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2021-07-31-accounts

Company number: 4247766 Charity number: 1088353

Multiple Sclerosis Trust

Report and financial statements For the year ended 31 July 2021

Multiple Sclerosis Trust

Contents

For the year ended 31 July 2021

Letter from the Chair ...................................................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 What the MS Trust achieved in 2020/21 ................................................................................ 4 Plans for the future ............................................................................................................... 6 Financial review ................................................................................................................... 12 Reference and administrative information .................................................................................... 17 Independent auditor’s report ....................................................................................................... 19 Statement of financial activities (incorporating the income and expenditure account) .................. 23 Balance sheet ............................................................................................................................... 24 Statement of cash flows ................................................................................................................ 25 Notes to the financial statements ................................................................................................. 26

Multiple Sclerosis Trust

Letter from the Chair

For the year ended 31 July 2021

In last year’s annual report, the Chair predicted that the MS Trust would emerge post-Covid both financially viable and with the skills to deliver its vision. Although it may still be too early to declare the end of the pandemic, those predictions continue to hold true. The Trust is well-placed to deliver its highly valued services for people living with MS and for the many health professionals who care for them.

The past year at the MS Trust can best be described with these two words: resilience and ambition. It is these two key attributes that have enabled the Trust to deliver a financial surplus of £1.1m under such challenging circumstances, and it is these two attributes that will lead us through the coming year.

Covid-19 created an increased demand for advice and information from people living with MS, at a time when our partners in the NHS faced intense pressure and workload. We responded by supporting redeployed MS nurses, and by prioritizing our enquiry line which saw its record for the highest number of calls received repeatedly exceeded throughout the year. We provided accurate information on key topics such as vaccination through 1.9 million unique visits to our website. Going forward, we will continue to support people living with advanced MS after four of our Advanced MS Champion roles were made permanent. In the final quarter of this year, we successfully re-started our MS Nurse programme, and we continue to work collaboratively with other charities to support the restart of MS services across the UK.

To deliver our core purpose throughout the challenges of the last 18 months, we have embraced new ways of working. We have emerged stronger and fit for the future. Behind the scenes, we have introduced a new finance system that provides greater efficiency. We have implemented a new digital enquiry line that gives us the flexibility to better respond to the needs of people living with MS. We have embraced technology to continue to support Health Professionals and their development, including our first-ever virtual conference.

From a fundraising perspective, our income has exceeded the targets we set for the year, and here again we are in a strong position for the future as we have transitioned towards more digital and virtual fundraising. However, the fundraising environment remains challenging, and income remains lower than 2019.

None of this would have been possible without the dedication and expertise of our staff. They demonstrated great flexibility as we used furlough and reduced working hours to manage our cost base and increase our capacity as required. We remain committed to supporting their wellbeing and their development.

We will now build on those strong foundations to focus on the future needs of people living with MS. Two of our objectives for last year were hindered by the pandemic and will now be delivered next year. The first is to carry out a review of MS services, to ensure that our MS nurses are placed in areas that need them most. The second is to fully evaluate the results of our first wave of Advanced MS Champions, before launching the second wave. We also intend to invest in our ability

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Multiple Sclerosis Trust

Letter from the Chair

For the year ended 31 July 2021

to deliver through volunteers, and increase our focus on Equality, Diversity and Inclusion within the Trust. Most importantly, our plans include listening to people living with MS, and ensuring that their voices are at the heart of everything we do.

Finally, I want to thank my predecessor, Laura Chapman. If the MS Trust has proven so resilient during the ongoing pandemic, it is in great part to the decisive actions that were taken in 2020. In addition, thanks to her continued support and the commitment shown by our board of Trustees, the Trust has been able to focus on its key objectives throughout the transition.

The MS Trust has the energy, the determination, and the capability to deliver against our ambitious plans to support both people living with MS and those who care for them. Together with your support, I have no doubt that we will succeed.

Caitlin Sorrell Chair of Trustees

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

The Vision of the Multiple Sclerosis Trust, a national charity, is for people with MS to live their lives to the full.

Our Mission is to;

The Hertfordshire-based charity was founded by Chris Jones and Jill Holt in 1993.

More than 80p in every pound spent by the charity is raised through traditional fundraising, like cake sales and marathon runs.

More than 10,000 people living with MS benefit from the activities of the MS Trust every year.

The MS Trust is here for everyone affected by MS, from the moment of diagnosis and throughout their journey. We're here for the 130,000 people living with MS today, tomorrow and every day after, making sure a life with MS isn't a life defined by MS.

The activities of the MS Trust are overseen by the Board of Trustees.

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

The Trustees present their report and the audited financial statements for the year ended 31 July 2021. Reference and administrative information, set out on page 16, forms part of this report. The financial statements comply with current statutory requirements, the Trust’s memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

What the MS Trust achieved against its objectives in 2020/21

The MS Trust has delivered on many of its key organisational objectives over the past 12 months. The charity responded quickly and effectively to the challenges of the pandemic, meeting the increased demands for advice for people with MS and proactively reacting to compensate for the impact of reduced fundraising income.

The pandemic, however, had an impact on our ability to deliver against those objectives that involved partnerships with the NHS. We are pleased to report that we were still successful in strengthening our organisation management and financial viability to ensure sustainability for our work and made good progress towards shaping and influencing the national MS agenda.

Health Professionals Programmes

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Information and Engagement

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Fundraising

Despite the ongoing challenges for fundraising posed by Covid-19 – not least the continuing impact the pandemic has had on community and events fundraising activities, the Trust finished the year significantly above its fundraising target. This was due to a number of factors:

Influencing health policy

The Trust has increased its external influence in the MS sector.

CEO David Martin became Chair of the influential Neurological Alliance, an umbrella organisation made up of more than 70 neurological charities.

The Trust worked with the MS Society on a joint survey during the Covid-19 pandemic to look at the impact of redeployment on MS services and what support would be needed as MS services restarted. The charity also created a minimum recommended service specification for re-opening services.

Plans for the future

The Trust is emerging, post-pandemic, as a strong, viable charity, ambitious for the future, wellplaced to deliver its highly valued and unique services for people with MS and the many health professionals who care for them. Detailed objectives for each of the main activity areas are presented below.

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Key priorities for the Health Professionals Programmes in 2021/22

Key priorities for Information and Engagement in 2020/21

Key priorities for Fundraising and Marketing in 2021/22

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Underpinning all of the above is a focus on our organisational Values. We are currently engaging with staff, trustees and our communities to ensure that our values fully represent the organisation we aspire to be. Our first organisational Values statement will be published in 2022.

