CharTty Registration No. 210112 Ragistsrod under Royal Charter No. RC000316 LIVERPOOL MEDICAL INSTITUTION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
LIVERPOOL MEDICAL INSTITUTION LEGAL AND ADMINISTRATIVE INFORMATION Trustegs MrAC Svift r D G Machin (Chair) Dr N Butt (Honorary Seuetaryl Dr S Ryan DrJ M Curtis Professor J Ashton MrA Baird (Honorary Treasurer) {appoSnled January 20201 Charfty numb•r 210112 Audltor DSG Caslle Chambers 43 Castle Street Liver[1 L2 9TL
LIVERPOOL MEDICAL INSTITUTION CONTENTS Pagè Trustees, report Statement of Tnjstees. responsit41i1185 Indewdent audws Rport Slateménl of flnandal actIlieS 10-11 Bdance sheet 12 Notes to the finanaal statements 13-27
LIVERPOOL MEDICAL INSTITUTION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their pOrt and financial statements for the year ended 310ecember 2020. The financial statèments have been prepared in accordance wth the awunb.ng policie$ set out in note 1 10 the ffinancial statements and compfy with the tharity's tgoveming docvmentl. the Charilies Act 2011 and 'AcCoUnng and Reporlng ty Charities". Ststement of Recommended Practice applicable to charities preparing their accounts in accordance the Fin¥n¢ial Réptsrting Stsndard applicable in the UK and Republic of Ireland (FRS 1021 leffecbve 1 January 20191". Oblectlves and actlvbtiès The Institution was establishel for the cultivation ol the knthedge of medicine, surgery and the collateral branches of soence induding Ihe maintenance of a library. The objectives of the Institution are to enable as many people as possible to aChve their leaming polenb.al by maintaining the operation of a library and by facilitating training and specialist group CferenceS by pro¥ing the appropriate facilits"ey. The Truslee8 confim that they have referred lo the guidance on the expansion of the pu1¢ benefit functlon Issued from me lo lime by the Charilles Commission re¥iewng the charity's aims and otie¢tiv?$ and in planning ils future activities. The principal activthes of the Institution durtng the year re severely Imp8cted by the resthdK*ns imposed by the Govemrnenl because of the Coronavlrus pandemic. The Insbtution's buikjing was effectively dosèd for most of the year from 23rd March onwards, wilh Staff on fvrlough or N4r>rking from home. The usual aclivllles of the Instrtutson Temain the maintenance of the library faalrty and an academlc programme of lectures and meetings. both educational and social, for it$ members and the l¢xal specialigt medical groups and their associate student bod$. The general public are kept infomied and are welcome as guests 10 811 le¢hni¢al lacturès and meetings. Thls benefits many indiwduals associated vrtth the medical professlon. ranging from students. practising profeg8ion81s, spedalist medi¢al group$ and any members of the public who sh lo Smprove their knovAedge. The Institute anticipates putting on an annual series of cancer related tslks for the Publ land profession) in Colboration of Cancer Rèsearch N¢ylh Wesl. Achievomont8 and porforniancè The venue bookings for January and February 2020 weTfj dLhvn 5% on 2019 but the booklngg for the remainder of 2020 were up on 2019 and 2020 have been a good tradlrvJ year, except for the Coronavirus pandernic. The charty used the l¢)ckdovm8 a8 wfndows of opportunty to undertake some work, vknsth would have been dlfficull lo carry out durfng a norrnal trading year. This induded the replaeemenl of the boller vAlh a much nv)re efflaent system and the replacement of m05t of the ele¢tn¢al distribution boar¢Js. , also added a further breakout room lo our portfolio, utili$ing what was once the first floor of the tenanted accommodation.
LIVERPOOL MEDICAL INSTITUTION TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Financial review The year's activfoes resutted in a suwus of £99.350 o)mpared wth a deficit of £68,798 in 2019. 2 major sources of income thIc the charrty received in 2020 and assisted ¥ilh the surplus made are as follows.. Leaso Surrender Incom• The TSB Bank vacated tl)elr tenancy in September 2019 an¢Y marketed the sui>lease without surLess. In the spring of 2020, they decide<l lo sUender the sUe3$e. which had just over three year5 reMning. Thè surrender incorne was calculated on the lost rental for the remaining period, together vAih rates and dllapidatlon5 liabilities. The 8urrender vae (£139,750) wJ$ agreed bean th8 TSB'8 agènts and our professional advisors. L•ga¢y R•¢fjlpt The legacy was granted from Ihe e51alè of Dr Anthony Enoc of Manchester. To date, we have received an interim distribution of £150,000. We anticipe a further modest payment in 2021 en the estate's affairs are finalised. Tha legacy was granted wgthout any speclfic instrudlons as to how the money is lo be utilised. Coronavlrus Job RotolOn Scheme Also the charity received irKome In the of Ihe Coronwfus Job Retents'on Stheme. The offices of Liverpool madal instiiution were closed on 24th Marth 2020 for the first lo¢kdown and all staff b%re placed on fvrlough wth the exceptson of the Finance Manager, wtto wotxed mainly from home. Claims were made via the Job ReleniSon Scheme for partial financtral support of the salaries lor staff on fiJrlough. Stsff were brought back to work in July but tre placed back on lurlough on 4th NoveMr, wlh the Finance Manager working from home, a5 before. From 2nd December lunlil Easter 20211, staff were pL9ced on flexible furfough to work limited number of hours dependent on the WOload requlrements for each partluA3r week. The total amount transferred by Gfft from the SUbdiary company LMI Tfading Company Ltd for the year arnounted to £53,378 {2019.. £175.2431. Minimal lund3 are retained in the subsidr4ry, the operating expenses of %thlch are paid by the ¢hanty. The other principal sourc&s ol fundlng dun9 the yoar *we-. Membershlp Fees Rent from the 0¢panCY of parts of the building surplus to current quireMentS Surrender of the lease on the part ofthe building fornrIY occupied by the TSB Bank Grant froffl Health Edu¢atK)n England for the Spanish Flu Exhibiti'on Irelaling to an exhibition in 20191 Grant from Liverpool Cty Counul {Covid discretionary granti Legacy Irom the estste of a relired doctor. Educational programme Oonalions and Sponsorship of speciffic events by indiwduals. groups and companies in related industries
