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2021-03-31-accounts

COMPANY REGISTRATION NUMBER: 6078667 CHARITY REGISTRATION NUMBER: 1121320

The MSE Charity Company Limited by Guarantee Unaudited Financial Statements

31 March 2021

HAFFNER HOFF LTD

Accountants 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL

The MSE Charity

Company Limited by Guarantee

Financial Statements

Year ended 31 March 2021

Page
Trustees' annual report (incorporating the Directors' report) 1
Independent examiner's report to the Trustees 6
Statement of financial activities (including income and
expenditure account) 7
Statement of financial position 8
Notes to the financial statements 9

The MSE Charity

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report)

Year ended 31 March 2021

The Trustees, who are also the Directors for the purposes of company law, 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 The MSE Charity Charity registration number 1121320 Company registration number 6078667 Principal office and registered c/o Tesciuba Limited office 72 Cavendish Road Salford M7 4WA The Trustees K A Davies V Bissessur K M Dew A J Tesciuba C L Coleman M G Herbert Company secretary A J Tesciuba Independent examiner Mr Howard Schwalbe ACA 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL

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The MSE Charity

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 March 2021

Structure, governance and management

Description of the Charity's trusts

The Charity is constituted by its Memorandum and Articles of Association and is a company limited by guarantee. It was incorporated on 1 February 2007 and registered in England & Wales with company number 6078667. It was registered as a charity on 19 October 2007 with charity number 1121320.

Recruitment and appointment of new trustees is in line with the articles and with the consent of the Trustees. Suitable candidates are those who are sensitive to the needs and demands of the organisation and have relevant skills and experience.

New trustees are briefed by the Trustees on the objects and operations of the Charity and are referred to the guidance for new trustees published by the Charity Commission.

Additional governance issues

The Charity is funded by donations from the website moneysavingexpert.com and others.

Grant applications are received and processed by the Operations Manager and reviewed by the Grant Advisory Panel (GAP). The GAP reports to the Trustees and includes independent members with substantial experience of the voluntary sector. Grant Recipients are required to report on grants made to them.

The Charity had one employee during the year.

The Trustees have assessed the major risks to which the Charity is exposed, those related to its operations and finances and are satisfied that systems are in place to manage their exposure.

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The MSE Charity

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 March 2021

Objectives and activities

Registered objects

The objects of the Charity are the advancement of education of the general public in the United Kingdom by providing information and improving education about debt, money and consumer issues.

Main activities

The Charity gives grants to UK not for profit organisations that deliver activities which make a lasting impact on how people think, behave and manage their money.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and to its supplementary public benefit guidance on advancing education when reviewing the Charity's aims and objectives and in planning future activities and setting grant making policy for the year.

Strategic report

Summary of the main achievements during the year

We held themed grant rounds in September 2020, and February 2021. Grants totalling £58,467 were committed following the September 2020 round. £54,947 was committed following the February 2021 round and will be dealt with in the accounts for the year to 31 March 2022.

Our activities have adapted to the circumstances of the COVID-19 pandemic. We signed up to the COVID-19 Funders’ Statement and have been more flexible with our grant criteria to help Grant Recipients support more people in emergency financial crisis.

Grant Recipients have adapted and innovated, using online and phone delivery rather than face to face. Our September 2020 round aimed to support people who needed ‘the most help now’ to build and develop financial resilience. The February 2021 round focused solely on supporting young people under 25 to learn financial life skills. Further details of all the projects supported are available at www.msecharity.com.

September 2020 - Building & Developing Resilience

Group name Grant Category
Ella's Home £6,691 Trafficked women
Cannock Chase Advice Centre £4,500 Local Communities
Rugby Christian Life Centre £7,038 Local Communities
Mesila UK £7,480 Minority Group
Freedom Charity £6,613 Local Communities
Swindon Advocacy Movement £6,936 Learning Disabilities
Free@Last £6,500 Local Communities
Bags of Taste £7,458 Cook Well for Less
Tailored Advice Services in Communities £5,251 Older People
Total £58,467

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The MSE Charity

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 March 2021

Our systems have been further developed and improved. We have implemented procedures by design into the online application system and grant feedback processes to limit the Charity’s exposure to grant fraud. Formal feedback from Grant Recipients is requested so the Charity can monitor and learn about its social impact and seek to improve grant administration systems and processes.