Public benefit

The MS Trust continues to operate as an independent, nationally recognised charity working with the relevant charitable bodies and professional organisations to support the 130,000 people living with MS and to develop the specialist health services that they need.

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

Subsidiaries

The charity has two subsidiaries:

Working with other charities and organisations

The Covid-19 crisis highlighted the importance of supporting and championing the MS community at a time of significant change. We were proud to work closely with colleagues in other MS charities, in the NHS and in the pharmaceutical industry to ensure the voices of people with MS were heard in a fast-changing environment.

The MS Trust part-funds the UK MS Specialist Nurse Association (UKMSSNA). The charity is also an active supporter and funder of the Therapists in MS Group (TiMS), providing the secretariat and hosting their website.

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

The Trust collaborates with a number of voluntary and professional bodies to secure and influence high-quality health care for people with MS including;

Donors and fundraisers acknowledgement

This year, more than ever, the Multiple Sclerosis Trust would like to acknowledge and thank all its donors, fundraisers, charitable trust and corporate partners for their ongoing and generous support, including the Garfield Weston Foundation and the National Lottery Community Fund through its Coronavirus Community Support Fund. Special thanks go to the many individuals who support the charity with regular gifts and to everyone who has fundraised for the charity’s work throughout the year, despite the challenges posed by Covid-19.

Volunteers

The Trust welcomes volunteers in many different capacities including its Trustees. During this year 85 people with MS and healthcare professionals volunteered their time to review information resources, and contributed to articles, films and podcasts.

In most years, volunteers enable the Trust to sell Christmas cards in 330 shops around the UK. The charity is extremely grateful to the people who give their time to support its work, not least those who do so on a recurring basis in Cards for Good Causes shops and at fundraising and other Trust events. Cards for Good Causes were not able to open their shops for Christmas 2020 due to lockdown, but we expect to be able to offer this volunteering opportunity again for Christmas 2021.

Structure, governance and management

The MS Trust is a company limited by guarantee, governed by its Articles of Association and registered as a charity with the Charity Commission. Members comprise the Board of Trustees. The Charity was established in 1993 as the Multiple Sclerosis (Research) Charitable Trust and

incorporated in July 2001 as the Multiple Sclerosis Trust. The company was established under a Memorandum of Association that established the objects and powers of the charitable company, and is governed under its Articles of Association.

The charity is governed by its Board of Trustees, appointed by an ordinary resolution following external recruitment. On joining the Board, new Trustees undertake a tailored induction programme.

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Approximately one third of the Board retires by rotation at the Annual Retirement Meeting (ARM) as part of the Annual General Meeting (AGM) and may offer themselves for re-election. The

following Trustees were due to retire at the 2020 ARM and were re-elected to the Board:

All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note eight to the accounts.

The Trustees met more regularly during this year to monitor the impact of the pandemic on the charity but also to review the activities of the charity and set its future direction. The CEO and Senior Management Team (SMT) attend for relevant agenda items. The SMT provide full reports to the Trustees in advance of these meetings. Day to day operations of the Trust are delegated to the CEO and SMT.

There are two committees of the Board: Risk, Audit and Finance (RAFT) and Remuneration.

The RAFT also met more often than usual this year. It is responsible for overseeing the performance of the internal controls, management of risk and scrutiny of finances. The RAFT is also responsible for the review of the Trustees’ annual report and accounts and the external audit. The RAFT reports regularly to the main Board.

The Remuneration Committee meets annually to review all staff rewards. The Committee benchmarks against other charities where possible taking into account market rates for similar jobs, as well as individual and charity performance and the general financial outlook.

The MS Trust management team (SMT)

The MS Trust is managed under the leadership of its CEO, David Martin, and a Senior Management Team. The performance of the Charity is reviewed regularly by reference to the Key Performance Indicators and is reported monthly to the Board of Trustees.

Around half of the Trust’s policies and procedures were reviewed, updated and approved by Trustees during the year.

Risk management

Management of risk is an integral part of the charity’s business planning and project management processes. Strategic risks are regularly monitored by the Senior Management Team, reviewed quarterly by the Risk, Audit and Finance Committee (RAFT) and considered annually by the full Board. Operational risks are within the control of the Senior Management Team and reported to RAFT for information and annual review.

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

The Committee considered the following to be key risks from their reviews during 2020/21:

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Financial review

Financial position

At 31 July 2021, the MS Trust held funds of £3,739,966 (2020: £2,599,280). Of these funds, £634,717 (2020: £620,180) is held as restricted funds, £784,304 (2020: £898,438) is held as designated funds, and £2,320,945 (2020: £1,080,662) consists of unrestricted general reserves.

Income

Income amounted to £3,077,057 in 2021 (2020: £2,203,292). This increase of 40% is mainly due to a generous legacy of almost £1m received during the year.

Donations and legacies income amounted to £2,561,120 (2020: £1,678,619), an increase of 53%, which includes the legacy mentioned above. While community and events fundraising income remained unpredictable, the Trust’s balanced portfolio of ‘Covid-proof’ digital fundraising opportunities, ‘real world’ fundraising when possible, targeted approaches to grant-making trusts and high impact individual giving appeals, meant that fundraising income was maintained for the Trust. Voluntary income was generated by donations and legacies (£1,606,069), fundraising (£589,596), Health Professionals (£169,714), and Information and Engagement (£91,846).

Commercial trading turnover at £122,692 (2020: £143,335) decreased due to lower sales of Christmas cards.

Fees for professional education courses at £232,639 (2020: £204,771) increased by 14%. Professional education is a challenging area, since the NHS will not provide any funding for nurses or allied Health Professionals to attend courses. However, the increase on 2020 fees for professional education courses is largely due to cancelling the planned Development Module March 2020 programme as a result of the pandemic, whilst in 2020/21, two Development Module courses went ahead, albeit virtually.

Expenditure

Overall expenditure of £1,936,371 (2020: £2,404,484) has decreased by 19%. The main changes against 2019/20 were:

The charity’s core costs (including governance costs and support costs) for 2020/21totalled £489,395 (2020: £515,301).

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Result for the year

The year generated a surplus of £1,140,686, compared to a deficit of £201,192 in 2020. The deficit consists of an unrestricted and designated fund surplus of £1,126,149 and a restricted surplus of £14,537. A surplus £73k had been planned for, but the arising surplus of £1.14m was due to a large legacy received in the year.

