MEDICAL MISSION INTERNATIONAL (UK) (A company limited by guarantee and not having a share capital)
Financial Statements
For the year ended 31 December 2021
Company Number: 4798450 Charity Number: 1099015
MEDICAL MISSION INTERNATIONAL (UK)
CONTENTS
| Page | |
|---|---|
| Trustees' Report | 1 to 5 |
| Independent Auditors' Report | 6 to 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Cash Flow Statement | 12 |
| Notes to the Accounts | 13 to 20 |
MEDICAL MISSION INTERNATIONAL (UK)
COMPANY INFORMATION
Directors and Trustess R Kendrick J Lam G Poorman J Poorman Secretary Broadway Secretaries Limited Company number 4798450 (incorporated in England & Wales) Charity number 1099015 Registered office Second Floor Office 34 Hight Street Bromley Kent BR1 1EA Auditors Moore Kingston Smith LLP 6th Floor 9 Appold Street London EC2A 2AP Principal Bankers HSBC Bank PLC 184 High Street Bromley Kent BR1 1HE Solicitors BDB Pitmans LLP 50 Broadway London SW1H OBL
MEDICAL MISSION INTERNATIONAL (UK)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their annual report along with the financial statements for the year ended 31st December 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 of the attached accounts and comply with the charity’s memorandum and articles of association, applicable laws and the requirements of Statement of Recommended Practice on “Accounting and Reporting by Charities” issued in January 2015. The information shown on the previous page forms a part of this report.
Structure, Governance and Management
Governing document
Medical Mission International (UK) was incorporated on 13th June 2003 as a company limited by guarantee (company number: 4798450) and registered as a Charity on 15th August 2003 (registration number 1099015). It is governed by its Memorandum and Articles of Association.
Organisational structure
The strategic direction of the Charity is the responsibility of the board of trustees. The day-to-day running of the Charity is carried out by the Chief Executive, who is responsible to the board of trustees.
Trustees, appointment, induction and training
New trustees are appointed by existing trustees should they be deemed appropriate and help to fulfill any shortfall in the skill set of the board upon application. The charity shall hold an annual general meeting each year in addition to any other meetings. The trustees keep themselves updated through information obtained from external consultants and the Charity Commission, and are responsible for the induction and training of new trustees. Further training, consultation and information is made available to the trustees on an ongoing basis.
The Directors of the company are also the Trustees of the charity.
At each AGM one third of the Trustees are subject to retirement by rotation or if their number is not three or a multiple of three, the numbers nearest to one-third shall retire from office, but shall be eligible for re-election.
Remuneration Policy
The charity does employ one staff member who’s pay is determined by the Board and is based on the hours worked and the prevailing market rates for the level of work that is being undertaken. Potential future increases in salary are decided and given to reflect increases in the cost of living.
As noted elsewhere in the accounts, the trustees and officers of the charity receive no remuneration or compensation for their time and services to the charity.
If the charity does decide to compensate its trustees and officers in future years, then the recommendations of the NCVO enquiry will be taken into account.
Risk Management
The Trustees have reviewed the major business, financial and strategic risks to which the charity is exposed and confirm that steps have been taken to mitigate those risks.
A fundamental risk to the charity is the potential for continued increases in expenditures on raising funds versus donation income received which would be the result of non-effective direct mailing mailshot results. To address this fundamental risk the charity is working with local marketing agencies to explore possible diversification of its current revenue stream as well as to look to achieve better returns on its mailshots. The goal is to drive down the cost of expenditure on raising funds while looking to boost and maximize donation revenues of its mailshots and other possible revenue streams which would mitigate this fundamental risk to the charity.
Page 1
MEDICAL MISSION INTERNATIONAL (UK)
TRUSTEES' REPORT(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Objectives and activities
We have referred to the guidance in the Charity Commission’s general guidance on Public Benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.
In light of the Charity Commission's guidance on Public Benefit, the principal object of the Charity continues to be the relief of poverty and sickness, in particular by the provision of emergency medical relief and public health services to assist disadvantaged and needy families throughout the world affected by famine, natural disaster or civil conflict.
