CHARITY REGISTRATION NUMBER: 1108016
Matthews Friends Charity Unaudited Financial Statements
31 March 2021
Matthews Friends Charity
Financial Statements
Year ended 31 March 2021
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 9 |
| Statement of financial activities | 10 |
| Statement of financial position | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 |
Matthews Friends Charity
Trustees' Annual Report
Year ended 31 March 2021
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2021.
Reference and administrative details
Registered charity name Matthews Friends Charity Charity registration number 1108016 Principal office @ Young Epilepsy St Piers Lane Lingfield Surrey The trustees Mrs J Fountain Mrs V Aldridge Mr R Aldridge Mr A Johnson Ms E Williams Independent examiner Mrs A Maguire FCA 10 Clovelly Avenue Warlingham Surrey CR6 9HZ
Structure, governance and management
Nature of the Governing Document and constitution of the charity
Matthews Friends is constituted under an original Declaration of Trust dated 25th October 2004 and supplemental deeds dated 24th October 2004 and 20th April 2011. It is registered as a charity with the Charity Commission.
The organisational structure of the charity and how decisions are made
The board of trustees consists of 5 individuals.
All policy decisions are made by the Board by majority vote.
Emma Williams, as CEO, is responsible for the day to day organisation of the charity, working closely with Julie Fountain on decision making matters.
In addition, there are sub-committees to organise and manage various events. There are regular board meetings throughout the year to discuss charity matters, culminating in an AGM.
- 1 -
Matthews Friends Charity
Trustees' Annual Report (continued)
Year ended 31 March 2021
Structure, governance and management (continued)
The methods adopted for the recruitment, appointment, induction and training of new trustees
The appointment of Trustees is governed by the Declaration of Trust dated 25th October 2004 which established the Charity ("the Trust Deed"). Subject to the usual qualifications regarding mental capacity and the requirement that a Trustee must act in the best interests of the Charity at all times, the Trust Deed provides that Trustees shall be entitled to hold office for life. All Trustees must be at least aged 18 and there must at all times be a minimum of two and a maximum of eight Trustees. Under the Trust Deed a Trustee may also be appointed or removed by resolution of the Trustees.
Potential trustees make it known to the board that they are interested in becoming a trustee, or they are approached by an existing trustee.
-
They are invited to attend a meeting to discuss the benefits they can bring to the charity.
-
Existing trustees vote on whether the candidate is suitable.
-
If the candidate is suitable, they are offered a position.
-
The candidate then decides whether they will accept the position.
-
Once accepted, the trustee is given promotional literature about the charity and directed to the charity website for further background information.
-
New trustees are invited and encouraged to attend an introductory meeting with the management to meet the team and understand the charity structure. They are encouraged to ask questions and are given information about their obligations as trustees of the charity.
Conflict of Interest
Trustees are required to advise the other trustees where they have any personal interest in any activity or transaction of the charity and exclude themselves from any related discussions or voting.
Risk Management
The trustees have conducted a review of the major risks to which the charity is exposed.
Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. External risks to funding have been considered and the development of a strategic plan which will allow for the diversification of funding and activities has been developed. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects.
All procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.
- 2 -
Matthews Friends Charity
Trustees' Annual Report (continued)
Year ended 31 March 2021
Objectives and activities
The objectives and main activities of the Charity are expressed in the Trust Deed and are "the general purposes of such charitable bodies or for such other purposes as shall be exclusively charitable as the Trustees may from time to time decide".
-
To publicise Ketogenic Dietary Therapies and make them more available to all those who should need it, be it child or adult.
-
Together with our medical board, give parents and patients an informed choice about the Ketogenic Diet and to source and provide the latest information available.
-
To support families and patients through their dietary therapy.
-
To support professionals in their administration of dietary therapies by way of literature, ketogenic starter packs and files, educational conferences and training meetings and provide funding, where possible.
-
To support Research projects into the efficacy of these dietary treatments for use in Epilepsy and other conditions, working with medical professionals to ensure our information is safe, relevant and current.
-
To support the Matthew's Friends Clinic in providing ketogenic therapy for patients where there is no local service available.
Public Benefit that is provided by the charity
-
To support families on medical ketogenic dietary therapies.
-
To fund professional training so that specialised doctors, dietitians, and nurses can give patients the best care and expertise.
