959,764

These funds represent grants and contract sums provided to MVSC to fund specific expenditure in agreed areas of work. They are the outstanding amounts waiting to be spent. They cannot be used for any other purpose without the agreement of the grantor or contracting commissioner.

The largest restricted balance item at 31 March 2021 is the MVSC 2025 Fund (£759,160) – received towards the previous financial year-end from the Sutton & Merton CCG’s Charitable Fund. Expenditure from this Fund will be small grants and assistance to local voluntary organisations providing services within the Borough of Merton to residents and patients. This programme, managed through Merton Giving, is planned to start in the autumn of 2021. Full details of all restricted funds can be seen in Notes 23 and 24.

Unrestricted reserves - £141,873

Unrestricted reserves are available to spend on activities that further any of the purposes of the Charity. Such costs can include programme, fund-raising, management and administration as well as the cost of meeting any future shortfalls in restricted fund activities. These funds are the accumulated balances arising from cost savings and income generation relating to the core functions of MVSC. They also include sums budgeted by the Board of Trustees to be set aside to meet known future cost threats.

The Board of Trustees considers that the total of accumulated unrestricted reserves needs to be sufficient to ensure:

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Reserves Policy

The Board of Trustees reviews the reserves policy annually and seeks to maintain a minimum balance of unrestricted reserves equivalent to six months of budgeted core net operating costs (including the uncovered pension deficit under FRS102). This equals £92,300 for this financial year.

Currently unrestricted reserves at the year-end stand at £201,156 less £59,283 set aside for the future pension liability repayments, giving a net unrestricted free reserves figure of £141,873, a surplus of £49,573 over the target unrestricted reserves figure for this financial year.

This surplus will ensure that MVSC can continue to provide guidance and assistance to the local community and achieve future growth in line with MVSC’s strategic and sustainability plans,

Unrestricted funds also need to be set aside for future major investment (e.g. systems and equipment and other infrastructure assets). There are no plans for making such investments at the date of this Trustee’s Report. No part of the balance of unrestricted funds has been designated for a particular purpose by the Board of Trustees.

MVSC adopts the following principles in relation to ongoing project funding:

MVSC does not consider its fixed assets to be freely convertible and does not include the value of fixed assets in its calculation of working capital.

The Board of Trustees will continue to monitor the effectiveness of its Reserves Policy so that it remains relevant to its current and future position. The next review of the reserves policy will be undertaken at the February 2022 Board meeting, however given the current Covid-19 pandemic, the Trustees are constantly reviewing the Charity’s reserve and cash flow levels.

Details of the various reserves and their movements are set out in more detail in Note 23, 24 and 25 on pages 30 to 36.

Going Concern

The Board of Trustees is of the view that forecast expenditure to 31 March 2022 will be fully funded from currently approved grants and contracts and from reasonably expected future funding from the same and similar sources. The Board also notes the increased cover available from MVSC’s reserves. This view has been taken in the wider context of a slowly improving local and national economy as the country emerges from the Covid-19 restrictions and post-Brexit issues are resolved.

Looking further ahead into 2022, 12 months from the date of the Audit of the 2020/21 Accounts as required by International Standards on Auditing ISA 570 (Revised), the Board of Trustees remains confident that the Council and the local NHS funding bodies will continue to commission MVSC to provide specific direct services to the local community. Examples are the current Healthwatch and Social Prescribing services agreements and, with partner organisations, provision of the Merton Community Hub service

Secondly MVSC is directly funded by the Council to provide business and funding advice to front-line voluntary organisations who can better reach and provide services to vulnerable local communities and individuals. The Board of Trustees is confident that this funding will continue throughout 2022/23.

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW - continued

Investment Policy and Objectives

The Board of Trustees seeks to retain a prudent sum of cash in the Bank Current Account sufficient to cover two months gross income on unrestricted activities and one month’s income on restricted activities. For 2020/21 this required an average balance £150,000. The excess over this sum was placed in a short-term investment account, which offered more security than a current account and a marginally better rate of interest. Current account cash is managed to ensure availability to meet the short-term net budgeted expenditure needs and grant giving requirements.

Currently these excess funds are placed with Charity Offices Investment Fund (COIF) under their Charities Deposit Fund scheme. COIF is registered with the Financial Conduct Authority under the Financial Services and Markets Act 2000 (FSMA) and is an ethical investor. Aside from retaining a prudent amount in reserves each year, the Trustees conduct a review of the investment policy for MVSC on an annual basis.

When the Board of Trustees needs to make long-term investment decisions it will seek professional advice on the most appropriate and financially beneficial course of action.