The principal source of funding for these charitable programmes is expected to remain as income generated from direct mail appeals. The results from specific appeals have been very encouraging and the Trustees wish to thank all those who have assisted in the fundraising effort, either through the making of cash donations or by assisting in the procurement of donated goods.
Grant making policy
The trustees will continue to concentrate on the provision of emergency aid by making grants to support charitable projects providing emergency relief to assist children in disaster areas.
Applications are dealt with on receipt. Guidelines for applicants are available from the trustees. All applications for grants are reviewed by the trustees before any decision is made. The trustees may also require a visit to the applicant before deciding whether or not to make a grant.
Achievements and performance
MMI (UK) raised in excess of £2.4m during the year ended 31 December 2021 (2020: in excess of £3.2m). The majority of those resources were obtained as a result of our direct mail fund raising efforts and gifts in kind.
During this year of operations, generous United Kingdom donors enabled MMI (UK) to expend £1,934,339 (2020: £2,830,104) on our grants programme.
| Compassionate Franciscan Sisters of the Poor - Philippines St. Wilfred's Medical Centre - Zimbabwe The programmes supported during 2021 were: Local Initiatives for Education - Sudan JP Clawson Medical Missions - Zimbabwe Doctors for Life Trust - Malawi / Mozambique / Zimbabwe |
£ 11,179 1,895,915 6,708 13,490 7,047 |
|---|---|
| 1,934,339 |
Fundraising Approach
The charities trustees are fully aware of their individual responsibility and accountability to ensure that the charity fundraises legally, ethically, responsibly and effectively.
The charity is a levy paying member of the Fundraising Regulator and subscribe to the associated fundraising codes and practice. In addition the charity is also registered with the Information Commissioner’s Office and is fully compliant with the newly enacted General Data Protection Regulation (GDPR).
The charity suppresses individual supporter records against the Mailing Preference Service, Telephone Preference Service and the Fundraising Preference Service which helps to ensure that the charity doesn’t approach individuals who have expressly requested that we don’t contact them. During the fiscal year Fundraising Preference Service suppression requests totaled 13.
The charity doesn’t engage with any professional fundraiser or commercial participator.
Page 2
TRUSTEES' REPORT(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
MEDICAL MISSION INTERNATIONAL (UK)
Fundraising Approach (continued)
The charity has a published complaint procedure, available on its website and does indeed respond to enquiries and complaints in a timely fashion. As a member of the Fundraising Regulator we are required to provide annual figures on the number of complaints received during the year. Most of these contacts tend to be requests to opt-out of charity communications by existing supporters. These opt-out requests are administered and handled straight away to reduce any perception of unreasonable intrusion or undue pressure to support the charity.
The charity continues to diversify its income generating activities so as to reduce reliance on any single income stream. The main revenue stream for the charity is its direct mail fund raising programme coupled with gifts in kind. Regular giving programmes and legacy income are other diversified revenue streams for the charity.
COVID-19 Uncertainties
The impact of COVID-19 has been considered by the trustees of the charity in regard to the charity's future plans and budgeting processes and the effect of the outbreak isnt a significant risk into the 31 December 2022 year end. It is expected that any potential decreases in revenues will be short lived and the charities reserves and asset values will enable the charity to continue normal operations through calendar 2022 and years beyond that.
It is possible that income could decrease during 2022 but any decrease in revenue would be offset by a decrease in associated expenditures.
As of May 2022 the charities employees continue to work normal hours both post and pre COVID-19 outbreak and the charities net assets are higher in May 2022, compared to May 2021. Virtually all assets of the charity are held in cash and no decreases in value are expected in regard to such.
Financial review
During the year incoming resources amounted to £2,445,148 (2020: £3,228,441) and the charity expended a total amount of £2,194,855 (2020: £3,132,132).
The final result was a net increase in funds of £250,293 (2020: increase of £96,309).
The objectives that were set out in 2020, to be achieved in 2021, were partially met. The charity did receive funds in 2021 from legacies in the amount of £64,581 (2020: £63,228).
