THE BIRMINGHAM MEDICAL INSTITUTE (Company limited by guarantee and not having a share capital)
REPORT AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31ST DECEMBER 2020
Charity No: 218651
Company No: 00008756
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THE BIRMINGHAM MEDICAL INSTITUTE
REPORT OF THE COUNCIL (DIRECTORS AND TRUSTEES) FOR THE YEAR ENDED 31ST DECEMBER 2020
The Trustees present their report and the financial statements of the charity for the year ended 31st December 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the Charities Act 2011 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 UK and Republic of Ireland published in October 2019.
Reference and administration information
Charity name: The Birmingham Medical Institute Charity registration number: 218651 Company registration number: 00008756 Registered office and Operational address: 75 Harborne Road Edgbaston Birmingham B15 3DH
Council (Trustees):
Dr D Richardson (President) Mr P J Mulligan (Immediate Past President) Mr B E Teall (Treasurer) Prof P Adab Dr P Borg Bartolo Dr G K R Jamieson Dr P Pears Dr J Reed Dr J A Thompson Dr A White Prof D Walmsley
Company directors:
Mr P J Mulligan Mr B E Teall
Company secretary:
Mrs E Simpson
Independent examiner
Brian Jukes, FCA, Dafferns LLP, Chartered Accountants, One Eastwood, Harry Weston Road, Binley Business Park, Coventry, CV3 2UB
Bankers
The Royal Bank of Scotland, Sutton Coldfield
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THE BIRMINGHAM MEDICAL INSTITUTE
REPORT OF THE COUNCIL (DIRECTORS AND TRUSTEES) FOR THE YEAR ENDED 31ST DECEMBER 2020
Activities and charitable objects
The objects and principal activity of the company during the year was the provision of postgraduate education and specialist services for members of medical, dental and other healthcare professions. The Birmingham Medical Institute continues to fulfil its charitable activities and objectives by providing educational and training courses for medical practitioners and other healthcare professionals in the city and surrounding areas.
Public benefit
The Council consider they have complied with their duty to have due regard to the guidance on public benefit, as published by the Charity Commission, in exercising their powers and duties
Achievements and Performance
The Institute’s activities have been seriously curtailed during 2020 due to COVID-19. It is hoped that this situation will ease during 2021. The acquisition and subsequent merging of Palm Training with the BMI has resulted in reaching out to a different demographic.
It is the continued aim of the staff to find new areas in which instruction and accredited training is required. The income generated enables the BMI to continue the provision of medical education and training in the West Midlands.
Financial review
The net expenditure for the year amounted to £28,412. This amount has been deducted from reserves brought forward leaving fund balances of £436,233 at the end of the year. The trustees consider the results to be satisfactory.
Reserves policy
The Institute’s reserves are fully committed to maintaining and greatly expanding the current educational programmes and services, and to providing a basis for continuity of the Institute.
Members of the Council
Members of the Council are trustees for the purpose of charity law, trustees who served during the year and up to the date of this report are set out on page 1.
Structure Governance and Management
Governing Document
The Institute is a charitable company limited by guarantee, incorporated on 17th September 1874 and registered as a charity on 7th May 1963. The company was established under a memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.
Recruitment and Appointment of Officers and Members of the Council
The members of the Council (trustees) are elected in accordance with the provisions contained in the Memorandum and Articles of Association and until otherwise determined by a General Meeting .
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THE BIRMINGHAM MEDICAL INSTITUTE
REPORT OF THE COUNCIL (DIRECTORS AND TRUSTEES) FOR THE YEAR ENDED 31ST DECEMBER 2020
Trustee induction and training
New trustees are briefed by the President on their obligations as Council members and the future plans and objectives of the Institute. Minutes of previous meetings are also available for new Council Members upon request.
Risk review
The Council has conducted a review of the major risks to which the charity is exposed and have established systems to mitigate these risks.
Every effort is made to ensure that all risks are kept to a minimum. The trustees consider that insurance cover and reserves are adequate to ensure the continued operation of the Institute in the event of the occurrence of any unexpected incident.
The continuing uncertainty over the COVID-19 pandemic presents risks to the Institute’s operations and income streams. The Institute’s trustees review and monitor these on an ongoing basis.
Trustees will be conducting meetings and discussions via online conferencing to reduce the need to meet face to face. Meetings, training and membership income have been reviewed and should remain stable in the short term. Trustees monitor Government guidelines to ensure the Institute’s meetings are operated in a COVID secure manner.
Council has conducted a review of the major risks to which the charity is exposed and have established systems to mitigate these risks.