Grant making policy

The Charity makes grants to a wide range of organisations who are either based in the London Borough of Merton and neighbouring or adjoining areas or have strong relationships in these areas with a proven track record of benefitting residents. We are particularly keen to help grassroots community groups and small-to-medium-sized voluntary organisations. We would always consider a proposal that has the potential to achieve substantial impact in our community and furthers our charitable objectives.

The Charity is not solely a grant making organisation. To ensure proper governance, the Board of Trustees have developed a grant making policy that sets out the principles, criteria and processes that govern how the Charity defines and makes grants. This includes when and to whom authority for making grants may be delegated and how information is reported back to the Board of Trustees.

All grant programmes are administered through Merton Giving, the organisation’s charitable initiative with the Merton Chamber of Commerce. This initiative gives both groups applying for funding, and donors making contributions, a single point of reference. Criteria and process are described for each grant programme on Merton Giving’s website and decisions are made by delegated panels to published timelines. https://mertongiving.co.uk

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MERTON VOLUNTARY SERVICE COUNCIL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Trustees Responsibilities

The Trustees (who are also the directors of Merton Voluntary Service Council 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) Including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland.”

Company law requires the Charity’s Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the Financial statements unless they are satisfied they 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:

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.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to Disclosure of Information to Auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

Myrus Smith was re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity.

Small Companies

This Trustees report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved on behalf of the Board of Trustees on 5 November 2021

Brian Dillon - Chair and Trustee

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INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MERTON VOLUNTARY SERVICE COUNCIL

Opinion

We have audited the financial statements of Merton Voluntary Service Council (the ‘charitable company’) for the year ended 31 March 2021, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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, 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 of 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 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 trustees’ annual report, other than the financial statements and our auditor’s report 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.

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INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MERTON VOLUNTARY SERVICE COUNCIL

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

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’ annual report.

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

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 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.

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INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MERTON VOLUNTARY SERVICE COUNCIL

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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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 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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed

Kevin Fisher BA FCA CTA (Senior Statutory Auditor) For and on behalf of Myrus Smith Chartered Accountants and Statutory Auditors Norman House 8 Burnell Road Sutton Surrey SM1 4BW

19 November 2021

-15-

MERTON VOLUNTARY SERVICE COUNCIL

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

EXPENDITURE
Charitable activities:
6
Expenditure on Activities
652,291
657,454
Total Expenditure
652,291
657,454
Operating Surplus
93,610
79,728
Actuarial (losses)/gains on defined benefit scheme
14
(3,606)
-
NET INCOME
90,004
79,728
Transfers between funds
-
-
NET MOVEMENT IN FUNDS
24
90,004
79,728
RECONCILIATION OF FUNDS
24
TOTAL FUNDS BROUGHT FORWARD
51,869
880,036
TOTAL FUNDS CARRIED FORWARD
141,873
959,764
Unrestricted
Restricted
Funds
Funds
Notes
£
£
INCOME
Donations
2
55
68,116
Income from charitable activities
5
Grants and contracts
698,502
669,066
Other trading activities
Other income
4
46,899
-
Investments
3
445
-
Total Income
745,901
737,182		 1,309,745
779,930
1,309,745
779,930
173,338
798,948
(3,606)
827
169,732
799,775
-
-
169,732
799,775
931,905
132,130
1,101,637
931,905
2021
2020
Total
Total
Funds
Funds
£
£
68,171
525
1,367,568
1,543,018
46,899
34,464
445
871
1,483,083
1,578,878

All income and expenditure is derived from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year

The notes on pages 19 to 36 form part of these financial statements

-16-

MERTON VOLUNTARY SERVICE COUNCIL

BALANCE SHEET AT 31 MARCH 2021

Notes
FIXED ASSETS
Intangible assets
16
Tangible assets
17
CURRENT ASSETS
Debtors
18
Cash at bank
LIABILITIES
Creditors: Amounts falling due within one year
19
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
PENSION LIABILITY
20
NET ASSETS
TOTAL FUNDS OF THE CHARITY
23/24
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2021
2020
£
£
16,140
-
1,272
2,543
17,412
2,543
206,419
112,230
1,143,336
1,061,867
1,349,755
1,174,097
(221,249)
(189,058)
1,128,506
985,039
1,145,918
987,582
(44,281)
(55,677)
1,101,637
931,905
141,873
51,869
959,764
880,036
1,101,637
931,905

These financial statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board of Trustees on 5 November 2021 and signed on its behalf by:

............................................. Brian Dillon - Chair and Trustee

............................................. Ben Wilkins – Honorary Treasurer and Trustee

