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2021-12-31-accounts

BRITISH EPILEPSY ASSOCIATION

(A company limited by guarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

REGISTERED NUMBER: 00797997 CHARITY NUMBER: 234343

CONTENTS

Page
Chair's report 1
Honorary Treasurer’s report 2
Trustees’ annual report 3 – 7
Strategic report 8-21
Independent Auditor’s report 22 - 25
Statement of financial activities 26
Balance sheet 27
Statement of cash flows 28
Notes to the financial statements 29 – 45
Glossary 46

Chair’s report

Last year I was able to report that despite facing the most extraordinary challenges from the impact of Covid-19, the charity had emerged in good shape and ready to face the challenges of a post Covid world. Although we are not there yet, 2021 has been more successful on so many fronts than we had hoped. As you will see from June Massey’s Honorary Treasurer's report, we ended the year with a small financial surplus, after having set a deficit budget in order to maintain services. I would like to say a big thank you not just to all our fundraising staff who have worked to deliver this 38% increase in our income over last year but to every single one of our members, supporters and donors who have given money, undertaken sponsored events or online challenges. Without your generosity we could not deliver the support to people with epilepsy, their families, friends and carers which they need now more than ever.

2021 has been a year of outstanding achievement in our work to improve the

quality and availability of healthcare services for people with epilepsy and to improve awareness and understanding of the condition. None of this has been easy in the current climate. I would encourage you to read the full detail of our activities in the trustees’ report as I can only give a flavour of this achievement here by mentioning a few highlights.

Throughout the year we continued to engage with people by holding 126 nationwide virtual group meetings and 289 local virtual group meetings highly praised by those who attended and which provided them with the opportunity to stay connected at times when face to face contact was not possible. We saw an increase of 600% in the online coverage and a 58% increase in national media coverage for our charity and its work. We have also increased our presence and influence on social media across six different social media platforms. Throughout the year we have maintained updates on coronavirus and, representing the authentic voice of people affected by epilepsy, made an impact on a range of topics and issues including the DHSC Covid-19 vaccination campaign, medical cannabis, the consistency of supply of epilepsy medication and protecting epilepsy health services during the Covid-19 emergency.

Organisationally, 2021 has been a transitional year as we have streamlined our operational activity into five new departments and moved to a blend of home and office based working for staff. In April we also welcomed Rebekah Smith as our new Deputy Chief Executive. Rebekah has been at the forefront of much of this work. We have also been looking at how the delivery of our services has changed over the course of the pandemic and what lessons we can learn for the future. The focus of all of this review process has been to both improve the services we offer and to better tailor what we offer to differing individual needs. As we move forward we will be looking at opportunities to expand and improve our current range of services in a sustainable manner wherever possible.

It was my great privilege to be re-elected as Chair of the Council of Management and I want to take this opportunity to thank my fellow Council Members for their continued support and also for their hard work and dedication throughout the year, and particularly my Vice Chair, Jane Riley and our Honorary Treasurer, June Massey. During the course of the year Dr Jim Morrow, Jan Follett and Torie Robinson left Council; we thank them for their input and wish them well for the future. Avril Coelho, Nicholas Hutton and Joanne Greer joined the Council in June and bring with them new perspectives on our deliberations. I am also pleased to report that Beryl Sharlot has been able to play a more active role in our work after a long period of illness and Gavin Barlow has also been able to resume his role after serious surgery at the end of the year. Finally, I would like to thank Philip Lee, his senior management team and all our staff who have worked so hard throughout the year and without whom none of what we have achieved would have been possible.

In closing, I am pleased to be able to report that the Association remains in a strong position with a sound financial base and well placed to continue its valuable work in a still uncertain future.

Richard Chapman Chair, Council of Management 12 April 2022

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Honorary Treasurer’s report

The day-to-day management of the charity’s finances continues to be expertly and efficiently handled by our finance staff led by Tony Spinks. The Council takes a more strategic view of financial progress, monitoring and evaluating performance against the forecasts made in the annual revenue budget and other plans.

After a very difficult financial year in 2020, which saw the COVID-19 pandemic significantly disrupt the charity’s income generating potential, the Council of Management adopted a particularly cautious approach to the financial prospects for 2021 and beyond. In the event, 2021 saw a welcome recovery in most of our areas of income especially fundraising events. This was driven by our investment in virtual and digital fundraising.

Total income in 2021 was £3,314,918. This compares to £2,395,053 in 2020. Total spending in 2021 was £3,299,536. This compares to £3,126,323 in 2020.

Across all funds there was a surplus of income over expenditure of £15,382 (2020: deficit of £731,270). After accounting for an unrealised gain of £212,184 on the value of investments (2020: unrealised loss of £185,793) the net movement in funds for the year was £227,566 (2020: £917,063). Total funds at year end are £3,672,153 (2020: £3,444,587).

Spending on charitable activities in 2021 was £2,005,297 compared to £2,101,915 in 2020. Of this total we spent £1,523,548 (76%) on improving the quality of healthcare services for people with epilepsy and £481,749 (24%) on improving awareness and understanding of the condition. We also spent £1,167,079 on raising funds in 2021 compared with £1,024,408 in 2020.

The charity’s reserves policy (revised in 2020) is that the Association shall maintain a level of unrestricted financial reserves that falls within a range of between four months and twelve months gross total unrestricted income based on the following year’s revenue budget forecast. If the level of unrestricted financial reserves moves outside of these parameters, then the Council of Management will take appropriate action.

Based on the 2022 total unrestricted income of £3,525,176 forecast in the 2022 revenue budget, the range of unrestricted reserves should be between £3,525,176 (12 months cover) and £1,175,059 (4 months cover). At the end of 2021, the unrestricted reserve funds amounted to £2,543,498 (2020: £2,423,069). At this level they represent 8.66 months of unrestricted income and are therefore within the boundaries set by the reserves policy.

At the end of the year the charity held total reserves valued at £3,672,153. This compares to total reserves of £3,444,587 at the end of 2020. In addition to the unrestricted reserves mentioned above, £468,206 of the total was held for designated spending in the future and £660,449 was held for restricted purposes.

I’m delighted to be able to report such a strong financial result for the charity in 2021. The recovery in our income reflects the hard work of all our staff and volunteers as well as the generosity and loyalty of our tens of thousands of wonderful supporters. Thank you.

Despite this, there is no room for complacency. These remain volatile and unpredictable times. Mindful of their responsibilities, the trustees will continue to monitor the financial impact of the pandemic on the charity, and they will take whatever action is necessary to ensure the organisation remains viable.

June Massey Honorary Treasurer 12 April 2022

2

Trustees’ annual report

The trustees of British Epilepsy Association, collectively known as the Council of Management or ‘the Council’, has pleasure in presenting its Trustees’ Annual Report incorporating the Strategic Report and Audited Accounts for the year ended 31 December 2021.

Structure, governance and management

The organisation was first set up as a charitable trust and registered at the Charity Commission on 5 December 1950. The Association became a company limited by guarantee on 25 March 1964 (registered in England, number 00797997) and was re-registered at the Charity Commission on 5 August 1964 (registered charity number 234343). The Association is also registered for Value Added Tax (Registration No. 183 1032 39).

The Association is constituted under a Memorandum and Articles of Association. The current Memorandum and Articles of Association were adopted by the members on 17 June 2006 and were last amended by the members on 29 June 2021.

The Association does not have share capital, cannot pay dividends and must utilise all of its funds to further its stated charitable objectives. Under the terms of clause 7 of the Memorandum of Association every member, as defined by Article 2 of the Articles of Association, is liable to contribute a sum if necessary and not exceeding £1 in the event of the Association being wound up.

At 31 December 2021 there were 8,637 active members (2020: 8,944), including 369 life members (2020: 370).

Epilepsy Action

In May 2002 the Association began using the working name, Epilepsy Action . The charity keeps the name British Epilepsy Association but uses the working name Epilepsy Action across its range of activities. It also uses the names Epilepsy Action Cymru and Epilepsy Action Northern Ireland for its work in those two countries of the United Kingdom.

Council of Management

The Council of Management is the governing body of the Association. It usually meets six times a year and it sets the policy and strategic direction of the charity. It is also responsible for overseeing the sound management of the whole Association and for ensuring the Association’s policy is carried out by the staff through day-to-day operational activity supervised by the Chief Executive.

The Council is made up of a maximum of 16 members of the Association who have been elected by the membership. One third of the Council members retire by rotation each year. Persons seeking election or re-election must be nominated by two subscribing members of the Association. The Association is proud of its open and democratic tradition, which enables the charity to have the benefit of a Council which includes people with epilepsy, carers, professionals and others interested in the condition.

Article 24 allows the Council to appoint up to two additional Council members, to hold office for a maximum of three years, subject to annual confirmation by the Annual General Meeting of the Association. No Council members appointed in this way held office during 2021.

