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2021-06-30-accounts

Charity no. 1149904

Medic to Medic

Report and Unaudited Financial Statements 30 June 2021

Medic to Medic

Reference and administrative details

For the year ended 30 June 2021

Charity number 1149904
Registered office 7 Shortway
Amersham
Buckinghamshire
England
HP6 6AQ
Trustees Trustees who served during the year and up to the date of this report were
as follows:
Dr Richard Banks resigned 31 July 2021
Dr Bryony Hamel appointed 8 August 2021
David Howells appointed 31 July 2021
Dr Cathy Madden (Chair)
Dr Adrian Mandeville
Paul Purcell
Caroline Schmutte resigned 25 August 2020
Robin Schreiber appointed 6 February 2021
Dr David Scott appointed 6 February 2021
Abigail Somerville appointed 6 February 2021
resigned 7 October 2021
Chief executive officer Dr Tamsin Lillie
Management committee Dr Cathy Madden
Dr Adrian Mandeville to 30 July 2021
David Howells from 31 July 2021
Bankers Lloyds TSB Bank PLC
286-288 Station Road
Harrow
Middlesex
HA1 2EB
Independent examiners Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Medic to Medic

Report of the trustees

For the year ended 30 June 2021

The trustees present their report and accounts for the year ended 30 June 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management

A change to the structure of the charity was discussed in some detail in the last two years’ trustees' reports. On 23 July 2019 the charity was converted to a Charitable Incorporated Organisation (CIO), with the name Medic to Medic and charity number remaining as 1149904, and continued in that same format for all of the present period.

The trustee Caroline Schmutte resigned on 25 August 2020, after three years’ service. Three new trustees were appointed on 06 February 2021, namely Robin Schreiber, Dr David Scott, and Abigail Somerville. Sheena Jagjiwan, one of our present volunteers, was previously shown as holding the post of Company Secretary, but since the closure of the company Medic to Medic Ltd on 23 July 2019 this post no longer exists.

The management committee, who served during the period, were:

Management committee members are elected or appointed on an annual basis, with officers being elected from the membership of the trustees.

The management committee has assessed the major risks to which the charity is exposed, and is satisfied that systems are in place to mitigate exposure to the major risks.

Objectives and activities

Medic to Medic believes that access to healthcare is a human right but is unequal both between and within nation states. Shortage of trained healthcare professionals is a major driver of such inequities.

Public benefit statement

The trustees confirm that they have had regard for the Charity Commission guidance on public benefit when reviewing the charity’s aims and objectives.

2

Medic to Medic

Report of the trustees

For the year ended 30 June 2021

Achievements and performance

It is the policy of the charity that all funds are used for furtherance of its objectives.

The attached financial statements show the current state of finances, which the trustees consider to be very sound: a deficit of £7.2K during last accounting year has been replaced by a surplus of £31.6K during the current year. Some looming financial problems, which were first identified in early December 2019, were broadly averted by making extra efforts to increase short and long term income generation, which led to a gain of £27.7K over this year, and by introducing an austerity budget for the 2020-21 year which earmarked possible savings of £21K in total expenditure. By January 2021 our overall cash flow balance had improved sufficiently to allow the austerity to be relaxed slightly, and recruitment of new students, for the charity to support, was recommenced.

The Covid-19 pandemic had a fortuitous positive benefit on our overall financial balance during the year 2020-21. Our anticipated income arising from special fund-raising events was lost, due to two events being cancelled and the three others postponed. A couple of our individual donors who had previously provided large sums were not able to do so for this year, and another decided to postpone their contribution until the 2021-22 year. On the other hand our regular monthly donations held up well, and even increased slightly. The overall dip in total anticipated income in UK was dwarfed by a one-off large saving in our expenditure on student support in Malawi. This came about directly due to the pandemic, because the five colleges that we support all decided to send the students back home for the first semester of the academic year starting in August 2020, and consequently waived payment of the first semester fees. This immediately reduced our total anticipated expenditure for the year by £12K.

Review of charitable activities

The Chief Executive Officer, Dr Tamsin Lillie, writes:

During 1 July 2020 – 30 June 2021 Medic to Medic has supported a total of 72 individuals – our largest ever cohort of students! This has, in part, been due to the disruption of Covid-19 resulting in deferrals of semester start dates and subsequent delays in graduations, but is also testament to our team’s dedication to continue to grow despite the period of unprecedented global challenges.