-
To educate and raise awareness of medical ketogenic dietary therapies to the public and medical community to increase recognition of this treatment.
-
To fund research where possible into new areas of disease for medical ketogenic therapies.
-
• To improve delivery and management of medical ketogenic therapies, through education and development.
-
To fund hospitals where possible, to increase ketogenic services throughout the UK and Ireland.
Contribution of volunteers
The charity relies on voluntary help to host fundraising events, conferences, and information days, as well as preparing and packing information and starter packs for families. Around 5 volunteers regularly assist the charity with these tasks.
- 3 -
Matthews Friends Charity
Trustees' Annual Report (continued)
Year ended 31 March 2021
Covid-19
At the close of our financial year, we are still living with the impact of Covid-19. As a small charity we have adapted quickly to this crisis and put in place measures to try and minimise the impact of the pandemic on our vital work. From an operational perspective we continued to implement a working rota system and introduce social distancing measures so as not to impact our day-to-day capabilities. Demand for our support services increased but we are fortunate to have a flexible team who can work from home where necessary. In areas where activities have decreased ie: fundraising, staff have been placed on furlough. Certain charitable activities which involved bringing patients and professionals together in large groups, like the 7th Global Symposium planned for October 2020 has been postponed to October 2021. Matthew's Friends are the Organiser's of this meeting on behalf of the Scientific & Organising Committees.
COVID 19 has had a significant impact on our ability to fundraise, as most of our income is generated through community fundraising and charitable events. However, we have no reason to believe that our corporate support will not continue for the foreseeable future.
The Trustees have resolved to increase reserves in order for us to meet our long-term plans, and this has been aided by a substantial bequest received last year which enables us to fulfil our current commitments and look positively towards the future.
Strategic Report
The following section for achievements, performance and financial review form the strategic report of the charity.
Achievements and performance
Each year we review and revise accordingly all our printed resources to make sure information is up to date. All our written resources are free to Ketogenic dietary therapy centres around the world and are checked and approved by our Medical Board. We took our most popular guide 'I Am Going on a Ketogenic Diet' and produced an 8 minute animated version, placed on our YouTube channel and website. This has proven very popular, and we plan to produce some foreign-language subtitled versions in the next financial year.
Our website continues to give invaluable information on ketogenic diets, along with our social media being a source of support, we have a busy Facebook page, Instagram and Twitter. Our 365-day support telephone line and voluntary regional co-ordinators continue to support individual families and health professionals. During this period, we overhauled and improved our Keto Recipe section, including introducing an effective search facility.
In April 2019 we launched our closed Facebook support forum for those families who are on medically supervised Ketogenic therapies. The forum has proved to be a key aspect of the support we provide, enabling families to come together any time of day or night to discuss all aspects of managing medical ketogenic dietary therapies. During the pandemic, we also funded 'Mindfulness' courses for our families in the forum. This gave them a safe space to come together in small groups and help them to try and cope with the extra burdens and worries that the pandemic brought with it.
We continue to provide free starter packs to all families across the UK and Ireland regardless of which centre they are under and in this period, we provided >180 of the packs, together with our child and adult ketogenic diet information packs. These packs are also provided to NHS dietitians, respite centres, hospices and schools. We have continued to provide Tried and Tested recipes freely to families and dietitians devised in our ketokitchen, as well as providing a bespoke recipe service for those families who are particularly struggling or who need additional help in recipe adjustments.
- 4 -
Matthews Friends Charity
Trustees' Annual Report (continued)
Year ended 31 March 2021
We fund a multi-platform mobile version of EKM, Electronic Ketogenic Manager, which is extremely beneficial to Ketogenic patients. The EKM is reviewed regularly, and updates are carried out where funds permit. A user guide has been written and printed for families which is reviewed annually, and we have also produced and filmed 'easy to use' tutorials for the EKM platform, narrated by our patron Fay Ripley.
Many of the meetings that are usually attended by the charity were cancelled or postponed due to the pandemic. We were pleased to attend the British Paediatric Neurology Association (BPNA) Virtual conference which included a Paediatric Neurology Charities Meeting in January 2021. We also supported National Epilepsy Week in May with the #morethanseizures campaign.