In accordance with the Articles of Association, the following members of Council are retiring at the Annual General Meeting on 14 June 2022: - Peter Clough, Diane Hockley, Jane Riley, Beryl Sharlot and Stephen Timewell.

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The people who served on the Council of Management between 1 January and 31 December 2021 were:

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Chair Richard Chapman
-
re-elected to Council 29 June 2021
Vice Chair Jane Riley
Honorary Treasurer June Massey Cert Ed DipSpLD AMBDA (FE/HE)
-
re-elected to Council 29 June 2021
Gavin Barlow BSc Michael Harnor MEd MSc BEd (Hons) ACP MIHPE
Jayne Burton Sarah Lawson
-
re-elected to Council 29 June 2021
Peter Clough Jim Morrow BA (Hons) MD PhD FRCP
-
retired from Council 29 June 2021
Avril Coelho Torie Robinson
- -
elected to Council 29 June 2021 resigned from Council 1 December 2021
Jan Follett Cert Ed BA (Hons) Beryl Sharlot
-
resigned from Council 17 February 2021
Joanne Greer Stephen Timewell
-
elected to Council 29 June 2021
Diane Hockley Ian Walker
Nicholas Hutton
- elected to Council 29 June 2021
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Trustee induction and trustee training

Each newly elected Council member receives guidance notes about their role and responsibilities as a charity trustee and company director as part of a comprehensive induction process. Individual trustees attend conferences, seminars and other training and learning opportunities as necessary through the year to update their knowledge about their role and responsibilities as charity trustees and company directors. Training and personal development needs are reviewed as part of the annual appraisal of the Council and its members.

Council appraisal and corporate governance

The Council of Management carries out a system of trustee annual appraisal to ensure the continued efficiency and effectiveness of the Council. A Council committee on corporate governance further supports this objective. The Council of Management has adopted ‘ Good Governance – a code for the voluntary and community sector ’, 2[nd] edition, October 2010; and is “ taking steps to improve governance based on the Code ”. This Code provides the benchmark for Council appraisal.

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Council of Management committees and advisory panels

There were three Council committees during 2021: Corporate Governance, Finance and Strategic Policy, and the Standing Committee. Council also established a Council Working Practices Review Group on 13 July 2021. Each Committee and the Working Group has terms of reference and a membership that is approved by the Council and reviewed on an annual basis. Council members also serve on a Staff Appeals Panel to hear appeals from staff in relation to grievance or disciplinary disputes. There were no appeals to the panel in 2021. Membership of the Council’s Committees, the Working Group and the Council’s Staff Appeals Panel in 2021 is listed below.

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Corporate Governance Committee Finance & Strategic Policy Committee
(maximum 6 members) (6-8 members)
Jayne Burton Committee Chair from 6 Jane Riley Committee Chair
September 2021 Council Vice Chair ex officio member
of Committee
June Massey Committee Chair to 6 Richard Chapman Council Chair ex officio member of
September 2021 Committee
Richard Chapman Council Chair ex officio member of June Massey Honorary Treasurer ex officio
Committee member of Committee
Diane Hockley Gavin Barlow
Sarah Lawson Peter Clough
Torie Robinson To 13 July 2021 Michael Harnor
Ian Walker From 13 July 2021 Sarah Lawson
Stephen Timewell
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Council Working Practices Review Group Staff Appeals Panel
(Maximum 5 members) (Maximum 6 members)
Ian Walker From 15 July 2021 – elected Group Jane Riley Panel Chair – Council Vice Chair ex
Chair from 12 October 2021 officio member of panel
Jane Riley Council Vice Chair – ex officio Gavin Barlow
member of group – from 13 July
2021
Peter Clough From 15 July 2021 Jayne Burton
Avril Coelho From 15 July 2021 Sarah Lawson
Nicholas Hutton From 7 December 2021 Torie Robinson To 1 December 2021
Torie Robinson From 15 July – 1 December 2021 Beryl Sharlot
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Standing Committee
(Maximum 5 members)
Richard Chapman
Committee Chair – Council Chair ex
officio member of committee
Jane Riley Council Vice Chair ex officio member
of committee
June Massey Honorary Treasurer ex officio
member of committee

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Advisory Panels

Advisory Panels have been set up by the Council of Management to advise and guide the Association in its work. Each panel has terms of reference and a membership that is approved by the Council and reviewed on an annual basis. These include a Health and Clinical Advisory Panel, a Research Advisory Panel, a Scientific Awards Panel and a Women’s Advisory Panel. The performance of each panel was critically evaluated during 2021 according to a set of performance criteria. Subsequently, the Council confirmed that each panel should continue to operate. Membership of the Advisory Panels during 2021 is listed below.

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Health and Clinical Advisory Panel
Professor Markus Reuber MD PhD Dr Colin Dunkley Dr Owen Pickrell – appointed 11 May
FRCP – Chair 2021
Dr Aza Abdulla FRCP (UK) FRCPI Ms Jo Geldard Professor Mark Richardson – appointed
MSc (Immun) MSc (Med Ed) 11 May 2021
Dr Richard Appleton LRCP MRCS Dr Hayley Gorton Mrs Julie Rigby MSc BSc (Hons)
MBBS DCH MA (Oxon) FRCP MCSP
FRCPCH
Dr Manny Bagary BSc MBBS Ms Christine Hanson Mr Richard Selway MA MMedSci MB
MRCPsych PhD BChir BSc FRCS(SN)
Professor Martin Brodie MB ChB Dr Dan Hindley Professor Stefano Seri MD FRCP
MRCP FRCP
Professor Richard Chinn – appointed 11 Simon Keller – appointed 11 May Professor Phil Smith MD FRCP
May 2021 2021
Dr Hannah Cock BSc FRCP MD Professor Steven Kemp – appointed 11 Dr Rhys Thomas
May 2021
Dr John Craig Professor Sayeed Khan MBBS Mr Martin Tisdall
BMedSci DGM CMIOSH FRCGP
FFOM FRCP FRSA DM
Professor Helen Cross MB ChB PhD Dr John Paul Leach MD FRCP Ms Bernie Waldron RSCN MSc
FRCP FRCPCH
Dr Anita Devlin – appointed 11 May 2021 Professor Tony Marson Professor Matthew Walker MA MB
BChir FRCP PhD
Dr JM Dickson Dr Jim Morrow BA (Hons) MD PhD Dr Ingram Wright BA (Hons) PhD D
FRCP Clin Psy
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Research Advisory Panel Scientific Awards Panel Women’s Advisory Panel
Erica Chisanga Dr Khalid Hamandi Dr Amanda Freeman MB BS FRCP –
retired 10 May 2021
Dr Sarah Collard Emily Holmes Ms Beth Irwin
Ms Helen Coyle RGN BA (Hons) Professor Michael Johnson Dr Jim Morrow BA (Hons) MD PhD
MPhil FRCP
Dr Adina Lew Stephanie Kilinc Rebecca Bromley – appointed 11 May
2021
Dr Dougall McCorry Melissa Maguire Dr John Craig – appointed 11 May 2021
Dr Ian Minshall MB ChB DRCOG Linda Mayhew Kim Morley – appointed 11 May 2021
FPCert JCPTGP
Deb Pal Nigel Bennett Dr Arjune Sen – appointed 11 May 2021
Professor Howard Ring BSc MB BS Fiona McKinnon Dr Rohit Shankar – appointed 11 May
MRPsych 2021
Rohit Shankar Rajiv Mohanraj Dr Sophia Varadkar – appointed 11 May
2021
Prof Sanjay Sisodiya Leone Ridsdale Dr Janine Winterbottom – appointed 11
May 2021
Andrew Trevelyan
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Epilepsy Action Cymru and Epilepsy Action Northern Ireland

The Association operates in Wales as Epilepsy Action Cymru and in Northern Ireland as Epilepsy Action Northern Ireland . A National Advisory Council for Wales and a National Advisory Council for Northern Ireland provide advice, guidance and support for the charity’s work in these countries. Both Councils have terms of reference and a membership that is approved by the Council of Management and which is reviewed on an annual basis. Membership of the National Advisory Councils during 2021 is listed below.