Our student community included 18 medical students, 9 physiotherapy students, 5 pharmacy students and 1 medical laboratory science student, training at the College of Medicine in Blantyre; 13 nursing students and 1 optometry student training at Mzuzu University; 9 clinical officers training at Ekwendeni College of Health Sciences; 7 students training in mental health at St John of God College in Mzuzu – 3 in the diploma of psychosocial counselling and 4 in clinical medicine/psychiatric nursing; 1 student training in the diploma of optometry and 1 student studying in clinical medicine at the Malawi College of Health Sciences in Lilongwe; 4 nursing students training at Kamuzu College of Nursing in Lilongwe; 1 Malawian student specialising in a palliative care nursing course at Hospice Africa in Uganda, which is affiliated with Makerere University; 1 postgraduate Ugandan student completing the Master of Paediatrics at Makerere University in Uganda; and 1 Zambian medical student at the University of Zambia in Lusaka. This year saw 10 of our students graduate, bringing the total number of alumni to 137.

We hope that our pilot student in Zambia will be the start of a long term relationship supporting more students in a country where there is also more need for medical doctors. Unfortunately due to Covid travel restrictions we have not been able to move forward on developing these partnerships, but hope to do so in the coming years.

3

Medic to Medic

Report of the trustees

For the year ended 30 June 2021

In February 2021 we conducted our annual graduate survey. Despite only 37% of graduates having children of their own, 75% were providing financial support to at least one child, demonstrating the ripple effect of Medic to Medic support and positive impacts of students obtaining professional employment. 93% of graduates are still working in Malawi and 97% remain in Africa, demonstrating that our graduates are not choosing to work in high income nations. Those working outside Malawi were planning to return, following successful completion of postgraduate training. Special thanks go to Gabrielle Saunders, final year medical student at Kings College, who undertook her virtual medical elective with us and was able to execute this survey.

Unfortunately we were not able to complete a monitoring visit to Malawi in 2020 due to Covid travel restrictions. This enabled us to concentrate our energies on increasing our fundraising income sustainably. Since the pandemic there have been more virtual technologies aimed at helping charities fundraise. We have been able to register with Pledjar, an app that works like a virtual charity box and rounds up individual transactions, donating the pennies to a charity of your choice. We are also on Go Pool It, a new social media platform that enables charities to raise funds with posts; as well as Charitable Travel and Work for Good websites. Charitable Travel donates 5% of your holiday cost, and Work for Good negotiates commercial sales agreements between charities and businesses for a sustainable source of charitable income.

Notable thanks go to our recycling community in Amersham and Salisbury who have been donating waste for Medic to Medic to recycle with Terracycle in exchange for charitable donations; the Medic to Medic London choir who did a virtual carol concert in December 2020; Kate Lillie for managing media donations (books, DVDs, CD) and trading them on Ziffit to raise steady income; to two of our students, Gift Khonje and Moses White, who took part in the global My Prudential Ride by selecting their own cycling routes in Malawi; to the “Buds Bike to Bluff” team who raised over NZ$ 7,000 for our sister branch in New Zealand; and to everyone who donated to our Big Give Christmas campaign, enabling us to raise unrestricted income.

As universities return to their college calendars, there continues to be an ever growing need of scholarships in Malawi and other African nations. In the year ahead we hope to get our Blantyrebased office functional to further increase our sustainability in Malawi. Thank you for staying with us so we can help more students “dream in colour”.

Changes to charity office management in London and Malawi

On 28 February 2019 we moved our registered office from the Northwick Park hospital campus to a private house address in Cricklewood in north-west London. At the same time we rented a small storage space nearby in the same borough, to retain all our possessions, such as medical equipment, laptops, suitcases, medical books, closed financial files and fund-raising equipment. These arrangements have worked smoothly for the past two years and four months up to the end of the current accounting year on 30 June 2021. Although the office has not really been used physically since the start of the first COVID-19 lockdown on 23 March 2020, the storage space has proved invaluable for retaining donated medical books, prior to their despatch to The Bananabox Trust depot at Dundee, for onward container transport to Malawi.

Since the Cricklewood house owner was planning to rent it out to tenants from September 2021 onwards, it was necessary to identify a suitable new registered office and operational address for the charity. One of the new trustees kindly offered his private home address for this, and this change was made on 1 July 2021 at the start of the next financial year. It is also planned to review whether the existing storage space is really needed for use by the charity in future years.

