**Charity Registration No. 219102**
## **BMA CHARITIES TRUST FUND**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **BMA CHARITIES TRUST FUND**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Dr A J Mowat (Chair) Ms H Byron Dr A Dearden (Vice Chair) Mr T Grinyer Dr H McKeown Dr T Pickersgill Dr W Sapwell Dr S W Strange Dr M A Burrow Dr G Ralston **Director** Ms M Flint **Charity number** 219102 **Principal address** BMA House Tavistock Square London WC1H 9JP **Auditor** Begbies 9 Bonhill Street London EC2A 4DJ **Bankers** CAF Bank 25 Kings Hill Avenue Kings Hill West Malling ME19 4TA **Solicitors** Wilsons Alexandra House St Johns Street Salisbury SP1 2SB **Investment advisors** Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London EC4M 8BU
(Appointed 16 June 2020) (Appointed 21 May 2020)
## **BMA CHARITIES TRUST FUND**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Statement of trustees' responsibilities|6|
|Independent auditor's report||
|Statement of financial activities|10 - 11|
|Balance sheet|12|
|Notes to the accounts|13 - 27|
**TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **BMA CHARITIES TRUST FUND**
## **Registered Charity No. 219102**
The Trustees have pleasure in presenting their Annual Report, together with audited Financial Statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).
## **Structure, governance and management**
The BMA Charities Trust Fund was established by a Trust Deed in 1925. It is an unincorporated charity registered with the Charity Commission for England and Wales.
The Fund is managed by a board of ten Trustees. Four of these are appointed ex officio: the Chair of the British Medical Association (“BMA”) Representative Body, Dr H McKeown, the BMA Treasurer, Dr T Pickersgill, the Chairman of the Dain Fund (an autonomous charity), Dr G Ralston, and the Secretary/Chief Executive of the BMA, Mr T Grinyer. Four other Trustees are nominated by the BMA’s membership at the Annual Representative Meeting (“ARM”) to serve a term of four years and appointed by the board, and two trustees have been co-opted to serve for two years so that the board has the wide range of skills necessary to enable it to carry out its duties effectively. A skills audit is undertaken every couple of years in order to monitor this.
In 2009 the charities formerly known as the Hastings Benevolent Fund (no. 219103) and the BMA Medical Education Trust Fund (no. 1044720) were formally merged into the BMA Charities Trust Fund under a Charity Commission uniting direction. The assets, income and expenditure of each remain distinct, as do the objects of each of the Funds.
The members of the Board of Trustees between 1 January 2020 and 31 December 2020 were as follows:-
Dr A Dearden, Dr S W Strange (retired May 2020), Dr A Mowat, Dr S Hedderwick (retired May 2020), Dr W Sapwell, Ms H Byron, Mr T Grinyer, Dr H McKeown, Dr T Pickersgill, Mr G Singh (retired November 2020), Dr M A Burrow (appointed June 2020) and Dr G Ralston (appointed May 2020).
When appointed, Trustees are sent guidelines on the duties of Trustees, copies of the governing documents and a copy of the governance framework and code of conduct. Trustees are given the opportunity to attend relevant training sessions through the year online and in person, when permitted. Most of the Trustees are medically trained and therefore well equipped to sit on the board of a medical benevolent fund. Several have previous experience of being a Trustee and/or business experience. The current composition of the Board of Trustees reflects a diversity of gender, age and medical specialty which ensures a good skills mix and works to the advantage of potential beneficiaries. All Trustees give their time voluntarily and receive no benefit from the Charity. Reasonable expenses for attending meetings are reimbursed. The Trustees meet at least four times a year to award grants, deal with administrative matters and set policy. The awarding of some grants to refugee and asylum-seeking doctors is delegated to the Director.
In the autumn Trustees meeting each year, the Trustees authorise the negotiation of remuneration, terms and conditions, and pension arrangements for employed staff: this review is usually undertaken by the Chair but may be delegated to any Trustee. The Trustees normally consider firstly whether an employee’s job description has changed within the preceding year. They also look at national financial overview data, such as the consumer price index, inflation, evidence relating to pay change within the charities sector, if available, and levels of responsibility undertaken by the employee.
The Fund is one of two charities administered as “BMA Charities” and, therefore, it benefits from shared staffing arrangements and office accommodation. It is independent of the BMA and has its own Trustee structure.
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**BMA CHARITIES TRUST FUND**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Objectives**
## **Objects**
The objects of the Charity as set out in the Trust Deed are to make grants to medical charities named in the Deed and other charities which help medical practitioners. The Hastings Fund’s objects are to make payments to members of the medical profession or their dependents who are in need of relief or assistance. The objects of the Medical Education Fund are to make payments to advance the medical education of students who are unable to receive a statutory grant and who are in need of assistance.
## **Aims**
The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit. The Trustees believe that there is no detriment or harm attaching to the Charity’s aims or activities.
The Charity carries out its charitable purposes for the public benefit in the following ways:
(i) The Charity awards grants to applicant charities once a year at the autumn Trustees’ meeting after consideration of their annual reports and accounts.