We continue to plan and organise the 7th Global Symposium on Ketogenic Dietary Therapies and although it was uncertain whether this would be purely online or a hybrid meeting, the decision was made to make the meeting a hybrid one and go ahead in October 2021. Planning is now fully underway for this meeting and the production of a series of pre-symposium webinars are in the process of being rolled out over the first 8 months of 2021 in preparation for the Global Symposium.
The Charity is a Founding Patron of INKS (International Neurological Ketogenic Society), acting as the secretariat for this society. Regular meetings continue to be held as this society moves forward to be registered and launched at the forthcoming 7th Global Symposium being held in October 2021.
Emma Williams also attended several meetings for the European Reference Network for Rare and Complex Epilepsies (EpiCARE) for which she is one of the leaders for the Dietary Therapies work package for Europe.
Emma Williams also serves on the Scottish Intercollegiate Guidelines Network (SIGN) as a parent representative and part of the team reviewing the Ketogenic Dietary Therapies section for the review of the Epilepsy Guidelines. The main guidelines have been completed and the version for young people has also now been completed.
Our work with Complex Epilepsy patients continues by supporting both Adults and Children through our supported clinic, where no local ketogenic service or funding is available. We are currently 1 of only 4 centres in the country that are actively supporting adult patients to be able to use ketogenic therapy to manage their drug resistant epilepsy.
Training
Our Ketogenic online tutorials for medical professionals continue to be available and are proving especially beneficial for those professionals in resource limited areas of the world as well as community professionals here in the UK. As the usual KetoCollege training meeting that the charity supports had to be postponed due to COVID, the charity put extra resources into the promotion of these online Tutorials and grants were made to medical centres that were desperate for training in using the diet. During this year, over 180 places were available in grants to medical professionals. The planned update of these tutorials has been postponed so that they will be done after the 7th Global Symposium to make sure they include the latest information possible.
Research
We were involved in writing the International Ketogenic Diet Consensus paper for adults which has now been published as well as supporting adult research centres and treatments centres around the UK and Ireland.
Emma Williams sits on the Lancet Commission for Epilepsy as a patient representative and is working with a global team of experts in writing an international comprehensive epilepsy paper.
- 5 -
Matthews Friends Charity
Trustees' Annual Report (continued)
Year ended 31 March 2021
Transactions and Financial position
The financial statements are set out on pages 11 to 23. The financial statements have been prepared implementing the Statement of recommended Practice for Accounting and Reporting by Charities (FRS 102) issued by the Charities Commission for England and Wales. As stated in the introduction to this report, the trustees consider the financial performance by the charity during the year to have been satisfactory.
The principal sources of funding are through voluntary donations and this income stream continues to grow as the charity becomes more well known. In addition, income continues to be generated through organised fundraising events which ensures we have sufficient resources to meet our charitable objectives.
For the year ended 31st March 2021, the charity's accounts showed net outgoing resources of £29,285 (2020: incoming resources £537,753) and charity reserves of £562,688 (2020: £591,973).
Policies on Reserves
In accordance with Charity Commission guidance, the Trustees regularly monitor and annually review the adequacy of the charity's reserves and the reserves policy.
The Trustees' policy is to retain sufficient reserves to ensure that any operating costs are met and that committed grants can be made.
The trustees have forecast the level of income for 2021/22 at £80,000 gross and £50,000 net before expenditure on charitable activities. This considers the likely impact of Covid-19 of the ability of the charity to raise funds with our own, and organised events cancelled.
The charity's reserves policy is to hold back sufficient funds to cover the fixed charity running costs, salary/freelance costs for 12 months and any essential variable costs necessary for healthy growth of the charity, which equates to £30,000 (2020: £30,000). All reserves over and above this retained amount are designated to charitable activities on an annual basis. The trustees do not consider a reserve fund is necessary to cover the cost of event organisation as historically charity run events have covered such costs and resulted in profit. Such events would not take place if a loss was anticipated.
Grant Making Policy
Once a year at the AGM, trustees decide the main focus of the charities grant making activities for the coming year, in line with the main charity aims and objectives. The CEO and relevant staff then engage directly with organisations that may be able to fulfil those objectives and once satisfied, contracts are drawn up and awards are made. Requests for funding are also received from third parties and these are considered on a case by case basis and approved subject to fulfilling charitable objectives and available resources.