LIVERPOOL MEDICAL INSTITUTION TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 The Covid lo¢kdown caused strateg Management Counc41 ISMC) rnember3 to undert8ke a comprehensive review of all LMI actiwlies. This led lo the acceptance that we no longer aff<d library staffing at the then level (LIbraan 3 days pef ¥k. knbrary Assistant - 4 days per ek), partUIartY as the income from Library activities was minimal. The Assistant Librarian was made redundant and the Librarian was offered a reduced hours contract but opted for redundancy. Al around the same time the Manager resigned Irom her post. Subsequentty a new and déarer management structure was put in pla, ¥ich rt is antiapaled suppjrt optimisation of the business & finance arrangements of the InstjOn. Incomo and Mgmbgrshlp There was a decrease from £32.985 10 £32,119 irt the amount reeeNed from membership fees. Membershlp numbers wnlinued lo deuease in all categories except for that of trainees, who are allowed free membership of the Inth"tution. Donations and Gift Aid The Insbtullen is grateftjl for donallon$ IndlIng those made by Gift Aid and for the bequests from the aslale8 of fom)er membexs. In 2020 a total 01 £2.694 was reived from donors and £1,646 was recelved from HMRC in respect of the payment claim made during the year. Investmont Po¥w8 and Policl•s The Trustees have a portfolio ol Investsnenls". Ihg pOrtId l? unrestricied but is only invested in UK eompanks and wll not Invest In companies connected with the wfyluth.on and sale oftobacco pdc¢s. Al Ihe end of the year the values of the portfolio was £346,601 12019: £331.112). R•serv•s Policy It 18 the pollcy of the Trustets lo maintaln unrestric*ed cash fund$, wthich are the free reservos of the Instilulion, throughout the year at a level so that the charitat4e oty'ectives can be mel in the event of any financial uncertainty. The Trustees have Set a target figu for free reseN88 of a minlmum of £92.000. This is aquivalenl lo an average of three months, ordinary expenditure. Proh•ctsd Expondltur• Proposed works to the tryjilding lalC during 2021 wll inrtkrylty be limited lo Items of ossenllal maintenan. However, the Trustees intend lo investigate the availabdty of grant funding to support some potential redevelopm•nt prqecls. Plans for Future Pgrlods The TFuslees intend lo rtinvigorate the life of the instilution by improving the beneffts to member5 and users of the instrtution's faalrties. This vhll be attempted by irry)rovlng Ihe 8UtJIL>Su8I yet up both for iTrhouse meelings and for remote partiapants. Catering will be prowded ifvhou5e to improve quality and profilabllity. We will explore the local market (Universities and h05Vtalsl lo determine whethef there is a dernand for lunches al LMI. We wll be wrrking 4Mlh lay SMC members to apply for grants, both for the preservalSon of the building and the Impr0Ments necessary lo make the bullding ter suited to cuffenl educational quirements. Structure. goYeman¢• and m•nayMt Governing Documont Liverpool Medical Instslutton vrds established as an Assou8bon in 1770 and incoTporaied under a Royal Charter dated 26 June 1964. It is registered as a Chanty wth the Chanbes commison under the number 210112.
LIVERPOOL MEDICAL INSTITUTION
TRUSTEES. REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The Twslees seNed durirKJ the year and up to the date of s¥nature ofthe financAal statements were..
MrACSwft
Dr N J Wching (ragned O¢tobeT 2020)
Mr D G Machin (Chairl
Mrs D C Coward {signed Novembef 2020)
Mr O J Hall (resigned July 20201
Dr N Butt {HonoTary Secretary)
Dr S Ryan
Dr J M Curtis
Professor J Ashton
Dr N Carter (resigned July 20201
MrA Baird IHty)orary Treasurer) {appoSnled January 2020)
Strat•gl¢ Managèm8nt Councll
The Strategic Management Council ISMCI, c
LIVERPOOL MEDICAL INSTITUTION TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Risk Managoment The LMI maintains 8 Risk Register delailing the major strategic. business and operational risks vthich the Institution faces. This is reVIed regularty at the SMC and. ere necessary. pYocedure$ imF4emented lo minimise any potential impact on the OpernS of the Institytson should Ihose risks materialise. Tha ees, pproved by Ihe Board of Twstees. IlrDG Trustee
LIVERPOOL MEDICAL INSTITUTION STATEMENT OF TRUSTEES, RESPONSIBILrriES FOR THE YEAR ENDED 31 DECEMBER 2020 The Twstees are responsible for preparing the Trustee$. Rep)rt and the finanual statements in accordance wth appllcable law and United lfjngdom Accounting Standards {Uniied 'ngdoM Generalty Ac£epl&J Accaunting PracticÈl. The law appllcable to charitles in England and ttle9 wuires the Trustees to prepare finanual statements for each ffinancial year vthith give a true and fair view of the stste of affairs of the Charity and of the incoming re$oL15 and application of resources of the cknarity for that year. In preparing these finanaal stslemenls, the Truslees are required lo.. - select suitable acccyjnting poliues and thèn Appty them conslst8nty'. - observe the methods and princi*8 in the Charitses SORP: - make judgements and aslmales that are reasonable and prudentr, ytate 4thether appluble accounting standards have been ft4lovd. subject to any materfal departures disdosed and explained in the financial statements,. and prepare the ffnancial statements on th6 golng concem basls unle88 tt 18 Inappropllate to FYe8ume that the charity 11 ConnUt In operaJcn. The Trustees are responsible for keepirrfJ sufficient accountsng records Ihal disclose wth reasonable accuraty al any lime the financial position ofthe charity and enable them to ensure that the financial statements comply wth the Charities Act 2011. the Charity (Actounts arKI Report81 Regulab"ons 2008 and the provlsions of the trust deed. They a also rasponslble for safeguafding Ihe assets of the charfty and hence for taking re8sonade step8 for the PreVentn and delects'on of fraud and othar irragulanb'es.