The GAP met formally 4 times over the year. Additionally, GAP members have undertaken several virtual site visits to projects we have funded. This has further developed their knowledge and given valuable feedback and insight to other members of the Panel and the Trustees.

The Charity’s website is the main communication tool to connect the Charity with potential applicants and interested members of the public. The ‘Support Us’ web page has been designed, so the public can review the various ways they can support us financially or by volunteering. This year has seen a significant rise in personal donations received from the public.

We use various communication channels to promote the grant rounds, the website, the MoneySavingExpert Tips email, Twitter, and third sector funding sites such as Funding Central and Funds Online.

Grant making criteria and process

The Trustees intend to continue with the present criteria for grant-making to fulfil the Charity’s mission statement ‘Dedicated to supporting UK voluntary groups deliver financial life skills which make a lasting impact on the way people think, behave and manage their money’.

We accept applications from organisations that have an annual income up to £500,000 and less than 6 months’ unrestricted reserves. Applicants can check their eligibility by completing a short eligibility quiz on the website before they apply.

Grants are made to constituted groups (not individuals) in the UK only to a limit of £7,500.

There are four grant themes that rotate through a two-year cycle;

Mental health, wellbeing, cook well for less, training others, independent living skills, peer mentoring.

Applicants can only apply online through the website during February or September respectively. They are required to complete an application form and include a project budget. The Operations Manager initially screens and assesses the applications against the Charity’s eligibility criteria. The number of accepted applications is capped at 40 per round, a manageable number for the GAP to assess against a grant assessment scorecard. The GAP subsequently meets to discuss and make recommendations for the Trustees to ratify. Once grants have been agreed, potential Grant Recipients are asked to sign a funding agreement which outlines what the project will deliver and the Charity’s standard grant terms and conditions.

90% of the grant is paid after the funding agreement is signed and returned. The final 10% is payable

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The MSE Charity

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 March 2021

after the Grant Recipient has submitted the end of grant project feedback report.

For more details see www.msecharity.com.

Achievements and performance

Financial performance

The Charity received donations during the year amounting to £121,600. The Charity paid out £61,297 by way of grants for projects (including the balance payable on completion of projects approved in previous years) and is committed to payments of up to £5,846 if Grant Recipients reach certain project milestones. These grants and other charitable expenditure were made in line with the stated objects of the Charity. The Charity also incurred £23,194 of support and governance costs during the year.

The Charity has governance costs that comprise professional fees. This is in addition to the support costs of the Charity as disclosed in the notes to the accounts.

There were no material fundraising costs during the year.

The Charity incurred insurance premiums in the year amounting to £621. The policy includes Trustees' liability insurance.

There was an overall net expenditure and net movement in funds for the year amounting to £37,647.

The Trustees are grateful to MoneySavingExpert.com for its support and separately to Martin Lewis who has kindly given to the Charity sufficient support from his charitable resources to meet the costs of the operational management and accountancy, company secretarial and administrative services.

Financial review

Reserves policy

The Charity requires reserves to protect the organisation and its charitable program by providing time to adjust to changing financial circumstances, such as an unexpected reduction in income or increase in costs. The Charity aims to balance its obligations to spend the maximum amount of its income as soon as possible after receipt and to ensure that grant applications fall within its objects, while maintaining a minimum level of reserves to ensure its operations are not interrupted. The Trustees aim to hold in reserves sufficient to meet one year's anticipated outgoing resources.

The Trustees' investment policy is to minimise investment risk by holding reserves in interest earning bank accounts, diversifying to reduce institutional risk.

The free reserves stand at £96,922 all of which are unrestricted.

The Trustees' annual report and the strategic report were approved on 6 October 2021 and signed on behalf of the Board of Trustees by:

A J Tesciuba Trustee

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The MSE Charity

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of The MSE Charity

Year ended 31 March 2021

I report to the Trustees on my examination of the financial statements of The MSE Charity ('the Charity') for the year ended 31 March 2021.