Matthew's Friends Clinics Ltd is an independent limited company and owned jointly by the directors Emma Williams and Julie Fountain therefore any requests for grant funding from Matthew's Friends Clinics Ltd are considered solely by the 3 independent trustees, Valerie Aldridge, Richard Aldridge and Alan Johnson.
- 6 -
Matthews Friends Charity
Trustees' Annual Report (continued)
Year ended 31 March 2021
Incoming Resources
Christmas cards and merchandise were sold to raise money to provide for our free resources.
We continued with our initiative via Social Media - Sugar Free for Epilepsy in November. This generated income and understanding of Ketogenic Diets to the charity's supporters.
Fundraising was inevitably impacted by the lockdown during COVID-19, with almost all events not able to go ahead. We are grateful for those that donated during this time and through Facebook donations and fundraisers and for the generous grants received, notably from our long-term supporters, The Sydney & Phyllis Goldberg Trust and The Ellerdale Trust.
We continue to raise funds through appropriate website sponsorship and through the sale of advertising in our newsletters.
Merchandise sales whilst not generating huge amounts, still remain important in raising awareness of the charity and its objectives.
Outgoing Resources
Costs have been incurred in order to fundraise as well as through provision of conferences and meetings to facilitate education and training in the Ketogenic Diet.
Expenditure has been incurred through funding of patient treatment at Matthews Friends Clinics Ltd.
Plans for future periods
We plan to continue fundraising next year through a number of fundraising and sponsorship activities with our next Gala Dinner being scheduled for Autumn 2021 during the Global Symposium. We will use funds raised to enable us to achieve our own charitable objectives.
We plan to organise and host the postponed 7th Global Symposium from October 2020 in October 2021.
We plan to continue attending and speaking at conferences around the world for medical professionals, dieticians, patients and special interest groups.
We intend to continue to support Ketogenic Diet centres around the UK to allow them to support more patients on the Ketogenic Diet.
We plan to continue to fund individual patients through Ketogenic dietary therapy where there is no local service for them via our support grants to Matthew's Friends Clinics Ltd. whilst working with NHS centres to increase their services by way of education, training and supporting their business plan applications to Clinical Commissioning Group's and funding new ketogenic centres for adults and children where appropriate.
We plan to extend our remit of support, education and training to all medical conditions where Ketogenic dietary therapy has been indicated as a possible benefit. This will be by way of working with the relevant professionals in those specific areas, providing case studies and pre-clinical trial work as well as supporting training and education in these areas and funding where possible.
As part of our commitment to support adult ketogenic services, we have agreed during this year to commence a 2-year dietetic funding grant to Sheffield Royal Hallamshire Hospital's Adult Ketogenic Service, commencing from April 2021
We continue to be the only UK charity 100% dedicated to medical Ketogenic Dietary Therapies and the support of families and health care professionals who are working with or using this treatment.
- 7 -
Matthews Friends Charity
Trustees' Annual Report (continued)
Year ended 31 March 2021
Covid-19
The initial impact of the COVID 19 pandemic was covered earlier in this report. The pandemic has continued to have a significant impact on the activities of the charity during 2020/21, most notably the postponement of the Global Symposium. The trustees continue to monitor the situation and seek alternative methods to meet the objectives and aims of the charity. In terms of the Global Symposium, this has been rescheduled for Autumn 2021 and the trustees have ensured that sufficient funds have been reserved to ensure both the success of the event and also any increased costs.
The pandemic highlighted the need to introduce new support strategies and we prepared and published a document on how to manage Medical Ketogenic Diets during a pandemic and lockdown. We continue working with other epilepsy organisations in helping them with the distribution of their COVID 19 information so as to reach as many families and patients as possible.
The Charity increased support for families by way of regular Zoom video conferencing sessions via our Facebook forum and also organising for guest professionals to attend some of these in order to support families further and answer any questions they may have during this unprecedented time as well as funding and putting on 'mindfulness' courses for families.
Our commitment to re-organise the postponed 7th Global Symposium from October 2020 is under constant review with the relevant international and national organisational committees with the plan to reschedule to October 2021.