Review of the activities of the subsidiaries

During the year ended 31 July 2021, MS Trust had two active trading subsidiaries:

MS Trust (Education) Ltd (company registration number 5105344). The total income for the year ended 31 July 2021 was £300,232 (2020: £272,939) and the net profit on ordinary activities, before taxation and gift aid was £130,736 (2020: £27,947). Gift aid totalling £130,736 is to be paid to the Trust (2020: £27,947). All after-tax profits are paid to the Trust as gift aid.

MS Trust (Trading) Ltd (company registration number 2838516). The total income for the year ended 31 July 2021 was £122,692 (2020: £145,738) and the profit before taking into account the amount to be gifted to the MS Trust was £11,095 (2020: £18,546). All after-tax profits are paid to the MS Trust as gift aid. Gift aid totalling £11,095 is to be paid to the Trust (2020: £18,546).

Some of the unpaid Directors of the two companies are also members of the Board of Trustees of the MS Trust as marked (e) or (t) on page 16.

Reserves policy

The Trust’s reserves policy focuses on the level of free reserves, defined as net assets excluding restricted funds and designated funds.

The Trustees take a risk-based approach to reserves and therefore aim to retain sufficient free reserves to;

Trustees aim to retain four to six months of planned unrestricted expenditure as free reserves, recognising the unpredictable nature of many of the funding sources.

At 31 July 2021, free reserves totalled £1,808,945, covering 12.4 months of unrestricted budgeted expenditure (2020: £1,080,662, covering 6.5 months of planned unrestricted expenditure). Therefore free reserves fall above the target level as set out above. The Trustees are planning for a reduction to free reserves during 2021/22. Restricted funds total £634,717 (2020: £620,180).

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Legacy income is highly volatile, with £1,144,698 received in 2021 compared to £171,216 in 2020 and £128,907 in 2019. In order to smooth the flow, the Trustees have established a Legacy Equalisation Reserve into which £450,000 has been transferred to provide cover against a low level of this type of income. This fund can be utilised with the agreement of the Trustees. The current plan is to top up the legacy income where required from the Legacy Equalisation Reserve if legacy income is below the projected budget. No transfers in or out of the Legacy Equalisation Reserve took place in 2020/21.

Other designated funds include the nurse sustainability fund totalling £228,661(for funding MS nurses), the Therapists’ Bursary Fund for £572 (for funding educational grants for allied health professionals), the Priest research fund of £75,000 (for research work), the Voice project fund of £512,000 (for funding a new project to build how we listen to and act on voices from the MS community) and the fixed asset fund totalling £30,071 (reflecting the value of fixed assets held which is not readily expendable).

In the current economic climate, the Trustees have agreed to adopt a flexible approach and review the reserves policy annually.

Monies from the pharmaceutical industry

The MS Trust has a policy position on working with the pharmaceutical industry, which is available on the charity’s website. In brief, the policy states that the Trust will not endorse any specific product or service and will not accept any attempts to influence its policy in any way. The following table shows amounts donated by pharmaceutical companies.

2021
£		 2020
£
Biogen Idec Ltd 22,584 76,331
Celgene / Bristol Myers Squibb 46,000 21,560
Genzyme, a Sanofi Company 40,050 28,500
GW Pharma 2,100 -
Janssen 56,000 -
Hollister 32,000 -
Medtronic 2,100 -
Merck Serono Ltd 66,900 80,000
Novartis Pharmaceuticals UK Ltd 75,385 39,600
Roche Products Ltd 76,000 36,413
Teva UK Ltd 3650 290

A number of companies also exhibit at the charity’s annual conference.

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

Going concern

The MS Trust believes that that there are no material uncertainties that call into doubt the charity’s ability to continue its activities. The accounts have therefore been prepared on the basis that the charity is a going concern.

Investment policy

The MS Trust’s investment policy is to maximise the return on its reserves as this is consistent with ensuring they are both readily accessible and invested in low-risk instruments. The current policy of the charity is to invest in cash and liquid assets and not to invest in equities, bonds and related asset classes. The reasons for this are the possibility of needing more of the reserves in the short term to deal with income and expenditure risks and the volatility of world stock markets.

Any funds not needed immediately are placed on deposit (subject to limits agreed with the Board). Where the MS Trust receives non-cash investments, these are held until they can be realised to optimise the benefit to the charity. There are no specific restrictions on investment powers contained in the Multiple Sclerosis Trust’s governing document.

Statement of responsibilities of the Trustees

The Trustees (who are also Directors of the MS Trust for the purposes of company law) are

responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the Trustees are required to;

Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Multiple Sclerosis Trust

Trustees’ annual report

For the year ended 31 July 2021

In so far as the Trustees are aware:

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.

Trustees are the members of the charity but this entitles them only to voting rights. They have no beneficial interest in the charity. Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 July 2020 is thirteen (2019 - twelve).

Auditors

Sayer Vincent LLP was re-appointed as the charitable company's auditors during the year and has expressed its willingness to continue in that capacity.

Approved by the Trustees on 3 December 2021 and signed on their behalf by:

Caitlin Sorrell Chair of Trustees

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Multiple Sclerosis Trust

Reference and administrative information

For the year ended 31 July 2021

Company number 4247766 Charity number 1088353

Registered office and Spirella Building, Bridge Road, Letchworth Garden City, Hertfordshire, Operational address SG6 4ET

Contact T: 01462 476700, E: info@mstrust.org.uk, W: www.mstrust.org.uk Country of England & Wales registration Country of United Kingdom incorporation Trustees Trustees, who are also members and directors under company law, who served during the year and up to the date of this report were as follows: Caitlin Sorrell[(3,4)] Chair of Trustees Hon. Sarah Joiner[(1,2) ] Vice Chair Rachel Balchin[(t,1)] Laura Chapman[(e,3)] Declan Chard Katherine Goulder (resigned 28 May 2021) Joanne Hudson Professor Dawn Langdon[(e,2) ] Jenny Ousbey Michael Penny[(1,3)] David Philpot[(1,3)] Christine Singleton[(e,1,3)] Caitlin Sorrell[(3,4)] Sarah White

Company Secretary David Martin Note (e) Director of Multiple Sclerosis Trust (Education) Ltd (t) Director of Multiple Sclerosis Trust (Trading) Ltd (1) Member of the Risk, Audit & Finance Committee (2) Member of the Research Committee (3) Member of the Remuneration Committee (4) Attends Risk, Audit & Finance Committee as Chair