The notes on pages 19 to 36 form part of these financial statements

-17-

MERTON VOLUNTARY SERVICE COUNCIL

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Net cash provided by operating activities
Cash flows from investing activities
Interest from Investments
Purchase of intangible assets
Net cash provided by investing activities
Change in cash and cash equivalents
Cash and cash equivalents at the start of the year
Cash and cash equivalents at the end of the year
Reconciliation of net movement in funds to net cash flow from operating activities
Net income/(expenditure) for the reporting period
(as per the statement of financial activities)
Adjustments for:
Add back depreciation charge
Interest from investments
(Increase) in debtors
Increase in creditors
(Decrease) in pension charge
Net cash used in operating activities
Analysis of cash and cash equivalents
Bank and cash in hand
Total cash and cash equivalents		 2021
£
97,164
97,164
445
(16,140)
(15,695)
81,469
1,061,867
1,143,336
2021
£
169,732
1,271
(445)
(94,189)
32,191
(11,396)
97,164
2021
£
1,143,336
1,143,336		 2020
£
806,572
806,572
871
-
871
807,443
254,424
1,061,867
2020
£
799,775
1,777
(871)
(41,428)
62,711
(15,392)
806,572
2020
£
1,061,867
1,061,867

The notes on pages 19 to 36 form part of these financial statements

-18-

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

MERTON VOLUNTARY SERVICE COUNCIL

1. ACCOUNTING POLICIES

Company status

Merton Voluntary Service Council is a charitable company limited by guarantee and registered in England and Wales. The registered office and company registration number are detailed on page 1.

Basis of preparation

Merton Voluntary Service Council meets the definition of a public benefit entity under FRS 102.

The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are presented in sterling, which is the functional currency of the Charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Preparation of the accounts on a going concern basis

The financial statements are prepared on a going concern basis under the historical cost convention modified to include certain items at fair value. The Trustees have made this assessment considering the Charity’s unrestricted reserves, secured funding going forward and current and planned activities.

Income

All income is recognised in the Statement of Financial Activities when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably. Income received in advance of a project or other specified service is deferred until the criteria for income recognition are met (see Note 21)

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP 2019 (FRS 102), the general volunteer time contributed is not recognised and refer to the Trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Other expenditure represents those items not falling into any other heading.

Allocation of support costs

Expenditure includes those costs of a direct nature, which can be allocated to a specific activity. It also includes indirect costs, including governance costs that do not relate to a specific activity but are necessary to support those activities. Support costs are apportioned on the basis of staff time.

Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support MVSC’s charitable activities.

-19-

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

MERTON VOLUNTARY SERVICE COUNCIL

1. ACCOUNTING POLICIES – continued

Pension costs and other post-retirement benefits

The Charity contributes 5% to a defined contribution pension scheme for all of its employees. Contributions payable to the Charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Please refer to Note 14 for further details on Pension arrangements.

Interest receivable

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

Fund accounting

The unrestricted funds are available to spend on activities that further any of the purposes of Charity. Designated funds are unrestricted funds of the Charity, which the Trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations, which the donor has specified, are to be solely used for particular areas of the Charity’s work or for specific projects being undertaken by the Charity or funds, which are raised for particular restricted purposes.

Corporation Taxation

The Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Intangible fixed assets

Intangible fixed assets include the development of a new website and database. The estimated useful years and amortisation method of the intangible assets are calculated on a straight-line basis as follows:

Asset Category Annual Rate Website 20% on cost Database 20% on cost

Tangible fixed assets

Individual fixed assets costing £2,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:

Asset Category Annual Rate Computer and office equipment 33% on cost

Debtors

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

Cash at bank in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The Charity 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.

Operating leases

The Charity classifies the lease of the offices in Vestry Hall as operating leases; rental charges are charged on a straightline basis over the term of the lease.

-20-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

2. INCOME FROM DONATIONS AND LEGACIES

Donations 2021
£
68,171
68,171		 2020
£
525
525

Income from Donations was £68,171 (2020: £525) of which £55 was unrestricted (2020: £525) and £68,116 was restricted (2020: £nil).

3. INVESTMENT INCOME

2021 2021 2020 2020
£ £
Interest received 445 871

All of the Charity’s investment income of £445 (2020: £871) arises from money held in interest bearing deposit accounts and is unrestricted.

4. INCOME EARNED FROM OTHER ACTIVITIES

Fayre & Square takings
Service Income
Other income		 2021
£
-
41,107
5,792
46,899		 2020
£
4,948
24,124
5,392
34,464

Income earned from other activities was £46,899 (2020: £34,464) of which £46,899 was unrestricted (2020: £34,464) and £nil was restricted (2020 £nil).