(ii) The Hastings Fund is able to help all doctors, medical students and their dependents experiencing a financial crisis, not just members of the BMA. In March 2021 the GMC stated that there were 338,411 registered medical practitioners in the UK. Together with retired doctors, medical students and dependents, this forms a substantial group within the UK population.
The Fund does not make general awards for “living costs” nor does it seek to maintain lifestyles. Assistance is given in the form of one-off grants for essential items. Most beneficiaries are not in full-time work and are living on state benefits, student loans or have a similar low income. Applicants who are in full employment may usually only apply for help with paying for their GMC retention fees and medical defence insurance as this enables them to maintain their posts as doctors. Applicants who ask for help with debt are referred to the Fund’s licensed money advisor whose services are retained on a case by case basis. A grant may be made subsequently to help with priority expenses. Grants for medical students in immediate need are usually made for rent or essential travel, a typical grant being £750.
Much of the Fund’s work is with refugee and asylum-seeking doctors who wish to re-validate their qualifications so that they can practice in the NHS. The majority of these applicants are in receipt of meanstested state benefits and are eager to become independent and use their skills to benefit the country which has given them asylum. The grants the Fund makes to this group enable them pay for the courses and exams leading to GMC registration and the fees for GMC registration itself. The Fund only makes these grants to doctors who are members of programmes which support refugee healthcare professionals back into work. This ensures that the doctors’ expectations of achieving GMC registration and work are well managed. Society as a whole benefits from the work of the Fund as there is a shortage of doctors in all specialities in the UK (M Taylor, “Why is there a shortage of doctors in the UK?” _Royal College of Surgeons Bulletin,_ Vol: 102, Issue: 3 March 2020, pp. 78-81, https://doi.org/10.1308/rcsbull.2020.78 - accessed 07.04.2021). In 2020 the Fund paid GMC registration fees to 16 doctors (2019 - 19) which means that these additional doctors are now available for work in the NHS.
The Trustees want to help doctors achieve or remain in work so that they are self-supporting and not dependent on the State, and to help medical students who are in danger of having to withdraw from their course because of lack of funds. The Fund does not help with legal fees, private medical treatment, conference attendance or career enhancement projects. All beneficiaries must be in receipt of their full state benefit or student loan entitlement.
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**BMA CHARITIES TRUST FUND**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
(iii) The Medical Education Fund gives financial assistance to students at medical schools situated in the UK who are taking medicine as a second degree, irrespective of whether they are student members of the BMA. Most applicants are taking the five-year medical degree and are eligible to apply for help with their third and fourth years of study. Applications are accepted from November to January in each academic year. Access to the Fund is limited to students who can demonstrate that they are over £25,000 in debt, thus ensuring that only the neediest students receive help, and are paying no more than £9,250 a year in fees. The maximum grant for this group is £2,500.
The Trustees are particularly keen to support these students. They are often the most strongly committed to practising medicine but face enormous financial pressures because of the length of the course, debt from previous studies and the high course fees which are required to be paid up front each year. The students assisted by the Fund do not have access to the NHS Bursary Scheme nor to student loans to cover their course fees which are usually £9,250 a year. Frequently the students undertake paid work against the advice of their tutors. Money advice is offered to those students whose finances appear to be poorly managed.
## **Activities**
During the year, the BMA Charities Trust Fund made grants to external charities totalling £10,000 (see note 9) and grants totalling £60,000 to the Medical Education Fund (see note 8).
The Trustees authorised £59,802 in grants from the Hastings Fund to 49 beneficiaries, compared with £60,421 awarded to 42 beneficiaries in 2019. These 49 beneficiaries comprised 36 refugee doctors, 5 other doctors and 8 medical students in financial need. This Fund was able to make an award to every applicant who was able to demonstrate appropriate financial need. £11,738 of grants awarded in previous years were reversed due to changes in recipients’ circumstances.
The Medical Education Fund distributed £180,470 to 94 beneficiaries, compared to £204,840 awarded to 76 beneficiaries in 2019. In 2020 80% of beneficiaries said that without their grants they might have had to drop out of their course. 95% were able to do less paid work and all the beneficiaries experienced lowered stress levels because they received a grant. Unfortunately, the Trustees were unable to make grants to all students who met the required level of hardship as the financial drain on the Fund would have been detrimental to grant giving to this group in future years.
## **Financial review**
Under the requirements of the Guidelines on Accounting and Reporting by Charities, the Board of Trustees has assessed the format of financial statements and is satisfied that the appropriate systems are in place. These procedures will be reviewed annually to ensure that they still meet the needs of the charity.
During the year the Charity’s income increased by £31,599 from £290,384 to £321,983. The total value of fixed asset investments held by the charity rose by £378,087 in the year from £4,981,873 to £5,359,960.
## **Reserves**
Total funds held by the Charity at the end of the accounting period stood at £6,031,446, an increase of £369,139 from the previous year. Of these funds £1,993,330 represents the permanent endowment funds of the Hastings and Coleman Kenton Funds (see note 20), £1,005,080 is restricted for the purposes of the Medical Education Fund, £66,057 is restricted for purposes of the Hastings Fund, £6,289 is restricted to cases of Covid-19 related hardship,£35,070 is a bequest, the beneficiaries of which are still to be clarified by the Treasury Solicitor (see note 21), and £2,925,620 is unrestricted funds to be spent on the general charitable objects of the BMA Charities Trust Fund. £71,280 is committed to grants payable and accruals (see note 17).