LIVERPOOL MEDICAL INSTITUTION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVERPOOL MEDICAL INSTITUTION Opinion We have audited the flnanoal slalements of Verpool Medical Instibjtion (the 'charity I for thè yèar anded 31 December 2020 which o)mprise the statement of financial aCbves, the balance sheet and the notes to the financial slalemenls, including a summary of signnlcant accounting policies. The finandal repong frameworf( that has been applied in their preparation is applicable law and United Klngdom AcctnIng Standards, including Financial Reporting Standard 102 Th& Financial Rekx)rting Stand8rt1 ap8018 in the UK and RepublK ol Ireland IUnite(l Kingdom Generalty Aepted Accounting Practice). In our oplnlon. the finanaal stslements= give a true ané fair view of the siale of the charity's affairs as at 31 December 2020 and of its incomlng resourcas and apleaOn ef resourcos. for Ihe year then ended; have been properly prèpared in accordance wth United lfjngdom Generally Accepted Accounting Practice; and have been prepared in a¢¢ordance the rnquiremants of the Charities Act 2011. 8asls for oplnl¢n We conducted our audit in actarth with Intematlonal Standards on Auditlng (UK) IISAS {UlQl and applicable law. Our respon8Ibllf(ies under those standards are fvrther desoibed in the Auditorfs responsibilities for the audll of the financial 8tslements $eth'on of our report. We are irKlependent of the charity in acrdanCe wlh the ethical requirements that are relevant lo our audit of the finanaal ststements in the UK, induding the FRC'S Elhlcal Stsndard. and we have fuffilled our other ethical responwbililies in accordancE vthh these requlrements. We belleve that the au¢Jil evidence we have obtained is sufficient and appropriate to provlde a basis for our opinion. Con¢lu$lons r¢l4tlng to golng ¢on¢em In audrting the financial slements, we have ¢dUde that the Trusteu. u¥e of the going concem basis of ace£)unllng In the FKeparatlon of the flnandal siatements Is appropri8te. 8ased on the we have pthrmed. we have not Idenbfied any m8lerial un¢ertaintie$ relallng lo evenl$ or conditions that, indi¥Tdualfy or ¢oll•ctivety, may cast signfficant doubt on the charity's abllity lo continue as a going concérn for a p8rfod ol at least fvlelve months from when the financial statements are authorised for issué. Our responsibilrtles and the respolbItI of the Twslees respect lo going ¢>)ncern are descrfbed In the relevant sections of Ihly repL¥t. 0th8r infomiatlon The Trustees are responsible for the other information. The other information comprises the information induded n the annual report. other than the financaal statements and our audrtor's report trereon. Our opinion on the nandal statements does nol cover the other Inf¢xmabon and do not express any forn of assurance conc5usion thereon. In connedion with our aurfil of the finanoal statements, our responslblllty 18 to read the other infomiation and, In doing so, consider whether the other infomiabon is materialty innSIStenI with the finar>cial statements or our kno¥Medge obtained in the audit or otheNse appear5 to be materialty misstsled. If we identify such material in¢onsistenues or apparent material misstatements. we are required to determine vthether there Is a material misstatement in the finanaal staternents or a material misststement of the other Infomwllon. If. based on the work we have perfomied, ¢ondude th thére is a Materi misstatement of this other lrrfomiatj, we are required lo report that fact. Wg havo nothlng to report in this regard.
LIVERPOOL MEDICAL INSTITUTION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LIVERPOOL MEDICAL INSTrruTION Matters on vthich * are required to report by extepllon We have nothing to report in respect of the fdlowng matters in reLqtion to which the CharTtie5 IA¢¢ount$ and Reports) Regulation5 2008 require us lo report to you rf, in oijr opinion.. the infornation gwen in the finanfial ststements is inconsistent in ary matèrial resped with the Trustee$, report., or suffiu'enl accountyng records have not been kept; the financial ststemenls are not In agffjement wth the acwjnb.ng records., or wè havè not recéivèd èll the inf0mlI10n and èwanalons requlfe for ¢)ur audlt. R88pon$lbllltles of Trustms A8 explained more fulty in the statement of Trustees, responslb1leg. the Trustees are responsible for the preparation of the finanaal statements ané lor being sab'sfied that they give a true and fair view, and for such Inlemal control 85 the Trustees detemiine 13 nece$¥ary to enable the prepJr4tion of financial statements that are free from m81erial misstatement. vknether due lo fraud or error. In preparlng the fflnan¢ial statnts, the Truste08 are rospon8ible for assessing tt)0 charity's abllty to continue as a going concern, disdosing. as applicable, matters relat¢d 10 90ing concern and yn9 the going ¢oncem basis of accounting unless the Trugtee8 erther intend to w¥e operallons. or have no wlistiG altemative but lo do so. Audltor's responsSbllhSes forthe audtt of tho financlal Statements We have been appointed as auditor under se10n 144 of the Charrties Act 2011 and report in accordantÈ with IheAGt and relevant regulations made or having effeGt thereunder. Our obpcllves ara to obtaln reasonabla assurance aboLrt ether tha flnancial statèments as a 0]e are free from material mlsstatement. elher due to fraud or error. and to issuè an audiloffs report that Sndudès our opinlon. Reasonable assurance Is a hlgh level of assurance but is not a guarantee that an audit conducted in ?Ordance wth ISAS (Ulq wll 0y¥ detect a material misstatemenl vthen il exists. Misstatements can arise from fraud or error and s considered material rf, individually or in the a99gate, they Uld reasonabty be expect to inlluence the economic dery8Kin$ of Ur3 taken on the ba&$ of these finan¢sal statements. Irregularftles, Indudlng fraud, are Instan of non-comF41anc* wlth laws and regulaIk8. We deslan procedure8 In lin8 wth our Tesponsibilitses, OLrtlined above, to detect material misstatements in resped of irregularities. Including traud. The exlent to which our procedure$ are capabie of detecling irregulanties. including fraud. is delalled below.