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Multiple Sclerosis Trust

Reference and administrative information

For the year ended 31 July 2021

Principal staff David Martin Chief Executive
Alexandra Gear Director of Finance and Operations
Robert Carter(t)
 Director of Fundraising and Marketing
Paru Naik(e) Director of Health Professional
Programmes
Lucy Harmer Director of Information and Engagement
Bankers NatWest Bank plc
Station Place, Letchworth Garden City, Hertfordshire, SG6 3AL
Solicitors Bates, Wells & Braithwaite
10 Queen Street Place, London, EC4R 1BE
Auditors Sayer Vincent LLP, Chartered Accountants and Statutory Auditors
Invicta House, 108-114 Golden Lane, London, EC1Y 0TL

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Multiple Sclerosis Trust

Independent auditor’s report to the members of Multiple Sclerosis Trust

For the year ended 31 July 2021

Opinion

We have audited the financial statements of Multiple Sclerosis Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 July 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent 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 Multiple Sclerosis Trust'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.

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Multiple Sclerosis Trust

Independent auditor’s report to the members of Multiple Sclerosis Trust

For the year ended 31 July 2021

Other Information

The other information comprises the information included in the trustees’ annual report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being

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Multiple Sclerosis Trust

Independent auditor’s report to the members of Multiple Sclerosis Trust

For the year ended 31 July 2021

satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Multiple Sclerosis Trust

Independent auditor’s report to the members of Multiple Sclerosis Trust

For the year ended 31 July 2021

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 is available 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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.

Judith Miller (Senior statutory auditor) 14 February 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

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Multiple Sclerosis Trust

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 July 2021

Unrestricted
Note
£
Income from:
2
2,151,647
3
232,639
4
133,602
5
16,655
107,006
2,641,549
6
590,695
6
226,057
165,812
423,751
1,655
166,368
1,574,338
Net income (expenditure) for the year
1,067,211
Transfers between funds
58,938
Net movement in funds
1,126,149
Reconciliation of funds:
1,979,100
3,105,249
Total funds brought forward
Total funds carried forward
Raising funds
Total expenditure
Charitable activities
Education
Information and engagement
Research funding
Health professionals
Marketing and communications
Interest received
Other
Total income
Expenditure on:
Donations and legacies
Charitable activities
Other trading activities		 Unrestricted
Note
£
Income from:
2
2,151,647
3
232,639
4
133,602
5
16,655
107,006
2,641,549
6
590,695
6
226,057
165,812
423,751
1,655
166,368
1,574,338
Net income (expenditure) for the year
1,067,211
Transfers between funds
58,938
Net movement in funds
1,126,149
Reconciliation of funds:
1,979,100
3,105,249
Total funds brought forward
Total funds carried forward
Raising funds
Total expenditure
Charitable activities
Education
Information and engagement
Research funding
Health professionals
Marketing and communications
Interest received
Other
Total income
Expenditure on:
Donations and legacies
Charitable activities
Other trading activities		 Restricted
£
409,473
-
-
-
26,035		 2021
Total
£
2,561,120
232,639
133,602
16,655
133,041		 Unrestricted
£
1,312,296
204,771
151,471
29,792
109,355		 Restricted
£
366,323
-
-
-
29,284		 2020
Total
£
1,678,619
204,771
151,471
29,792
138,639
2,641,549 435,508 3,077,057 1,807,685 395,607 2,203,292
590,695
226,057
165,812
423,751
1,655
166,368		 -
-
1,000
166,573
13,355
181,105		 590,695
226,057
166,812
590,324
15,010
347,473		 701,338
263,171
189,711
361,080
1,673
53,137		 -
5,962
52,542
165,572
13,488
596,810		 701,338
269,133
242,253
526,652
15,161
649,947
1,574,338 362,033 1,936,371 1,570,110 834,374 2,404,484
1,067,211
58,938
1,126,149
1,979,100		 73,475
(58,938)
14,537
620,180		 1,140,686
-
1,140,686
2,599,280		 237,575
(238,974)
(1,399)
1,980,499		 (438,767)
238,974
(199,793)
819,973		 (201,192)
-
(201,192)
2,800,472
3,105,249 634,717 3,739,966 1,979,100 620,180 2,599,280

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21a to the financial statements.

23

Multiple Sclerosis Trust

Company no. 4247766

Balance sheets

As at 31 July 2021

2021
2020
Note
£
£
Fixed assets:
12
30,071
16,603
13
-
-
30,071
16,603
Current assets:
15
20,232
23,512
16
467,789
262,558
2,718,535
1,845,770
1,098,883
1,080,643
4,305,439
3,212,483
Liabilities:
17
(595,544)
(629,806)
3,709,895
2,582,677
3,739,966
2,599,280
21a
634,717
620,180
1,296,304
898,438
1,808,945
1,080,662
Total unrestricted funds
3,105,249
1,979,100
3,739,966
2,599,280
Investments in subsidiaries
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Total assets
Cash at bank and in hand
Short term deposits
Tangible assets
The group
Total funds		 2021
2020
Note
£
£
Fixed assets:
12
30,071
16,603
13
-
-
30,071
16,603
Current assets:
15
20,232
23,512
16
467,789
262,558
2,718,535
1,845,770
1,098,883
1,080,643
4,305,439
3,212,483
Liabilities:
17
(595,544)
(629,806)
3,709,895
2,582,677
3,739,966
2,599,280
21a
634,717
620,180
1,296,304
898,438
1,808,945
1,080,662
Total unrestricted funds
3,105,249
1,979,100
3,739,966
2,599,280
Investments in subsidiaries
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Total assets
Cash at bank and in hand
Short term deposits
Tangible assets
The group
Total funds		 2021
2020
Note
£
£
Fixed assets:
12
30,071
16,603
13
-
-
30,071
16,603
Current assets:
15
20,232
23,512
16
467,789
262,558
2,718,535
1,845,770
1,098,883
1,080,643
4,305,439
3,212,483
Liabilities:
17
(595,544)
(629,806)
3,709,895
2,582,677
3,739,966
2,599,280
21a
634,717
620,180
1,296,304
898,438
1,808,945
1,080,662
Total unrestricted funds
3,105,249
1,979,100
3,739,966
2,599,280
Investments in subsidiaries
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Total assets
Cash at bank and in hand
Short term deposits
Tangible assets
The group
Total funds		 2021
2020
£
£
30,071
16,603
101
101
30,172
16,704
-
-
423,186
302,595
2,702,719
1,829,997
957,978
994,005
4,083,883
3,126,597
(516,266)
(590,859)
3,567,617
2,535,738
3,597,789
2,552,442
634,717
620,180
1,296,304
898,438
1,666,768
1,033,824
2,963,072
1,932,262
3,597,789
2,552,442
The charity		 2021
2020
£
£
30,071
16,603
101
101
30,172
16,704
-
-
423,186
302,595
2,702,719
1,829,997
957,978
994,005
4,083,883
3,126,597
(516,266)
(590,859)
3,567,617
2,535,738
3,597,789
2,552,442
634,717
620,180
1,296,304
898,438
1,666,768
1,033,824
2,963,072
1,932,262
3,597,789
2,552,442
The charity
30,071
20,232
467,789
2,718,535
1,098,883		 16,603
23,512
262,558
1,845,770
1,080,643		 30,172
-
423,186
2,702,719
957,978		 16,704
-
302,595
1,829,997
994,005
4,305,439
(595,544)		 3,212,483
(629,806)		 4,083,883
(516,266)		 3,126,597
(590,859)
3,709,895 2,582,677 3,567,617 2,535,738
3,739,966 2,599,280 3,597,789 2,552,442
634,717
1,296,304
1,808,945		 620,180
898,438
1,080,662		 634,717
1,296,304
1,666,768		 620,180
898,438
1,033,824
3,105,249 1,979,100 2,963,072 1,932,262
3,739,966 2,599,280 3,597,789 2,552,442