Investment portfolios provide the basis of the reserves of the charity, with the intention to hold these assets for the longer term. Charitable expenditure is financed by the income generated from these investments and donations received. The trustees receive forecasts of investment income from the investment manager which they consider when authorising grant expenditure.
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## **BMA CHARITIES TRUST FUND**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The Charity’s reserves policy states that should the investment income in any given year decline by more than 25%, then the amount given in grants should be reduced by such proportion until the Trustees shall determine, usually 2 years, taking into account the anticipated return on investments, planned expenditure on standing costs and any other relevant factors. The Charity currently has sufficient reserves .
Whilst the Hastings Fund usually only helps each applicant once, the award that refugee and asylum-seeking doctors receive may be in the form of a package of grants which take into account all of the stages leading to GMC registration. It may take the doctor three or four years from the start of the process to pass all the necessary exams and obtain registration, and grants awarded to these doctors are not written off until it is clear that they will not be used. This is why the amount written off varies from year to year.
## **Funding**
The Charity’s main, consistent source of funding is investment income. For many years the Medical Education Fund has received generous annual donations from Worshipful Company of Barbers. A substantial annual donation to this Fund is usually received from the BMA. The contribution of the Goldsmiths’ Company, which has made its own selection of students for sponsorship from applicants to this Fund, has also been greatly appreciated; this funding is due to end in 2021.
During the year a significant grant was received by the Hastings Fund from BMA Giving specifically to help doctors and medical students who have been adversely affected by the pandemic.
The Charity raises some money from donors who have set up standing orders. During the year the website was further developed so that card and direct debit donations with the option of Gift-Aiding can now be made in a secure online environment. There is no fundraising via cold-calling or mailshots, which protects the public from undue pressure. The Charity does not currently use professional fundraisers or commercial participators. Employees do not benefit from fundraising outcomes. No fundraising complaints have been received but a complaints policy is in place.
## **Investment policy**
The investment objective of the Charity is to achieve a consistently attractive level of income coupled with the potential for long term capital appreciation, whilst aiming to preserve the value of capital over the shorter term. The portfolio is fixed interest orientated with the remainder in a mix of global equities, convertible bonds and cash. The Trustees were content with the level of return in 2020 having taken into account ongoing fluctuations in market performance.
The Charity continues to operate its ethical investment policy of not investing in companies which manufacture tobacco products or have greater than 10% of their turnover in alcohol manufacture, armaments, gambling or pornography and avoiding companies that generate significant revenues from thermal coal and oil from tar sands. All of the Charity’s investments are now in the Sarasin & Partners Climate Active Endowment Fund which is a multi-asset portfolio managed to take into account companies’ commitment to managing their own climate risks with divestment available if necessary.
Social investment is not used by the Charity.
## **Pension Liability**
The Charity has a contractual obligation to contribution to the Director’s personal pension plan. Beyond that, the Charity has no pension liability.
## **Risk management**
The Trustees have examined the major strategic business and operational risks which the Charity faces. The Charity does not engage in any high-risk activities and there is no face-to-face engagement with applicants and beneficiaries. The Trustees have identified five key areas of risk and have put in place the following risk management strategies:
(1) Failure to comply with legislation and regulations – Professional advice is provided by the appointed solicitors, accountants and investment advisors. The Director keeps up to date with relevant changes in compliance requirements. Trustees are offered training on the legal obligations of their role.
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**BMA CHARITIES TRUST FUND**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
(2) Conflict of interest – All Trustees are provided with the Charity Commission’s guide to the responsibilities of trustees. A conflicts of interest policy is in place and conflicts are declared on an annual basis and at the beginning of every Trustees meeting.
(3) Loss of key staff – An annual diary of key activities has been created. In the event of the Director being unavailable for work for a long period of time, the Trustees will approach an agency for a temporary replacement or consider staff/ex staff from other medical benevolent funds.
(4) Information technology – The Charity has its own office laptop with automatic back-up to the cloud. McAfee security is in place on the office laptop and Director’s home laptop. GDPR, Data Security and Privacy policies are in place. Confidential electronic discussions with Trustees take place using MS Teams. IT support is provided by an external provider via their helpdesk. The provider has recently completed a survey of IT security and has updated systems as necessary. A cyber insurance policy is in place.
(5) Dependence on income sources – The Charity is mainly dependent on investment income but the Medical Education Trust is vulnerable to changes in grant giving practices by external organisations. The levels of grants awarded by the Charity are commensurate with the liquid assets available and the need to preserve capital to enable continuity of grant giving. A firm of fundraising consultants has prepared a report on the Charity’s readiness to fundraise.
The risk assessment is reviewed annually.
## **The Future**
The Trustees are committed to continuing the current programmes of grant giving to refugee and asylumseeking doctors and to medical students.
In 2021 the development of the website will be completed so that the Charity can reach a wider audience of potential beneficiaries and donors.
Fundraising consultants have been appointed to prepare a fundraising strategy.