Responsibilities and basis of report

As the Trustees of the Company (and also its Directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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.

Mr Howard Schwalbe ACA

Independent Examiner

2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL

6 October 2021

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The MSE Charity

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 March 2021

Year ended 31 March 2021
2021 2020
Unrestricted
fundsTotal funds Total funds
Note £ £ £
Income and endowments
Donations and legacies 5 121,600 121,600 95,093
Investment income 6 631 631 547
-------------------------------- -------------------------------- ----------------------------
Total income 122,231 122,231 95,640
================================ ================================ ============================
Expenditure
Expenditure on charitable activities 7,8 84,584 84,584 106,028
-------------------------------- -------------------------------- --------------------------------
Total expenditure 84,584 84,584 106,028
================================ ================================ ================================
-------------------------------- -------------------------------- --------------------------------
Net income/(expenditure) and net movement in funds 37,647 37,647 (10,388)
================================ ================================ ================================
Reconciliation of funds
Total funds brought forward 59,365 59,365 69,753
-------------------------------- -------------------------------- --------------------------------
Total funds carried forward 97,012 97,012 59,365
================================ ================================ ================================

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 9 to 15 form part of these financial statements.

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The MSE Charity

Company Limited by Guarantee

Statement of Financial Position

31 March 2021

The MSE Charity
Company Limited by Guarantee
Statement of Financial Position
31 March 2021
2021 2020
Note £ £ £
Fixed assets
Tangible fixed assets 15 90 183
Current assets
Debtors 16 523 1,320
Cash at bank and in hand 98,482 59,970
---------------------------- ----------------------------
99,005 61,290
Creditors: amounts falling due within one year 17 2,083 2,108
---------------------------- ----------------------------
Net current assets 96,922 59,182
---------------------------- ----------------------------
Total assets less current liabilities 97,012 59,365
---------------------------- ----------------------------
Net assets 97,012 59,365
============================ ============================
Funds of the Charity
Unrestricted funds 97,012 59,365
---------------------------- ----------------------------
Total Charity funds 19 97,012
============================
59,365
============================

For the year ending 31 March 2021 the Charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the Board of Trustees and authorised for issue on 6 October 2021, and are signed on behalf of the Board by:

K M Dew Trustee

A J Tesciuba Trustee

The notes on pages 9 to 15 form part of these financial statements.

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The MSE Charity

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The Charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is c/o Tesciuba Limited, 72 Cavendish Road, Salford M7 4WA.

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 Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the Charity's ability to continue as a going concern.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.

Fund accounting

Unrestricted funds held by the Charity are funds that can be used in accordance with the charitable objects at the discretion of the Trustees.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the Charity; it is probable that the economic benefits associated with the transaction will flow to the Charity and the amount can be reliably measured. Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable, and its amount can be measured reliably.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred, includes VAT, and is classified under headings of the statement of financial activities to which it relates.

Expenditure on charitable activities includes all costs incurred by a Charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the Charity apportioned to charitable activities.

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The MSE Charity

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation.

Depreciation

Depreciation is calculated to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Equipment - 33% straight line

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.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Limited by guarantee

The MSE Charity is a registered charity and a company limited by guarantee and does not have a share capital. In the event of the Charity being wound up, members are required to contribute an amount not exceeding £10.

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The MSE Charity

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

5. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Donations
Donations 121,600 121,600 95,093 95,093
================================ ================================ ============================ ============================
Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Bank interest receivable 631 631 547 547
============== ============== ============== ==============
Expenditure on charitable activities by fund type
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Projects 61,390 61,390 81,963 81,963
Support costs 23,194 23,194 24,065 24,065
---------------------------- ---------------------------- -------------------------------- --------------------------------
84,584
============================
84,584
============================
106,028
================================
106,028
================================

