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2020-09-30-accounts

The National Funding Scheme

Annual Report and Unaudited Financial Statements

30 September 2020

Company Limited by Guarantee Registration Number 08223187 (England and Wales)

Charity Registration Numbers 1149800 (England and Wales) SC045106 (Scotland)

Reports

Reference and administrative details of the
charity, its Trustees and advisors 1
Trustees’ report 2
Independent auditor’s report on the financial
statements 8
Accounts
Statement of financial activities 12
Balance sheet 13
Principal accounting policies 14
Notes to the financial statements 18

The National Funding Scheme

Reference and Administrative Details of the charity, its Trustees and advisors

Trustees Jamie Galloway
Stephen Grey (resigned 29 February 2020)
Bart Leonard
William Makower
Jun Park (appointed 19 February 2020)
Registered office Marcar House
13 Parkshot
Richmond
TW9 2RG
Company number 08223187 (England and Wales)
Charity numbers 1149800 (England and Wales)
SC045106 (Scotland)
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Solicitor Bates Wells LLP
10 Queen Street Place
London
EC4R 1BE
Banker National Westminster Bank Plc
15 Bishopsgate
London
EC2P 2AP

The National Funding Scheme 1

Trustees’ report 30 September 2020

The Trustees present their report along with the financial statements of The National Funding Scheme (“NFS”) for the year to 30 September 2020.

The financial statements have been prepared in accordance with the accounting policies set out on pages 14 to 17 and comply with the charitable company’s memorandum and articles of association, the Companies Act 2006, the Charities And Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

This report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors report for the purpose of company legislation.

Structure, Governance and Management

Governance

The National Funding Scheme is a charitable company, limited by guarantee, incorporated on 20 September 2012 and registered as a charity on 16 November 2012. The charity was established under a Memorandum of Association which established the objects and powers of the charity and is governed under its Articles of Association.

The governance and strategy of the charity is overseen by the Board of Trustees (named in the table below). Trustees are appointed as outlined in the Memorandum and Articles of Association and they bring specific skills to complement and support the Management Team.

The following Trustees were in office at 30 September 2020, and served throughout the period except where shown.

Trustees Appointed/resigned
Jamie Golloway
Stephen Grey Resigned 29 February 2020
Bart Leonard
William Makower
Jun Park Appointed 19 February2020

Key management personnel

The Trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

None of the Trustees received any remuneration for their services as Trustees (2019 – none).

The National Funding Scheme 2

Trustees’ report 30 September 2020

Structure, Governance and Management (continued)

Statement of Trustees’ responsibilities

The Trustees (who are also directors of The National Funding Scheme for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulation 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Risk Management

The Trustees are mindful of their responsibility as charity trustees to identify the risks the charity faces and to establish and implement systems and procedures to mitigate those risks identified. Risks were considered at each quarterly Board meeting during 2019/20 and appropriate actions taken. Risks continue to be reviewed at a similar frequency.

The National Funding Scheme 3

Trustees’ report 30 September 2020

Principal Aims, Objectives and Activities

The object of the National Funding Scheme (NFS) is “the promotion of the efficiency and effectiveness of charities for the public benefit by promoting charitable giving, fundraising and donations to charities, particularly (but not exclusively) through supporting new ways of giving to charities and through digital means”.

As Trustees, we confirm that we have referred to the guidance contained in the Charity Commission’s general advice on public benefit when reviewing the charity’s aims and objectives and in planning future activities for the year.

Activities and Achievements

The charity incurred an operational deficit of £14,199 in the year to 30 September 2020 (2019: deficit of £2,000). The year from 1st October 2019 to 30th September 2020 has seen significant change for the charity. Even before the first national lockdown on 23rd March 2020 we were seeing a 2.57x increase in donations over the first five months of our accounting year. Then, from 23rd March 2020 with charities no longer able to fundraise faceface, grant-making bodies all but closed to ad-hoc grants (as they looked to support the national effort) and local Government staff slow to respond to changing working conditions, we saw a dramatic shift. Charities, using adversity as a cause for change, looked to online individual and community-led fundraising as a means to fill the hole from these other forms of fundraising.

During the year, 757 charitable organisations joined DONATE (2019: 598); an increase of 27%. Many of these were schools, churches and other charitable organisations where lockdown made a considerable difference to their fortunes. Amongst these were also major fundraising organisations who had either previously struggled to make the case to change to digital fundraising or saw opportunities to try new channels. Over the year total fundraising grew 530% to over a £1 million in giving. To put this in context it took National Funding Scheme seven years to raise its first £1 million for good causes, 16 months to raise its second £1 million and 10 months to raise its third £1 million. Whilst it would be nice to feel this trend will continue, we imagine the rate of growth will fall away again once lockdowns ease.