## **Acknowledgements**
The Trustees would like to acknowledge the service received from Sarasin & Partners, our investment advisors, Wilsons, our solicitors, and Begbies, our accountants.
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' r eport was approved by the Board of Trustees.
.............................. .............................. **Dr A J Mowat (Chair) Dr A Dearden (Vice Chair)** Trustee Trustee 08.06.2021 08.06.2021 Dated: ......................... Dated:.........................
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## **BMA CHARITIES TRUST FUND**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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## **BMA CHARITIES TRUST FUND**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BMA CHARITIES TRUST FUND**
## **Opinion**
We have audited the financial statements of BMA Charities Trust Fund (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice) .
- In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **BMA CHARITIES TRUST FUND**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BMA CHARITIES TRUST FUND**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the accounts is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
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## **BMA CHARITIES TRUST FUND**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BMA CHARITIES TRUST FUND**
## **Extent to which the audit was capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
– Agreement of the financial statement disclosures to underlying supporting documentation;
– Enquiries and confirmation of management and the trustees as to their identification of any non-compliance with laws or regulations, or any actual or potential claims;
– Review of minutes of Board meetings throughout the period;
– incorporating unpredictability into the nature, timing and/or extent of testing.
– Evaluation of the selection and application of the accounting policies chosen by the charity; and
– We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter s**
Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
14/06/2021 **Begbies** ......................... **Chartered Accountants Statutory Auditor** 9 Bonhill Street London EC2A 4DJ
Begbies is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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## **BMA CHARITIES TRUST FUND**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Current financial year**
**Unrestricted**
**Restricted Endowment**
**funds**
**funds**
**funds**
**2020**
**2020**
**2020**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
28,844
132,391
-
Investment income
**4**
79,425
81,323
-
Other income
**5**
-
-
-
**Total income**
108,269
213,714
-
**Expenditure on:**
Raising funds
**6**
1,274
1,474
-
Charitable activities
Grant s to medical charities
**7**
45,805
-
-
Grants to second degree medical
students
**7**
-
195,913
-
Grants to provide financial assistance
**7**
-
66,658
-
**Total charitable expenditure**
45,805
262,571
-
**Total resources expended**
47,079
264,045
-
Net gains/(losses) on investments
176,904
48,121
133,255
**Net incoming/(outgoing) resources**
**before transfers**
238,094
(2,210)
133,255
Gross transfers between funds
(60,000)
60,000
-
**Net movement in funds**
178,094
57,790
133,255
Fund balances at 1 January 2020
2,747,526
1,054,706
1,860,075
**Fund balances at 31 December**
**2020**
2,925,620
1,112,496
1,993,330|**Total**
**2020**
**£**
161,235
160,748
-
321,983
2,748
45,805
195,913
66,658
308,376
311,124
358,280
369,139
-
369,139
5,662,307
6,031,446|Total
2019
**£**
125,080
162,804
2,500|
|---|---|---|
|||290,384|
|||558|
|||48,459
221,676
72,203|
|||342,338|
|||342,896|
|||641,318|
|||588,806
-|
|||588,806
5,073,501|
|||5,662,307|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **BMA CHARITIES TRUST FUND**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Prior financial year**
**Unrestricted**
**Restricted Endowment**
**funds**
**funds**
**funds**
**2019**
**2019**
**2019**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
17,463
107,617
-
Investment income
**4**
80,619
82,185
-
Other income
**5**
2,500
-
-
**Total income**
100,582
189,802
-
**Expenditure on:**
Raising funds
**6**
558
-
-
Charitable activities
Grant s to medical charities
**7**
48,459
-
-
Grants to second degree medical students
**7**
-
221,676
-
Grants to provide financial assistance
**7**
-
72,203
-
**Total charitable expenditure**
48,459
293,879
-
**Total resources expended**
49,017
293,879
-
Net gains/(losses) on investments
316,622
86,854
237,842
**Net incoming/(outgoing) resources before**
**transfers**
368,187
(17,223)
237,842
Gross transfers between funds
(101,000)
101,000
-
**Net movement in funds**
267,187
83,777
237,842
Fund balances at 1 January 2019
2,480,339
970,929
1,622,233
**Fund balances at 31 December 2019**
2,747,526
1,054,706
1,860,075|**Total**
**2019**
**£**
125,080
162,804
2,500
290,384
558
48,459
221,676
72,203
342,338
342,896
641,318
588,806
-
588,806
5,073,501
5,662,307|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 11 -
## **BMA CHARITIES TRUST FUND**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
|**2020**
**Notes**
**£**
**£**
**Fixed assets**
Tangible assets
**13**
799
Investments
**14**
5,359,960
5,360,759
**Current assets**
Debtors
**15**
629
Investments
**16**
641,544
Cash at bank and in hand
99,794
741,967
**Creditors: amounts falling due within**
**one year**
**17**
(71,280)
Net current assets
670,687
**Total assets less current liabilities**
6,031,446
**Capital funds**
Endowment funds - permanent
**20**
1,993,330
**Restricted Income funds**
Medical Education Fund
1,005,080
Hastings Fund
66,057
BMA Covid-19 Fund
6,289
General restricted funds
35,070
**21**
1,112,496
**Unrestricted funds**
2,925,620
6,031,446
The accounts were approved by the Trustees on .........................