4

Medic to Medic

Report of the trustees

For the year ended 30 June 2021

The charity engages a part-time office manager, Nadia Panait, who contributed 6 hours per week administrative input during the current year; she recently took on more financial tasks, so this input was increased to 10 hours per week from 1 July 2021. Previously she met up with the Treasurer Trustee at the office for one morning per week, and completed the rest of her input remotely from her home in east London. However, since 23 March 2020, all her input has been conducted remotely, and nobody met up at the office for the whole 12 months of the accounting year. This new method of working is likely to continue for the foreseeable future.

The charity has a future vision of opening up an administrative office in Blantyre in Malawi, where the majority of the students that we support are located. This would allow much of the work of the charity to become more sustainable, by engaging Malawi staff to assist with the local administration. No progress on this vision was possible during the current accounting year, because the annual monitoring trip originally scheduled for September 2020 did not take place due to budgetary restraints and limitations on international travel due to the Covid pandemic. However the subsequent improvement in our financial prospects during the second half of the year has allowed funds to be allocated for this purpose within the overall budget drawn up for next accounting year 2021-22. The plan is that the annual monitoring trip will be increased in length from the normal two weeks to four months, which would allow sufficient time for a building in Blantyre to be rented and then suitably furnished. It will also permit Medic to Medic to be registered as a local charity with the NonGovernmental Organisations (NGO) council in Malawi. A suitable Malawian candidate for the position of office manager there has already been identified.

Financial review

During this accounting year, 1 July 2020 – 30 June 2021, the charity’s total income was £98,891 and total expenditure £67,245. Total income exceeded the total expenditure by £31,646.

There were four major one-off donations received by Medic to Medic which remained unspent at the close of the 2019-20 accounting year. These were £3,000 from the Souter Charitable Trust for purchase of 10 computer laptops; £500 from the Matthews Wrightson Charity Trust for transport of medical books out to Malawi; £300 from the Marsh Christian Trust as a contribution to general funds; and £2,000 from the Eleanor Rathbone Charitable Trust for support to 12 nursing graduates. The first three sets of funds were fully expended during the 2020-21 accounting year. Of the Eleanor Rathbone funds, £675 was spent during the 2020-21 accounting year, to support 5 graduate nurses with their nursing registration fees, and £525 will be spent in the early part of the 2021-22 year to support the same 5 graduates with their graduation costs. A further £800 was carried forward to the 2021-22 accounting year, and will be spent in December 2021 to support a further 6 nurses graduating from the University of Mzuzu.

There were three major one-off donations made during the last few months of the 2020-21 accounting year that were carried forward in full to be expended during the 2021-22 year: £2,500 from the Alasol Foundation for purchase of 8 laptop computers; £500 from the William Howarth Charitable Settlement for providing medical equipment; and £1,543 from the USA branch of Medic to Medic, as a contribution to general funds. In addition, there was still £400 remaining from the original donation of £1,000 from the Austin Bailey Foundation, which was carried forward to the 2021-22 year, to be spent in support of 6 graduates from the St John of God College in August 2021.

5

Medic to Medic

Report of the trustees

For the year ended 30 June 2021

Some looming financial problems for the charity were first identified in early December 2019, when the current cash flow balance was about £10,000 lower than in the previous December. Examination showed that the cumulative income in the first 6 months was about the same as the previous year, but expenditure had become substantially too high. One of the main reasons for this problem was that entry students at the College of Medicine were paying a much higher revised rate of tuition fees than the graduating students that they were replacing, even if there was no change to the overall number of students that we were supporting.

In order to ease pressure on our future cash flow balance, two major changes were introduced. One change was that an austerity budget for accounting year 2020-21 was discussed and agreed by the board of trustees in May 2020. Some severe cuts were introduced initially in order to reduce our anticipated annual expenditure by £20,600. These cuts included a freeze on recruitment of new students (which would result in corresponding decreases in tuition fees and student allowances, due to older students graduating), cancellation of the annual monitoring trip to Malawi scheduled for September 2020 (which would itself save £5,700), and a reduction in supply of student aids such as laptops and medical books covered by general funds, although distribution of medical equipment was retained.