LIVERPOOL MEDICAL INSTITUTION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LIVERPOOL MEDICAL INSTITUTION Cmpability of the audit in detecting irregularities. including fraud Discussions vmh and enquiries of management and those tharged govemance were held Mpith a view lo identifying those laws and regulations that could be expected lo have a material impact on the finanebal slatèmenls. During the gagemertt learn briefing, the outcomès of these discussions and enquiries were shared vAth the team, as well as consideratKJn as to vthere and how fraud may owJr in the entity. The following laws and regulallons were Idented a8 being of signlficanee to the enbty.. Thoge laws and regulati¢Jns consKlered to have a direct effecl on the financAal statements indude UK financial reporting standards, Company Law. Tax and Pensions legislation, and distrtbutable profits legislation. Those laws and wulatSons for Nthlch non<omplLgnce may be fundamentsl lo the operallng aspects of the entity and therefore may have a matfjrial effecl on the finandal statsments indude environmental rogulations. heath and safety legislation, trades description act and ernoYMent lagislatlon. Audit procedures undertaken in response to the potential risks relaling to irregularities IwhSch indude fraud and non-compliance with laws and regulab.onsl comprised of.. inquiries of management and those charged wth govemance as to ¥thether the entty comF4ies vthh such laws and regulations,. enquiries with the same concernlng any actual or polentlal lftigatbn or dalms." Inspectson of relevant legal correspondence., review of kKard mlnutes., lesling the appropriateness of joumal entrles,. revithng post year end paymonts for evldenGe of elaims pay outs and the perfomiance of anatyucal rev to Idenb'fy unexpected movèments In 8c¢ount balance$ which may be Indicatsve of fraud. No instance$ of material non4ompliance %%ere lden1ffi. However, the likelihood of delecJng Irregularfllas, including fraud, is limited by the inherent dfficulty in delecbry irregularibes, the effe¢ts'vene$s of the enllty's controls, and the nature, liming and exient of Ihe audrt procedures performed. IrregularTUes that result from fraud might be inherently more difficult lo deled than IrregulltieS that re6uIt from error. As explabned above. there is an unavoidable risk that material misstatements may nol be deteded, even trough the audit has been planned and performed In accordance with ISAS (UK). A further description of our responsibilities Is available on the Finanaal Reporting Counul'ts website al.. https'.11 vMv.frc.org.uklauditorsresponsibilities. This description fomu part of our audrtovs reporL 0913012021 OSG Chartored A¢¢ountsnts Stslutory Audltor Casuè Chambars 43 Ca8tte Street verpool L2 9TL DSG Is eligie for appointment as auditor of the charity by of tts ellgibllity for appointrnenl as au¢Jilor of a company under of saction 1212 oftha CompaniasAct 2006.