The cost ratio of raising funds versus donation income received declined in 2021 compared to 2020 and this was the result of not mailing any acquisition mailings in 2021 compared to 2020. Donation income increased year over year and expenditures for raising funds decreased. As was noted in last years audit the charity continued working with a local marketing agency in 2021 and that change did result in decrease in cost of raising funds in 2018, 2019 and 2021 compared to earlier years cost of raising funds. We are hopeful that we may continue reducing costs of raising funds in 2022 while attempting to start increasing donation revenue and to possibly explore other avenues of expanding our donation revenue stream.
Page 3
MEDICAL MISSION INTERNATIONAL (UK)
TRUSTEES' REPORT(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Financial Review (continued)
Reserves policy
The Board has examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. The Trustees review its reserves policy annually and consider that the free reserves held by the charity should be broadly equivalent to at two years of the yearly on going annual expenditures (exclusive of GIK). The Trustees decided that MMI's long-term target level of free reserves should be between £1,000,000 and £1,400,000 which would give the charity flexibility to cover temporary timing differences for donation receipts, adequate working capital for core costs, and would allow MMI to respond quickly to emergencies where immediate relief is needed.
At 31 December 2021, the free reserves of the charity amounted to £1,298,805 (2020: £1,048,512). The Board acknowledge that this falls right in line with the target free reserve minimum.
Investment policy
The investment strategy is set by the trustees. In light of the Trustees policy on reserves the trustees have reviewed their investment policy and seek to both maximise return, whilst ensuring sufficient liquidity to enable the Charity’s funds to be expended for charitable purpose as soon as possible.
Plans for future periods
The principal source of funding is expected to remain as voluntary income generated from direct mail appeals to the public. The charity plans to vigorously continue its focus on:
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expanding its donor base, in order to increase the total amount of charitable programs that can be funded each year;
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increasing the number of donors who give to the Charity on a fixed schedule, in order to further reduce the costs of raising funds; and
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encouraging donors to consider including the Charity in their estate plans.
The Charity will continue its emergency aid shipments and financial grant programs.
Statement of trustees’ responsibilities
The trustees (who are also directors of Medical Mission International for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)
Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the 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 these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;
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state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements:
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
Page 4
MEDICAL MISSION INTERNATIONAL (UK) TRUSTEES, REPORTICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 8tAement •f tru¥tee¥' re¥pon¥lbllltleg l¢ontlnued ThA triiqtAp.s arp. rp.¢pon<ihlA fnr kpp.pino Drow.r sctountiThJ rpcords that di$tlos& with r&ssonablts aecurary 8t gny tirne the finanoal position of the charitable company and 8nabl8 them to ensure that the frnanryal ststements ¢omply with the Companies Act 2006. They are also iesponsible for $3fegu8rding the assets of the charitable company and honce fortaking r8asonable stèps lor th& prèvantion arHJ dètèdion of fraud and otrr irregularities. In so far as the tnjstees are awa.. there is no relevant audit infomation of whlch the charitable company's suditor is unawar8,' and the trustee$ have takon all stops that tt)•y ought to h4v4 tgk•n to makg thom8olvos aware of any relovant audit infomation and to establish that the auditor is awa of that infomation. Audltoys Mo0 Kingston bmitn LLV have Indi(3te(I their wllingne55 to continue in oflKe and are deemed to be reappoinleA in accordance with section 487121 of the Companies Act 2006 Small Company Exempiion These financial statements havè prg_pArgd In Ai.Ard#nr&. with thg. pmvisions of Pgrt 14 of t Compani&s Ad 2006 relating to Small companies and vrith the Financial Reporting 102 leffecbve 1 January 20151. Approved the trust on ... . and sgned on their behalf by.. Tru¥tee Page 5
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MEDICAL MISSION INTERNATIONAL (UK)
Opinion
We have audited the financial statements of Medical Mission International UK (‘the company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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:
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
6
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:
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the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ annual report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its 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 where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ annual report and from preparing a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 4, 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.