In parallel with these reductions in expenditure, the second change was to introduce short term measures to increase our income during the accounting year 2020-21, and look for other ways of providing a more sustainable long term income in the future. Our CEO, Dr Tamsin Lillie, has been particularly outstanding on this issue, not just by providing most of the ideas to increase our income, but by actually implementing the measures directly and raising the majority of the extra income by herself, with the assistance of her family. One notable outcome was a near-quadrupling of our total grant income, from £5,500 in 2019-20 to £20,850 in 2020-21. This entailed Tamsin, in the main, filling in a great many grant application forms to support different expenditure items, of which only a proportion were successful, so much extra fruitless work was undertaken. It was noticeable that several trusts and foundations were keen on our policy of distributing laptop computers to our students, and were very positive about confirming funds to cover these items. Another successful initiative was taken by Tamsin’s family, who set up a stall outside their house in Amersham, from which passing pedestrians could purchase COVID protection facemasks that the family had manufactured. During 2020-21 this raised the amazing sum of £3,144 altogether. Two other new sources of regular funds were Ziffit collection of unwanted books (£64 per month), and the One Lottery scheme (£50 per month).

The table below compares the regular operational costs of running the charity during the last three financial years. The figures for year 2020 have excluded the major one-off appeal made for funding and distributing sets of PPE equipment and allowances to all our graduates working on the frontline overseas.

Total income
Total expenditure
Net income / (expenditure)		 2021
2020
£
£
98,891
71,233
67,245
78,424
31,646
(7,191)
Financial years		 2019
£
62,252
58,366
3,886

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Medic to Medic

Report of the trustees

For the year ended 30 June 2021

The table shows that the total expenditure during 2020-21 was £67,245, which was £11,179 less than the previous year, an overall reduction of 14%. On the other hand, the total income had risen by £27,658 to well over £90,000, which is an increase of 39%. These two beneficial changes resulted in a deficit of £7,191 in 2019-20 being replaced by a surplus of £31,646 in 2020-21. This is a marked improvement of £38,837 in our overall financial position, in contrast to a worsening of £11,077 between years 2019 and 2020.

By January 2021 our financial position had improved sufficiently to allow some relaxing of the selfimposed austerity programme, and during the period up to June 2021 thirteen new students were interviewed remotely and recruited for ongoing support by Medic to Medic. A successful grant application to the De La Rue Foundation allowed a tranche of 6 new laptop computers to be supplied to students at Ekwendeni and Mzuzu, using these restricted funds. Another grant application to the British Medical Association Info Fund resulted in £1,208 worth of new medical books being supplied to Medic to Medic in June 2021, and general funds were then allocated to transport these books up to Dundee and cover the Bananabox Trust costs for onward container transport to Malawi.

Effects of Covid-19 pandemic

Unlike some other charities, which had their incomes devastated, the COVID-19 pandemic had a fortuitous overall positive effect on the finances of Medic to Medic during the 2020-21 year. The reason for this is that, although there was a slight reduction in certain parts of our income due to the effects of COVID in UK, this was dwarfed by a one-off large reduction in our expenditure in Malawi, which was a direct result of the pandemic there.

Our income from special fund-raising events was reduced somewhat, because two annual events were completely cancelled in December 2020 due to pandemic rules: our annual Xmas concert at St Mary’s Church in Paddington (potential profit £0.9K) and Carol singing at two London tube stations (potential profit £0.3K). Two outside sporting events, scheduled for 2020-21, were not cancelled, but postponed until the 2021-22 accounting year, so our actual income from fundraising during 2020-21 was zero, but we will receive some corresponding income during 2021-22: Vitality half-marathon (postponed until August 2021, potential profit £1.3K) and London marathon (postponed until October 2021, potential profit £1.1K). The Ride London cycle event (potential profit £0.8K) was initially postponed until Spring 2022, but the latest information is that it is now likely to be cancelled altogether.

Two annual donations of £1K from individual donors, which had failed to appear in 2019-20 due to the pandemic, did not start again in 2020-21, and payment of a third one of £0.5K was delayed until the start of the subsequent year 2021-22. However our regular monthly income from individual donors held up well, and even increased a little, with the direct debits received via Rapidata (Access UK) surpassing £2K per month in August 2020, and some additional monthly donor names being added to both our Lloyds and PayPal standing orders lists.