At the same time we increased our knowledge sharing, advisory services and outreach as part of our charitable status. During the year we hired a public relations firm to both make our services better known but also develop an ongoing relationship with a number of publishers. We continue to write a bi-monthly column in the Fundraiser Magazine to provide insight and comment as well as continuing to build our bank of case-studies, a regular blog and summary of what makes for successful digital fundraising.

We also hired an account and customer-success manager who contacts all new joining organisations to showcase best-practice and support their fundraising. This also provides us with an opportunity to better understand the needs of certain sectors and so reach out to others who are already using the platform.

The National Funding Scheme 4

Trustees’ report 30 September 2020

Activities and Achievements (continued)

To support this increased activity we brought in additional support for our admin function whilst also keeping a close eye on costs by continuing to improve the self-serve nature of the platform.

Key to building capacity has been a move to direct settlements each month (rather than by cheque). Whilst cheques had become increasingly cumbersome as the number of partner charities grew, they became impossible to manage as the first lockdown took hold. The increased streamlining brought by direct payments has been of immediate benefit to the administration of our workload.

Three case studies from the year:

Case study 1 – Moving to online fundraising

Paxton House is a Borderlands country house, donated to the nation ‘for their benefit and enjoyment’ but was facing the loss of 90% of its income during the first national lockdown. Paxton House, entirely dependent on visitor revenue, developed a national emergency campaign to ensure reopening. £10,350 was raised.

“We've been blown away by the generosity of our friends and visitors. DONATE™ has opened up new and worldwide connections and opportunities for us."

- Frances Reid | The Paxton House

Case study 2 - Online auction to feed our NHS

The “Food 4 Heroes Epic Auction” raised funds so deliveries of healthy and nutritious meals to overstretched front line NHS staff across England could continue. Gifted items and experiences raised over £31,700.

“Without DONATE's help we would not have been able to continue feeding our NHS staff for as long as we have been able to. The auction was a great success and was straightforward for us and our supporters to use”.

John Brownhill | Co Founder

The National Funding Scheme 5

Trustees’ report 30 September 2020

Activities and Achievements (continued)

Case study 3 - Record breaking text fundraiser

The Ruth Strauss Foundation used DONATE to raise funds at the closed Test Match between England and West Indies on 25th July.

Despite being played behind closed doors SKY’s broadcast of the England v West Indies test match at Old Trafford sent text donations out of the ground. Promotion of the £20 text channel was primarily through match day announcements, stadia on-screen media and celebrity interviews. A record breaking £259,355 was raised with Gift Aid adding a further £30,168 to bring the total raised to just under £300,000.

Financial report for the period

Results for the period

Total income for the period was £1,193,893 (2019 – £331,089), consisting of donations and commission earned through the NFS platform, and gifts in kind.

Charitable expenditure on activities in furtherance of the charity’s objectives amounted to £1,208,035 (2019 – £333,089), predominantly comprised of charitable donations, other costs relating to the charity’s version of the licensed fundraising platform, and gifts in kind. Total expenditure for the period was £1,208,092 (2019 – £333,089).

The charity incurred an overall deficit of £14,199 (2019 – deficit of £2,000) for the year.

The National Funding Scheme 6

Trustees’ report 30 September 2020

Activities and Achievements (continued)

Results for the period (continued)

Panlogic Ltd which, under the control of Mr Makower, continues to provide financial support during the transition to being reliant on earned income.

Reserves policy

The Trustees are mindful that the target for free reserves should be three months’ running costs and work towards this objective on the basis that this timeframe is sufficient to recruit additional volunteers or part time staff to cover unforeseen circumstances without having a material effect on the charity’s operations.

Financial position and future plans

At the period end restricted funds were £nil (2019 - £nil) as all restricted funds are paid out to beneficiary charities and unrestricted funds were a deficit of £56,738 (2019 - £42,539).

The worldwide outbreak of the coronavirus pandemic (Covid-19) has caused extensive disruptions to organisations globally with major implications for operations as well finances. Trustees acknowledge and recognise the potential impact of the Covid-19 pandemic on the future operations of the charity, its beneficiaries, partners and stakeholders and on the wider society. At the date of approval of these financial statements, the digital-first charity has been able to work efficiently with staff working from home and the pandemic has had a positive impact on the charity’s income, due to the shift to digital fundraising. However, the trustees are closely monitoring the impact of COVID-19 on the charity.