The trustees' annual report was approved on 27 January 2022 and signed on behalf of the board of trustees by:
Mrs J Fountain Trustee
Ms E Williams Trustee
- 8 -
Matthews Friends Charity
Independent Examiner's Report to the Trustees of Matthews Friends Charity
Year ended 31 March 2021
I report to the trustees on my examination of the financial statements of Matthews Friends Charity ('the charity') for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the charity, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Mrs A Maguire FCA Independent Examiner
10 Clovelly Avenue Warlingham Surrey CR6 9HZ
27[th] January 2022
- 9 -
Matthews Friends Charity
Statement of Financial Activities
Year ended 31 March 2021
| 2021 | 2020 | |||
|---|---|---|---|---|
| Unrestricted | ||||
| fundsTotal funds | Total funds | |||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 4 | 70,229 | 70,229 | 562,933 |
| Charitable activities | 5 | 35,885 | 35,885 | 100,478 |
| Other trading activities | 6 | 5,323 | 5,323 | 10,785 |
| Investment income | 7 | 363 | 363 | 429 |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total income | 111,800 | 111,800 | 674,625 | |
| ================================ | ================================ | ================================ | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Costs of raising donations and legacies | 8 | (7,143) | (7,143) | (6,943) |
| Costs of other trading activities | 9 | (13,334) | (13,334) | (29,378) |
| Investment management costs | 10 | – | – | (32) |
| Expenditure on charitable activities | 11,12 | (120,608) | (120,608) | (100,519) |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total expenditure | (141,085) | (141,085) | (136,872) | |
| ================================ | ================================ | ================================ | ||
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Net (expenditure)/income and net movement in funds | (29,285) | (29,285) | 537,753 | |
| ================================ | ================================ | ================================ | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 591,973 | 591,973 | 54,220 | |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total funds carried forward | 562,688 | 562,688 | 591,973 | |
| ================================ | ================================ | ================================ |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 13 to 20 form part of these financial statements.
- 10 -
Matthews Friends Charity
Statement of Financial Position
31 March 2021
| 2021 | 2020 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Tangible fixed assets | 16 | 519 | 254 | |
| Current assets | ||||
| Debtors | 17 | 39,449 | 16,226 | |
| Cash at bank and in hand | 589,656 | 576,247 | ||
| -------------------------------- | -------------------------------- | |||
| 629,105 | 592,473 | |||
| Creditors: amounts falling due within one year | 18 | 66,936 | 754 | |
| -------------------------------- | -------------------------------- | |||
| Net current assets | 562,169 | 591,719 | ||
| -------------------------------- | -------------------------------- | |||
| Total assets less current liabilities | 562,688 | 591,973 | ||
| -------------------------------- | -------------------------------- | |||
| Net assets | 562,688 | 591,973 | ||
| ================================ | ================================ | |||
| Funds of the charity | ||||
| Unrestricted funds | 562,688 | 591,973 | ||
| -------------------------------- | -------------------------------- | |||
| Total charity funds | 19 | 562,688 | 591,973 | |
| ================================ | ================================ |
These financial statements were approved by the board of trustees and authorised for issue on 27 January 2022, and are signed on behalf of the board by:
Mrs J Fountain Trustee
Ms E Williams Trustee
The notes on pages 13 to 20 form part of these financial statements.
- 11 -
Matthews Friends Charity
Statement of Cash Flows
Year ended 31 March 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net (expenditure)/income | (29,285) | 537,753 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 505 | 120 |
| Other interest receivable and similar income | (363) | (429) |
| Accrued expenses/(income) | 66,413 | (1,750) |
| Changes in: | ||
| Trade and other debtors | (23,223) | (16,226) |
| Trade and other creditors | (231) | 628 |
| ---------------------------- | -------------------------------- | |
| Cash generated from operations | 13,816 | 520,096 |
| Interest received | 363 | 429 |
| ---------------------------- | -------------------------------- | |
| Net cash from operating activities | 14,179 | 520,525 |
| ============================ | ================================ | |
| Cash flows from investing activities | ||
| Purchase of tangible assets | (770) | (374) |
| ---------------------------- | -------------------------------- | |
| Net cash used in investing activities | (770) | (374) |
| ============================ | ================================ | |
| Net increase in cash and cash equivalents | 13,409 | 520,151 |
| Cash and cash equivalents at beginning of year | 576,247 | 56,096 |
| -------------------------------- | -------------------------------- | |
| Cash and cash equivalents at end of year | 589,656 | 576,247 |
| ================================ | ================================ |
The notes on pages 13 to 20 form part of these financial statements.