-21-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

5. INCOME FROM CHARITABLE ACTIVITIES

Grants and contract received are as follows:

Unrestricted
Community Links Bromley
Good Things Foundation Contract
LBM – Covid-19 Community Response Hub
LBM – Notional Rent
LBM – Strategic Partner Fund Contract
LBM – Volunteering in Libraries Contract
Merton Clinical Commissioning Group – Social Prescribing Contract
Others
Restricted – Project based
City Bridge Trust – Development Work Grant
City Bridge Trust – Merton Giving Grant
GLA – Young Londoners Fund Local Networks Grant
Merton Clinical Commissioning Group – Community Navigator Grant
Merton Clinical Commissioning Group – Social Prescribing Grant
LBM – Healthwatch Grant
Clarion Futures – Youth Action Grant
Trust for London Grant
Wimbledon Foundation Grant
Restricted - Grants for third parties
Clarion Futures
LBM – Merton Partnership Community Giving Grants
Moat Homes Limited
Sutton and Merton CCGs’ Charitable Funds
Wimbledon Foundation
Total Restricted
Total Income from Charitable Activities
 2021
2020
£
£
8,000
-
5,913
-
38,689
-
37,949
37,949
175,000
175,000
17,750
17,750
410,701
172,661
4,500
3,000
698,502
406,360
61,500
26,667
54,917
23,750
36,825
39,900
-
20,184
-
49,997
125,000
125,000
-
5,000
13,500
27,000
20,000
20,000
311,742
337,498
40,000
-
262,324
40,000
25,000
-
-
759,160
30,000
-
357,324
799,160
669,066
1,136,658
1,367,568
1,543,018

MVSC manages a range of grant funds on behalf of the public sector, including holding and distributing funds. The total of these grant funds is recognised in restricted income, shown above, however it is worthwhile noting that these funds are not used in direct charitable expenditure rather given to organisations as grants. During this year the total of this income was £357,324 (2020: £799,160).

-22-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Direct Charitable
Expenditure
Support
Costs
2021
2021
£
£
General Activities
626,515
25,776
City Bridge Trust – Development Work
54,611
3,417
City Bridge Trust – Merton Giving
53,100
3,210
Clarion Futures – Youth Action
-
-
Community Navigator
-
-
Greater London Volunteering – Young Londoner
30,742
4,830
LBM - Healthwatch
96,627
21,164
LBM – Healthy Schools Events
-
-
Merton CCG – Social Prescribing
15,066
-
LBM - Quality Assurance
3,325
-
LBM - Youth Action/Volunteering
-
-
Trust for London
12,820
708
Voluntary Sector Small Grant Development
339,145
-
Wimbledon Foundation Enable & Connect
-
-
Wimbledon Foundation
18,689
-
1,250,640
59,105		 Total
2021
£
652,291
58,028
56,310
-
-
35,572
117,791
-
15,066
3,325
-
13,528
339,145
-
18,689
1,309,745		 Total
2020
£
405,739
23,716
20,399
6,338
20,184
37,571
131,363
879
57,012
-
3,717
25,499
26,884
507
20,122
779,930

Of the total expenditure of £1,309,745 (2020: £779,930), £657,454 was in respect of restricted funds (2020: £374,191) and £652,291 was in respect of unrestricted funds (2020: £405,739).

7. DIRECT CHARITABLE EXPENDITURE

Staff and related costs
Direct Project costs
Grants Given (details Note 7.1)
Premises and hall hire costs
Office costs
Professional fees and other costs		 2021
2020
£
£
715,189
500,266
94,593
76,343
338,162
36,884
42,450
50,174
37,647
31,467
22,599
74
1,250,640
695,208

-23-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

7.1. GRANTS GIVEN

The following institutions were given cumulative grants in the year:

Accoutre Centre for Learning
AFC Wimbledon Foundation
African Educational Cultural Health Organisation
Ashdon Jazz Academy
Association for the Polish Family
ATS Creative Academy CIC
Attic Theatre Company
Commonside Community Development Trust
Ethnic Minority Centre
Fayre & Square Wimbledon
Focus 4 1
Hearts and Mind
Inner Strength Network CIC
Jigsaw4U
Lantern Arts Centre
Maggie’s at the Royal Marsden
Merton and Mitcham Division Girlguiding
Merton and Morden Guild
Merton Centre for Independent Living
Merton Community Transport
Merton Home Tutoring Services
Mitcham Town Community Trust
MSJ Student Charity
Positive Network Community Project
Sherwood Park Hall CIC
Somali Community CIC
South London Tamil Welfare Group
Sustainable Merton
Tooting and Mitcham Community Sports Club Ltd
Unique Talent
Small grants of up to £5,000 were made to 39 institutions (2020:29)		 2021
£
5,000
10,415
5,000
6,789
5,400
5,158
6,385
7,160
8,254
7,515
5,000
15,000
5,000
11,695
7,315
6,720
5,000
8,500
5,386
21,756
5,000
6,500
8,176
10,000
8,407
9,678
6,045
10,000
12,500
6,800
96,608
338,162		 2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,884
36,884