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National Advisory Council for Northern Ireland National Advisory Council for Wales
(Maximum 15 members) Cyngor Ymgynghorol Cenedlaethol Cymru
(Maximum 15 members)
Dr John Craig - Chair Dr Khalid Hamandi – Chair
Ms Ena Bingham RSCN RGN RM – retired 30 September 2021 Ms Louise Capeling
Mr David Gilmour – retired 6 November 2021 Mr Michael Dix-Williams
Dr Michael Kinney Dr Frances Gibbon
Maura Mackie Dr Dave Minton
Ms Sarah McCann Ms Malisa Pierri
Megan McCarthy Dr Rob Powell
Ms Deborah McCrudden Siôn Glyn Pritchard – appointed 5 October 2021
Dr Jim Morrow BA (Hons) MD PhD FRCP Ms Shelia Shepley
Ms Edna O’Neill Jeanette Spiers – appointed 5 October 2021
Dr Louise Rusk Mr Ian Walker
Mr Derick Woods BA BSc DipEd Mr Craig Williams
Mrs Marion Woods
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Trustees’ interests

Members of the Council are charity trustees as defined by the Charities Act. Since the Association is a company limited by guarantee, persons elected or appointed to its Council are also directors and are registered as such in accordance with the Companies Act. Council members may claim for reasonable expenses incurred in undertaking the Association’s business but they receive no remuneration or other financial benefit. All members of the Council have confirmed that they do not have and have not had any beneficial interest in any contract with the Association apart from the disclosures made within note 20 to the accounts. The Association maintains a publicly available register of trustees’ interests.

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Strategic report

The following report includes the detail required by the Companies Act 2006 with regards to the strategic report.

Risk assessment

The Council has assessed the major risks to which the Association is exposed, in particular those related to the operations and finances of the charity. The Council is satisfied that management and control systems are in place to mitigate the Association’s exposure to the major risks. The Council reviews these risks and controls at least four times each year.

Risks are identified and assessed by the trustees based on their likelihood of happening and the severity of their impact if they were to happen. Risks are scored before action is taken (gross risk score) and again after action is taken (net risk score). On 7 December 2021, 12 risks were identified and assessed with a net risk score of 15 or higher making them the most significant risks to the charity. The 2021 dates are valid at the time the risk register was last reviewed. These risks, their potential impact and the actions taken in response to them are as follows:

Description of
risk		 Potential impact Actions taken to mitigate risk Net risk score
after action
taken
New CRM database
project fails to
deliver on time or
runs over budget.		 Fundraising, membership and
stakeholder engagement
compromised; financial and
service targets missed; higher
cost to complete project.		 Exhaustive and extensive
acquisition process in place with
Council sign off. Revised project
management structure in place.
Project risk management in place.
Reports to Council at every
Council meeting. Senior
management team review at every
meeting.		 24
Failure of one or
more top five
sources of income,
(delivers less than
80% of target).		 Pressure on cash flow; loss of
expected and planned income;
reduced spending or use of
reserves to balance finances;
services reduced.		 Major sources of income are
identified and closely monitored.
Legacy analysis and pipeline tool to
help accuracy in predicting legacy
income. Maintain a broad base of
fundraising. Risk based reserves
policy based on future income.
F&SP Committee regularly review
fundraising performance and plans.
Fast adoption of new initiatives to
replace fundraising hit by
Coronavirus, (e.g. Facebook
Challenges). 2021 revenue budget
has reset forecasts to more
realisticlevels.		 20
Turbulent macro-
economic
conditions giving
rise to financial
crisis; inflation;
unemployment;
public sector
austerity; less
personal disposable
income; falling
stock markets.		 Reduced income; higher costs;
reduced spending; use of
reserves to balance finances;
increase in demand for services;
reduction in service delivery.		 Monitor economic forecasts and
geopolitical events and take these
into account in financial and
business planning. Risk based
reserves policy provides a financial
cushion against short term
volatility. Diverse income
generation spreads the risk of
failure. Three year perspective on
2021 revenue budget.		 20

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Income from Reputational damage; lower Fundraising delivery and monitoring 20
fundraising falls income than expected and plan for 2021 approved by Council
below expectations. planned for; reduced spending on 13 April 2021. Annual revenue
and/or depleted reserves to budget. Annual business plan.
balance finances; disruption to Individual fundraising project plans.
long term plans; lowered Monitoring by F&SP Committee.
stakeholder morale. Facebook Challenges delivered
above expectation in Q1 of 2021.
2021 revenue budget resets
forecasts and expectations.
Failure to comply Financial penalties imposed by Director of Corporate Services 20
with Data regulators; suspension or loss appointed Data Protection Officer.
Protection law and of license; reputational damage; GDPR training for all staff. GDPR
regulation. loss of public confidence; loss of awareness for volunteers. GDPR
income and support. permission renewals process in
place. Ensuring new CRM database
is GDPR compliant.
Investment in Pressure on cash flow; lower Fundraising delivery and monitoring 16
Individual Giving income than expected and plan for 2021 approved by Council
fundraising delivers planned for; reduced spending on 13 April 2021. Individual Giving
less than 80% of and/or depleted reserves to plan in place; phased
targets. balance finances; disruption to implementation with testing
long term plans; lowered enables active adjustment;
stakeholder morale; services performance is monitored closely;
reduced. reserves policy reflects potential
volatility of income; F&SP
Committee regularly review
fundraising performance and plans.
Public loses Loss of donors; loss of Registered with the Fundraising 16
confidence in supporters; lower income than Regulator and signed up to its code
Epilepsy Action expected and planned; reduced of good practice. Regular and open
fundraising. spending or use of reserves to communications with fundraising
cover shortfall. supporters and the public.
A major successful Fundraising less effective; Ensure profile of Epilepsy Action is 15
competitor potential loss of income; at least maintained through
appears, (e.g. a new reduced public profile; proactive PR work. Focus on our
high profile cause reduction in support; reduction distinctive advantages. Ongoing
or condition). in service users; reduced monitoring for competitive threats.
influence and authority.
Adverse changes in NHS priorities change; NHS re- Monitor developments. Seek to 15
NHS policy or organised; epilepsy not a influence policy and practice
practice. service priority; commissioning directly and through alliances, (e.g.
opportunities diminish; demand MHRA and QOF changes,
for charity's services increases. specialised commissioning, NICE
guidelines review). Sustain support
for Westminster APPG on epilepsy
and sustain health policy
campaigning.
Significant loss of Reputational damage; loss of Continuing plan for membership 15
membership. mandate and authority; development in place for 2021
weakened influence; lower addressing recruitment, retention
income; lowered stakeholder and administration.
morale; accelerating loss of
members.
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Cyber attack. Reputational damage; loss of
public and donor confidence;
disruption to services; damage
to digital infrastructure; website
lost or disabled; social media
disabled; cost of recovery.		 IT covered in disaster recovery
plan; anti-virus software in place.
Staff minded to be alert to
potential threats. Communications
and Digital Engagement department
focuses expertise and cyber attack
awareness.		 15
IT systems failures. Systems fail to meet operational
need; email system collapses; IT
obsolete; IT supplier fails; loss
or corruption of data; data
protection law breach.		 Systematic updating of IT;
comprehensive back up procedures
in place; due diligence completed
on suppliers; services formally
contracted; monitoring of data
protection law and staff training in
compliance; IT covered in disaster
recovery plan.		 15

Coronavirus (Covid-19)

Although Coronavirus (Covid-19) continued to have an impact on the charity during 2021, the steps taken by the charity during 2020 and through 2021 have helped to mitigate this - whether this be in fundraising, service delivery, operational organisation or corporate governance. The trustees are satisfied that the impact of Covid-19, will not impact on the charity’s ability to continue in operational existence for the foreseeable future.

Subsidiary companies

The Association has three wholly owned subsidiary companies. Epilepsy Action and Epilepsy U.K. are both dormant companies. BEA Trading Limited is engaged in fundraising activities, the distribution of Christmas cards, associated gifts and the promotion of BEA insurances. More information about the subsidiary companies can be found in note 13 to the accounts.

Co-operation with other charitable organisations

The Association is an active member of the International Bureau for Epilepsy (IBE), the Neurological Alliance, the Disability Benefits Consortium and National Voices. The Association is also a member of the National Council for Voluntary Organisations (NCVO), the Association of Medical Research Charities (AMRC), the Institute of Fundraising and the Charity Finance Group.

Public benefit

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Association’s aims, objectives and activities and this report seeks to comply with that guidance by clearly explaining and illustrating how the charity delivers public benefit.

Information about the charity’s fundraising

The charity’s fundraising strategy is outlined in a document ‘Epilepsy Action fundraising delivery and monitoring plan, 2021’. A copy of the document has been made available to every Council member. The document supports Council members in their role of overseeing fundraising in line with Charity Commission guidance (CC20, ‘Charity fundraising: a guide to trustee duties’). It describes how fundraising is managed and overseen in order to ensure it is in the charity’s best interests and compliant with the law and best practice. It outlines each area of fundraising the charity undertakes and provides more information in relation to that area of fundraising.

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The charity only works with professional fundraising organisations that also meet these standards. It will not enter into a partnership with any external fundraising organisation that does not meet these requirements.

Indemnity insurance

Subject to the provision of the Companies Act 2006, every trustee and officer is indemnified against any liability incurred by them in their capacity in defending any proceedings whether civil or criminal, in which judgement is given in favour or in which they are acquitted or in connection with any application in which relief is granted to them by the court from liability for negligence, default, breach of duty or breach of trust in relation to the affairs of British Epilepsy Association.