Approved by the trustees on 3 December 2021 and signed on their behalf by:

Caitlin Sorrell Chair of Trustees

24

Multiple Sclerosis Trust

Consolidated statement of cash flows

For the year ended 31 July 2021

Note
22
23
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash flows from operating activities
Net cash provided by investing activities
Net cash (used in) / provided by operating
activities
Cash flows from investing activities:
Interest received
Purchase of fixed assets		 £
£
898,843
16,655
(24,493)
(7,838)
891,005
2,926,413
3,817,418
2021		 £
£
898,843
16,655
(24,493)
(7,838)
891,005
2,926,413
3,817,418
2021		 £
£
(113,650)
29,792
(7,413)
22,379
(91,271)
3,017,684
2,926,413
2020		 £
£
(113,650)
29,792
(7,413)
22,379
(91,271)
3,017,684
2,926,413
2020
891,005
2,926,413		 (91,271)
3,017,684
3,817,418 2,926,413

25

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

a) Statutory information

The registered office address is Spirella Building, Bridge Road, Letchworth Garden City, Hertfordshire SG6 4ET.

b) Basis of preparation

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 (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiaries Multiple Sclerosis Trust (Trading) Limited and Multiple Sclerosis Trust (Education) Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

26

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

Furlough income was claimed in arrears. It was recognised when receivable, shown as income to match with the period when staff members were on furlough. Furlough income has been shown as unrestricted income, except where it was received for a member of staff working on income funding restricted projects. In these cases it has been shown as restricted income.

f) 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.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

h) 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:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. The cost of overall direction and administration of each activity (the support costs), comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Fundraising and trading 37%
Marketing and communications 11%
Education 4%
Information and engagement 30%
Research 1%
Health Professionals 17%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Rental charges are charged on a straight line basis over the term of the lease.

27

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £250. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

l) Investments in subsidiaries

Investments in subsidiaries are at cost.

m) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

n) 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.

o) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 1 and 12 months.

p) Cash at bank and in hand

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

q) 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.

r) 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.

s) Pensions

The Trust makes 5% of salary payments to defined contribution pension schemes on behalf of employees. The assets of the schemes are held separately from those of the Trust in independently administered funds. The pension cost charge represents contributions payable to the funds during the year. The Trust has no liability under the schemes other than the payment of those contributions.

28

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

2
For fundraising events
For Health Professionals
For Specialist Nurse Programme
For Advanced MS Champions Programme
For information and engagement
Legacies
3
4
5
Bank interest
Interest received
Trading activity in subsidiary companies
Trading activity in MS Trust
Income from other trading activities
Education
Income from charitable activities
General gifts and donations
Income from donations and legacies		 Unrestricted
£
429,371
577,578
-
-
-
-
1,144,698		 Restricted
£
32,000
12,018
94,558
62,235
96,888
111,774
-		 2021
Total
£
461,371
589,596
94,558
62,235
96,888
111,774
1,144,698		 Unrestricted
£
508,753
630,154
1,533
-
-
640
171,216		 Restricted
£
92,321
12,442
11,557
148,157
10,000
91,846
-		 2020
Total
£
601,074
642,596
13,090
148,157
10,000
92,486
171,216
2,151,647 409,473 2,561,120 1,312,296 366,323 1,678,619
Unrestricted
£
232,639		 Restricted
£
-		 2021
Total
£
232,639		 Unrestricted
£
204,771		 Restricted
£
-		 2020
Total
£
204,771
Unrestricted
£
120,385
13,217		 Restricted
£
-
-		 2021
Total
£
120,385
13,217		 Unrestricted
£
143,335
8,136		 Restricted
£
-
-		 2020
Total
£
143,335
8,136
133,602 - 133,602 151,471 - 151,471
Unrestricted
£
16,655		 Restricted
£
-		 2021
Total
£
16,655		 Unrestricted
£
29,792		 Restricted
£
-		 2020
Total
£
29,792