-24-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

8. SUPPORT COSTS

Staff and related costs
Premises and hall hire costs
Office costs
Professional fees and other costs
Governance costs
9.
GOVERNANCE COSTS
Audit fees
Committee & Strategic Planning costs
10.
NET INCOMING/(OUTGOING) RESOURCES
Net resources are stated after charging/(crediting):
Audit fees
Operating lease rentals
Depreciation
11.
STAFF COSTS
Wages and salaries
Social security costs
Pension costs		 2021
£
30,193
2,405
11,309
11,907
3,291
59,105
2021
£
3,024
267
3,291
2021
£
3,024
41,857
1,271
2021
£
577,773
51,286
24,927
653,986		 2020
£
46,675
7,187
6,963
20,155
3,742
84,722
2020
£
3,024
718
3,742
2020
£
3,024
41,857
1,777
2020
£
403,677
19,439
20,204
443,320

No employee had employee benefits in excess of £60,000 (2020: Nil). Pension costs are allocated to activities in proportion to the related staffing costs incurred.

The Charity Trustees were not paid or received any other benefits from employment with the Charity in the year (2020: £nil) neither were they reimbursed expenses during the year (2020: £nil). No Charity trustee received payment for professional or other services supplied to the Charity (2020: £nil).

The key management personnel of the Charity are detailed on page 3 of the Trustees Report.

The total employee remuneration of the key management personnel of the Charity was £66,897 (2020: £55,889). Under FRS 102, total employee benefits include gross pay, benefits in kind, employer’s national insurance contributions and employers pension costs.

-25-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

12. STAFF NUMBERS

The average monthly number of employees (including casual and part time staff) during the year was as follows:

2021 2020
Numbers Numbers
Senior Management Team 4 4
Other Direct Charitable Staff 14 10
18 14

13. TRANSACTIONS AND RELATED PARTIES

There were no related party transactions during the year or the previous. year, other than the remuneration of key management personnel set out in Note 11.

14. PENSION COSTS

The charitable company has a defined contribution pension scheme, which all employees are entitled to join. Previously, the charitable company operated a defined benefit scheme, which is now closed to new members. This is a multi-employer scheme operated by TPT Retirement Solutions and, whilst it is not possible to estimate the share of the assets and liabilities of the scheme attributable to Merton Voluntary Service Council, TPT Retirement Solutions has estimated that the employers’ debt on withdrawal liability at the most recent annual funding update of 30 September 2020 would have been £175,666. (30 September 2019: £188,562).

Every three years, the Trustee of TPT Retirement Solutions undertakes a full valuation of the Plan and makes a thorough assessment of the funding position before undertaking any action as deemed appropriate. A full actuarial valuation for the scheme was carried out at 30 September 2020 and it reported that the Plan’s deficit had reduced to £33.3m from £57.6m.

The Trustee, following advice from the Actuary, has now implement a new recovery plan. Under the new plan, the total deficit contributions due from employers will reduce from 1 April 2022 and each employer’s share of the new amount will continue to be based on its own percentage share of the Plan’s liabilities. The deficit contributions will be £3.98m per annum from 1 April 2022. No annual increase will be applied to these contributions and the recovery plan will remain unchanged, with an end date of 31 January 2025.

The Charity’s Trustees consider that it is unlikely that any liability will crystallise in relation to this in the foreseeable future. Under FRS102, provision is required for the net present value of any agreed deficit recovery plan contributions relating to the Plan.

During the year ended 31 March 2021, payments have continued to be made in accordance with this plan and the provision for the net present value of deficit contributions was £59,283 (2020: £70,242).

-26-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

14. PENSION COSTS - continued

The amounts recognised in the statement of financial activities are as follows:

Net interest from net defined asset/liability
Changes in the present value of the defined benefit obligation are as follows:
Defined benefit obligation
Contribution by scheme participants
Interest Cost
Re-measurement from changes in financial assumptions
The amounts recognised in other recognised gains and losses are as follows:
Actuarial (losses)/gain from changes in financial assumptions
Discount rate		 2021
£
1,579
1,579
2021
£
(70,242)
14,565
(1,579)
(2,027)
(59,283)
2021
£
(3,606)
(3,606)
2021
£
0.66%		 2020
£
1,078
1,078
2020
£
(85,210)
14,141
(1,078)
1,905
(70,242)
2020
£
827
827
2020
£
1.39%

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

15. CORPORATION TAX

As a registered charity MVSC is exempt from Corporation Tax in respect of its investment and charitable income and in respect of capital gains.