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
7
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
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We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
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We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
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We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
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We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
8
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mose Kirgshe Svs UP Luke Holt (Senior Statutory Auditor)
……………………………………………………………..
for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
Date: 29 June 2022
6[th] Floor 9 Appold Street London EC2A 2AP
9
MEDICAL MISSION INTERNATIONAL (UK)
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
Unrestricted Funds
| Note Income Donations Gift aid repayment claims Legacies Gifts in Kind Investment income: Bank interest Total Income Expenditure on: Raising funds 3 Charitable activities 4 Total Expenditure Net movement in funds 2 Total Funds Brought Forward Total Funds Carried Forward 12 |
2021 £ 454,289 68,460 64,581 1,857,717 101 2,445,148 129,788 2,065,067 2,194,855 250,293 1,048,512 1,298,805 |
2020 £ 377,047 53,337 63,228 2,734,040 789 |
|---|---|---|
| 3,228,441 | ||
| 144,904 2,987,228 |
||
| 3,132,132 | ||
| 96,309 952,203 |
||
| 1,048,512 |
The statement of financial activities includes all gains and losses recognised in the year.
All incoming resources and resources expended derive from continuing operations.
All incoming resources and resources expended relate to unrestricted funds.
The notes on the accompanying pages form a part of these financial statements.
Page 10
MEDICAL MISSION INTERNATIONAL (UK} BALANCE SHEET AS AT 31 DECEMBER 2021 Note 2021 2020 Fixed Assets Tanglble flxea assets GurrentA55ets DobtcJn* Cash at bank and ir2 hand 10 13.628 1,309,784 1.323.410 6,937 1,057,369 1.064.30 Creditors: Amounts falling due wlthln one year 11 124.6051 15,794 Net GurreFrt A55ets "1.298,60 1,048,512 Tgtal Net Aasets 1,298,805 1,04e,J12 Fund¥ Unrestricted funds 12 1298 805 1,048.512 TrIE¥e finanGial statements have been prepared In accordan wltr Ihe provisions applicable to companies Subject to the small comp2nies wime within Part 15 of the Companies Act 2006. The notes on the accompanying pages fom a part of these financial statements. Approved by and signed nd authorised for distribution, the Board of TDJsta8s on . thair bahaw by.. R, Kendri Tru¥tee Company RègiBtration No. 04798460 P•g•11
MEDICAL MISSION INTERNATIONAL (UK)
CASH FLOW STATEMENT AS AT 31 DECEMBER 2021
| Cash flows from operating activities Net Income / (Expenditure) Adjustments for: Interest received Decrease/ (increase) in debtors (Decrease)/ increase in creditors Net cash (used in) / generated by operating activities Cash flows from investing activities Interest received Net cash from investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Analysis of changes in net debt |
2021 £ 250,293 (101) (6,689) 8,811 252,314 101 101 252,415 1,057,369 1,309,784 |
2020 £ 96,309 (789) 8,064 (10,479) |
|---|---|---|
| 93,105 | ||
| 789 | ||
| 789 | ||
| 93,894 963,475 |
||
| 1,057,369 | ||
| Cash at bank and in hand Overdrafts TOTAL CASH AND CASH EQUIVALENTS |
At 1 January 2021 Cashflows Foreign Exchange Movements £ £ £ 1,057,369 252,415 - - - - 1,057,369 252,415 - |
At 31 December 2021 £ 1,309,784 - |
|---|---|---|
| 1,309,784 |
Page 12
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
MEDICAL MISSION INTERNATIONAL (UK)
1 Accounting Policies
A summary of the principal accounting policies adopted, judgements and key sources of estimation uncertainty are set out below.
Basis of Preparation of the Financial Statements
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the charity, rounded to the nearest pound.
Going concern
The trustees have assessed whether the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the trustees have considered the charitable company’s forecasts and projections and have taken account of pressures on donations and COVID-19 virus siutation. After making enquiries, the trustees have concluded that there is a reasonable expectation that the charitable company will have adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.
Donation Income
Income is included on an accruals basis except that donations under gift aid together with the associated income tax recoveries are credited as income when the donations are received.
Legacy Income
Legacies are recognised in the statement of financial activities when the charity has entitlement, there is a more probable than not chance of receipt, and their value can be accurately measured.
Gifts-in-Kind
Incoming resources in the form of gifts in kind are included in the Statement of Financial Activities only when assets donated to the charity are distributed. Gifts in kind are donations of commodities directly usable in charitable programmes such as food, clothing and medical supplies. The charity has a monitoring programme in place to ensure that commodities are appropriately valued at wholesale or less, culturally appropriate for the designated programme, and can be both properly shipped and distributed free of charge to the intended beneficiaries.