- 12 -
Matthews Friends Charity
Notes to the Financial Statements
Year ended 31 March 2021
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is St Piers Lane, Lingfield, Surrey, RH7 6PW.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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 (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The unaudited financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The unaudited financial statements are prepared in sterling, which is the functional currency of the entity.
Matthews Friends meets the definition of a public benefit entity under FRS 102.
Going concern
There are no material uncertainties about the charity's ability to continue.
Debtors
Other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
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 three months or less from the date of acquisition or opening of the deposit or similar account.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
- 13 -
Matthews Friends Charity
Notes to the Financial Statements (continued)
Year ended 31 March 2021
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are no significant areas requiring material judgements, estimates or assumptions.
Taxation
The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objectives.
Pension costs
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Differences between contributions payable in the year and the contributions actually paid are shown as either accruals or prepayments on the balance sheet.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Income
Income is accounted for when the charity has entitlement to the funds, receipt is probable, and the amount is measurable. Where income is received in advance of an event it is deferred until the charity is entitled to the income.
Income from donations and grants is included in income when these are receivable. When donors impose conditions, which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in income until the pre-conditions for use have been met. Interest is included when receivable by the charity.
Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
-
Costs of raising funds comprise the costs associated with attracting donations, grants and legacies and the costs of trading for fundraising purposes.
-
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- 14 -
Matthews Friends Charity
Notes to the Financial Statements (continued)
Year ended 31 March 2021
- All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, as set out in the notes to the accounts.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures & Fittings - 20% straight line Equipment - 50% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
4. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations, Just Giving & Private | ||||
| Fundraisers | 70,229 | 70,229 | 562,933 | 562,933 |
| ============================ | ============================ | ================================ | ================================ |
- 15 -
Matthews Friends Charity
Notes to the Financial Statements (continued)
Year ended 31 March 2021
5. Charitable activities
| Unrestricted | Restricted | Total Funds | ||
|---|---|---|---|---|
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| Conference Sponsorship & Delegate | Income | – | – | – |
| Other Grants | 35,885 | – | 35,885 | |
| ---------------------------- | -------------- | ---------------------------- | ||
| 35,885 | – | 35,885 | ||
| ============================ | ============== | ============================ | ||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2020 | ||
| £ | £ | £ | ||
| Conference Sponsorship & Delegate | Income | 72,478 | – | 72,478 |
| Other Grants | – | 28,000 | 28,000 | |
| ---------------------------- | ---------------------------- | -------------------------------- | ||
| 72,478 | 28,000 | 100,478 | ||
| ============================ | ============================ | ================================ | ||
| Other trading activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Fundraising Event Income | 4,530 | 4,530 | 10,120 | 10,120 |
| Merchandise Income | 724 | 724 | 538 | 538 |
| Buy At & Easy fundraising | 69 | 69 | 127 | 127 |
| ----------------------- | ----------------------- | ---------------------------- | ---------------------------- | |
| 5,323 | 5,323 | 10,785 | 10,785 | |
| ======================= | ======================= | ============================ | ============================ | |
| nvestment income | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Bank interest receivable | 363 | 363 | 429 | 429 |
| ============== | ============== | ============== | ============== | |
| Costs of raising donations and legacies | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Advertising & Promotion | 3,693 | 3,693 | 3,186 | 3,186 |
| Print, Postage & Stationary | 1,544 | 1,544 | 1,350 | 1,350 |
| Computer & Phone | 1,906 | 1,906 | 2,407 | 2,407 |