..............................
..............................
Dr A J Mowat (Chair)
Dr A Dearden (Vice Chair)
**Trustee**
**Trustee**
8 June 2021|**2019**
**£**
**£**
623
4,981,873
4,982,496
39,397
528,486
180,235
748,118
(68,307)
679,811
5,662,307
1,860,075
942,056
77,580
-
35,070
1,054,706
2,747,526
5,662,307|
|---|---|
- 12 -
**BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
BMA Charities Trust Fund is an unincorporated charity registered with the Charity Commission for England and Wales as established by a Trust Deed in 1925.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's governing documents, 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The accounts are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include investment assets at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used.
The Medical Education Fund derives from the uniting direction and represents the formerly unrestricted reserves of the BMA Medical Education Trust Fund and its ongoing income and expenditure. The purpose of this fund is to give assistance to students at UK medical schools who are studying medicine as a second degree
The Hastings Fund derives from the uniting direction and represents the formerly unrestricted reserves of the Hastings Benevolent Fund and its ongoing income and expenditure. The purpose of this fund is to provide short-term financial assistance to members of the medical profession and/or their dependents.
The Colman Kenton Endowment is a permanent endowment, the income from which can be spent in accordance with the objects of the Medical Education Fund. The Medical Education Fund also holds investments, however these are not held as endowment funds.
The Hastings Endowment is a permanent endowment, the income from which can be spent in accordance with the objects of the former Hastings Benevolent Fund and so is allocated to the restricted Hastings Fund reserve.
- 13 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it , the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation and added to the fund to which the underlying donation was given.
Legacies and similar incoming resources are included in the year in which they are receivable, which is when the fund becomes entitled to the resource.
The Charity SORP requires that an estimate is included in the accounts for material gifts in kind of donated services and facilities except time donated by general volunteers and trustees. The gift is included at an estimate of what the charity would otherwise pay for the goods or services. An expense is recognised in the accounts to match the income received.
Income from investments is included in the SOFA in the year in which it is receivable and is allocated to the relevant restricted and unrestricted funds.
## **1.5 Resources expended**
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.
The cost of generating funds comprises the costs of promoting the charity to potential donors.
In accordance with the SORP provision is made for all grants authorised by the Board of Trustees in the year. Where grants are subject to conditions only those grants where all the conditions have been met at the year end are recognised in the accounts. The expense for the period is reduced by the cancellation of grants authorised but not subsequently required.
Governance costs are the costs associated with the governance arrangements of the charity. Costs are apportioned to the appropriate fund at an estimate of usage based on an estimate of staff time or fund size unless directly incurred.
The estimated current staff time percentages are Medical Education Fund second degree medical students 27%, Hastings Fund financial assistance 33% and grants to medical charities unrestricted funds 40%.
Support costs are the general costs incurred in support of meeting the charity's objectives. There is a single charitable objective of giving grants, but costs are apportioned to the appropriate fund, and so type of grant, at an estimate of usage based on an estimate of staff time or fund size unless directly incurred. The estimated current usage percentages are Medical Education Fund second degree medical students 30%, Hastings Fund financial assistance 30% and grants to medical charities unrestricted funds 40%.
The charity's long term investments are held in units in collective investment funds. In accordance with the SORP the charity does not estimate investment management fees which are charged to the collective investment fund to identify the notional cost attributable to its own holding in the scheme.
- 14 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
Due to the collective nature of the investments held, the investment charges are levied directly to the investment by the investment provider, rather than as a charge to the charity portfolio directly. Due to the size of the portfolio some management charges may be refunded directly to the charity. Where this is the case the refund is reported within the investment income heading.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers & equipment Over four years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less .
## **1.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs .
## _**Other financial assets**_
The charity holds current assets in the form of listed investments. Those investments that are categorised as current assets are held in an investment fund containing short term money market instruments. Current asset investments are initially recorded at cost and are subsequently revalued to market value as at the balance sheet date.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors are initially recognised at transaction. Financial liabilities classified as payable within one year are not amortised.
Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
- 15 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
The Dain Fund and the BMA Charities Trust Fund share the cost of an employee whose salary is apportioned across the two charities at an agreed percentage based on the percentage of time spent on each charity's affairs.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Critical judgements**
## **Grant liabilities**
Grants include awards which are formed of a series of individual payments for specific items, such as a series of exams. The time taken by individuals to draw on the funds varies and some recipients may not draw all of their allocation. Due to the timing of the drawdown being outside of the control of the trustees once the grant has been awarded all unpaid grants are shown as creditors due within one year.
Outstanding grants are reviewed annually and if no further payment is considered likely the grant is written back.