-27-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

16. INTANGIBLE FIXED ASSETS

Website
Database
£
£
COST
At 1 April 2020
-
-
Additions
10,200
5,940
At 31 March 2021
10,200
5,940
AMORTISATION
At 1 April 2020
-
-
Charge for year
-
-
At 31 March 2021
-
-
NET BOOK VALUE
At 31 March 2021
10,200
5,940
At 31 March 2020
-
-
17.
TANGIBLE FIXED ASSETS
Computer &
Office
equipment
£
COST
At 1 April 2020
36,601
Additions
-
At 31 March 2021
36,601
DEPRECIATION
At 1 April 2020
34,058
Charge for year
1,271
At 31 March 2021
35,329
NET BOOK VALUE
At 31 March 2021
1,272
At 31 March 2020
2,543		 Totals
£
-
16,140
16,140
-
-
-
13,080
-
Totals
£
36,601
-
36,601
34,058
1,271
35,329
1,272
2,543

-28-

MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Accrued Income
Prepayments
19.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Funds held on behalf of other organisations
Other creditors
Grant holding account
Accrued expenses
Deferred income
Pensions
20.
CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Pension liabilities		 2021
£
121,033
55,008
30,378
206,419
2021
£
68,456
24,782
3,097
-
3,183
106,729
15,002
221,249
2021
£
44,281
44,281		 2020
£
97,104
-
15,126
112,230
2020
£
7,842
38,069
4,666
35,330
6,541
82,045
14,565
189,058
2020
£
55,677
55,677
21.
DEFERRED INCOME
Balance
Brought
Forward
£
Deferred Income
82,045
82,045
22.
OPERATING LEASE COMMITMENTS
Total future minimum lease payments for non-cancellable operating leases a
Expiring:
Within one year
Between one and five years
More than five years		 Applied
In Year
£
(113,711)
(113,711)
re as follows:		 Deferred
In Year
£
138,395
138,395
2021
£
41,857
101,154
-
143,011		 Balance
Carried
Forward
£
106,729
106,729
2020
£
41,857
143,011
-
184,868

The above commitments include service charges as well as rent.

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MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

23. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Current year information for the net assets between funds:

2021 2020
Unrestricted Restricted Total Total
Funds Funds Funds Funds
£ £ £ £
Fixed assets 16,140 1,272 17,412 2,543
Current assets 240,195 1,109,560 1,349,755 1,174,097
Current liabilities (55,179) (151,068) (206,247) (174,493)
Pension liability < 1 year (15,002) - (15,002) (14,565)
Pension liability > 1 year (44,281) - (44,281) (55,677)
141,873 959,764 1,101,637 931,905
Comparative year information for the net assets between funds:
2020 2019
Unrestricted Restricted Total Total
Funds Funds Funds Funds
£ £ £ £
Fixed assets - 2,543 2,543 4,320
Current assets 172,254 1,001,843 1,174,097 325,226
Current liabilities (50,143) (124,350) (174,493) (112,206)
Pension liability < 1 year (14,565) - (14,565) (14,141)
Pension liability > 1 year (55,677) - (55,677) (71,069)
51,869 880,036 931,905 132,130

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MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

24. MOVEMENT IN FUNDS – Current Year

Unrestricted funds
General fund
Pension fund
Restricted funds
Capacity Building - Trust for London
City Bridge Trust – Development Work
City Bridge Trust – Merton Giving
GLA – Young Londoners Network
LBM – Healthwatch
LBM – Merton Partnership Community Giving
LBM – Quality Assurance
Merton Giving Grant Distribution Fund
Social Prescribing Project
Sutton and Merton CCG - MVSC 2025 fund
Wimbledon Foundation - Merton Skill-Up
TOTAL FUNDS		 At 1/4/20
Net
£
122,111
(70,242)
51,869
2,250
2,951
3,351
2,329
2,581
47,167
15,744
-
44,625
759,160
(122)
880,036
931,905		 movement
in funds
Transfers
between funds
At 31/3/21
£
£
£
93,610
(14,565)
201,156
(3,606)
14,565
(59,283)
90,004
-
141,873
(28)
-
2,222
3,472
-
6,423
(1,393)
-
1,958
1,253
-
3,582
7,209
-
9,790
-
(47,167)
-
(3,325)
-
12,419
86,295
47,167
133,462
(15,066)
-
29,559
-
-
759,160
1,311
-
1,189
79,728
-
959,764
169,732
-
1,101,637