29

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

Charitable activities

Staff costs (note 8)
Educational courses
Information and publications
Research
Risk Sharing Scheme
Commercial trading
Fundraising
Health Professionals
Bursaries
Recruitment and other staff costs
Trustee expenses
Office costs
Legal and professional
Audit fees
Depreciation
Bank charges
Irrecoverable VAT
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of
raising funds
£
262,323
-
-
-
-
90,264
42,826
-
-
2,025
-
9,194
2,325
-
-
2,749
5,138		 Marketing and
communications
£
110,150
-
-
-
-
-
28,257
-
-
311
-
23,146
-
-
-
-
4,480		 Education
£
34,749
108,469
-
-
-
-
-
-
1,000
-
-
506
825
-
-
936
-		 Information
and
engagement
£
325,851
-
39,187
-
-
-
6,847
-
-
3,101
-
21,245
6,545
-
-
-
8,642		 Research
£
8,283
-
-
-
1,655
-
-
-
-
-
-
-
-
-
-
-
-		 Health
Professionals
£
158,470
-
-
-
-
-
-
136,428
-
697
-
198
-
-
154
-
-		 Governance
costs
£
59,695
-
-
-
-
-
-
-
-
2,054
-
439
1,473
11,300
-
-
-		 Support
costs
£
161,302
-
-
-
-
-
587
-
-
9,368
-
173,873
18,876
-
10,871
2,719
36,838		 2021
Total
£
1,120,823
108,469
39,187
-
1,655
90,264
78,517
136,428
1,000
17,556
-
228,601
30,044
11,300
11,025
6,404
55,098		 2020
Total
£
1,259,549
174,791
104,665
406
1,673
102,117
71,712
291,243
1,000
36,352
256
254,100
26,162
11,371
9,109
5,090
54,888
416,844
147,250
26,601		 166,344
50,601
9,113		 146,485
17,205
3,122		 411,418
151,503
27,402		 9,938
4,298
774		 295,947
43,577
7,949		 74,961
-
(74,961)		 414,434
(414,434)
-		 1,936,371
-
-		 2,404,484
-
-
590,695 226,058 166,812 590,323 15,010 347,473 - - 1,936,371 2,404,484
701,338 269,133 242,253 526,652 15,161 649,947 - -

30

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

Charitable activities

Staff costs (note 8)
Educational courses
Information and publications
Research
Risk Sharing Scheme
Commercial trading
Fundraising
Health Professionals
Bursaries
Recruitment and other staff costs
Trustee expenses
Office costs
Legal and professional
Audit fees
Depreciation
Bank charges
Irrecoverable VAT
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Cost of
raising funds
£
321,035
-
35
-
-
102,117
58,519
-
-
5,370
-
16,092
4,063
-
-
1,552
3,764		 Marketing and
communications
£
124,508
-
51,532
-
-
-
13,116
-
-
1,220
-
19,517
-
-
-
-
1,165		 Education
£
43,912
174,791
-
-
-
-
-
-
1,000
52
-
29
750
-
-
1,107
-		 Information
and
engagement
£
288,555
-
53,098
-
-
-
-
-
-
5,019
-
20,961
240
-
-
-
6,145		 Research
£
8,574
-
-
-
1,673
-
-
-
-
-
-
-
-
-
-
-
-		 Health
Professionals
£
237,204
-
-
406
-
-
-
291,243
-
16,549
-
1,590
12,259
-
308
-
113		 Governance
costs
£
55,033
-
-
-
-
-
-
-
-
3,904
256
552
4,247
11,371
-
-
4		 Support
costs
£
180,728
-
-
-
-
-
77
-
-
4,238
-
195,359
4,603
-
8,801
2,431
43,697		 2020
Total
£
1,259,549
174,791
104,665
406
1,673
102,117
71,712
291,243
1,000
36,352
256
254,100
26,162
11,371
9,109
5,090
54,888		 2019
Total
£
1,335,872
169,695
157,702
12,500
4,363
101,090
93,500
201,662
500
65,085
650
245,263
61,840
10,550
9,302
5,877
58,983
512,547
161,158
27,633		 211,058
49,588
8,487		 221,641
17,599
3,013		 374,018
130,327
22,307		 10,247
4,196
718		 559,672
77,066
13,209		 75,367
-
(75,367)		 439,934
(439,934)
-		 2,404,484
-
-		 2,534,434
-
-
701,338 269,133 242,253 526,652 15,161 649,947 - - 2,404,484 2,534,434
741,076 310,397 249,936 588,067 51,384 593,574 - -

31

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

This is stated after charging:

This is stated after charging:
2021 2020
£ £
Depreciation 11,025 9,109
Loss on disposal of fixed assets - -
Operating lease rentals:
Property 76,500 75,050
Other 3,080 3,080
Auditors' remuneration (excluding VAT):
Audit 11,300 11,075
Other services - corporation tax services to subsidiary companies 1,550 1,500

Staff costs were as follows:

Staff costs were as follows:
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Salaries and wages		 2021
£
978,196
-
95,667
46,960		 2020
£
1,086,240
9,164
110,375
53,770
1,120,823 1,259,549

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2021 2020
No. No.
£60,000 - £69,999 - -
£70,000 - £79,999 - -
£80,000 - £89,999 1 1

The total remuneration of the key management personnel including employer's pension and employer's National Insurance was £347,243 (2020: £297,440). There were no other benefits.

The charity's Trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No Trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £161) incurred by no Trustees (2020: two Trustees) relating to attendance at meetings of the Trustees.

32

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 29 (2020: 33).

Staff are split across the activities of the charitable company as follows (headcount based on number of staff employed):

Staff are split across the activities of the charitable company as follows (headcount
Support
based on number of staff employed):
Raising funds
Information
Health Professionals
Governance
Education		 2021
No.
10
1
9
2
6
1		 2020
No.
10
1
9
4
8
1
29 33

10 Related party transactions

Three (2020: six) Trustees made donations to the MS Trust totalling £726 (2020: £13,681). These donations were for general purposes and were not restricted to a specific purpose.

The two wholly owned subsidiaries (MS Trust (Education) Limited and MS Trust (Trading) Limited) will gift aid profits of £141,831 to the charity (2020: £46,493).

11 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiaries Multiple Sclerosis Trust (Trading) Limited and Multiple Sclerosis Trust (Education) Limited gift aid available profits to the parent charity.

33

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

12
The group
At the start of the year
Disposals in year
Depreciation
At the start of the year
Disposals in year
At the end of the year
Tangible fixed assets
The charity
Cost
At the end of the year
At the start of the year
Cost
Depreciation
Net book value
Disposals in year
At the start of the year
At the end of the year
At the end of the year
At the start of the year
Disposals in year
At the start of the year
At the end of the year
Additions in year
Charge for the year
Additions in year
Charge for the year
Net book value
At the end of the year		 Fixtures and
fittings
£
27,257
-
-		 Computer
equipment
£
167,029
20,993
-		 Leashold
improvements
£
3,500
3,500
-		 Total
£
197,786
24,493
-
27,257 188,022 7,000 222,279
24,380
1,213
-		 156,803
9,479
-		 -
333
-		 181,183
11,025
-
25,593 166,282 333 192,208
1,664 21,740 6,667 30,071
2,877 10,226 3,500 16,603
Fixtures and
fittings
£
27,257
-
-		 Computer
equipment
£
167,029
20,993
-		 Leashold
improvements
£
3,500
3,500
-		 Total
£
197,786
24,493
-
27,257 188,022 7,000 222,279
24,380
1,213
-		 156,803
9,479
-		 -
333
-		 181,183
11,025
-
25,593 166,282 333 192,208
1,664 21,740 6,667 30,071
2,877 10,226 3,500 16,603

All of the group and charity's assets are used for charitable purposes.