Every effort is made to ensure that all risks are kept to a minimum. The trustees consider that insurance cover and reserves are adequate to ensure the continued operation of the Institute in the event of the occurrence of any unexpected incident.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved on behalf of the Council on 1st July 2021 and signed on its behalf by:
Dr D Richardson President / Trustee
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INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF THE BIRMINGHAM MEDICAL INSTITUTE
I report to the charity trustees on my examination of the accounts of the company for the year ended 31st December 2020, which are set out on pages 5 to 13.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Brian Jukes, FCA For and on behalf of Dafferns LLP Chartered Accountants, One Eastwood, Harry Weston Road, Binley Business Park Coventry, CV3 2UB.
1st July 2021
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THE BIRMINGHAM MEDICAL INSTITUTE
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2020
| Unrestricted | funds | |
|---|---|---|
| 2020 |
2019 | |
| INCOME FROM: | £ |
£ |
| Donations and legacies | ||
| Subscriptions and donations | 6,770 | 7,379 |
| Gift aid tax recovered | 1,295 | 1,974 |
| Charitable activities | ||
| Meetings and training | 22,750 | 78,023 |
| Government grants | 25,672 | - |
| Miscellaneous income | - | 749 |
| Investment income | ||
| Interest on deposits | 58 | 182 |
| Dividend income | 3,187 | 3,924 |
| Total income | 59,732 | 92,231 |
| EXPENDITURE ON: | ||
| Raising funds | ||
| Investment brokers fees | 235 | 1,014 |
| Charitable activities | ||
| Meetings and training | 9,715 | 28,581 |
| Property expenses | 6,589 | 8,088 |
| Support costs | ||
| Salaries and wages | 48,901 | 47,973 |
| Administration costs | 2,915 | 4,307 |
| Legal and professional charges | 2,271 | 934 |
| Accountancy | 6,070 | 5,519 |
| Bad debts | - | 450 |
| Depreciation and amortisation | 7,167 | 7,344 |
| Total expenditure | 83,863 | 104,210 |
| (24,131) | (11,979) | |
| Net gains / (losses) / on investments | (4,281) | 27,895 |
| Net income / (expenditure) | (28,412) | 15,916 |
| Fund balances at 1st January 2020 | 464,645 | 448,729 |
| Fund balances at 31st December 2020 | 436,233 | 464,645 |
The notes on pages 8 to 13 form an integral part of these financial statements
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THE BIRMINGHAM MEDICAL INSTITUTE (REGISTERED NUMBER: 00008756)
CONSOLIDATED BALANCE SHEET AS AT 31ST DECEMBER 2020
| Note Fixed assets Tangible assets 7 Intangible assets 8 Investments 9 Current assets Stocks 10 Debtors 11 Bank balances and cash Creditors Amounts falling due within one year 12 Net current assets Net assets Reserves 13 General fund - unrestricted fund |
2020 £ £ 2,880 14,849 369,092 386,821 59 308 57,566 57,933 8,521 49,412 436,233 436,233 |
2019 £ 59 6,870 73,005 79,934 9,466 |
£ 3,259 20,597 370,321 |
|---|---|---|---|
| 394,177 70,468 |
|||
464,645 |
|||
| 464,645 |
The charitable company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 31st December 2020.
The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31st December 2020 in accordance with section 476 of the Companies Act 2006.
The directors and trustees acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of the accounts.
These financial statements have been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime and in accordance with FRS 102 SORP.
The financial statements were approved by the Council on 1st July 2021 and were signed on its behalf by:
Dr D Richardson President / Trustee
The notes on pages 8 to 13 form an integral part of these financial statements.
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THE BIRMINGHAM MEDICAL INSTITUTE (REGISTERED NUMBER: 00008756)
BALANCE SHEET AS AT 31ST DECEMBER 2020
| Note Fixed assets Tangible assets 7 Investments 9 Current assets Stocks 10 Debtors 11 Bank balances and cash Creditors Amounts falling due within one year 12 Net current assets / (liabilities) Net assets Reserves 13 General fund - unrestricted fund |
2020 £ £ - 397,842 397,842 59 30,555 22,953 53,567 4,620 48,947 446,789 446,789 |
2019 £ 59 37,217 39,805 77,081 4,137 |
£ 773 399,071 |
|---|---|---|---|
| 399,844 72,944 472,788 |
|||
| 472,788 |
The charitable company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 31st December 2020.
The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31st December 2020 in accordance with section 476 of the Companies Act 2006.
The directors and trustees acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of the accounts
These financial statements have been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime and in accordance with FRS 102 SORP.
The financial statements were approved by the Council on 1st July 2021 and were signed on its behalf by:
Dr D Richardson President / Trustee
The notes on pages 8 to 13 form an integral part of these financial statements.