The Trustees are confident that the charity will be able to meet its liabilities as they fall due for the foreseeable future and have plans to ensure that the charity can build its reserves up to an acceptable level. The Trustees, therefore, believe it is appropriate for the accounts to be prepared on a going concern basis.

Subject to income levels and affordability, the Trustees intend to continue their policy of repaying all loans to creditors.

This report was prepared under the Small Companies Regulations of the Companies Act 2006.

Signed on behalf of the Trustees

Approved by the Board of Trustees on:

The National Funding Scheme 7

Independent auditor’s report on the financial statements 30 September 2020

Independent auditor’s report to the trustees and members of The National Funding Scheme

Opinion

We have audited the financial statements of The National Funding Scheme (the ‘charitable company’) for the year ended 30 September 2020 which comprise the statement of financial activities, the balance sheet, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis 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 trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not

The National Funding Scheme 8

Independent auditor’s report on the financial statements 30 September 2020

Other information (continued)

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Other matter

The prior year comparatives are unaudited. As part of our audit work for the year ended 30 September 2020, we have reviewed balances with regards to cash, intangible fixed assets and current assets and liabilities, brought forward at 1 October 2019. No issues were noted.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the

The National Funding Scheme 9

Independent auditor’s report on the financial statements 30 September 2020

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

� making enquiries of management as to their knowledge of actual, suspected and alleged

The National Funding Scheme 10

Independent auditor’s report on the financial statements 30 September 2020

fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

agreed financial statement disclosures to underlying supporting documentation;

read the minutes of meetings of those charged with governance; and

enquired of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Edward Finch (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date

The National Funding Scheme 11

Statement of financial activities Year to 30 September 2020

Notes Unrestricted
£		 Restricted
£		 2020
Total
funds
£		 Unrestricted
£		 Restricted
£		 2019
Total
funds
£
Income
Donations
1
Charitable activities
2
Interest receivable
Total income
Expenditure
Cost of raising funds
3
Charitable activities
4
Total expenditure
Net income (expenditure)
before transfers
Transfers between funds
14
Net expenditure and net
movement in funds
Reconciliation of funds:
Fund balances brought forward
at 1 October 2019
Fund balances carried
forward at 30 September
2020		 —
126,020
108		 1,067,765
—
—		 1,067,765
126,020
108		 —
34,462
11		 296,616
—
—		 296,616
34,462
11
126,128 1,067,765 1,193,893 34,473 296,616 331,089
57
4,135		 —
1,203,900		 57
1,208,035		 —
10,086		 —
323,003		 —
333,089
4,192 1,203,900 1,208,092 10,086 323,003 333,089
121,936
(136,135)		 (136,135)
136,135		 (14,199)
—		 24,387
(26,387)		 (26,387)
26,387		 (2,000)
—
(14,199)
(42,539)		 —
—		 (14,199)
(42,539)		 (2,000)
(40,539)		 —
—		 (2,000)
(40,539)
(56,738) — (56,738) (42,539) — (42,539)

All of the charity’s activities derived from continuing operations during the above financial periods.

All recognised gains and losses are included in the above statement of financial activities.

The notes on pages 18 to 21 form part of the financial statements.

The National Funding Scheme 12

Balance sheet at 30 September 2020

2020 2020 2019 2019
Notes £ £ £ £
Fixed assets
Intangible fixed assets 10 — —
Current assets
Debtors 11 27,081 22,335
Cash at bank and in hand 492,421 84,215
519,502 106,550
Current liabilities
Creditors: amounts falling due
within one year 12 (529,616) (105,358)
Net current (liabilities)/assets (10,114) 1,192
Creditors: amounts falling due after
one year 13 (46,624) (43,731)
Total net liabilities (56,738) (42,539)
The funds of the charity:
Unrestricted funds (56,738) (42,539)
Restricted funds 14 — —
(56,738) (42,539)

For the financial year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act.

The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Signed on behalf of the Board of Trustees by:

Trustee

Approved by the Board of Trustees on:

Registered Company Number 08223187 (England and Wales)

The National Funding Scheme 13

Principal accounting policies 30 September 2020

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 30 September 2020.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the Trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

In addition to the above, the full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, suppliers, beneficiaries and the wider economy. At the date of approval of these financial statements, the pandemic has had a positive impact on the charity’s income, due to the shift to digital fundraising. However, the trustees are closely monitoring the impact of COVID-19 on the charity.