- 16 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
8,544
132,391
Legacies receivable
12,800
-
Donated goods and
services
7,500
-
28,844
132,391
**Donations and gifts**
BMA
-
60,000
Worshipful Company of
Barbers
-
30,000
De Silva Wijesekera
Trust Fund
-
30,000
Dain Fund
-
9,500
LMC's
-
1,816
Other
8,544
1,075
8,544
132,391|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
140,935
5,107
72,547
12,800
4,856
35,070
7,500
7,500
-
161,235
17,463
107,617
60,000
-
-
30,000
-
23,000
30,000
-
30,000
9,500
-
14,500
1,816
-
2,114
9,619
5,107
2,933
140,935
5,107
72,547|Total
2019
£
77,654
39,926
7,500
125,080
-
23,000
30,000
14,500
2,114
8,040
77,654|
|---|---|---|
## **4 Investment income**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Income from listed
investments
79,298
81,000
Interest receivable
127
323
79,425
81,323|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
160,298
80,152
81,858
450
467
327
160,748
80,619
82,185|Total
2019
£
162,010
794
162,804|
|---|---|---|
- 17 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **5 Other income**
|Other income
**Raising funds**
**Unrestricted Restricted**
**funds**
**funds**
**£**
**£**
Fundraising and publicity
Seeking donations, grants and legacies
1,274
1,474
1,274
1,474|**Total**Unrestricted
funds
**2020**
2019
**£**
£
-
2,500
**Total**
**Total**
**2020**
**2019**
**£**
**£**
2,748
558
2,748
558|
|---|---|
## **6 Raising funds**
- 18 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **7 Charitable activities**
|**Grant s to**
**medical**
**charities**
**Grants to**
**second**
**degree**
**medical**
**students**
**Grants to**
**provide**
**financial**
**assistance**
**2020**
**2020**
**2020**
**£**
**£**
**£**
Grant funding of activities (see note 9)
10,000
180,470
48,038
Share of support costs (see note 10)
27,289
12,272
15,274
Share of governance costs (see note 10)
8,516
3,171
3,346
45,805
195,913
66,658
**Analysis by fund**
Unrestricted funds
45,805
-
-
Restricted funds
-
195,913
66,658
45,805
195,913
66,658|**Total**
**2020**
**Grant s to**
**medical**
**charities**
**Grants to**
**second**
**degree**
**medical**
**students**
**Grants to**
**provide**
**financial**
**assistance**
**2019**
**2019**
**2019**
**£**
**£**
**£**
**£**
238,508
-
204,840
40,755
54,835
33,952
12,081
24,466
15,033
14,507
4,755
6,982
308,376
48,459
221,676
72,203
45,805
48,459
-
-
262,571
-
221,676
72,203
308,376
48,459
221,676
72,203|**Total**
**2019**
**£**
245,595
70,499
26,244
342,338
48,459
293,879
342,338|
|---|---|---|
- 19 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **8 Description of charitable activities**
## Grant s to medical charities
Grants between Hastings, Medical Education and Charities Trust Funds are shown as transfers between funds. In the current year the Charities Trust Fund gave £60,000 (2019 - £81,000) to the Medical Education Fund to support the grants given to students at UK medical schools.
The Charities Trust F und gave nil (201 9 - £20,000 ) to the Hastings Fund to support doctors, medical students and their dependents who are experiencing financial difficulties.
Due to the structure of the charity, the support costs incurred by the Charities Trust Fund are shown above whilst the grants given to the Hastings Fund and the Medical Education Fund are shown as transfers between funds.
## Grants to second degree medical students
The Medical Education Fund gives financial assistance to students at medical schools situated in the UK who are taking medicine as a second degree, irrespective of whether they are student members of the BMA.
## Grants to provide financial assistance
The Hastings Fund makes grants to doctors, medical students and their dependents experiencing financial difficulties, not just members of the BMA.
## **9 Grants payable**
## **For the year ended 31 December 2020**
|**Grant s to**
**medical**
**charities**
**Grants to**
**second**
**degree**
**medical**
**students**
**Grants to**
**provide**
**financial**
**assistance**
**£**
**£**
**£**
Grants to institutions (3 grants):
The Cameron Fund
4,000
-
-
Royal Medical Foundation
4,000
-
-
Melanin Medics
2,000
-
-
10,000
-
-
Grants to individuals (145 grants)
-
180,470
48,038
10,000
180,470
48,038
**For the year ended 31 December 2019**
Grants to institutions (0 grants):
-
-
-
Grants to individuals (118 grants)
-
204,840
40,755
-
204,840
40,755|**Total**
**£**
4,000
4,000
2,000
10,000
228,508
238,508
-
245,595
245,595|**2019**
**£**
-
-
-
-
245,595
245,595|
|---|---|---|
- 20 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **10 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
42,586
-
Depreciation
259
-
Office accommodation
7,500
-
Website and IT costs
2,938
-
Staff & other travel
-
-
Postage, telephone &
stationery
385
-
Bank charges
141
-
Staff & trustee training
61
-
Other costs
965
-
Audit fees
-
3,600
Accountancy
-
4,644
Legal and professional
-
5,332
Trustee meeting
expenses
-
228
Insurance
-
1,229
54,835
15,033
Analysed between
Charitable activities
54,835
15,033|**2020**
**£**
42,586
259
7,500
2,938
-
385
141
61
965
3,600
4,644
5,332
228
1,229
69,868
69,868|**2019 Basis of allocation**
**£**
42,451 Estimated staff time
89 Charities Trust Fund
7,500 Charities Trust Fund
12,503 Charities Trust Fund
2,326 Charities Trust Fund
1,021 Estimated usage
180 Direct allocation
3,486 Estimated usage
943 Estimated usage
3,600 Governance
4,644 Governance
12,738 Governance
4,202
Governance
1,060 Governance
96,743
96,743|
|---|---|---|
Governance costs includes payments to the auditors of £ 3,600 (2019- £ 3,600 ) for audit fees , £4,320 (2019£4,320) for management accounts and £324 (2019- £ 324 ) for payroll services. All amounts include VAT.