Gift Aid Repayments
Income from gift aid repayment claims is only included for claims which have been submitted for tax periods ending on or before the year end and when the receipt of this income is more probable than not.
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MEDICAL MISSION INTERNATIONAL (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Accounting Policies (continued)
Resources Expended
Expenditure, which is charged on an accruals basis, is allocated between:
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expenditure incurred directly in the effort to raise voluntary contributions (cost of raising funds); and
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expenditure incurred directly to the fulfilment of the charity's objectives (charitable expenditure).
Charitable activities comprises all the expenditure incurred by the charity in meeting its charitable objectives and is further analysed between:
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grants payable in the furtherance of the charity's objectives
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costs of activities in furtherance of the charity's objectives
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support costs of the charity
Where items of expenditure involve more than one cost category these costs have been apportioned on a reasonable basis as determined by the trustees. One particular area where the cost is material to the charity is in the production and distribution of the mail shots.
One of the purposes of the mail shot is to develop a database of names of people with a particular interest in the activities of the charity and its charitable objects.
Furthermore the expenditure has been allocated on the basis of whether the educational content of the individual mail shot is significantly high enough so as to be material. When this holds true the cost of the mail shot is allocated on a pro-rata basis comparing the educational content (costs in furtherance of the charity's objects) to the fund raising content (costs of generating funds). The educational content is determined by the amount of text on each mail shot that is dedicated to material of an educational nature.
Fund raising expenditure i.e. text that may induce a donation from the recipient, is allocated upon the basis of the volume of the text and space that is not related to text of an educational nature.
Support costs comprise all other overhead costs for the running of the charity as an organisation and the costs primarily associated with the constitutional and statutory requirements.
Fund Accounting
Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity.
Foreign Currencies
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction, the average rate being used as an approximation to this rate. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. All exchange differences are dealt with through the statement of financial activities.
Tangible Fixed Assets and Depreciation
Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets held for charity use by equal annual installments over their expected useful economic lives. The rates generally applicable are:
Office equipment, fixtures and fittings
3 years straight line
All tangible fixed assets costing more than £250 are capitalised at their cost to the charity.
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MEDICAL MISSION INTERNATIONAL (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Critical accounting estimates and areas of judgement
In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
Other financial instruments
i. Cash and cash equivalents
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.
ii. Debtors and creditors
Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price.
| 2 Net movement in funds Movement in funds stated after charging: Foreign exchange loss Auditors' remuneration: - Audit services - Audit services in respect of prior year 3 Fund Raising and Publicity Mailshots Other Allocated support costs (See Note 5) |
2021 £ 689 13,457 5,051 2021 £ 75,530 51,063 3,195 129,788 |
2020 £ 1,188 13,002 7,709 |
|---|---|---|
| 2020 £ 94,650 47,039 3,215 |
||
| 144,904 |
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MEDICAL MISSION INTERNATIONAL (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
4 Charitable Activities
| Charitable Activities | ||
|---|---|---|
| Grants Programme Gifts in kind Grants paid to institutions Support costs of grants programme activity (See Note 5) Please refer to the Trustees' Report for details of all grants paid. Costs of activities in furtherance of the charity's objectives Education and development Support costs of education and development (See Note 5) Total Charitable activities |
2021 1,857,717 76,622 1,934,339 42,285 1,976,624 2021 60,202 28,241 88,443 2,065,067 |
2020 2,734,040 96,064 |
| 2,830,104 54,584 |
||
| 2,884,688 | ||
| 2020 71,416 31,124 |
||
| 102,540 | ||
| 2,987,228 |
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MEDICAL MISSION INTERNATIONAL (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
5 Support Costs
| Salaries Occupancy costs Shipping expenses Loss on foreign exchange Governance Costs: Legal and professional fees Audit and Accounting: For current year Audit and Accounting: In respect of prior year 31 December 2021 Support Costs Salaries Occupancy costs Shipping expenses Loss on foreign exchange Governance Costs: Legal and professional fees Audit and Accounting: For current year Audit and Accounting: In respect of prior year 31 December 2020 |
£ 971 34 - 1,800 390 - 3,195 £ 971 54 - 1,800 390 - 3,215 Fundraising Fundraising |
£ - - 34,642 - 7,643 - - 42,285 £ - - 46,082 - 8,502 - - 54,584 Grant Programme Grant Programme |
£ 8,743 301 - 689 - 13,457 5,051 28,241 £ 8,743 482 - 1,188 - 13,002 7,709 31,124 Education and Development Education and Development |
2021 £ 9,714 335 34,642 689 9,443 13,847 5,051 |
|---|---|---|---|---|
| 73,721 | ||||
| 2020 £ 9,714 536 46,082 1,188 10,302 13,392 7,709 |
||||
| 88,923 |
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MEDICAL MISSION INTERNATIONAL (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
6 Trustees remuneration
During 2021 and 2020 no Trustee received funds as reimbursement for travel expenses incurred during attendance to meetings of the trustees.