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect of a period of one year from the date of approval of these accounts and have considered the impact of the coronavirus pandemic on the charity’s operations.

These financial statements have been prepared on a going concern basis. The Trustees are confident that the charity will be able to meet its liabilities as they fall due for the foreseeable future. For this reason the financial statements have been prepared on a going concern basis.

The National Funding Scheme 14

Principal accounting policies 30 September 2020

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, commission earnt on donations processed through the National Funding Scheme, investment income and income from charitable activities.

Donations processed through the National Funding Scheme are included within income as restricted donations. Any commission earned on these donations by the charity is included within income from charitable activities. The donations less the commission are subsequently passed onto the recipient organisations and included in expenditure as charitable donations. Any amounts not paid over to the recipients at the year end are included within creditors.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Donated services and facilities provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is normally when the service is provided/the facilities are used by the charity. An equivalent amount is included as expenditure.

Donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain facilities or services of equivalent economic benefit on the open market.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

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

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

The National Funding Scheme 15

Principal accounting policies 30 September 2020

Expenditure recognition (continued)

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel, development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs and governance costs are apportioned based on the proportion of staff time spent on each activity.

Intangible fixed assets and amortisation

All assets with a cost greater than £500 and a life expectancy exceeding one year are capitalised.

Intangible fixed assets are included at cost. Amortisation is provided at the following annual rates in order to write off each asset on a straight line basis over its estimated useful life:

33% pa of cost.

Fund accounting

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

General unrestricted funds are available for use at the discretion of the Trustees in the furtherance of the general objectives of the charity.

Cash flow

The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under Financial Reporting Standard 102.

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Principal accounting policies 30 September 2020

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

The National Funding Scheme 17

Notes to the financial statements Year to 30 September 2020

1 Donations

Donations
Unrestricted
£		 Restricted
£		 2020
Total
funds
£
National Funding Scheme donations
Gifts in kind (note 15)
2020 Total funds		 —
—		 1,034,432
33,333		 1,034,432
33,333
— 1,067,765 1,067,765
Unrestricted
£		 Restricted
£		 2019
Total
funds
£
National Funding Scheme donations
Gifts in kind (note 15)
2019 Total funds		 —
—		 167,234
129,382		 167,234
129,382
— 296,616 296,616
Income from charitable activities Unrestricted
£		 Restricted
£		 2020
Total
funds
£
Commission on National Funding Scheme Donations
Contactless trial
Other
2020 -Total funds		 111,373
3,504
11,143		 —
—
—		 111,373
3,504
11,143
126,020 — 126,020
Unrestricted
£		 Restricted
£		 2019
Total
funds
£
Commission on National Funding Scheme Donations
Contactless trial
Other
2019 Total funds		 19,819
10,236
4,407		 —
—
—		 19,819
10,236
4,407
34,462 — 34,462

2 Income from charitable activities

3 Cost of raising funds

Cost of raising funds
Unrestricted
£		 Restricted
£		 2020
Total
funds
£
Costs of raising funds
2020 Total funds		 57 — 57
57 — 57

The National Funding Scheme 18

Notes to the financial statements Year to 30 September 2020

3 Cost of raising funds (continued)

Cost of raising funds(continued)
Unrestricted
£		 Restricted
£		 2019
Total
funds
£
Costs of raising funds
2019 Total funds		 — — —
— — —

4 Charitable activities

Charitable activities
Unrestricted
£		 Restricted
£		 2020
Total
funds
£
Consultancy fees
Resourcing contractors and hosting
Marketing
Transaction costs
Legal and professional fees
Support costs (note 7)
Purchase and rental of contactless units
Charitable donations
Other
Governance costs (note 5)
2020 Total funds		 —
—
—
—
—
—
785
—
—
3,350		 8,964
33,333
10,673
23,129
27,203
7,608
—
1,073,747
19,243
—		 8,964
33,333
10,673
23,129
27,203
7,608
785
1,073,747
19,243
3,350
4,135 1,203,900 1,208,035
Unrestricted
£		 Restricted
£		 2019
Total
funds
£
Consultancy fees
Resourcing contractors and hosting
Marketing
Transaction costs
Legal and professional fees
Support costs (note 7)
Purchase and rental of contactless units
Charitable donations
Events
Governance costs (note 5)
2019 Total funds		 —
—
—
—
—
—
6,767
—
—
3,319		 85
129,382
11,282
11,799
1,800
4,161
—
164,300
194
—		 85
129,382
11,282
11,799
1,800
4,161
6,767
164,300
194
3,319
10,086 323,003 333,089