Our main expenditure in Malawi goes on tuition fees and student allowances, which in past years were paid separately for the first semester in July/August and in January/February for the second semester. Due to the onset of the pandemic, in August 2020 the five colleges that we support decided to send all their students home for the whole of the first semester of the academic year. Some of the colleges arranged for lectures to be made available on the internet. All the colleges waived payment of their first semester tuition fees, which resulted in an immediate saving in our normal expenditure of about £12K. The colleges welcomed back students in January 2021, so we paid for the second semester tuition fees.

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Medic to Medic

Report of the trustees

For the year ended 30 June 2021

We paid both the first and second student allowances, as normal, because even during the time the students were at home during the first semester they still needed support to cover the cost of internet communication bundles for their mobiles and laptops, to allow them to view their lectures remotely.

Gift aid claims

We have been submitting a regular number of successful gift aid claims to HMRC over the last few years, and the most recent one of £2,580 was paid on 20 August 2020. In September 2020, during discussions with HMRC about our corporation tax status, they pointed out that it was necessary for the charity to re-register for gift aid, because we had changed the format of our charity from a company limited by shares to a CIO in July 2019. When we started this process some complications arose from the exact names on our existing bank accounts, and a decision was made by the trustees to open an additional account with a different bank during the coming financial year. It is anticipated that submission of gift aid claims to HMRC will recommence once this re-registering process is complete, and the backlog of claims can then be cleared. Meanwhile the total amount (£8,856) of claims unpaid during the period Sep 2020 - June 2021 is included as a gift aid accrual under debtors category in these 2021 accounts.

Big Give appeal

As a way of substantially increasing our income, Medic to Medic participated in this new initiative for the first time ever. A total of £11,911 was raised, which is 12% of our total income for this accounting year. The way the appeal is constructed is as follows. Several of our most loyal supporters are invited to make a pledge, with £100 being the minimum contribution, although no money actually changes hands at this time. The charity decides a suitable target for the total pledges, which was £3,000 for this first attempt. If this target is reached, the campaign is put forward for champion funds, which is a group of philanthropists, one of whom chooses a charity whose need appeals to them, and they will then match the pledged funding pot. In our case the Coles-Medlock Foundation championed our campaign with a sum of £3,000. The online campaign lasts for 1 week in December, and any donations made to our appeal are matched by the pledged and champion funds. Once the online appeal is concluded, the pledgers are requested to then honour all their promises, and once this money is received the Big Give organisers release all the monies from the online appeal, the pledged total, and the matching funds. It is also possible to submit a gift aid claim for those pledged and online donations which are eligible, and a further £1,155 will be forthcoming from this source sometime in the future.

Reserves policy

We have an existing policy to build up a reserve fund of £12,000, which would be sufficient to see the current cohort of students through to graduation in the unfortunate event of the winding up of the charity. Our reserve fund balance stood at £6,000 at the end of the last accounting year on 30 June 2020. Due to the overall surplus incurred in the current year’s finances, it has proved possible to add a further tranche of £3,000 to this reserve, so our total balance rose to £9,000 on 30 June 2021. We opened an additional Lloyds bank account on 5 October 2020, in order to keep this reserve fund money separate from our normal day-to-day operating transactions. We also stored all restricted grants and donations in this new account, until the appropriate time comes about to transfer them to our overseas bank accounts to expend on supporting our students.

8

Medic to Medic

Report of the trustees

For the year ended 30 June 2021

Statement of responsibilities of the trustees

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with 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).

The law applicable to charities in England and Wales 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 the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. The trustees 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.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiners

Godfrey Wilson Limited were re-appointed as independent examiners to the charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 10 December 2021 and signed on their behalf by

Adrian Nicholas Mandeville

9

Independent examiner's report

To the trustees of

Medic to Medic

I report to the trustees on my examination of the accounts of Medic to Medic (the CIO) for the year ended 30 June 2021, which are set out on pages 11 to 21.

Responsibilities and basis of report

As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the CIO’s accounts 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:

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.

Date: 13 December 2021 Laura Richards ACA Member of the ICAEW

For and on behalf of:

Godfrey Wilson Limited

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

10

Medic to Medic

Statement of financial activities

For the year ended 30 June 2021

Note
Income from:
Donations
3
Other trading activities
4
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
6
Net income / (expenditure)
Transfers between funds
Net movement in funds
7
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Restricted
£
24,951
-
-
24,951
-
26,983
26,983
(2,032)
82
(1,950)
9,640
7,690		 Unrestricted
£
68,249
5,688
3
73,940
3,391
36,871
40,262
33,678
(82)
33,596
19,790
53,386		 2021
Total
£
93,200
5,688
3
98,891
3,391
63,854
67,245
31,646
-
31,646
29,430
61,076		 2020
Total
£
83,421
237
7
83,665
4,363
86,513
90,876
(7,211)
-
(7,211)
36,641
29,430

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 14 to the accounts.