| ----------------------- | ----------------------- | ----------------------- | ----------------------- | |
| 7,143 | 7,143 | 6,943 | 6,943 | |
| ======================= | ======================= | ======================= | ======================= | |
| Costs of other trading activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Organised Events Costs | 4,021 | 4,021 | 14,820 | 14,820 |
| Merchandise Costs | 2,210 | 2,210 | 1,266 | 1,266 |
| Administration Costs | 7,103 | 7,103 | 13,292 | 13,292 |
| ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 13,334 | 13,334 | 29,378 | 29,378 | |
| ============================ | ============================ | ============================ | ============================ |
6. Other trading activities
7. Investment income
8. Costs of raising donations and legacies
9. Costs of other trading activities
- 16 -
Matthews Friends Charity
Notes to the Financial Statements (continued)
Year ended 31 March 2021
10. Investment management costs
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | ||
| £ | £ | £ | £ | ||
| Bank Charges | – | – | 32 | 32 | |
| ============== | ============== | ============== | ============== | ||
| 11. | Expenditure on charitable activities by fund type | ||||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2021 | |||
| £ | £ | £ | |||
| Website & Helpline Phone | 7,624 | – | 7,624 | ||
| Travel Costs | 19 | – | 19 | ||
| Administration Costs | 9,400 | – | 9,400 | ||
| Conferences & Meetings | 14,016 | – | 14,016 | ||
| Chef & Recipe Funding | 8,090 | – | 8,090 | ||
| Other Grants Made (See note*) | 73,348 | – | 73,348 | ||
| Keto Starter Packs | 5,993 | – | 5,993 | ||
| Governance costs | 2,118 | – | 2,118 | ||
| -------------------------------- | -------------- | -------------------------------- | |||
| 120,608 | – | 120,608 | |||
| ================================ | ============== | ================================ | |||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2020 | |||
| £ | £ | £ | |||
| Website & Helpline Phone | 7,319 | – | 7,319 | ||
| Travel Costs | 5,717 | – | 5,717 | ||
| Administration Costs | 10,278 | – | 10,278 | ||
| Conferences & Meetings | 1,014 | 28,000 | 29,014 | ||
| Chef & Recipe Funding | 1,926 | – | 1,926 | ||
| Other Grants Made (See note*) | 34,298 | – | 34,298 | ||
| Keto Starter Packs | 10,187 | – | 10,187 | ||
| Governance costs | 1,780 | – | 1,780 | ||
| ---------------------------- | ---------------------------- | -------------------------------- | |||
| 72,519 | 28,000 | 100,519 | |||
| ============================ | ============================ | ================================ | |||
| * Grants funding activities are broken down as follows: | |||||
| 2021 | |||||
| £ | |||||
| MF Clinics – Ketogenic Diet Patient Treatment | 54,548 | ||||
| Global Symposium Conference Sponsorship | 18,500 | ||||
| Mindfulness Course | 300 | ||||
| -------------------------------- | |||||
| 73,348 | |||||
| ================================ |
- 17 -
Matthews Friends Charity
Notes to the Financial Statements (continued)
Year ended 31 March 2021
12. Expenditure on charitable activities by activity type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Support | Total funds | Total fund | |
| directly | costs | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Website & Helpline Phone | 7,624 | – | 7,624 | 7,319 |
| Travel Costs | 19 | – | 19 | 5,717 |
| Administration Costs | 9,400 | – | 9,400 | 10,278 |
| Conferences & Meetings | 14,016 | – | 14,016 | 29,014 |
| Chef & Recipe Funding | 8,090 | – | 8,090 | 1,926 |
| Other Grants Made (See note 11) | 73,348 | – | 73,348 | 34,298 |
| Keto Starter Packs | 5,993 | – | 5,993 | 10,187 |
| Governance costs | – | 2,118 | 2,118 | 1,780 |
| -------------------------------- | ----------------------- | -------------------------------- | -------------------------------- | |
| 118,490 | 2,118 | 120,608 | 100,519 | |
| ================================ | ======================= | ================================ | ================================ |
13. Net (expenditure)/income
Net (expenditure)/income is stated after charging/(crediting):
Depreciation of tangible fixed assets
| 2021 | 2020 |
|---|---|
| £ | £ |
| 505 | 120 |
| ============== | ============== |
14. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| The average head count of employees during the year was 2 (2020: 2). The average | number of | |
| full-time equivalent employees during the year is analysed as follows: | ||
| 2021 | 2020 | |
| No. | No. | |
| Number of staff | 1 | 1 |
| ============== | ============== |
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
Key Management Personnel
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £8,323 (2020: £8,237)
15. Trustee remuneration and expenses
The trustees received no remuneration during the current or prior year.
During the year, the trustees received the following re-imbursements of out-of-pocket expenses in relation to travel, accommodation and telephone/internet.