6. Investment income

7. Expenditure on charitable activities by fund type

8. Expenditure on charitable activities by activity type

Activities
undertaken
Grant funding
Support Total funds Total fund
directly
of activities
costs 2021 2020
£ £ £ £ £
Projects 93
61,297
18,574 79,964 101,407
Governance costs
4,620 4,620 4,621
-------------- ---------------------------- ---------------------------- ---------------------------- --------------------------------
93
61,297
23,194 84,584 106,028
============== ============================ ============================ ============================ ================================

9. Analysis of support costs

Analysis of
support costs Total 2021 Total 2020
£ £ £
Staff costs 17,431 17,431 16,436
General office 1,143 1,143 3,009
Governance costs 4,620 4,620 4,620
---------------------------- ---------------------------- ----------------------------
23,194 23,194 24,065
============================ ============================ ============================

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The MSE Charity

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

10. Analysis of grants

10. Analysis of grants
2021 2020
£ £
Grants to constituted groups
Projects 61,297 81,872
---------------------------- ----------------------------
Total grants 61,297 81,872
============================ ============================
11. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
2021 2020
£ £
Depreciation of tangible fixed assets 93 91
============== ==============
12. Independent examination fees
2021 2020
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 1,620
=======================
1,620
=======================

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2021 2020
£ £
Wages and salaries 16,616 16,436
Employer contributions to pension plans 815 811
---------------------------- ----------------------------
17,431
============================
17,247
============================

The average head count of employees during the year was 1 (2020: 1). The average number of full-time equivalent employees during the year is analysed as follows:

2021 2020
No. No.
Administrative staff 1 1
============== ==============

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

14. Trustee remuneration and expenses

No remuneration or other benefits from employment with the Charity or a related entity were received by the Trustees other than those disclosed in the related party note.

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The MSE Charity

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

15. Tangible fixed assets

15. Tangible fixed assets
Equipment Total
£ £
Cost
At 1 April 2020 and 31 March 2021 462 462
============== ==============
Depreciation
At 1 April 2020 279 279
Charge for the year 93 93
-------------- --------------
At 31 March 2021 372 372
============== ==============
Carrying amount
At 31 March 2021 90 90
============== ==============
At 31 March 2020 183 183
============== ==============
16. Debtors
2021 2020
£ £
Prepayments and accrued income 473 412
Other debtors 50 908
-------------- -----------------------
523 1,320
============== =======================
17. Creditors: amounts falling due within one year
2021 2020
£ £
Accruals and deferred income 1,620 1,620
Social security and other taxes 395 420
Other creditors 68 68
----------------------- -----------------------
2,083
=======================
2,108
=======================

18. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £815 (2020: £811).

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The MSE Charity

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

19. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At 01 At 31
Apr 2020 Income Expenditure Mar 2021
£ £ £ £
General funds 59,365 122,231 (84,584) 97,012
============================ ================================ ============================ ============================
At 01 At 31
Apr 2019 Income Expenditure Mar 2020
£ £ £ £
General funds 69,753 95,640 (106,028) 59,365
============================ ============================ ================================ ============================

20. Analysis of net assets between funds

Unrestricted Total Funds
Funds 2021
£ £
Tangible fixed assets 90 90
Current assets 99,005 99,005
Creditors less than 1 year (2,083)
(2,083)
---------------------------- ----------------------------
Net assets 97,012 97,012
============================ ============================
Unrestricted Total Funds
Funds 2020
£ £
Tangible fixed assets 183 183
Current assets 61,290 61,290
Creditors less than 1 year (2,108)
(2,108)
---------------------------- ----------------------------
Net assets 59,365 59,365
============================ ============================

21. Contingencies

The Charity retains 10% of all grants made, pending the submission of the feedback form by the Grant Recipient. The contingent liability for these retentions, as at 31 March 2021, was £5,846.

22. Related parties

During the year Tesciuba Limited, a company of which A J Tesciuba is a Director and shareholder, provided professional accountancy, company secretarial and administrative services amounting to £3,000 including VAT.

During the year K A Davies, Trustee of The MSE Charity, received £15,041 in remuneration for administrative work. She was not paid for her role as Trustee.

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The MSE Charity

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

23. Taxation

The MSE Charity is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

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