LIVERPOOL MEDICAL INSTITUTION STATEMENT OF FINANCIAL ACTMTIES FOR THE YEAR ENDED 31 DECEMBER 2020 Currènt flnanGial ygar Unrpstrictod Restricted Endt)wnont funds run(ts ftjnds 2020 2020 2020 Total Totsl 2020 2019 mo Donations and legacies Charitsble activities Investment5 Other income 159,440 53.544 67.075 174,537 159,440 53,544 72,644 174,537 5,578 185,476 211,373 5.569 Totsl Sn¢om• 454,596 5,569 460,165 402,425 Raising funds 12,109 3,022 15.131 15,963 Charitable aclivities 373,602 5,569 379,171 491,761 Totsl rgsour¢o8 expondgd 385.711 5.569 394,302 507.724 Nel gain810088es> cffl investments 11 33,487 33,487 36,501 N•t mov8m•nt In fund8 30.465 99.350 188,7981 Fund balances at 1 January 2020 485,160 286,7C6 771,866 840,664 Fund balances at 31 0mber 2020 554.045 317.171 871,218 771,866 10-
LIVERPOOL MEDICAL INSTITUTION STATEMENT OF FINANCIALACTMTIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Prior financial ymr Unrestricted Restricted Endov•m•nt lunds funds funds 2019 2019 2019 Totsl 2019 Not Donations and legaaes Charitable ac8 Investment8 5.576 185,476 205,3 5,576 185,476 211.373 5.974 Total Incom• 396,451 5,974 402,425 Raising funds 12,790 3.173 1 S.963 CharItae actItieS 485,787 5,974 491,761 Total re8ourc•8 8xpnd•d 498,577 5,974 3,173 507,724 Net gainslltossesl on investments 11 36,501 36,501 Not mov•nwnt In fund• (102.1281 33.328 168.798) Fund balances al 1 January 2019 587.286 253,378 840,664 Fund balancès It 31 D•c•mbor 2019 485.160 286.706 771.866 11
LIVERPOOL MEDICAL INSTITUTION BALANCE SHEET AS AT31 DECEMBER 2020 2020 2019 Notes Fixed assets Taryible assets Invesbnents 12 14 386,861 346,802 366,259 331,113 733.463 697,372 Currnnt a889ts Stocks Debtors Cash al bank and in hand 16 17 429 12.123 191.788 613 27,828 118.665 204.340 147.1C6 Crèdltor8: amounts falllng du• vAthln on6 y•ar 18 (66,5871 (72,6121 Net Current assets 137,753 74,494 Total ••8•ts lass curr•nt Ilabllltle• 871,216 T71,868 C8pSts1 fund8 General endowment fvnds 317,171 286,706 Expendable endowment Incoma funds 19 317,171 286,706 Designated funds Genera unre81ricled funds 21 386,861 167,184 362.660 122,500 554.045 485.160 871,216 771.866 ial $ en pproved by the TN8tees on ..... . Mr D G Machin ICh8ir) Trustee 12-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 A¢¢ounting pollcl Charlty InfomiaUon Liverpool Medical Institution was estaÈ1istrd as an AsAalK)n in 1770 and incorporated under a Royal Chartor dated 26 June 19S4. It is regi$lered as a Charity 1 the Charities Commission under the number 210112. 1.1 Ac¢ountlng Conventlon The financial slatements have been prepared in a[01 vAth the thariV$ Igoveming documenll, the Charities Act 2011 and Accounting and Reporb"ng by Charities". Statement of Racomm8nd Practice applicable lo charities preparing their a¢¢ounts in axordance thè Finanaal Reportlng Standard applieable in the UK antJ Republi¢ of Ireland (FRS 1021 {effective 1 January 2019)" The Charity ts a Publlc 8enèfil Entty as dèfinèd by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applylng FRS 102 Update 8ullelln 1 not to wepare a Ststement of Cash Fbwè. The financial Statements are prepared in sterfing, which is the funcbonal rren of the chaiity. Monetary amounts in thése financlal statements are rounded to the nearest £. The financial statements have been prepared under the hi8torical cost canventlon. Tha prindp81 accounting polioos adopted are out b&bw. 1.2 Golng conc•m As part of assesging the potentoi impacl of the gOIng COWD-19 virus $iluation management have prepared revised ffinanoal fore$1¥ for the charty. These forecasts indicate that the tharity 11 eonlbnue to generate cash over the period COndered by them in their assessment of the appropdaleness of aOopJng the going basis in the preparabon of thesè finanual ststements. Management has also considered the Impact of potential opetslionll challenges posèd by COV1Lk19. Including but not restdded to, an assesgmenl of the robugthes8 of Ihelr supply chaln 8nd broader logisllcs arrangements. Management ha¥ concluded that any operation81 pressures caused directty by the COVltk19 situat¢on are unlikely Its have a materi81 Impact on the mpanY. On this basis the trustees consider it appropriate to prepara these financial statements on a going concem basis. 1.3 Ch•rftsbh fund¥ Unre5trided fvnds are availab]e for use at the discretion of the Trustees in furtherance of thelr ¢harkable obiectsves. Desi9nated funds comprise funds vthich have been sel aside at the discrelH)n of the Tnjstees tor specific purposes. The purposes ansj uses of the designated funds are set out in the notes to the finanaal ststemenls. Restricted fur)ds are subject to specific condibons by donors as to how they may be used. The purposes and uses of the restncted funds are yet out in the note5 to finanaal statements. Endowment funds are subject to specafic condtlions by donors that the capTtal musl be maintained by th¢ eharity. -13-
LNERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUnn9 poll¢l88 Icontlnuodl 1.4 Incomlng rosourc All incomlng resourceg are include(I In the SImt of Financaal Actiwties wthen the charlty is entiyed lo the incom8 and the amount can be quantified with ieasonaue accLEracy. Voluntsry income incKJding (knalic3 and grants are reanised en receivable. Grants. where enliuement is not conditional on the delivery of a speufic p8rfcrfMar ty the ctharity. are recogni6 when the charity becomés unC0nd0na1IY entitled to the grant Income from commercLql tradlng ave3 is recognised os eamed (as the retated good8 and 8eNlces are provlded). Investment income is recogni8ed a receivablè ba8. Income from tharilabje advie5 Indudes membership fees recetved and grants receiv88. Memb8r8hlp fees are rocognised In the peric•J in which the related servi¢e5 are provided. Grant income induded In this tegory provides funding lo the running of the library and education programmes and is reeognised where there 1$ enUtlement. certainty of re¢eipls and the aTrunt can be measured sufficient reliability. 1.5 R•sourc08 •xpDndtrd Resour$ expended are induded In the Ststoment of Flnandal AtieS on an acc¥uals basis, once there is a legal or construcllve obllgatson to make a p8ymenL Costs of generatlng funds cCNnpr1 those costs incurred in tradiThJ activbbes ef the 8ub81d¢ary undertaking and coslg payable to investrnent managers for rInaging the investment portfollo. Charitable actiVaS Include eKpenditure assocl8ted vthh the costs of running the library and the provlsbn of edLutsonal programme$ and Sndude both the di(1 costs and support cLssts rekiling lo these activlUes. Goyern8nce costs indude those Inrred in the govwnanc4 of the charlty and tts 8$set8 and are primarily associated vith consliluuonal and stalulory requirements. Support Costs indude Central lunction$ and have been allocated to actiwty ¢))sl categories In proportlon to dlrec¢ 81aff c08ts for e81 of the activibes. Irre¢overabl• VAT All resources expended are dassrfied under actmty headlng8 that aggwote all costs re18ted to the category. IrrecoveratAè VAT 1$ charged against Ihe category of Te50urces expended for lthich il was incurrad. 1.6 Tanglble fixed ass8ls Tangible fixed assets are initially measured al cost and subsequenuy measure(l at cost or valuation. net of depreciation and any impaimienl losses. The trustees tnsIder the requirrnt to value the share of1he propefty hekl for rental at mart(et value to be impractical and invdve undue cost for litde benefft. Depreciation is renised so as lo lte off the t)St fx valualion of assets kss their reBidual values over th&r useful INeg on the foll0vn9 bases: Long tem leasehold propety Leasehold buildlng IM¥Venn Fixtures. filts'ngs & equipmenl {r remaining lease peric*l 4% straight line 25% thight fine 14-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng pollclos {¢ont5nu) The gain or 1055 arising on the disposal of an asset is detennined as the difference been the sale proceeds and the carrying vae of the asset. and is re¢ognised in net incomellexpenditurel for the year. 1.7 Herltag• assets The Insts"lulion holds a larye hislorical cdlection of t#>Jks and peroodlcals. In supwt of the Institution's objective to maintain the njnning of a library. Thè ¢oJlection ¢annot be sold and musl be held for the benefit of the Insts'tulion. The Trustees consider that Ing to the incomparable nature of the collection of books, which dales back to the sevenieenth century. conventional valuation approache5 la¢k SLrficianl reliabil¢ty and that. even rf a valuation could be ot)IAined, the cost vA)uld be oneffjus compared wih the addrtional benefits derivod by the Inslitulj'on and users of the accounts. As a result, no value is reported foT these assets In the Ingtilutlon's balance sheeL The annual purchase of books and periodicals is en off against income as incurred ¢)n the basis that these rtem¥ have little intrin¢ value, pa"GUY in view ol the increasing use of Infomialn technology and Ihe intsmel lo a$$ educational material. 1.8 Ftxed a88•t Inv88tm6nts Fixed as5el inveslmerrts are initially measured at Iransacllon price excludlng transaction CLSSts, and 8re 8ubgequenVy measured at fair value al each reporlng dale. Changes in fa'r value are ftcognlsed In nel in¢omellexpenditurel for the year. Transacbon costs are exFensed as inojrred. A sub8ldlary is an entity controlled by the charity. Control Is the power lo govem the financial and ¢¥eratlng polSoes of the entity so as to obtain benèfits from its aclivrties. 1.9 Impalmi•nt of flx•d asg•ts At each reporb'ng end date, the th8rity revievo the carying amounts of ily tangible assets lo detemilne whether there is any indication that those assets have suffered an impaimient loss. If any suth indication exists, the recoverable amount of the asset is esb"mated in order to determine the extent of the Impairment loss {If any). 1.10 stock# Sl¢xks are stat8d at the lower ol cost and esb"mated selling price les$ costs to complete and gell. Cogt comprises direct materials and. where applicable, direct labour costs and those ovetheads that have been incurred In brfnging the stocks lo their present location and condits"on. Items held for distritvJlion al no or nominal ConderatIon are measured the lowei of repiacement $1 and cost Net realIsae value is the estimated selling price less al estimated ¢>)sts of compledon and sts to be incurred in marteling, selling and distnbutKJn. 1.11 Cash and cash equivalents Cash and $h equivalents include Cash in hand, deposits hekl at tall banks. other short-tem? liquid Investrnents 0ri9inal maluribes of three months or less. and bank overdrafts. Bank overdrafts are shown within bwown9s in cUent lialIe$. 