-
Mrs Julie Fountain £222 (2020: £819)
-
Ms Emma Williams £719 (2020: £686)
During the year the charity paid £1,447 for computer equipment and services to Teknicare Limited, a company incorporated in England, which the trustee Alan Johnson is a director and shareholder (2020: £1,715).
- 18 -
Matthews Friends Charity
Notes to the Financial Statements (continued)
Year ended 31 March 2021
16. Tangible fixed assets
| Fixtures and | |||||
|---|---|---|---|---|---|
| fittings | Equipment | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 1 April 2020 | 1,028 | 3,975 | 5,003 | ||
| Additions | – | 770 | 770 | ||
| ----------------------- | ----------------------- | ----------------------- | |||
| At 31 March 2021 | 1,028 | 4,745 | 5,773 | ||
| ======================= | ======================= | ======================= | |||
| Depreciation | |||||
| At 1 April 2020 | 849 | 3,900 | 4,749 | ||
| Charge for the year | 45 | 460 | 505 | ||
| ----------------------- | ----------------------- | ----------------------- | |||
| At 31 March 2021 | 894 | 4,360 | 5,254 | ||
| ======================= | ======================= | ======================= | |||
| Carrying amount | |||||
| At 31 March 2021 | 134 | 385 | 519 | ||
| ======================= | ======================= | ======================= | |||
| At 31 March 2020 | 179 | 75 | 254 | ||
| ======================= | ======================= | ======================= | |||
| 17. | Debtors | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Prepayments and accrued income | 39,449 | 16,226 | |||
| ============================ | ============================ | ||||
| 18. | Creditors: amounts falling due within | one year | |||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Trade creditors | 523 | 754 | |||
| Accruals and deferred income | 66,413 | – | |||
| ---------------------------- | -------------- | ||||
| 66,936 | 754 | ||||
| ============================ | ============== | ||||
| 19. | Analysis of charitable funds | ||||
| Unrestricted funds | |||||
| At | |||||
| At | 31 March 20 | ||||
| 1 April 2020 | Income | Expenditure | 21 | ||
| £ | £ | £ | £ | ||
| General funds | 591,973 | 111,800 | (141,085) | 562,688 |
|
| ================================ | ================================ | ================================ | ================================ | ||
| At | |||||
| At | 31 March 20 | ||||
| 1 April 2019 | Income | Expenditure | 20 | ||
| £ | £ | £ | £ | ||
| General funds | 54,220 | 646,625 | (108,872) | 591,973 |
|
| ============================ | ================================ | ================================ | ================================ |
- 19 -
Matthews Friends Charity
Notes to the Financial Statements (continued)
Year ended 31 March 2021
20. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2021 | |
| £ | £ | |
| Tangible fixed assets | 519 | 519 |
| Current assets | 629,105 | 629,105 |
| Creditors less than 1 year | (66,936) | (66,936) |
| -------------------------------- | -------------------------------- | |
| Net assets | 562,688 | 562,688 |
| ================================ | ================================ | |
| Unrestricted | Total Funds | |
| Funds | 2020 | |
| £ | £ | |
| Tangible fixed assets | 254 | 254 |
| Current assets | 592,473 | 592,473 |
| Creditors less than 1 year | (754) | (754) |
| -------------------------------- | -------------------------------- | |
| Net assets | 591,973 | 591,973 |
| ================================ | ================================ |
21. Analysis of changes in net debt
| At | |||||
|---|---|---|---|---|---|
| At | 1 | Apr 2020 | Cash flows | 31 Mar 2021 | |
| £ | £ | £ | |||
| Cash at bank and in hand | 576,247 | 13,409 | 589,656 | ||
| ================================ | ============================ | ================================ |
22. Related parties
During the year, Matthew's Friends Charity sponsored a number of children to commence Ketogenic Diet Therapy via a company called Matthews Friends Clinics which is owned and controlled by Mrs Julie Fountain and Ms Emma Williams, trustees of the charity. The amounts invoiced for this support and additional funding of professionals at the clinic during the year was £54,598. In addition, Matthew's Friends Charity sponsored a KetoCollge event run by Matthews Friends Clinics for £18,500 (2020: £28,113).
During the year the charity received Ketogenic Cookery Services and used the facilities of Maureen Benn and Benn Bros who are related to the trustee Mrs Julie Fountain. The total invoiced for these services during the year was £7,364 (2020: £2,946).
- 20 -