The charity purchases Trustee Insurance at a cost of £377 (2019- £377).
## **11 Trustees**
There were no trustees in receipt of any remuneration during the year. Reimbursed trustee travel expenses and subsistence expenses in respect of meetings totalled £ 228 paid to one trustee due to meetings being held remotely during the year (2019 - 6, £ 5,732). One trustees attended external training courses funded by the charity at a cost of £25 (2019 - nil).
- 21 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **12 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
||**2020**|**2019**|
|---|---|---|
||**Number**|**Number**|
|Grant administration|1|1|
|**Employment costs**|**2020**|**2019**|
||**£**|**£**|
|Wages and salaries|37,859|37,115|
|Social security costs|1,320|1,985|
|Other pension costs|3,407|3,351|
||42,586|42,451|
There were no employees whose annual remuneration was £60,000 or more. The above costs are the total key managment remunerartion for the year.
## **13 Tangible fixed assets**
|**Tangible fixed assets**||
|---|---|
||**Computers & equipment**|
||**£**|
|**Cost**||
|At 1 January 2020|712|
|Additions|435|
|At 31 December 2020|1,147|
|**Depreciation and impairment**||
|At 1 January 2020|89|
|Depreciation charged in the year|259|
|At 31 December 2020|348|
|**Carrying amount**||
|At 31 December 2020|799|
|At 31 December 2019|623|
- 22 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **14 Fixed asset investments**
|**Charities**
**Trust Fund**
**Medical**
**Education**
**Fund**
**Colman**
**Kenton Fund**
**£**
**£**
**£**
**Market valuation**
At 31 December 2019
2,461,698
660,100
262,925
Additions
379,637
105,045
42,511
Valuation changes
176,280
47,331
18,871
Disposals
(371,264)
(101,679)
(41,171)
At 31 December 2020
2,646,351
710,797
283,136
**Historic cost**
At 31 December 2020
2,325,941
624,983
248,989
At 31 December 2019
2,286,223
613,048
240,609|**Hastings**
**Fund**
1,597,150
249,059
114,384
(240,917)
1,719,676
1,511,783
1,483,293|**Total**
**£**
4,981,873
776,252
356,866
(755,031)
5,359,960
4,711,696
4,623,173|
|---|---|---|
As at 31st December 2020 the above portfolio was invested in Climate Active Endowment Class A Income units by Sarasin and Partners LLP .
During the year all the In come and Reserve Class A Income units were sold and the proceeds invested in additional Climate Active Endowment Class A Income units to further the charity's ethical investing aims.
The charity seeks to minimise the risks of holding investments, which comprise mainly market, yield and liquidity risks, through the appointment of an independent Investment Manager, who invests via common investment funds specifically tailored for charities of this nature. The trustees report contains further details of the charity's investment policy.
The holding of common investment units allows the charity to access increased diversification at a lower cost than would otherwise be available, and so decreases the risks of holding investments. At the balance sheet date the units held by the charity where invested in the following areas :
|**Charities**
**Trust Fund**
**Medical**
**Education**
**Fund**
**Colman**
**Kenton Fund**
**%**
**%**
**%**
Fixed Income
14.70%
14.70%
14.70%
Equities
72.80%
72.80%
72.80%
Property
1.60%
1.60%
1.60%
Alternative Assets
8.10%
8.10%
8.10%
Liquid Assets
2.80%
2.80%
2.80%
Total
100.00%
100.00%
100.00%|**Hastings**
**Fund**
**%**
14.70%
72.80%
1.60%
8.10%
2.80%
100.00%|
|---|---|
- 23 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**15**
**Debtors**
**Amounts falling due within one year:**
Amounts due from The Dain Fund
Other debtors
Prepayments
**16**
**Current asset investments**
Listed investments|**2020**
**£**
-
127
502
629
**2020**
**£**
641,544|**2019**
**£**
3,702
35,221
474
39,397
**2019**
**£**
528,486|
|---|---|---|
Current asset investments are comprised of Blackrock Institutional Sterling Liquidity Heritage Accumulator units and are stated at market value. These investments are held to reduce liquidity risk whilst generating a higher interest return than cash holdings.