THE BIRMINGHAM MEDICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
1. General information and basis of preparation
The Birmingham Medical Institute is a private company, limited by guarantee, registered in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to 50p per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities is the provision of postgraduate education and specialist services for members of the medical and other healthcare services.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements 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 UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006, and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling (£) which is the functional currency of the charity and rounded to the nearest pound.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
2. Accounting policies
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds can only be used in accordance with the restriction imposed upon them.
Income recognition
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
Expenditure recognition
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
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THE BIRMINGHAM MEDICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
2. Accounting policies
Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Computer equipment
33.3% straight line
Intangible fixed assets
Goodwill, being the amount paid in connection with the acquisition of Palm Training Limited in 2020, is being amortised evenly over its estimated useful life of five years.
Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SOFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
The investment in the subsidiary is measured at cost less impairment.
Stocks
Stock has been valued at the lower of cost and net realisable value.
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Operating leases
Rentals payable and receivable under operating leases are charged to the SOFA on a straight line basis over the period of the lease.
Pensions
The company operates defined contribution pension schemes. Contributions payable during the year are charged in the statement of financial activities in the period to which they relate.
Related company and consolidation
The company owns 100% of the issued ordinary share capital of B M I Catering Limited and Palm Training Limited (both incorporated in the United Kingdom) The results of these subsidiaries have been consolidated with the Birmingham Medical Institute in accordance with the SORP.
3. Net income
Net income is stated after charging; Depreciation and amortisation Operating lease payments |
2020 £ 7,167 5,926 |
2019 £ 7,344 7,429 |
|---|---|---|
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THE BIRMINGHAM MEDICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
4. Independent examiners remuneration
The independent examiners remuneration amounts to an independent examination fee of £2,300 and accountancy and other services of £3,770.
5. Trustee remuneration and other benefits
2020 2019 £ £
No trustees’ remuneration or other benefits were paid during the year.
Trustees’ expenses
No expenses were paid to trustees in 2020 or 2019.
6. Staff numbers and costs
| Office Salaries Pension scheme contributions National insurance |
2 42,124 6,442 335 48,901 |
2 41,403 6,287 283 |
|---|---|---|
| 47,973 |
No employee received emoluments of more than £60,000.
7. Tangible fixed assets
| 2020 2019 The group The company The group The company £ £ £ £ Cost At 1st January 2020 69,601 41,315 68,971 41,315 Additions 1,040 - 630 - At 31st December 2020 70,641 41,315 69,601 41,315 Depreciation At 1st January 2020 66,342 40,542 64,746 39,378 Charge for the year 1,419 773 1,596 1,164 At 31st December 2020 67,761 41,315 66,342 40,542 Net book value At 31st December 2020 2,880 - 3,259 773 At 31st December 2019 3,259 773 4,225 1,937 |
2020 2019 The group The company The group The company £ £ £ £ Cost At 1st January 2020 69,601 41,315 68,971 41,315 Additions 1,040 - 630 - At 31st December 2020 70,641 41,315 69,601 41,315 Depreciation At 1st January 2020 66,342 40,542 64,746 39,378 Charge for the year 1,419 773 1,596 1,164 At 31st December 2020 67,761 41,315 66,342 40,542 Net book value At 31st December 2020 2,880 - 3,259 773 At 31st December 2019 3,259 773 4,225 1,937 |
2020 2019 The group The company The group The company £ £ £ £ Cost At 1st January 2020 69,601 41,315 68,971 41,315 Additions 1,040 - 630 - At 31st December 2020 70,641 41,315 69,601 41,315 Depreciation At 1st January 2020 66,342 40,542 64,746 39,378 Charge for the year 1,419 773 1,596 1,164 At 31st December 2020 67,761 41,315 66,342 40,542 Net book value At 31st December 2020 2,880 - 3,259 773 At 31st December 2019 3,259 773 4,225 1,937 |
|---|---|---|
| 41,315 | ||
| 39,378 1,164 |
||
40,542 |
||
| 773 | ||
| 1,937 |