Objectives and activities

The charity’s objects are set out in detail in clause 3 of its Memorandum of Association. In summary, the Association exists for the benefit and service of people with epilepsy and others interested in epilepsy and associated conditions. The Association seeks to ensure that everything it undertakes is free of political and commercial bias.

The Association’s strategic plan has two goals – to improve the quality and availability of healthcare services for people with epilepsy and to improve awareness and understanding of epilepsy. To achieve these two goals the charity focuses on eight objectives. In addition, the charity has set itself five organisation goals to help it to be stronger and more effective in the future.

Despite the extraordinary conditions prevailing through much of 2021, the staff, volunteers and supporters of the charity remained focused on delivering the strategy. The key achievements and successes of 2021 are set out here.

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Goal 1: Improve the quality and availability of health care services for people with epilepsy

1. Provide advice, information and training about epilepsy

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2021
Helpline advice and information service users 10,536
First time Helpline users 3,271
Number of page views of the advice and information web pages 2,637,909
Visits to e-learning site 176,388
Registrations on e-learning courses 31,317
Completions of e-learning courses 21,583
Number of printed advice and information items ordered 81,059
Number of advice and information downloads 97,551
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2. Give people the skills and opportunities to speak out for themselves and for others affected by

epilepsy

3. Influence national health policy

4. Influence and support local health service design, commissioning and delivery

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5. Research

Goal 2: Improve awareness and understanding of epilepsy

1. Encourage and support people to be open about epilepsy

2. Publicly celebrate positive attitudes towards epilepsy and challenge negative attitudes

3. Engage with national and local decision makers

Organisation goals

1. Building a community of interest around epilepsy

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2. Developing our income

3. Raising the profile and visibility of Epilepsy Action

4. Becoming a digital charity

5. Delivering our strategy in local communities

Values and beliefs

Epilepsy Action is defined by its values . They guide what we do, how we work and the decisions we make.

We are positive about epilepsy and passionate about what we do. We are creative and innovative in our thinking and confident in our actions.

We care about people with epilepsy and their families. We listen to them and we respond to their needs. We never forget that epilepsy is about people.

We are a diverse and inclusive organisation that actively reaches out to people across all countries of the United Kingdom and British Isles. We welcome everyone affected by epilepsy.

We represent by being a community of interest around epilepsy - reflecting peoples’ hopes and aspirations and providing identity, unity and a voice.

Further details about the Association’s work and how it delivers public benefit appear elsewhere in this report under ‘Achievements and performance’. Extracts from this report also appear on our website, www.epilepsy.org.uk.

14

People

The Council of Management would like to place on record its appreciation of the hard work and commitment to the charity’s objectives of all staff in 2021. At no time during the pandemic has the Association furloughed any of its employees. Everyone has continued working, often in very difficult circumstances, to keep our services open and available. During the year the Association’s operational structure was reviewed and revised to create five departments – Communications and Digital Engagement, Corporate Services, Fundraising, Health Improvement and Influencing and Services.

The senior staff employed by the Association were:

Chief Executive Philip Lee Deputy Chief Executive Rebekah Smith – from 19 April 2021 Director of Services Ann Richardson-Greaves - from 18 October 2021 Director of Health Improvement and Influencing Alison Fuller – from 14 February 2022 Director of Fundraising Philippa Cartwright Director of Communications and Digital Jon Eaton - from 18 October 2021 Engagement Director of Corporate Services Tony Spinks - from 18 October 2021 Chief Financial Officer Tony Spinks - to 18 October 2021 Director of Digital Services Jon Eaton - to 18 October 2021 Director of Local Services Ann Richardson-Greaves – From 12 April 2021 to 18 October 2021 Director of Local Services Clare Watson - to 19 February 2021 Director of Epilepsy Services Angie Pullen to 31 July 2021 Director of External Affairs Louise Cousins - to 30 September 2021 Director of Support Services Barry Wilson to 18 October 2021

Key management personnel

The key management personnel comprise the Trustees, the Chief Executive and the Deputy Chief Executive, see note 20.

Pay policy for senior staff

The pay of all staff including senior staff is reviewed annually. The benchmark for any increase is the August index of average earnings (UK whole economy). However, the trustees also take into account what the charity can afford, the local and voluntary sector labour markets and general economic conditions. There was no increase in staff salaries during 2021.

The Council also acknowledges with gratitude the work and commitment of the many volunteers who willingly give of their time to the considerable benefit of the charity and the people the charity serves. The opportunities for volunteering in 2021 were severely curtailed but even so, the total number of hours donated to the Association in 2021 by all of its volunteers is estimated to be 42,319 (2020: 20,734). This equates to 23.6 full time staff, based on an average staff working week of 34.5 hours. Using the Association’s mean average staff cost in 2021 of £18.46 per hour, (which includes the cost of national insurance and pension contributions), the financial value of this volunteered time in 2021 is estimated to be £781,209 (2020: £402,675). These financial values are not recognised within the statement of financial activities as they do not meet the income recognition criteria under the SORP.

Equal Opportunities

The Association supports the principle of equal opportunities, in particular for those who are unable to compete equally in open employment. This especially includes people who have a history of epilepsy. All staff may become subscribing members of the Association and are kept informed of the charity’s activities and progress through regular meetings and written communications.

15

The Council of Management would also like to acknowledge the help and support of the following people who served the Association during 2021.

Patron The Duchess of Kent
Vice Patrons His Eminence The Cardinal Archbishop of Westminster
The Very Reverend The Chief Rabbi
The Free Churches’ Moderator
President Baroness Ford of Cunninghame
Honorary Past President Baroness Gould of Potternewton
Honorary Vice Presidents
Ms Karen Armstrong Mr Darren Millar AM –retired 29 June 2021
Professor Gus Baker Ms Laura Sandys–retired 29 June 2021
Mr William Fiennes Ms Paula Sherriff–retired 29 June 2021
Dr Evan Harris Mr Stephen Twigg–retired 29 June 2021
Lord Smith of Leigh_– died 3 August 2021_ Professor Ray Tallis
Mr Paul Maynard MP

Achievements and performance

Despite the difficulties of the year, we have made good progress in all of our strategic priority areas. We have sustained and developed our services, ensuring the charity remains available to those who need it. The positive influence that our work has on peoples’ lives is more fully documented on our website www.epilepsy.org.uk.

Financial Review

The results for the year are set out on pages 26 to 45. 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), (effective 1 January 2015), with the aim of presenting the financial position of the Association in a clear, comprehensive and intelligible way. The results of the Association’s commercial subsidiary, BEA Trading Limited, are shown in note 13 to the accounts.

General review of the charity’s financial position

----- Start of picture text -----
2021 2020
£ £
Total incoming resources 3,314,918 2,395,053
Total resources used 3,299,536 3,126,323
Surplus / (Deficit) 15,382 (731,270)
Unrealised Gain / (Loss) 212,184 (185,793)
Net Movement in Funds 227,566 (917,063)
Total Funds 3,672,153 3,444,587
----- End of picture text -----

Total income for 2021 was £3,314,918 (2020: £2,395,053). Total resources used amounted to £3,299,536 (2020: £3,126,323). Across all Funds there was a surplus of income over expenditure of £15,382 (2020: deficit of £731,270). After accounting for an unrealised gain of £212,184 on the value of investments (2020: unrealised loss of £185,793) the net movement in funds for the year was an increase of £227,566 (2020: decrease of £917,063). The total funds held by the charity at the end of the year is £3,672,153 (2020: £3,444,587).

16

Principal sources of funding

Income from donations and legacies amounted to £2,988,108 (2020: £2,050,228). Income from other trading activities amounted to £63,566 (2020: £112,358). Income from investments was £83,815 (2020: £108,709). Income from charitable activities was £179,429 (2020: £123,758). The amount spent on raising funds in 2021 was £871,862 (2020: £839,285). This equates to an income of £3.80 for every £1.00 spent on raising funds (2020: £2.85 income for every £1.00 spent).

The top six performing income areas are responsible for 91% of the charity’s income. Legacy bequests are the top income generator responsible for 32% of the Associations income. In 2021 this amounted to £1,061,959 (2020: £735,023). Donations from individuals contributed £606,472 (2020: £621,484). Membership subscriptions contributed £221,944 (2020: £224,713). Income from fundraising events sponsorship contributed £763,229 (2020: £229,853). Grant income contributed £211,389 (2020: £128,720). Income from sales of goods and services was £179,429 (2020: £123,758).

We would like to thank all the charitable trusts and foundations, companies and community groups who have generously provided grant and donation income or gifts in kind to support our work. We would also like to thank all the many individuals who supported us throughout 2021 through their membership, donations, sponsorship, or event participation.

Fundraising income is explained in more detail in notes 2 and 4 to the accounts.

Grant making policy

The Association makes grants available for research. Applications are considered in light of the Association’s prevailing research priorities and with reference to the Association’s research policy focus on non-laboratory research.