15-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 A¢Ulng pollchs Icontlnufjd) 1.12 Flnan¢lal Instruments The tharity has eleed to appty Ihe wovislons of SeL#lon 11 '8aslc Financaal In$tsuments' and Section 12 'Other Financial InstmnIS IS•S, of FRS 102 to all ol its financaal instruments. Flnancial Instruments are recJ)gnlse(l in the chanV8 balance sheet en the charity become$ patty to the ¢ontractLral prO$ton5 of the InstrumenL Financial asse15 an(1 l(abilthes are offset. with the net amounts presented In the financlal stslemenls. when the is a legally enforceable righl to set off the recognlsed amounts and there is an intentson to seifje on a net basis or to realise the asset and selye the liability stmultaneously. Bask flnanel81 asséts Basic finane4al 859els. which indude dabtors and cash and bank balances, 8re inib'3lly measured at transaction price including transacts'on costs and are subsequenly carried at amortised cost using the effects've Interest method unless the arrangement constitutes a financAng transacbon, vhere the transaction Is measured al the present value of the fiJfvre receipts discounted at a marf(et rale of Interest. Fln8n¢lal assets dassrThed as receivat4e within one year are not ¥mosed. Impalm7ent of flnan¢lal assets Flnanci81 assets, other than those hetd at fair value through Income and expendfture. are assessed for Indlcalors of impairment al each reporb'ng date. Financial assets arg Impairod ¥there there is objective evidence that, as a result of one or more evants that occurred after the initial recognition of Ihe finanaal asset, Ihe gstimated future cash Ilows have been affected. If an a98el18 impaired. the impainnerrt loss is the drffererKe beMn the carrying amount and the present value of the estimated cash flows discounled al the asset's origlnal effeclive Interèst rate. The impairment loss is recognised in nel incomellexpendlturel for the year. If there Is a decrea8e in the impairment loss arising from an event 0UMn9 8fter tha Impalrmant was recognlsed, the Impalment Is reversed. The revers81 is such that the current carying amount does not 6xeèed what the Carrying amount would have been, had the impaimient rK)I preV$1Y been re¢ogni$ed. The impairment reversal is recognised in net ineomellexFndrtuiel for the year. Derncognltlon of )Yn8nel818ss•ts nancAal assets are dereco9nised (K)ly bthen the ujntracaual rights lo Ihe cash flo from the asset expire or are setled, or en the charity transfers the financial asset and sybstsntially all the risks and reward5 of ership to another entity. or rf some significant risks And rewards of ownership are relaln8d but control of the agsel has transfe9(1 lo another party that is alAe to sell the •t in Its antirety to an unrelated third party. Basic financial lialjilities B83ic financial liabilibes, induding creditoTs and bank 108ns are Inttity rec(>Jnised at transacaion price unless the arrangement constitutes a finantyng transactn. ere the debt instnjmenl is measured at th¢ present value of the future payments discounted at a market rate of interest. Finanoal liakn'lities das&fied as payable wlhin one year are not amortised. Debt instruments are sUbseqUenY caThied at amor11 cost, us#w the effeclive interest rate method. Trade CTeditOfS are obligations lo pay for goods or seN¢es th have been auired in the ordinary course of operations from suppliers. Amounts payable are classthed as r#JThenl liabilrties rf payment is due wthin one year or less. If not. they are presented as no1Tren1 lialmlities. Trade ueditors are recognised initial at transactson Price and subsequentty measured at amortised cost using the effe&ive interest method. 16-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng poll¢l•s {Continuedl Derncognition of lintI•l Il•bllttles Financial liabilrties are derecognised Kthen the drity'S cOntracat obligatJns explre or are discharged QT cancelled. 1.13 Empltsy¢6 bonèfits The cost of any unused holiday entitnI is recognised in the period in thkh the employee's seNc are received. TerminatKJn benefits are recogni88d Immedtalely as an expense en the charity 18 demon8trabty committed to leryninale the employment of an employee or to prov*Je terminab.on benefits. 1,14 R8ttram•nt bono11ts Payments to defined tsy)lribulion ratlrement benefft xhenm are charged as an expense as they fall due. 1.15 Leases Rentals payable under opwating leases. including any lease Incentive8 refved, are charged as an expense on 8 Stroighk line basis over thè iemi of the ralev8nt lease. Donallom and leg•¢les Unro$trlctsd Unrestrlctsd funds funds 2020 2019 Donations and gifts Coronavinjs business support ¥vant 154,440 5,000 5,576 159,440 5,578 Donatlons and glfts Legacy from the estate of Dr Bary Enoch Other 150.000 4,440 5.576 154,440 5.576 Ch4ritabl• acttvltles ¥gmberahlp Educk)n T1 M•rTrb8thp EduGatlo Tolal 2018 2020 2020 2019 2019 Sales wthin tharitable actmties 28.165 27.379 53.544 113.688 71.788 185.476 17-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Invgstsnents Vnrnstrlcted RKtricted fund$ fund$ 2020 2020 Totslunrostrictèd R•8trictod funds funds 2019 2019 Total 2020 2019 Rental income Income frcffl un118ted Investments Incomè freffi 8ub8ldlary Interest recelvable 12,880 12.880 29.332 29.332 5.569 5.569 53.378 817 5,974 5.974 175.243 824 53,378 817 175.243 824 67.075 5,S69 72.644 205.399 5.974 211.373 Other Incom6 Unrostrfet•d unrI¢lad funds funds 2020 2019 Income from lease surrender Coron8Mrus Job Retention Sthem• 139,750 34,787 174,537 Ralsing fund8 Unrnstrictfjd Endowm¢nt funds Tolal Unr•strfcted Endowment fund$ funds ganoral 2019 Total gènernl 2020 2020 2020 2019 2019 Tradin costs Other trading a¢ts"vrties 12,109 12,109 12.790 12,790 vestment mana ernent Investment managernent 3.022 3,022 3,173 3,173 12,109 3.022 15.131 12.790 3,173 15.963 18-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020 Charltsbl& actlvlt18S Membership Educational rvlces progrnmme TotalmamrShlP Educational 2020 sev4lces programmo 2019 2019 Total 2019 2020 2020 Stsff costs Depreclation and Impainnenl Actikilies undertaken diredy 46.578 109,029 155.607 41.369 111,066 152,435 12.058 39.790 51.848 15,100 39,79J 54,890 131.370 12.392 143.762 235,078 21,323 256,401 190,OC 161,211 351.217 291,547 172,179 