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BIRMINGHAM MEDICAL INSTITUTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
| 8. Intangible fixed assets | |||||
|---|---|---|---|---|---|
| 2020 | 2019 | ||||
| Goodwill – Group only | |||||
| £ | £ | ||||
| Cost | |||||
| At 1st January 2020 | 28,740 | 28,740 | |||
| Additions | - | - | |||
| At 31st December 2020 | 28,740 | 28,740 | |||
| Depreciation | |||||
| At 1st January 2020 | 8,143 | 2,395 | |||
| Charge for the year | 5,748 | 5,748 | |||
| At 31st December 2020 | 13,891 | 8,143 | |||
| Net book value | |||||
| At 31st December 2020 | 14,849 | 20,597 | |||
| At 31st December 2019 | 20,597 | 26,345 | |||
| 9. Investments | |||||
| 2020 | 2019 | ||||
| Market value | £ | £ | |||
| As at 1st January 2020 | 340,118 | 352,422 | |||
| Purchases at cost | 3,180 | 122,516 | |||
| Sales proceeds | (139) | (162,717) | |||
| Revaluation | (4,281) | 27,897 | |||
| As at 31st December 2020 | |||||
| (all quoted on a recognised stock exchange) | 338,878 | 340,118 | |||
| Cash held by investment managers for reinvestment | 502 | 491 | |||
| Cash Bond | 29,712 | 29,712 | |||
| The group | 369,092 | 370,321 | |||
| Shares in subsidiaries | 28,750 | 28,750 | |||
| The company | 397,842 | 399,071 | |||
| Shares in subsidiaries | |||||
| Name: Palm Training Limited | |||||
| Company number: 02950970 (England and Wales) | |||||
| Nature of business: Training | |||||
| Class of shares: Ordinary - Holding: 100% | |||||
| Aggregate capital and reserves | 3,345 | 10 | |||
| Profit for the period | 3,335 | - | |||
| 10. Stocks | |||||
| 2020 | 2019 | ||||
| The | The | ||||
| The group | company | The group | company | ||
| £ | £ | £ | £ | ||
| Medals | 59 | 59 | 59 | 59 |
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BIRMINGHAM MEDICAL INSTITUTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
11. Debtors
| 2020 2019 The group The company The group The company £ £ £ £ Trade debtors 150 150 6,554 6,554 Amounts owed by group company - 30,247 - 30,347 Prepayments 158 158 316 316 308 30,555 6,870 37,217 12. Creditors: amounts falling due within one year Trade creditors 1,714 694 370 190 Amounts owed to group company - - - - Other creditors 46 46 187 187 Value added tax 731 - 2,849 - Accruals and deferred income 6,030 3,880 6,060 3,760 8,521 4,620 9,466 4,137 |
2020 2019 The group The company The group The company £ £ £ £ Trade debtors 150 150 6,554 6,554 Amounts owed by group company - 30,247 - 30,347 Prepayments 158 158 316 316 308 30,555 6,870 37,217 12. Creditors: amounts falling due within one year Trade creditors 1,714 694 370 190 Amounts owed to group company - - - - Other creditors 46 46 187 187 Value added tax 731 - 2,849 - Accruals and deferred income 6,030 3,880 6,060 3,760 8,521 4,620 9,466 4,137 |
2020 2019 The group The company The group The company £ £ £ £ Trade debtors 150 150 6,554 6,554 Amounts owed by group company - 30,247 - 30,347 Prepayments 158 158 316 316 308 30,555 6,870 37,217 12. Creditors: amounts falling due within one year Trade creditors 1,714 694 370 190 Amounts owed to group company - - - - Other creditors 46 46 187 187 Value added tax 731 - 2,849 - Accruals and deferred income 6,030 3,880 6,060 3,760 8,521 4,620 9,466 4,137 |
|---|---|---|
| 37,217 | ||
| 190 - 187 - 3,760 |
||
| 4,137 |
13. Funds
All funds are unrestricted
14. Related party transactions
There were no material related party transactions during the year.
15. Related company and consolidation
The company owns 100% of the issued ordinary share capital of Palm Training Limited (incorporated in the United Kingdom) which provides training services for members of the medical, dental and other healthcare professions.
Its trading results for the year, as extracted from the accounts, are summarised below:
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Turnover | 17,695 | 52,204 |
| Cost of sales | 9,715 | 28,581 |
| Gross profit | 7,980 | 23,623 |
| Administrative expenses | (4,673) | (2,849) |
| Interest receivable | 28 | 37 |
| Net income / (expense) before tax | 3,335 | 20,811 |
| Gift aid to parent company | - | (30,347) |
| Reserves brought forward | 10 | 9,546 |
| Reserves carried forward | 3,345 | 10 |
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BIRMINGHAM MEDICAL INSTITUTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
16. Parent company results
The results for the year, as extracted from the accounts, are summarised below:
Total incoming resources Gift aid from subsidiary Dividend from subsidiary Resources expended Net incoming / (outgoing) resources Net gains / (losses) / on investments Net movement in funds Fund balance brought forward Fund balance carried forward |
2020 £ 42,007 - - (63,725) (21,718) (4,281) (25,999) 472,788 446,789 |
2019 £ 39,990 30,347 6,688 (66,996) 10,029 27,895 37,924 434,864 472,788 |
|---|---|---|