Investment policy

The Association’s current investment policy was approved and adopted by the Council of Management on 11 July 2017. The policy requires a balanced investment portfolio that can deliver both capital growth and income. The precise balance within the portfolio between capital growth investments and investments for income may vary in line with the changing needs of the Association and fluctuations in market conditions.

The investment priority is first to achieve a level of income that is broadly comparable with what is generally available. This income is to be used to provide some contribution to the overall funding of the Association’s charitable objectives.

The policy is also designed to enable the Association to build and maintain sufficient capital reserves to provide cover for the inevitable fluctuations in revenue income, thus ensuring continuity in the provision of the Association’s services in the context of its current strategic plan and business and charitable objectives. An appropriate level of reserves for the Association is described by the reserves policy.

17

The Council of Management will not knowingly invest in specific companies whose activities are, in the opinion of the Council of Management, inconsistent with the aims and objectives of the Association. The Council reviews the policy every year and carries out a more thorough examination every three years. The policy was last reviewed by Council on 13 April 2021.

Performance of investments

At the end of 2021, the Association retained listed investments valued at £2,557,317 (2020: £2,345,133). These investments are detailed in note 12 to the financial statements. The listed investments produced an income of £83,815 (2020: £105,715). There was an unrealised gain on the investments of £212,184 (2020: unrealised loss of £185,793). No interest was received on cash deposits in 2021 (2020: £2,994). BEA Trading Limited contributed income to the charity of £34,812 (2020: £38,825). Total income for the year from the Association’s investments was £83,815 (2020: £108,709). Investment management costs in 2021 were £13,166 (2020: £13,553).

The performance of the Association’s investment manager is measured against set targets and objectives. The investment manager provides a regular written performance report on the investments and each trustee has online access to independently view the Association’s investment portfolio at any time. The investment manager is also required to make a face-to-face presentation to the Council at least once every year.

Fixed assets

Details of movements in fixed assets during the year are set out in notes 10, 11 and 12 to the financial statements.

CRM

At the start of 2021 the Association reviewed the CRM project and the work to date which had a total cost of £127,160. The Association employed an external consultancy firm, Hart Square, to perform a review of the project and the likelihood of completion. The review concluded that the original project was unlikely to be delivered on time or provide the intended benefits. It recommended that the project should be reconstituted and restarted. Following this recommendation, the Association completely revised the project and appointed a new CRM database supplier, Bluelight CRM Ltd., in November 2021.

The work completed to the end of 2021 amounted to £127,160 which was capitalised. The decision was taken to write the total amount of £127,160 off in 2021. The Charity has designated a further £285,991 to bring the total budget for completion of the CRM project to £400,000.

Lessons have been learned from this experience and acted upon. The project governance has been reviewed and a new project team has been put in place with clear reporting guidelines and levels of authority. The original project goals have been reviewed and updated. A Minimum Viable Product (MVP) has been clearly defined with strong project governance to ensure the project remains within its specified boundaries. The importance of this project has been communicated to staff and workloads have been reviewed to ensure all staff are able to participate and give the project the time it needs to be successfully completed.

Reserves policy

The current reserves policy was approved and adopted by the Council of Management on 11 July 2017. It was amended by the Council on 4 August 2020 to enable access to more of the charity’s unrestricted reserves. This temporary measure is in place until the end of 2023. It was adopted to help support the charity during turbulent financial times. The policy applies a risk based approach to the reserves based on an assessment of potential risk to future income. The policy is that the Association shall maintain a level of unrestricted financial reserves that falls within a range of between four months (previously eight months) and twelve months gross total unrestricted income based on the following year’s revenue budget forecast. If the level of unrestricted financial reserves moves outside of these parameters then the Council of Management will take appropriate action.

Based on the 2022 total unrestricted income of £3,525,176 forecast in the 2022 revenue budget, the range of unrestricted reserves should be between £3,525,176 (12 months cover) and £1,175,059 (4 months cover). At the end of 2021, the unrestricted reserve funds amounted to £2,543,498 (2020: £2,423,069). At this level they represent 8.66 months worth of unrestricted income and are therefore within the boundaries set by the reserves policy.

18

Within the unrestricted reserves, the Association held designated funds totalling £468,206 (2020: £310,320). Of this total, £400,000 is designated for updating the Association’s CRM database. £33,206 represents funds received from the Estate of the late Roger Victor Crawley which he wished to be used for research. £35,000 represents funds received from the Estate of the late George Cowell which he wished to be used for our work in the Liverpool area. Also, in addition, at the end of the year, the Association held restricted reserves amounting to £660,449 (2020: £711,198). All of the Association’s reserve funds are explained in more detail in note 17 to the accounts.

Plans for future periods

The Council of Management approves and adopts an annual operational business plan and an annual revenue budget which includes a three year financial forecast.

On 4 October 2016 the Council approved and adopted a five year strategic plan for the Association to start on 1 January 2017. During 2020 the Council reviewed and adapted this plan in light of the conditions created by the Coronavirus pandemic and they extended it to run until the end of 2023.

We want all people affected by epilepsy to receive the healthcare and support they need and the public respect, fairness and understanding they deserve. To make this vision a reality it is the charity’s mission to strive to improve the lives of everyone affected by epilepsy.

We know that our plans are ambitious and challenging. We know they will not happen easily or quickly and will not be entirely completed within the timeframe of this strategy. But we also believe that what we want is ultimately achievable and it’s what people affected by epilepsy need. We’ll know when our vision is becoming a reality when we see evidence of the following: -

19

Statement of Council Members’ Responsibilities

The Council Members (who are also directors of British Epilepsy Association for the purposes of company law) are responsible for preparing the Trustees annual report (which includes the directors report) and the Strategic Report and the financial statements in accordance with applicable law and regulations.

Company law requires the council to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the council must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the profit or loss of the charity for that period.

In preparing those financial statements, the directors are required to:

The council members are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the existing articles of association, a resolution proposing that RSM UK Audit LLP be reappointed as auditor of the company was put to a general meeting of members on 16 June 2021.

Statement of disclosure to auditor

So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, each trustee has taken all the necessary steps to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The trustees’ report is prepared under the Charities Act 2011 which also contains all information required in a Directors Report by the Companies Act 2006 and the incorporated Strategic Report prepared under the Companies Act 2006, were approved by the board of trustees.

20

Registered office and professional advisers

Registered Office New Anstey House
Gate Way Drive
Yeadon
Leeds
LS19 7XY
Registered Auditors RSM UK Audit LLP
Central Square
5thFloor
29 Wellington Street
Leeds
LS1 4DL
Solicitors Wrigleys Solicitors LLP
19 Cookridge Street
Leeds
LS2 3AG
Bankers Yorkshire Bank plc National Westminster Bank
94-96 Briggate City Office Leeds
Leeds 8 Park Row
LS1 6NP LS1 5HD
Investment Managers Brewin Dolphin Securities Limited
10 Wellington Place
Leeds
LS1 4AN

The members of the Council of Management in their capacity as directors hereby approve the Trustees’ Annual Report and the incorporated strategic report.

Philip Lee Chief Executive and Company Secretary 12 April 2022

21

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRITISH EPILEPSY ASSOCIATION

Opinion

We have audited the financial statements of British Epilepsy Association (the ‘charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, and the Cash Flow Statement and 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

22

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report and the Trustees’ Report, which includes the Directors’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Council Members’ responsibilities set out on page 20, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material

23

misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company’s governing document, tax legislation and Charities Commission. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and Strategic Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with tax authorities and evaluating advice received from external advisors.

We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and agreeing income to third party documentation.

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

24

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

LUCY ROBSON (Senior Statutory Auditor)

For and on behalf of RSM UK AUDIT LLP, Statutory Auditor

Chartered Accountants

Central Square

5[th] Floor 29 Wellington Street

Leeds LS1 4DL Date 19/04/22

25

British Epilepsy Association Statement of Financial Activities

Incorporating an Income and Expenditure Account for the year ended 31[st] December 2021

Note
Incoming resources:
2
Donations and legacies
Charitable activities
Other trading activities
Investment income
Total
Resources expended:
6
Raising funds
Charitable activities
Other trading activities
Investment management costs
Extraordinary items - CRM impairment
Total
Net incoming/(outgoing)
resources before investment
gains/(losses)
Recognised gains
Net unrealised gains/(losses) on
investments
Net incoming/(outgoing)
resources
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forwards		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
Total
Funds
2021
2021
2021
2021
2020
£
£
£
£
£
2,801,391
10,000
176,717
2,988,108
2,050,228
176,585
-
2,844
179,429
123,758
63,566
-
-
63,566
112,358
77,142
-
6,673
83,815
108,709
3,118,684
10,000
186,234
3,314,918
2,395,053
871,862
-
-
871,862
839,285
1,739,923
10,945
254,429
2,005,297
2,101,915
282,051
-
-
282,051
171,570
12,883
-
283
13,166
13,553
127,160
-
127,160
-
2,906,719
138,105
254,712
3,299,536
3,126,323
211,965
(128,105)
(68,478)
15,382
(731,270)
194,455
-
17,729
212,184
(185,793)
406,420
(128,105)
(50,749)
227,566
(917,063)
(285,991)
285,991
-
-
-
120,429
157,886
(50,749)
227,566
(917,063)
2,423,069
310,320
711,198
3,444,587
4,361,650
2,543,498
468,206
660,449
3,672,153
3,444,587

The surplus for the year arises from the Charity’s continuing operations.