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MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

24. MOVEMENT IN FUNDS – Current Year

Net movement in funds for the current year are as follows:

Unrestricted funds
General fund
Pension fund
Restricted funds
Capacity Building - Trust for London
City Bridge Trust – Development Work
City Bridge Trust – Merton Giving
GLA – Young Londoners Network
LBM – Healthwatch
LBM – Quality Assurance
Merton Giving Grant Distribution Fund
Social Prescribing Project
Sutton and Merton CCG - MVSC 2025 fund
Wimbledon Foundation - Merton Skill-Up
TOTAL FUNDS		 Incoming
resources
Resources
expended
Gains and
losses
Movement in
funds
£
£
£
£
745,901
(652,291)
-
93,610
-
-
(3,606)
(3,606)
745,901
(652,291)
(3,606)
90,004
13,500
(13,528)
-
(28)
61,500
(58,028)
-
3,472
54,917
(56,310)
-
(1,393)
36,825
(35,572)
-
1,253
125,000
(117,791)
-
7,209
-
(3,325)
-
(3,325)
425,440
(339,145)
-
86,295
-
(15,066)
-
(15,066)
-
-
-
-
20,000
(18,689)
-
1,311
737,182
(657,454)
-
79,728
1,483,083
(1,309,745)
(3,606)
169,732

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MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

24. MOVEMENT IN FUNDS – Previous Year

Comparative year information:

Unrestricted funds
General fund
Pension fund
Restricted funds
Capacity Building - Trust for London
City Bridge Trust – Development Work
City Bridge Trust – Merton Giving
Clarion Futures - Youth Action
Community Navigator
GLA – Young Londoners Network
LBM – Healthwatch
LBM – Healthwatch – Young People’s Health
LBM – Healthy School Events
LBM – Merton Partnership Community Giving
LBM – Quality Assurance
LBM – Young Action Programme
Local Estate Allocation fund
Merton CCG – Healthwatch Young People Health
Social Prescribing Project
Sutton and Merton CCG - MVSC 2025 fund
Voluntary Sector Grants
Wandsworth CCG – Healthwatch Grass Roots
Wimbledon Foundation – Enable & Connect
Wimbledon Foundation - Merton Skill-Up
TOTAL FUNDS		 At 1/4/19
Net
£
97,555
(85,210)
12,345
749
-
-
(574)
3,812
-
-
3,944
879
29,000
15,744
5,629
5,051
5,000
47,828
-
1,000
1,216
507
-
119,785
132,130		 movement
in funds
Transfers
between funds
At 31/3/20
£
£
£
36,481
(11,925)
122,111
827
14,141
(70,242)
37,308
2,216
51,869
1,501
-
2,250
2,951
-
2,951
3,351
-
3,351
(1,338)
1,912
-
-
(3,812)
-
2,329
-
2,329
(6,363)
8,944
2,581
-
(3,944)
-
(879)
-
-
13,116
5,051
47,167
-
-
15,744
(3,717)
(1,912)
-
-
(5,051)
-
-
(5,000)
-
(7,015)
3,812
44,625
759,160
-
759,160
-
(1,000)
-
-
(1,216)
-
(507)
-
-
(122)
-
(122)
762,467
(2,216)
880,036
799,775
-
931,905

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MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

24. MOVEMENT IN FUNDS – Previous Year

Net movement in funds for the comparative year are as follows:

Unrestricted funds
General fund
Pension fund
Restricted funds
Capacity Building - Trust for London
City Bridge Trust – Development Work
City Bridge Trust – Merton Giving
Clarion Futures - Youth Action
Community Navigator
GLA – Young Londoners Network
LBM – Healthwatch
LBM – Healthwatch – Young People’s Health
LBM – Healthy School Events
LBM – Merton Partnership Community Giving
LBM – Quality Assurance
LBM – Youth Action Programme
Local Estate Allocation fund
Merton CCG – Healthwatch Young People Health
Social Prescribing Project
Sutton and Merton CCG - MVSC 2025 fund
Voluntary Sector Grants
Wandsworth CCG – Healthwatch Grass Roots
Wimbledon Foundation – Enable & Connect
Wimbledon Foundation - Merton Skill-Up
TOTAL FUNDS		 Incoming
resources
Resources
expended
Gains and
losses
Movement in
funds
£
£
£
£
442,220
(405,739)
-
36,481
-
-
827
827
442,220
(405,739)
827
37,308
27,000
(25,499)
-
1,501
26,667
(23,716)
-
2,951
23,750
(20,399)
-
3,351
5,000
(6,338)
-
(1,338)
20,184
(20,184)
-
-
39,900
(37,571)
-
2,329
125,000
(131,363)
-
(6,363)
-
-
-
-
-
(879)
-
(879)
40,000
(26,884)
-
13,116
-
-
-
-
-
(3,717)
-
(3,717)
-
-
-
-
-
-
-
-
49,997
(57,012)
-
(7,015)
759,160
-
759,160
-
-
-
-
-
-
-
-
-
(507)
-
(507)
20,000
(20,122)
-
(122)
1,136,658
(374,191)
-
762,467
1,578,878
(779,930)
827
799,775