34

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

13 Subsidiary undertakings

The charitable company owns the whole of the issued ordinary share capital of Multiple Sclerosis Trust (Trading) Limited company number 2835816 and Multiple Sclerosis Trust (Education) Limited company number 5105344, both companies registered in England. MS Trust (Trading) Limited is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiaries are shown below:

Statement of retained earnings
Total retained earnings brought forward
Profit for the year
Distribution to parent charity
Total retained earnings carried forward
Profit on ordinary activities
Turnover
Cost of sales
Administrative expenses
Operating profit
Interest payable
Interest receivable
Taxation on profit on ordinary activities
Assets
Liabilities
Gross profit
Profit for the financial year
The aggregate of the assets, liabilities and funds		 2021
2020
£
£
122,692
145,738
(90,265)
(102,117)
32,427
43,621
(21,332)
(25,075)
11,095
18,546
-
-
-
-
11,095
18,546
-
-
11,095
18,546
18,546
51,782
11,095
18,546
(18,546)
(51,782)
11,095
18,546
122,275
59,356
(111,080)
(40,710)
11,195
18,646
Multiple Sclerosis Trust
(Trading) Ltd		 2021
2020
£
£
122,692
145,738
(90,265)
(102,117)
32,427
43,621
(21,332)
(25,075)
11,095
18,546
-
-
-
-
11,095
18,546
-
-
11,095
18,546
18,546
51,782
11,095
18,546
(18,546)
(51,782)
11,095
18,546
122,275
59,356
(111,080)
(40,710)
11,195
18,646
Multiple Sclerosis Trust
(Trading) Ltd		 2021
2020
£
£
300,232
272,939
(108,469)
(174,791)
191,763
98,148
(61,072)
(70,399)
130,691
27,749
45
198
-
-
130,736
27,947
-
-
130,736
27,947
28,293
41,120
130,736
27,947
(27,947)
(40,774)
131,082
28,293
189,383
108,403
(58,300)
(80,109)
131,083
28,294
Multiple Sclerosis Trust
(Education) Ltd		 2021
2020
£
£
300,232
272,939
(108,469)
(174,791)
191,763
98,148
(61,072)
(70,399)
130,691
27,749
45
198
-
-
130,736
27,947
-
-
130,736
27,947
28,293
41,120
130,736
27,947
(27,947)
(40,774)
131,082
28,293
189,383
108,403
(58,300)
(80,109)
131,083
28,294
Multiple Sclerosis Trust
(Education) Ltd
32,427
(21,332)		 43,621
(25,075)		 191,763
(61,072)		 98,148
(70,399)
11,095
-
-		 18,546
-
-		 130,691
45
-		 27,749
198
-
11,095
-		 18,546
-		 130,736
-		 27,947
-
11,095 18,546 130,736 27,947
18,546
11,095
(18,546)		 51,782
18,546
(51,782)		 28,293
130,736
(27,947)		 41,120
27,947
(40,774)
11,095 18,546 131,082 28,293
122,275
(111,080)		 59,356
(40,710)		 189,383
(58,300)		 108,403
(80,109)
11,195 18,646 131,083 28,294

35

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

14 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

15
16
VAT reclaim
17
Creditors: amounts falling due within one year
Debtors
Trade creditors
Taxation and social security
Deferred income (note 18)
Accruals
VAT due
Other creditors
Provisions
Gross income
Result for the year
Stock
Finished goods
Trade debtors
Amounts due from group undertakings
Other debtors
Prepayments and accrued income		 2021
2020
£
£
20,232
23,512
2021
2020
£
£
129,778
82,643
-
-
-
-
337,873
179,915
138
-
467,789
262,558
2021
2020
£
£
31,099
56,423
31,511
34,569
114,242
158,853
147,593
74,384
3,879
351
245,220
283,226
22,000
22,000
595,544
629,806
The group
The group
The group		 2021
2020
£
£
20,232
23,512
2021
2020
£
£
129,778
82,643
-
-
-
-
337,873
179,915
138
-
467,789
262,558
2021
2020
£
£
31,099
56,423
31,511
34,569
114,242
158,853
147,593
74,384
3,879
351
245,220
283,226
22,000
22,000
595,544
629,806
The group
The group
The group		 2021
£
2,765,706
1,045,349		 2020
£
1,944,785
(155,129)
595,544 629,806 516,266 590,859

36

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

18 Deferred income

Deferred income comprises:

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2021
2020
£
£
158,853
240,518
(161,857)
(265,639)
117,246
183,974
114,242
158,853
The group		 2021
2020
£
£
158,853
240,518
(161,857)
(265,639)
117,246
183,974
114,242
158,853
The group		 2021
2020
£
£
121,763
50,293
(115,709)
(61,898)
80,188
133,368
86,242
121,763
The charity		 2021
2020
£
£
121,763
50,293
(115,709)
(61,898)
80,188
133,368
86,242
121,763
The charity
114,242 158,853 86,242 121,763

19 Pension scheme

The Trust makes payments to defined contribution pension schemes on behalf of employees. The assets of the schemes are held separately from those of the Trust in independently administered funds. The pension cost charge represents contributions payable to the funds during the year.

The Trust has no liabilty under the schemes other than the payment of those contributions.