No Trustee received remuneration during the year or payment for other services (2020: £Nil).
7 Employees
Number of employees
The average number of employees during the year was:
| Office and Management Employment costs Wages and salaries Social security costs |
2021 Number 1 2021 £ 9,714 - 9,714 |
2020 Number 1 |
|---|---|---|
| 2020 £ 9,714 - |
||
| 9,714 |
No employee was paid over £60,000 during the year (2020: None). The key management personnel are the Trustees.
The total remuneration paid to key management personnel was £Nil (2020: £Nil).
8 Taxation
The company, being a registered charity, is not liable for corporation tax in respect of its operations for the year.
| Tangible fixed assets(for charity use) Cost At 1 January 2021 and at 31 December 2021 Depreciation At 1 January 2021 Charge for year At 31 December 2021 Net Book Value At 31 December 2021 At 31 December 2020 |
Computer equipment 926 |
|---|---|
| 926 - |
|
| 926 | |
| - | |
| - |
9 Tangible fixed assets (for charity use)
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MEDICAL MISSION INTERNATIONAL (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
| 10 Debtors Other debtors Prepayments |
2021 £ 13,546 80 13,626 |
2020 £ 6,035 902 |
|---|---|---|
| 6,937 |
All debtors apart from prepayments are financial instruments measured at settlement value.
| 11 Creditors : Amounts falling due within one year Trade creditors Accruals Tax and Social Security |
2021 £ 13,228 11,377 - 24,605 |
2020 £ 4,463 11,331 - |
|---|---|---|
| 15,794 |
All creditors except accruals and tax and social security are financial instruments measured at settlement value.
| 12 Unrestricted Funds General reserve |
Balance at 1 January 2021 £ 1,048,512 |
Net surplus for the period £ 250,293 |
Balance at 31 December 2021 £ 1,298,805 |
|---|---|---|---|
13 Members' Liability
The Charity is a company limited by guarantee. In the event of a winding up, the members' liability is limited to £1.
14 Connected Party Transactions
Two Trustees of the Charity (Joseph Lam and Ruth Kendrick) assisted in the establishment of other Medical Mission International and World Children's Fund charities throughout the world that share similar visions and purposes as Medical Mission International (UK) and they are also on some of those other charities' boards. However, the Charity does not consolidate these foreign entities in its financial statements, as they are separate legal entities with no one controlling party. Neither were there any financial dealings with these entities during the year, apart from those transactions, and year end balances already disclosed below in accordance with FRS 102.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
MEDICAL MISSION INTERNATIONAL (UK)
14 Connected Party Transactions (continued)
As stated previously in Note 6 of the Financial Statements, no Medical Mission International UK Trustee receives any salary or compensation from the Charity.
Joseph Lam and Ruth Kendrick, Trustees of the Charity, are also Trustees of World Children's Fund UK and receive no compensation for those services.
Joseph Lam, Trustee and Officer of the Charity, is also a Trustee and Officer of MMI-US. None of the other three Trustee's of the Charity is a Trustee or Officer of MMI-US, but, Ruth Kendrick is an employee of MMIUS. Joseph Lam and Ruth Kendrick do receive compensation for their services from MMI-US.
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