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MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

25. FUNDS

RESTRICTED FUNDS

The surpluses/deficits on restricted funds arise because of timing differences where funding has been received in advance of expenditure and will be utilised over the duration of the relevant projects. The restricted funds recognised in these accounts were provided for the following purposes:

Name of restricted fund Description, nature and purposes of the fund

Capacity Building – Trust for London To enhance the knowledge and skills of local BAME organisations with regards to housing, planning and regeneration issues, enabling them to better support their members and BAME residents to present and campaign on the issues that affect them. City Bridge Trust – Development Work This project provides organisational development support to voluntary sector organisations in the borough, to enable them to grow and maximise their impact upon the local community.

City Bridge Trust – Merton Giving The element of the City Bridge Trust funding provides funding to both MVSC and Merton Chamber to jointly generate income and arrange subsequent grant funding rounds through the Merton Giving fund. The funding targets and outcomes have been over-achieved as a result of the recent Merton Giving Coronavirus Fund activity.

Greater London Authority – Young Londoner YLF Network project is a three-year programme supported by the Network Project Mayor of Londoners fund, aimed at building the capacity and quality of Voluntary Sector youth provision across the South West London subregion. Through training, peer support, partnership and collaboration the programme seeks to ensure Young People across the sub-region have a variety of good quality activities and projects to participate in that will help them to achieve and develop into well balanced, civically active, adults.

LBM - Healthwatch Healthwatch is the consumer champion for health and social care services in Merton. LBM – Merton Quality Assurance We secured funding from London Borough of Merton to provide quality assurance and partnership support for the voluntary sector. LBM – Youth Action Programme To support and encourage a minimum of 20 local young people (age 14 -25) to engage in community action and undertake voluntary roles in their local communities. This fund is now finished. Merton Giving Grant Distribution Fund During the current year grant funding was received from Clarion Futures, London Borough of Merton, Moat Homes Limited and Wimbledon Foundation, along with public donations and fundraising events. This funding, along with the balance of £47,167 from the LBM – Merton Partnership Community Giving fund from the previous year, was then used to support local organisations in the Borough in the way of small grants to assist during the Covid-19 pandemic.

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MERTON VOLUNTARY SERVICE COUNCIL

NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

25. FUNDS – continued

Name of restricted fund

Description, nature and purposes of the fund

Social Prescribing Project

Merton Council and Merton CCG provided MVSC with funding to run a project, which connected patients at three East Merton GP practices with services in the community provided by voluntary organisations. Grant funding ended in September 2019 and a new expanded social prescribing contract was negotiated with the CCG from October 2019. The remaining balance on the 2019 fund will be used for future work within Social Prescribing in the borough.

Sutton and Merton CCG - MVSC 2025 fund

These funds were transferred to MVSC in February and March 2020 from an ‘umbrella’ charity managed by the Sutton and Merton CCGs. The transferred funds will be managed by MVSC and channeled through Merton Giving as grants to voluntary organisations and other not-for-profit bodies within the Borough of Merton to provide services with a focus on supporting residents and patients accessing local health and wellbeing services. In particular MVSC will be promoting the development of social prescribing services throughout the Borough and undertaking other activities, taking advice from the local Primary Care Networks.

Wimbledon Foundation – Merton Skill-Up

MVSC have provided a programme of targeted support to local organisations to improve their skills and knowledge in a range of areas, including governance and their ability to raise funds.

26. CAPITAL COMMITMENTS

The Charity has authorised and contracted for expenditure of £Nil. The Charity has authorised but not contracted for expenditure of £Nil in its capital budget for the upcoming year.

27. CONTINGENT ASSETS

Total grant funding awarded as at 31 March but not yet received and recognised as income due to the recognition criteria not being met amounts to £558,700.

28. LEGAL STATUS OF THE CHARITY

Merton Voluntary Service Council is a private company (Company No: 04164949) incorporated in Great Britain and registered in England and Wales. The company is limited by guarantee and has no share capital. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the Legal and Administrative Information on page 1.

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