20a Analysis of group net assets between funds (current year)

Tangible fixed assets
Net assets at 31 July 2021
Net current assets		 General
unrestricted
£
-
1,808,945		 £
30,071
1,266,233
Designated
funds		 Restricted
funds
£
-
634,717		 Total funds
£
30,071
3,709,895
1,808,945 1,296,304 634,717 3,739,966

20b Analysis of group net assets between funds (prior year)

Net assets at 31 July 2020
Net current assets
Tangible fixed assets		 General
unrestricted
£
-
1,080,662		 £
16,603
881,835
Designated
funds		 Restricted
funds
£
-
620,180		 Total funds
£
16,603
2,582,677
1,080,662 898,438 620,180 2,599,280

37

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

21a Movements in funds (current year)

Total restricted funds
Total designated funds
General funds
Unrestricted funds:
Designated funds:
Fixed assets fund
Restricted funds:
Education
Total funds
Anonymous trust grant
Information and engagement
Advanced MS Champions Programme
Helen Ley Bursary Fund
Helen Ley Advanced MS Programme
MS nurse support
General research
Legacy equalisation reserve
Total unrestricted funds
Health Professionals services
Voice project fund
Therapists' Bursary Fund
Nurse sustainability fund
Specialist Nurse Programme
RT Therapists' Bursary Fund
Bursary funds
Enquiry service
Priest research fund		 At 1 August
2020
£
61,140
127,970
1,698
28,185
44,752
10,034
32,680
77,490
79,764
-
114,896
15,693
25,878		 Income &
gains
£
26,000
28,801
-
94,755
18,748
10,023
6,000
70,775
102,266
78,140
-
-
-		 Expenditure &
losses
£
(1,000)
(99,781)
-
(66,792)
-
(13,355)
-
(102,874)
(78,231)
-
-
-
-		 Transfers
£
(26,063)
-
(1,698)
-
(22,662)
-
-
-
(2,265)
-
(875)
(5,000)
(375)		 At 31 July
2021
£
60,077
56,990
-
56,148
40,838
6,702
38,680
45,391
101,534
78,140
114,021
10,693
25,503
620,180 435,508 (362,033) (58,938) 634,717
16,603
572
356,263
75,000
-
450,000		 24,493
-
-
-
-
-		 (11,025)
-
(127,602)
-
-
-		 -
-
-
-
512,000
-		 30,071
572
228,661
75,000
512,000
450,000
898,438 24,493 (138,627) 512,000 1,296,304
1,080,662 2,617,056 (1,435,711) (453,062) 1,808,945
1,979,100 2,641,549 (1,574,338) 58,938 3,105,249
2,599,280 3,077,057 (1,936,371) - 3,739,966

The narrative to explain the purpose of each fund is given at the foot of the note below.

38

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

21b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Information and engagement
MS nurse support
General research
Education
Enquiry service
Anonymous trust grant
RT Therapists' Bursary Fund
Unrestricted funds:
Designated funds:
Fixed assets fund
Therapists' Bursary Fund
Nurse sustainability fund
Total unrestricted funds
Total funds
Bursary funds
Restricted funds:
Specialist Nurse Programme
Legacy equalisation reserve
Advanced MS Champions Programme
Helen Ley Bursary Fund
Helen Ley Advanced MS Programme
Priest research fund		 At 1 August
2019
£
35,000
212,349
11,143
16,757
33,195
13,113
2,000
111,071
221,281
112,771
20,693
30,600		 Income
£
53,640
61,881
-
36,703
11,557
10,409
34,680
161,208
21,528
4,000
-
-		 Expenditure
£
(27,500)
(146,260)
(9,445)
(25,275)
-
(13,488)
(4,000)
(278,021)
(318,788)
(1,875)
(5,000)
(4,722)		 Transfers
£
-
-
-
-
-
-
-
83,232
155,743
-
-
-		 At 31 July
2020
£
61,140
127,970
1,698
28,185
44,752
10,034
32,680
77,490
79,764
114,896
15,693
25,878
819,973 395,606 (834,374) 238,975 620,180
18,299
1,572
478,390
75,000
450,000		 7,413
-
30,000
-
-		 (9,109)
(1,000)
-
-
-		 -
-
(152,127)
-
-		 16,603
572
356,263
75,000
450,000
1,023,261 37,413 (10,109) (152,127) 898,438
957,238 1,770,273 (1,560,001) (86,848) 1,080,662
1,980,499 1,807,686 (1,570,110) (238,975) 1,979,100
2,800,472 2,203,292 (2,404,484) - 2,599,280

39

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

21 Movement in funds - continued

Purposes of restricted funds

Bursary funds RT Therapists' Bursary Fund Anonymous Bursary Fund Helen Ley Bursary Fund Enquiry service Information and engagement Education Specialist Nurse Programme Advanced MS Champions Programme Health Professionals services MS nurse support Helen Ley Advanced MS Programme

General research Fundraising support

Donations for educational grants for allied health professionals Donations for educational grants for allied health professionals Donations for specific educational projects for health professionals Donations for educational grants for nurses working with advanced MS Donations for the work of the enquiry service Donations for the work of the information and engagement projects Donations for the Health Professionals Programme Donations to fund MS specialist nurse posts Donations to fund champions for people with Advanced MS Donations to fund healthcare and evaluation programmes Donations to fund resources to support MS nurses Funding to run training events focusing on issues relating to people with advanced MS Donations for research work Restricted funding for fundraising support

Purposes of designated funds

Fixed assets fund Therapists' Bursary Fund Nurse sustainability fund Priest research fund Voice project fund

Legacy equalisation reserve

MS Trust investment in fixed assets funding the depreciation costs Donations for educational grants for allied health professionals Funding for MS nurses Donations for research work Funding for a new project to build how we listen to and act on voices from the MS community Fund to smooth the flow of legacy income

Transfers between funds

A transfer of £512,000 was made from general funds to designated funds to represent that funds are intended to be spent on the MS Trust's Voice project over the next two financial years.

Transfers of £58,938 were made from various restricted funds to unrestricted funds to represent the outflow of funds that were eliminated on consolidation of the group accounts.

22 Reconciliation of net (expenditure) / income to net cash flow from operating activities

Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Interest receivable
Loss on the disposal of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (used in) / provided by operating activities		 2021
£
1,140,686
11,025
(16,655)
-
3,280
(205,231)
(34,262)		 2020
£
(201,192)
9,109
(29,792)
-
41,851
195,284
(128,910)
898,843 (113,650)

40

Multiple Sclerosis Trust

Notes to the financial statements

For the year ended 31 July 2021

23 Analysis of cash and cash equivalents

Cash at bank and in hand
Short-term deposits 1 to 3 months
Short-term deposits between 3 and 12 months
Short-term deposits over 12 months
Total cash and cash equivalents		 At 1 August
2020
£
1,080,643
475,469
1,370,301
-		 Cash flows
£
18,240
482,486
305,279
85,000		 At 31 July
2021
£
1,098,883
957,955
1,675,580
85,000
2,926,413 891,005 3,817,418

24 Operating lease commitments

The group and charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

for each of the following periods:
Less than one year
One to five years		 2021
2020
£
£
76,500
76,500
191,250
267,750
267,750
344,250
Property		 2021
2020
£
£
3,080
3,080
3,465
6,545
6,545
9,625
Equipment
267,750 344,250 6,545 9,625

25 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

41