The National Funding Scheme 19

Notes to the financial statements Year to 30 September 2020

5 Governance costs

Governance costs
Unrestricted
£		 Restricted
£		 2020
Total
funds
£
Audit fees
Support costs (note 7)
2020 Total funds		 2,950
400		 —
—		 2,950
400
3,350 — 3,350
Unrestricted
£		 Restricted
£		 2019
Total
funds
£
Independent examination fees
Support costs (note 7)
2019 Total funds		 3,100
219		 —
—		 3,100
219
3,319 — 3,319

6 Staff costs

No employees received remuneration in excess of £60,000 during the period (2019 – none).

During the period, the average number of staff was zero (2019 – zero).

During the period, no expenses were reimbursed to any Trustee (2019 – £nil).

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the Trustees. No Trustee received any remuneration for their services (2019 – £nil).

The National Funding Scheme 20

Notes to the financial statements Year to 30 September 2020

7 Support costs

The support costs incurred during the year to 30 September 2020 and the basis of their allocation were as follows:

Charitable
activities
£		 Governance
£		 2020
Total
£
Insurance
Travel and expenses
Telephone
Subsistence
Computer and software		 531
47
5
18
7,007		 28
2
—
1
369		 559
49
5
19
7,376
7,608 400 8,008
Charitable
activities
£		 Governance
£		 2019
Total
£
Insurance
Travel and expenses
Recruitment expenses
Computer and software		 461
672
48
2,980		 24
35
3
157		 485
707
51
3,137
4,161 219 4,380

Any direct costs are charged to the relevant activity. Any indirect costs are allocated to each activity based on the estimated level of usage. Amounts relating to costs of raising funds are immaterial and have been disregarded.

8 Net movement in funds

This is stated after charging:

2020
Total
funds
£		 2019
Total
funds
£
Auditor’s remuneration:
. currentyear		 2,950 3,100

9 Taxation

The National Funding Scheme 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.

The National Funding Scheme 21

Notes to the financial statements Year to 30 September 2020

10 Intangible fixed assets

Intangible fixed assets
Software
Licence
£
Cost
At 30 September 2019 and 30 September 2020
Amortisation
At 30 September 2019 and 30 September 2020
Net book value
At 30 September 2019 and at 30 September 2020		 100,000
100,000
—

11 Debtors

Debtors
2020
£		 2019
£
Trade and other debtors
Prepayments
VAT Recoverable
Gift aid receivable		 9,163
—
698
17,220		 6,068
9,140
234
6,893
27,081 22,335

12 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2020
£		 2019
£
Trade creditors
Loan from Digital Innovation and Growth (DIG) Ltd
Amounts due to affiliates with charitable purpose
Accruals
Loan from Levy/Anderson/Ruddock		 12,324
—
506,730
10,562
—		 7,528
10,631
54,549
2,650
30,000
529,616 105,358

The amounts due to affiliates with charitable purpose are held in a separate bank account, as agreed with the Charity Commission.

13 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
2020
£		 2019
£
Trade creditors 46,624 43,731

The National Funding Scheme 22

Notes to the financial statements Year to 30 September 2020

14 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants to be applied for specific purposes.

At 30
September
2019
£		 Income
£		 Expenditure
£		 Transfers
£		 At 30
September
2020
£
National Funding Scheme
donations
Gifts in kind		 —
—		 1,034,432
33,333		 (1,170,567)
(33,333)		 136,135
—		 —
—
— 1,067,765 (1,203,900) 136,135 —
At 30
September
2018
£		 Income
£		 Expenditure
£		 Transfers
£		 At 30
September
2019
£
National Funding Scheme
donations
Gifts in kind		 —
—		 296,616
129,382		 (323,003)
(129,382)		 26,387
—		 —
—
— 425,998 (452,385) 26,387 —

15 Related party disclosures

The Trustees acknowledge the considerable support given by many individuals and organisations. Specifically Bates Wells LLP for legal work, Panlogic Ltd for technical development and administration support and Digital Innovation and Growth (DIG) Ltd for the core technology, ongoing development of the technology, technical hosting and maintenance.

William Makower is a shareholder director of Panlogic Ltd and Digital Innovation and Growth (DIG) Ltd and a serving Trustee of The National Funding Scheme.

The National Funding Scheme 23