26

British Epilepsy Association

(Company Number 00797997) Balance Sheet

as at 31 December 2021

Note
Fixed Assets
Tangible fixed assets
10
Intangible fixed assets
11
Investments
12
Current Assets
Debtors
14
Cash at bank and in hand
Creditors - amounts falling due within one year
15
Net Current Assets
Net Assets
16
Funds
Unrestricted
General funds
17
Designated funds
17
Restricted funds
17		 £
£
£
£
45,066
42,749
62,255
122,687
2,557,327
2,345,143
2,664,648
2,510,579
246,295
318,321
952,406
821,537
1,198,701
1,139,858
(191,196)
(205,850)
1,007,505
934,008
3,672,153
3,444,587
2,543,498
2,423,069
468,206
310,320
660,449
711,198
3,672,153
3,444,587
2021
2020		 £
£
£
£
45,066
42,749
62,255
122,687
2,557,327
2,345,143
2,664,648
2,510,579
246,295
318,321
952,406
821,537
1,198,701
1,139,858
(191,196)
(205,850)
1,007,505
934,008
3,672,153
3,444,587
2,543,498
2,423,069
468,206
310,320
660,449
711,198
3,672,153
3,444,587
2021
2020
3,444,587
2,423,069
310,320
711,198
3,444,587

The financial statements were approved and authorised for issue by the Council of Management on 12 April 2022 and signed on its behalf by:

Richard Chapman Chair

June Massey Honorary Treasurer

The notes on pages 26-45 form part of these financial statements.

27

British Epilepsy Association Statement of Cash Flows

For the year ended 31[st] December 2021

Note
Net cash (used) in/provided by operating activities
A
Cash flow from investing activities
Purchase tangible fixed assets
10
Purchase intangible fixed assets
11
Investment income
2
Sale current asset investments
Net cash provided by/(used in) investing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of theyear		 2021
2020
£
£
142,433
(908,441)
(28,651)
(28,017)
(66,728)
(8,553)
83,815
108,709
-
500,000
(11,564)
572,139
130,869
(336,302)
821,537
1,157,839
952,406
821,537

Note A. Reconciliation of net movement in funds to cash generated from operations

Note
Net cash flow (used in)/provided by operating activities
Net movement in funds as per the Statement of Financial Activities
Depreciation charge for the year
10
Impairment loss
11
Investment income
2
Unrealised (gains)/losses on investment
12
Operating cash flows before movements in working capital
Decrease(increase) in debtors
(Decrease) in creditors
Net cash (used in)/provided by operating activities		 2021
2020
£
£
227,566
(917,063)
26,334
6,497
127,160
-
(83,815)
(108,709)
(212,184)
185,793
85,061
(833,482)
72,026
(63,248)
(14,654)
(11,711)
57,372
(74,959)
142,433
(908,441)

28

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

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) (effective 1 January 2015) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

British Epilepsy Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The financial statements are presented in sterling which is the functional currency of the charity. Monetary amounts are rounded to the nearest £1 except where otherwise indicated.

By the nature of its principal activities, the association is a non profit making organisation and because of this a Profit and Loss Account is not included in these accounts, being replaced by a Statement of Financial Activities.

The Statement of Financial Activities has been prepared on the basis that all operations are continuing operations.

The financial statements show information about the charity as an individual entity and not about its group, as the charity has taken advantage of the exemption provided by section 405 of the Companies Act 2006 not to prepare consolidated financial statements as the trustees consider that all the charity’s subsidiaries should be excluded from consolidation on the basis that they are immaterial for the purpose of giving a true and fair view.

1.2 Going concern

Due to the strong position of the balance sheet, the level of liquid resources and the operating surplus in the year, the trustees have identified no material uncertainties that may cast significant doubt over the ability of the company to continue as a going concern for the period of at least 12 months from the approval of these financial statements. The trustees outline on page 18 that they have reviewed the reserves position and surplus for the year.

1.3 Leasing

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

1.4 Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.

1.5 Expenditure

Resources used are dealt with on an accruals basis and are analysed between costs of generating funds and charitable expenditure as detailed on the Statement of Financial Activities on page 26. Where costs have not been directly attributed to a particular category, they have been allocated to activities on a basis consistent with the use of the resources.

Support costs have been allocated to each charitable expenditure category on the basis of staff utilisation or on an activity basis of total direct expenditure.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.6 Investments

Investments held as fixed assets are stated at fair value at the balance sheet date. Any difference between cost and market value is adjusted annually through the Statement of Financial Activities. The investment in the subsidiary undertaking is shown at cost.

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1.7 Taxation

As a registered charity, British Epilepsy Association is not liable to taxation on its investment income and gains, income and gains arising from trading in furtherance of its charitable objectives and charitable donations. Recovery of income tax is made on tax credits arising from receipts under deeds of covenant and gift aid payments. VAT deemed to be irrecoverable is written off to the Statement of Financial Activities in the period to which it relates.

1.8 Tangible fixed assets and depreciation

Annual impairment reviews are carried out to ensure the carrying value is not lower than the recoverable amount.

The costs of minor additions or those costing below £5,000 are not capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis –

 Leasehold improvements Straight line over the life of the lease  Fixtures, fittings and equipment Straight line over 5 years  Computers Straight line over 2 years

Identifiable development expenditure is capitalised once the technical and financial feasibility can be demonstrated. Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost of fixed assets, once complete, less their estimated residual value, over their expected useful lives on the following basis –

1.9 Donations and Legacies

Legacies are recognised when received or when we are aware that the executors have or probably have determined before the year-end that payment can be or will be made. This would normally follow agreement of estate accounts.

Legacies that are received in the following year that meet the above conditions at year-end are accrued as income in the prior year accounts. In 2021 this amounted to £121,928 (2020: £112,629).

Legacies that do not meet the conditions are not accrued at the year end. These are disclosed only as contingent assets and not included on the balance sheet or statement of financial activities. In 2021 this amounted to £247,000 (2020: £230,000).

Donations are accounted for when received. Gift Aid receivable is included when there is a valid gift aid declaration and the donation has been received.

1.10 Grants

Grants received are credited to ‘Incoming resources’ in the Statement of Financial Activities. Grants received are recognised at the later date of either when the decision to award the grant is notified to the charity or on agreement to the terms and conditions of the grant if required and when the criteria of entitlement and probability are met and the value can be measured reliably.

Grants payable are payments made to the third parties in the furtherance of the charitable objects of the charity. Grants payable are recognised at the later date of either the decision to award the grant or on receipt of signed agreement to the terms and conditions of the grant if required.

1.11 Pensions

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company. The pension cost charge represents contributions payable by the charity and amounted to £189,368 (2020: £194,405). At year-end the pension creditor amounted to £nil (2020: £16,938).

1.12 Branches

Income and expenditure in respect of the Association’s branch network has been included in the Statement of Financial Activities. Cash balances held by the branches at the year end are shown in Note 16 - Analysis of net assets between funds.

1.13 Accounting for separate funds

The financial statements of a charity must differentiate between restricted and unrestricted funds. Restricted funds are

30

funds subject to specific conditions, imposed by the donor or by the specific terms of the charity appeal.

Unrestricted funds are all the other funds of the Association and include designated funds which consist of amounts allocated for specific purposes by the charity itself.

1.14 Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past event.

1.15 Cash equivalent policy

Cash or cash equivalent amounts are cash held in bank accounts by the main charity or branches and include all cash held on short term deposits. They exclude cash held within the investment portfolio as part of the on-going investment activities.

1.16 Judgements and key sources of estimation uncertainty

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.

Apart from the accrual of legacy income, Note 1.9, there are no other areas of estimation uncertainty

1.17 Financial instruments

The company 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 when the company 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.

Financial Assets

Trade and other debtors (including accrued income) which is receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the profit or loss.

Financial Liabilities

Trade and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled.

Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

31

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

2. Details of Income

----- Start of picture text -----
General Designated Restricted Total Total
Funds Funds Funds Funds Funds
2021 2021 2021 2021 2020
£ £ £ £ £
Donations individual 589,335 - 17,137 606,472 621,484
Branch income 2,868 - 88 2,956 11,143
Legacies 982,131 10,000 69,828 1,061,959 735,023
Grants 124,730 - 86,659 211,389 128,720
Corporate donations 37,075 - 2,920 39,995 23,578
Membership subscriptions 221,944 - - 221,944 224,713
Fundraising 763,144 - 85 763,229 229,853
Donated goods and services 80,164 - - 80,164 75,714
2,801,391 10,000 176,717 2,988,108 2,050,228
General Designated Restricted Total Total
Funds Funds Funds Funds Funds
2021 2021 2021 2021 2020
£ £ £ £ £
Sales of goods and services 176,585 - 2,844 179,429 123,758
General Designated Restricted Total Total
Funds Funds Funds Funds Funds
2021 2021 2021 2021 2020
£ £ £ £ £
Event registration fees 3,555 - - 3,555 52,540
Lotteries 25,199 - - 25,199 20,993
BEA Trading Ltd 34,812 - - 34,812 38,825
63,566 - - 63,566 112,358
----- End of picture text -----

Income from quoted investments
Bank interest		 General
Funds
2021
Designated
Funds
2021
Restricted
Funds
2021
Total
Funds
2021
Total
Funds
2020
£
£
£
£
£
77,142
-
6,673
83,815
105,715
-
-
-
-
2,994
77,142
-
6,673
83,815
108,709

Prior year income

All of the donations and legacies in 2020 were unrestricted with the exception of the following: Donations individual £48,544 Branch income £2,341, Legacies £77,630, Grants £96,426, Corporate donations £1,300, Membership subscriptions £11, Fundraising £1,550, Donated goods and services £0.

All of the income from charitable activities in 2020 was unrestricted with the exception of £20. All of the income from other trading activities in 2020 was unrestricted.

All of the income from investments in 2020 was unrestricted apart from £7,419.

32

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

Legacies

Legacies with an estimated value to Epilepsy Action of £627,544 (2020: £601,495) have been notified to the charity but have not been included in the financial statements. The conditions for recognising this income within the accounts had not been met by 31 December 2021. Of these, legacies to the value of £247,000 have been disclosed only as contingent assets and therefore not accrued at year end (2020: £230,000).

We would like to thank the following Grant funders:

AM Fenton Trust Black Santa Fund (Belfast Cathedral) Charles Brotherton Trust Daisie Rich Trust Doris Field Charitable Trust Eveson Charitable Trust Ford Family Charitable Trust 1991 Fred Towler Charitable Trust Ganzoni Charitable Trust Margaret Giffen Charitable Trust Masonic Charitable Foundation St Paul's Column, Hinton Michael Cornish Charitable Trust National Lottery Pilkington Charities Fund Sir Donald and Lady Edna Wilson Charitable Trust Sir James Knott Trust Sir James Roll Charitable Trust Sir John Sumner's Trust Sovereign Health Care Tay Charitable Trust

The Alison Hillman CT The Anne and John Walters Charitable Trust The Arthur and Audrey Silkin Trust Charitable Trust The Britford Bridge Trust Foundation The Broyst Foundation The Carrington Charitable Trust Trust The Cutlers Company Charitable Trust The Florence Turner Trust Charitable Trust The Francis Charitable Trust The Fred Towler Charity Trust Charitable Trust The Fred Towler Charity Trust The George A Moore Foundation The Gledswood Charitable Trust Charitable Trust The Hamilton Wallace Trust The Henry Lumley Charitable Trust The Hugh Fraser Foundation The Hyde Foundation The J Reginald Corah Foundation Fund Greenhalgh CT The Jessie Spencer Trust

The Lady Hind Trust The Linden Charitable Trust The Marjory Boddy Charitable Trust The Patricia Routledge Foundation The Paul Bassham Charitable Trust The Roselands Trust The Samuel Storey Family Charitable Trust The Simon and Philip Cohen Charitable Trust The Sir Robert Gooch Trust The Sylvia and Colin Shepherd Charitable Trust The Thoresby Charitable Trust The Vassilou Trust The W M Mann Foundation The Westcroft Trust The Wixamtree Trust Thomas and Rosemary Greenhalgh CT Wilmcote Charitable Trust

3. Branches

3. Branches
Branch cash included in current assets at 1
January 2021
Branch income
Branch expenditure
Net income
Amount remitted by branches in the year
Branch cash included in current
assets at 31 December 2021		 2021
2020
£
£
72,273
80,504
2,956
11,143
(857)
(11,550)
2,099
(407)
(600)
(7,824)
73,772
72,273
72,273

At the end of 2021 we had a total of 18 branches, 4 forums and 126 virtual groups (2020: 138 branches, forums and groups in total).

In accordance with Charity law, monies raised by the Association's branches fall to be accounted for by the Association centrally under the direction of its Council of Management acting as charitable trustees. Monies raised by branches are held in trust for the Association. Each branch acts as custodian in a trustee capacity.

33

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

4. Income from BEA Trading Ltd.

Management charge
Gift Aid Donation		 General
Funds
2021
Designated
Funds
2021
Restricted
Funds
2021
Total
Funds
2021
Total
Funds
2020
£
£
£
£
£
12,000
-
-
12,000
12,000
22,812
-
-
22,812
26,825
34,812
-
-
34,812
38,825

The management charge is in respect of administrative costs recharged to BEA Trading Limited.

5. Analysis of Governance and Support Costs

The charity initially identified the costs of its support functions. It then identified those costs that relate to governance. Having identified its governance costs, the remaining support costs and the governance costs are apportioned between the key charitable activities undertaken (see Note 6) in the year.

Refer to the table below for the basis of apportionment and the analysis of support and governance costs.

----- Start of picture text -----
General
Governance Total Basis of apportionment
support
Audit
- 22,000 22,000 Governance 100%
----- End of picture text -----

Accountancy
Trustee meeting costs and expenses
Annual report and AGM costs
Investment management costs
Operations
Building support
Information technology
Finance including non
recoverable VAT		 -
4,170
4,170
Governance 100%
-
714
714
Governance 100%
-
4,128
4,128
Governance 100%
13,166
-
13,166
Investment management 100%
279,501
53,454
332,955
Allocated according to input
between governance and general
support (pro rata on full time
equivalent staff numbers)
260,478
-
260,478
Pro rata on full time equivalent
staff numbers
347,603
-
347,603
Pro rata on full time equivalent
staff numbers
172,189
8,083
180,272
Allocated according to input
between governance and general
support (pro rata on full time		 -
4,170
4,170
Governance 100%
-
714
714
Governance 100%
-
4,128
4,128
Governance 100%
13,166
-
13,166
Investment management 100%
279,501
53,454
332,955
Allocated according to input
between governance and general
support (pro rata on full time
equivalent staff numbers)
260,478
-
260,478
Pro rata on full time equivalent
staff numbers
347,603
-
347,603
Pro rata on full time equivalent
staff numbers
172,189
8,083
180,272
Allocated according to input
between governance and general
support (pro rata on full time
equivalent staff numbers)
Total 1,072,937
92,549
1,165,486

34

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

6. Expenditure

Raising Funds Grants
payable
£		 Total Activity
Costs
Total
Support Costs
Total
expenditure
2021
£
£
£		 Total Activity
Costs
Total
Support Costs
Total
expenditure
2021
£
£
£		 Total Activity
Costs
Total
Support Costs
Total
expenditure
2021
£
£
£
Donations & Legacies - 567,949 303,913 871,862
Other Trading Activities - 244,921 37,130 282,051
Investment Management Costs - - 13,166 13,166
Raising Funds Total - 812,870 354,209 1,167,079
Charitable Activities
To improve the quality and healthcare services for people with epilepsy 44,453 950,799 528,296 1,523,548
To improve awareness and understanding of epilepsy - 325,928 155,821 481,749
Charitable Activities Total 44,453 1,276,727 684,117 2,005,297
Exceptional item
CRM impairment - - 127,160 127,160
Total Expenditure 2021 44,453 2,089,597 1,165,486 3,299,536

In 2021 a full review was carried out of the CRM project after which it was decided to reset the project and write off the existing work done. See page 18 of the Trustees’ Annual Report for further information.

Prior Year Expenditure

Prior Year Expenditure
Raising Funds Grants
payable
Total Activity
Costs
Total
Support Costs
Total
expenditure
2020
£
£
£
£
Donations & Legacies
Other Trading Activities
Investment Management Costs		 -
-		 574,210
128,525
-		 265,075
43,045
13,553		 839,285
171,570
13,553
Raising Funds Total - 702,735 321,673 1,024,408
Charitable Activities
To improve the quality and healthcare services for people with epilepsy - 1,009,389 466,332 1,475,721
To improve awareness and understanding of epilepsy 185 442,190 184,004 626,194
Charitable Activities Total 185 1,451,579 650,336 2,101,915
Total Expenditure 2020 185 2,154,314 972,009 3,126,323

35

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

7. Grants Payable

General Restricted Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
£ £ £ £
Institutional grants
Causes and Cures research:
Epilepsy Research UK 23,000 23,000 -
Medicines & Healthcare products Regulatory Agency 6,468 6,468 -
Accession Healthcare Consulting Ltd - 14,985 14,985 -
- 44,453 44,453 -

8. Staff costs and numbers

----- Start of picture text -----
Staff costs were as follows: 2021 2020
£ £
Wages and salaries 1,747,329 1,873,073
Social security costs 166,929 177,719
Other pension costs 189,368 194,405
2,103,626 2,245,197
----- End of picture text -----

During the year termination payments were paid during the year to 2 employees (2020: 2 employees) totalling to £15,366 (2020: £3,135).