483,726 Share of support costs {8ee note 81 Share of governance costs {see note 8) 7,586 16,118 23,704 7,518 15,975 23,493 4,250 4,250 4.542 4,542 201,642 177.329 379,171 303,607 188,154 491,761 An&lysls by fund Unrestricted fvnds Restn'de<l lunds 201,842 171.760 5.569 373,602 5.569 303,607 182,180 5,974 485,787 5.974 201,842 177.329 379.171 303,607 188,154 491,761 Support costs supp Gov•m8n costs costs 2020 Support Govtmanc• costs ¢osts 2020 Staff costs 23.704 23.704 23,493 23,493 Audit fees 4.250 4,250 4.542 4.542 23.704 4.250 27.954 23,493 4,542 28.035 Analysed befven Charrtable activ"e5 23.704 4.250 27.954 23.493 4,542 28,035 Governance costs indudes payTrents to the auditors of £4,25012019: £4,542) for audit fees. 19-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Tru5te8s None of the trustees lor any petsons eonnecled vAlh them) re1Ved any remuneT8tion or benefits from the arity durtng the year12019'. £nill. During the year, the trustees reeeived a lotsl of £nil12019.' £nil) In expense$ from the tharily. 10 Employ••s Numbor ol employ•• The average monlhfy number of employees during the year was.. 2020 Number 2019 Numbor Library and other 8ervi¢es Adminislralion Employmont costs 2020 2019 Wages and salaries Soclal securty 8t$ Other penslon costs 151,887 15.328 12,096 149.408 12,333 14,187 179,311 175.928 There Ire no emF4oyees vthose annual remuneration vras £60,000 or nwe. Induded tn vrdge8 8nd salartes 8tw are redundarw paYMts of£5,66312019'. £nill. 11 Net galnslllos$esl on investments Endoryn8nt End0%nent funds funds gen•ral gèneral 2020 2019 Revaluation of investments Gainlllossl on sale ol investments 21,395 12.092 38,580 12,0791 33,487 36,501
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 12 Tangible fixod a86•ts Long lomi L•uehobd leasehold bulldi prop•rty Improv•mwts Fixture¥. rrttlngs & oqulpm8nt Cost At 1 January 2020 Additions 144.079 1.163,396 72,250 101,545 200 1,409,020 72,450 At 31 Decembef 2020 144,079 1.235,648 101,745 1.481,470 DèprKlatlon and Impjlmient At 1 January 2020 Depreciation charged In the year 35,30S 1,455 908,645 47,459 98.811 2,934 1,042,761 51,848 At 31 D8c8mber 2020 36,760 956.104 101,745 1,094,609 Carrylng arnount At 31 Decembei 2020 107,319 279,542 386,661 At 31 Docembef 2019 108,774 254,751 2,734 368,259 Leasehold propety represents a property situated at 114 to 124 Mount Pleasarrt, kn'verpod. 13 Httltsg• a8$0ts The InsliluiSon holds a large historical collection of books and perlodicals vknlch dale back to the seventeenth ¢entury. These We aequired over the period in the Institut has been in existence. Thèré havè baen no acquisNion8 or dlsposals of hefrtage 3s5ets during the last 5 years. The cdlectic cannot be sold and must be hekl for the benefft of the Institution. Access to the c¢41e¢tr'on is pennitted in the same way as acc88S to all books and periodicals hdd wthin the library. -21-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 14 Flxed asset Investments List•d Investments Cash in Othèr portftsllo Inv•strnents Total Cost or valuatlon At 1 January 2020 Additn8 Valuation Changes Movement In Cash Disposa15 327.822 85.578 21.395 3.290 331,113 85.578 21.395 7.411 198,8951 7,411 {98,8951 Al 31 December 2020 335.900 10,701 346,602 Carylng amount Al 31 Decernber 2020 335.900 10.701 346,602 At 31 0etsmb¢r 2019 327.822 3,290 331,113 2020 2019 other investrnents comprfse.. Notes Inve8lmenls In 8ubstdlarle8 15 Flnancial instrum•nts 2020 2019 Carryln9 amount of flnanclal a*s•ts Instruments measured at fair value through yofft or loss 335,900 327,822 16 Stocks 2020 2019 Flnlshed good$ and goods f resale 429 613 17 oobto 2020 2019 Arnounts falling due lTr one year. Trade debtors Amounts owed by subsidiary undertakings Other debtors Prepayments and accru&J income 1.586 10.450 1,092 9.445 17,378 12,123 27.828 -22-
LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 18 Cr•ditors: amounts falllng due vAthln one year 2020 2019 Other taxation and social setsjrity Trade creditors Amounts owed lo subsOdi8ry undkIng3 Other creditors Accruals and deferred income 6.970 1,462 3,547 1,558 53.050 13,532 1,416 2,658 55,006 66.587 72,612 -23-
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LIVERPOOL MEDICAL INSTITUTION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 22 Anatysis of net •886ts 1)h•on funds Unrestricted EndowTnent funds lunds 2020 2020 Totsl unrtrIGd Endovmient furmts funds 2019 2019 Totsl 2020 2019 Fund balancES at 31 December 2020 ar6 represented by.. Tangible assets Investments Current asselsl 386.861 29.431 386,861 346,602 366,259 44,407 366,259 331.113 317.171 286.706 137.753 137,753 74.494 74.494 554.045 317.171 871.216 485.160 286,706 771,866 23 Rolated party trnnactlons R•mun•ration of key management pern)nn•l The remuneratKJn of key management personnel is as fdlows. 2020 2019 Aggregate compensation 84,233 95,938 The charity ha8 takan a<fvantag8 of exemption. under the temis of Finanoal Rerth'ng StaThJard 102 'The Financial Reporting Stondard applicable in the UK and Republic of IreLand', not lo dl8c108e related party transacti9 wlh wholly owned subsdiaries within the group. 24 Subsldlarl•s Detslls of the chaws Subsidiaries at 31 Dember 2020 are as foll¢JWS'. Name of undèrtaking R•glstsred offl¢e Naturn of b19% Cl$ of % Hold shart8 hold Dlrecl Indlr•¢t LMI Trading Company Umited England and Re¢Wtical SeThs Wales Ordinary 100.00 Durlng the year the lurnover of LMI Trading Cowny Limited £53,507 (2019.. £175.3431 and expenditUTe incurred was £129 {2019". £100) sUlting in a profit of £53.378 12019. £175,243). All of the profil was distributed up to the charity in the period. -27-