## **17 Creditors: amounts falling due within one year**
|Grants payable
Accruals|**2020**
**£**
66,459
4,821
71,280|**2019**
**£**
59,840
8,467
68,307|
|---|---|---|
## **18 Defined contribution scheme**
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge in respect of defined contribution schemes was £3,407 (2019- £3,351)
- 24 -
## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**19**
**Analysis of net assets between funds**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Endowment**
**Funds**
**2020**
**2020**
**2020**
**£**
**£**
**£**
Fund balances at 31 December 2020 are
represented by:
Tangible assets
799
-
-
Investments
2,646,351
720,279
1,993,330
Current assets/(liabilities)
278,470
392,217
-
2,925,620
1,112,496
1,993,330
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Endowment**
**Funds**
**2019**
**2019**
**2019**
**£**
**£**
**£**
Fund balances at 31 December 2019 are
represented by:
Tangible assets
623
-
-
Investments
2,461,698
660,100
1,860,075
Current assets/(liabilities)
285,205
394,606
-
2,747,526
1,054,706
1,860,075|**Total**
**2020**
**£**
799
5,359,960
670,687
6,031,446
**Total**
**2019**
**£**
623
4,981,873
679,811
5,662,307|
|---|---|
## **20 Endowment funds**
||**Balance at**|**Revaluations**|
**Balance at**|**Revaluations**|**Balance at**|
|---|---|---|---|---|---|
||**1 January 2019**|**gains and**|
**1 January 2020**|**gains and**|**31 December**|
|||**losses**||**losses**|**2020**|
||**£**|**£**|
**£**|**£**|**£**|
|**Permanent endowments**||||||
|Colman Kenton|229,421|33,504|
262,925|18,871|281,796|
|Hastings|1,392,812|204,338|
1,597,150|114,384|1,711,534|
||1,622,233|237,842|
1,860,075|133,255|1,993,330|
The Colman Kenton Endowment is a permanent endowment, the income from which can be spent in accordance with the objects of the Medical Education Fund and so is allocated to the restricted Medical Education Fund reserve.
The Hastings Endowment is a permanent endowment, the income from which can be spent in accordance with the objects of the Hastings Fund and so is allocated to the restricted Hastings Fund reserve.
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## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## 21 **Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|Movement in funds
**Balance at**
**1 January 2019**
**Income**
**Grants and**
**other costs**
**Transfers**
**between**
**funds**
£
£
£
£
£
Medical Education Fund
894,376
102,190
(221,676)
81,000
Hastings Fund
76,553
52,543
(72,203)
20,000
Fairley Legacy
-
35,070
-
-
BMA Covid-19 Fund
-
-
-
-
970,929
189,803
293,879
101,000|**Investment**
**movements**
£
86,164
689
-
-
86,853|Movement in funds
**Balance at**
**1 January**
**2020**
**Income**
**Grants and**
**other costs**
**Transfers**
**between funds**
£
£
£
£
942,054
151,807
(196,650)
60,000
77,582
51,907
(63,684)
-
35,070
-
-
-
-
10,000
(3,711)
-
1,054,706
213,714
264,045
60,000|**Investment**
**movements**
**Balance at**
**31 December**
**2020**
£
47,869
1,005,080
252
66,057
-
35,070
-
6,289
48,121
1,112,496|
|---|---|---|---|
|||1,054,706||
The Medical Education Fund reserves derive from the uniting direction and represent the formerly unrestricted reserves of the BMA Medical Education Trust Fund and its ongoing income and expenditure. The purpose of this fund is to give assistance to students at UK medical schools who are studying medicine as a second degree.
The Hastings Fund reserves derive from the uniting direction and represent the former unrestricted reserves of the Hastings Benevolent Fund and its ongoing income and expenditure. The purpose of this fund is to provide short-term financial assistance to members of the medical profession and/or their dependents.
The Fairley Legacy has been donated to provided assistance to a restricted class of student. At the balance sheet date the bequest beneficiaries are still to be clarified by the Treasury Solicitor.
The BMA Covid-19 Fund has been given to the Hastings Fund to assist in the support of grantees affected by Covid-19.
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## **BMA CHARITIES TRUST FUND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **22 Related party transactions**
The BMA Charities Trust Fund receives free use of office accommodation from the BMA. A gift in kind value has been placed on this donation of £ 7 , 50 0 as were the accommodation not provided the Charity would rent equivalent accommodation of this cost elsewhere. The BMA has also donated £50,000 (2019£nil) to the Medical Education Fund during the year, and £10,000 (2019 - £nil) to the Hastings Fund for grantees impacted by Covid-19.
The Dain Fund and the Charities Trust Fund share the cost of an employee whose salary is apportioned across the two charities at an agreed percentage based on a fixed estimate of time spent on each charity's affairs. During the year the Charities Trust Fund had seven trustees who are also trustees of the Dain Fund. A donation of £9,500 was made by the Dain Fund during the year (2019 - £ 1 4, 5 00)
A donation was received from the De Silva Wijesekera Trust Fund during the year towards grant giving of £ 3 0,000 (2019 - £3 0 ,000) . The De Silva Wijesekera Trust Fund is an un registered charity, and shares trustees with the BMA Charities Trust Fund.
The charity is required to disclose key management salaries. There is only one employee of the charity, as outlined above, and their remuneration is detailed in note 12.
During the year the trustees collectively donated £120 (2019 - £ 1 20). None of these funds were given for activities outside of the usual BMA Charities' undertakings. There were no further transactions with trustees aside from reimbursed expenses disclosed in note 11.
- 27 -