11

Medic to Medic

Balance sheet

As at 30 June 2021

Note
Current assets
Stock
10
Debtors
11
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
12
Net assets
13
Funds
14
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds		 2021
£
320
9,029
53,227
62,576
(1,500)
61,076
7,690
9,000
44,386
61,076		 2020
£
320
148
30,222
30,690
(1,260)
29,430
9,640
6,000
13,790
29,430

Approved by the trustees on 10 December 2021 and signed on their behalf by

Adrian Nicholas Mandeville - trustee

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Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Medic to Medic meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. The trustees have considered the impact of Covid on the charity’s current and future financial position. At 30 June 2021, the charity holds total unrestricted reserves of £44,386 and a cash balance of £53,227. The trustees consider that the charity has sufficient cash reserves, confirmed future funding and sufficient control over expenditure to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

c) Income

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

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

d) Interest receivable

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

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

13

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

1. Accounting policies (continued)

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

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

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the proportion of direct costs, as follows:

2021 2020
Raising funds 5% 5%
Charitable activities 95% 95%

h) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

i) 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.

j) Creditors

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.

k) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

l) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end. All gains and losses arising from foreign currency translation are treated as unrestricted.

14

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

1. Accounting policies (continued)

m) Accounting estimates and key judgements

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

2. Prior period comparative: statement of financial activities

Income from:
Donations
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income / (expenditure)
Transfers between funds
Net movement in funds		 Restricted
£
£
36,534
46,887
-
237
-
7
36,534
47,131
569
3,794
29,670
56,843
30,239
60,637
6,295
(13,506)
103
(103)
6,398
(13,609)
Unrestricted		 2020
Total
£
83,421
237
7
83,665
4,363
86,513
90,876
(7,211)
-
(7,211)

15

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

3. Income from donations

Income from donations
Regular giving
Other donations
Fundraising donations and appeals
Gift aid
Grant income
Prior period comparative
Regular giving
Other donations
Fundraising donations and appeals
Gift aid
Grant income
Income from other trading activities
Sales of donated goods
Prior period comparative
Sales of African scrubs		 Restricted
£
£
996
34,962
2,670
6,528
4,435
11,323
-
11,436
16,850
4,000
24,951
68,249
Restricted
£
£
1,620
24,183
14,760
10,508
13,422
1,803
1,232
10,393
5,500
-
36,534
46,887
Restricted
£
£
-
5,688
Restricted
£
£
-
237
Unrestricted
Unrestricted
Unrestricted
Unrestricted		 2021
Total
£
35,958
9,198
15,758
11,436
20,850
93,200
2020
Total
£
25,803
25,268
15,225
11,625
5,500
83,421
2021
Total
£
5,688
2020
Total
£
237

4. Income from other trading activities

5. Government grants

The charity does not receive government grants.

16

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

6. Total expenditure

Total expenditure
Medical equipment
PPE equipment
Governance costs
Fundraising
Sub-total
Total expenditure
Prior period comparative
Medical equipment
PPE equipment
Governance costs
Fundraising
Sub-total
Total expenditure
Allocation of support and governance
costs
Tuition fees, allowances and study
support tools
Programme coordination
Tuition fees, allowances and study
support tools
Programme coordination
Allocation of support and governance
costs		 £
-
-
-
-
-
3,272
3,272
119
3,391
£
-
-
-
-
-
4,199
4,199
164
4,363
Raising
funds
Raising
funds		 £
£
52,277
-
611
-
366
-
8,360
-
-
2,359
-
-
61,614
2,359
2,240
(2,359)
63,854
-
£
£
52,683
-
1,661
-
13,655
-
15,402
-
-
3,276
-
-
83,401
3,276
3,112
(3,276)
86,513
-
Charitable
activities
Support and
governance
costs
Charitable
activities
Support and
governance
costs		 2021
Total
£
52,277
611
366
8,360
2,359
3,272
67,245
-
67,245
2020
Total
£
52,683
1,661
13,655
15,402
3,276
4,199
90,876
-
90,876

17

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

7. Net movement in funds

This is stated after charging:

Trustees' remuneration
Trustees' reimbursed expenses
Independent examiner's remuneration:
Independent examination (including VAT)		 2021
£
Nil
Nil
1,500		 2020
£
Nil
Nil
1,260

8. Staff costs and numbers

The charity has no paid staff. The key management personnel of the charity comprise the trustees, none of whom were remunerated in the current or prior reporting period.

9. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10. Stock

African scrubs
11. Debtors
Prepayments
Gift aid accrual
12. Creditors: amounts due within 1 year
Accruals		 2021
£
320
2021
£
173
8,856
9,029
2021
£
1,500		 2020
£
320
2020
£
148
-
148
2020
£
1,260

18

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

13. Analysis of net assets between funds

Analysis of net assets between funds
Current assets
Current liabilities
Net assets at 30 June 2021
Prior period comparative
Current assets
Current liabilities
Net assets at 30 June 2020
Movements in funds
£
Restricted funds
Student support
3,729
Medical equipment
2,411
Hurst essay prize
-
PPE
-
Computer equipment
3,000
Transport of books
500
Total restricted funds
9,640
Designated funds
6,000
General funds
13,790
Total unrestricted funds
19,790
Total funds
29,430
At 1 July
2020
Unrestricted funds		 £
7,690
-
7,690
£
9,640
-
9,640
£
19,071
640
700
40
4,500
-
24,951
-
73,940
73,940
98,891
Restricted
funds
Restricted
funds
Income		 £
9,000
-
9,000
£
6,000
-
6,000
£
(20,343)
(318)
(700)
(122)
(5,000)
(500)
(26,983)
-
(40,262)
(40,262)
(67,245)
Designated
funds
Designated
funds
Expenditure		 £
45,886
(1,500)
44,386
£
15,050
(1,260)
13,790
£
-
-
-
82
-
-
82
3,000
(3,082)
(82)
-
General
funds
General
funds
Transfers
between
funds		 £
62,576
(1,500)
Total
funds
61,076
£
30,690
(1,260)
Total
funds
29,430
£
2,457
2,733
-
-
2,500
-
At 30 June
2021
7,690
9,000
44,386
53,386
61,076

14. Movements in funds

19

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

14. Movements in funds (continued)

Purposes of restricted funds Student support To cover student tuition fees and other education costs. Medical equipment To supply medical equipment packs for the supported physiotherapy, nursing and medical students.

Hurst essay prize Annual competition open to all supported students to write an essay about a general health question. PPE To provide graduates with a full range of PPE, and a small monetary amount to purchase replenished consumables. Computer equipment To purchase laptops to be used by medical students which the charity supports. Transport of books To cover the costs of both surface and sea freight for transporting medical books.

Purposes of designated funds

The designated funds are to ensure the charity has sufficient funds to see the current cohort of students through to graduation in the unfortunate event of the winding up of the charity.

Transfers between funds

The transfers in to the PPE funds are to top up overspends with general funds.

20

Medic to Medic

Notes to the financial statements

For the year ended 30 June 2021

14. Movements in funds (continued)

Prior period comparative

Prior period comparative
£
Restricted funds
Student support
2,673
Medical equipment
-
Hurst essay prize
-
African scrubs
569
PPE
-
Computer equipment
-
Transport of books
-
Total restricted funds
3,242
Designated funds
6,000
General funds
27,397
Share capital
2
Total unrestricted funds
33,399
Total funds
36,641
At 1 July
2019
Unrestricted funds		 £
17,344
2,708
550
-
12,432
3,000
500
36,534
-
47,131
-
47,131
83,665
Income		 £
(16,288)
(297)
(633)
(569)
(12,452)
-
-
(30,239)
-
(60,635)
(2)
(60,637)
(90,876)
Expenditure		 £
-
-
83
-
20
-
-
103
-
(103)
-
(103)
-
Transfers
between
funds		 £
3,729
2,411
-
-
-
3,000
500
At 30 June
2020
9,640
6,000
13,790
-
19,790
29,430

15. Related party transactions

In the prior period, the CEO, Dr Tamsin Lillie made a loan of £2,000 to the charity to enable the manufacture of PPE to start quickly in Malawi. This was repaid in full out of the money raised in the crowdfunding appeal on 12 May 2020.

The trustees and CEO donated a total of £3,710 (2020: £4,297) to the charity during the year.

21