The average number of staff employed in the year was 63 equal to 55 full time equivalent (2020: 70 with 63 F.T.E)

The average number of employees calculated on a full time equivalent basis, analysed by function was:

Charitable activities
Management and administration of the charity
Fundraising and publicity		 2021
2020
No
No
30
35
11
12
14
16
55
63

The number of higher paid employees was:

----- Start of picture text -----
2021 2020
No No
In the band £70,001 - £80,000 1
In the band £80,001 - £90,000
In the band £90,001 - £100,000 1 1
----- End of picture text -----

Pension costs attributed to the higher paid employees amounted to £8,465 (2020: £8,629). No payment for annual leave or other benefits has been accrued.

No members of the Council of Management received any remuneration in respect of their duties as trustee during the year (2020: £nil). Pension creditor at year end was £nil (2020: £16,938).

36

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

9. Analysis of resources used

The following have been charged to the Statement of Financial Activities:

2021 2020
£ £
Depreciation of tangible assets 26,334 6,497
Impairment 127,160 -
Hire of land and buildings 63,000 63,000
Hire of office equipment 505 508
Auditor's remuneration 22,000 21,000
Remuneration of auditors for non audit work 4,170 3,365

10. Tangible Fixed Assets

Cost
At 1 January 2021
Additions during the year
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value		 Leasehold
improvements
Fixtures,
fittings and
equipment
Computers
Total
£
£
£
£
151,210
64,528
58,057
273,795
-
-
28,651
28,651
151,210
64,528
86,708
302,446
123,961
54,956
52,129
231,046
7,472
2,801
16,061
26,334
131,433
57,757
68,190
257,380
At 31 December 2021 19,777
6,771
18,518
45,066
At 31 December 2020
27,249
9,572
5,928
42,749

37

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

11. Intangible Fixed Assets

Cost
At 1 January 2021
Additions during the year
At 31 December 2021
Amortisation
At 1 January 2021
Charge for the year		 CRM
Website
Total
£
£
£
122,687
-
122,687
4,473
62,255
66,728
127,160
62,255
189,415
-
-
-
-
-
-
Impairment 127,160
-
127,160
At 31 December 2021
Net book value		 127,160
-
127,160
At 31 December 2021 -
62,255
62,255
At 31 December 2020
122,687
-
122,687

No amortisation was charged in the year as the Website is in the development phase.

The work completed to the end of 2021 amounted to £127,160 which was capitalised. The decision was taken to write the total amount of £127,160 off in 2021. Further detail can be found on page 18 within the Trustees’ Annual Report.

12. Fixed Asset Investments

Market value
At 1 January 2020
Additions		 Listed
securities
Unlisted
securities
Total
£
£
£
2,345,133
10
2,345,143
-
-
Disposals -
-
Revaluations 212,184
-
212,184
At 31 December 2020 2,557,317
10
2,557,327

Investments at market value comprise:

Listed investments
Investment in subsidiary undertaking
Total market value		 2021
2020
£
£
2,557,317
2,345,133
10
10
2,557,327
2,345,143

All the fixed asset investments are held in the UK.

38

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

Valuation

At valuation on acquisition the quoted investments would be shown at £2,167,559 (2020: £1,977,042). All quoted investments are managed by Brewin Dolphin Securities Limited on a discretionary basis.

Material investments

There are no investments that individually account for more than 7% of the value of the total portfolio.

13. Subsidiary Undertakings

The Association owns 100% of the issued ordinary share capital of BEA Trading Limited, a company incorporated in England and Wales. The subsidiary is engaged in fundraising activities, the distribution of Christmas cards, associated gifts and the promotion of BEA insurances and publishing. Its financial year ends 30 June rather than 31 December. This ensures that full account is taken of the Christmas trade which forms the majority of the subsidiary's business within there being any need to delay the finalisation of the Association's own accounts.

The accounts of the subsidiary do not justify consolidation as the turnover is not deemed to be material to the Association as a whole. The materiality of the trading company will be reviewed on an annual basis, thus ensuring that the financial statements continue to be prepared using best accounting practice.

The trading results of BEA Trading Limited for the year to 30 June were as follows:

Turnover
Trading profit		 2021
2020
£
£
74,594
112,153
22,812
26,825

A gift aid donation of £22,812 (2020: £26,825) has been received by the Association from BEA Trading Limited and is shown on the Statement of Financial Activities. The net assets of the subsidiary are £30,010.

The Association is also the sole member of Epilepsy UK and Epilepsy Action. Both companies are incorporated in England and Wales, have been dormant since incorporation and are Limited by Guarantee. British Epilepsy Association uses the working name 'Epilepsy Action' across its range of activities.

14. Debtors

Due within one year:
Trade debtors
Social security and other taxes
Amounts owed by group undertaking
Other debtors
Prepayments and accrued income		 2021
2020
£
£
2,074
3,446
12,128
8,985
21,101
25,426
25,538
109,759
185,454
170,705
246,295
318,321

39

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

15. Creditors

Amounts falling due within one year:
Trade creditors
Social security and other taxes
Other creditors and accruals		 2021
2020
£
£
58,398
65,672
44,026
45,818
88,772
94,360
191,196
205,850

16. Analysis of net assets between funds

Fixed assets
Fixed asset investments
Cash at bank and in hand		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2021
2021
2021
2021
£
£
£
£
107,321
-
-
107,321
2,343,348
-
213,979
2,557,327
(63,284)
468,206
474,111
879,033		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2021
2021
2021
2021
£
£
£
£
107,321
-
-
107,321
2,343,348
-
213,979
2,557,327
(63,284)
468,206
474,111
879,033		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2021
2021
2021
2021
£
£
£
£
107,321
-
-
107,321
2,343,348
-
213,979
2,557,327
(63,284)
468,206
474,111
879,033		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2021
2021
2021
2021
£
£
£
£
107,321
-
-
107,321
2,343,348
-
213,979
2,557,327
(63,284)
468,206
474,111
879,033
Branch balances 62,493 - 10,880 73,373
Other current assets
Creditors due within one year
Total net assets at 31 December 2021		 246,295
-
-
246,295
(152,675)
-
(38,521)
(191,196)
2,543,498
468,206
660,449
3,672,153

Analysis of net assets between funds – previous year

Fixed assets
Fixed asset investments
Cash at bank and in hand		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
2020
£
£
£
£
165,436
-
-
165,436
2,131,031
-
214,112
2,345,143
(85,871)
310,320
524,815
749,264		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
2020
£
£
£
£
165,436
-
-
165,436
2,131,031
-
214,112
2,345,143
(85,871)
310,320
524,815
749,264		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
2020
£
£
£
£
165,436
-
-
165,436
2,131,031
-
214,112
2,345,143
(85,871)
310,320
524,815
749,264		 General
Funds
Designated
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
2020
£
£
£
£
165,436
-
-
165,436
2,131,031
-
214,112
2,345,143
(85,871)
310,320
524,815
749,264
Branch balances 61,481 - 10,792 72,273
Other current assets
Creditors due within one year
Total net assets at 31 December 2020		 318,321
-
-
318,321
(167,329)
-
(38,521)
(205,850)
2,423,069
310,320
711,198
3,444,587

40

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

17. Statement of Funds

General funds
General funds		 Balance
01/01/2021
Income
Transfers
Expenditure
Gains
(Losses)
Balance
31/12/2021
£
£
£
£
£
£
2,423,069
3,118,684
(285,991)
(2,906,719)
194,455
2,543,498

Transfers

£285,991 was transferred from the general fund to the designated fund for the CRM database project.

Designated funds
CRM Database Project
Barabara Jean Quinn - South Wales
Fund
Roger Victor Crawley - Research
George Cowell Legacy - Liverpool		 Balance
01/01/2021
Income
Transfers
Expenditure
Gains
(Losses)
Balance
31/12/2021
£
£
£
£
£
£
241,169
-
285,991
(127,160)
-
400,000
10,945
-
-
(10,945)
-
-
33,206
-
-
-
-
33,206
25,000
10,000
-
-
-
35,000
310,320
10,000
285,991
(138,105)
-
468,206

CRM database project

Monies designated for the implementation of a CRM system. In 2021 a full review was carried out after which it was decided to reset the project and write off the existing work done. After completing a tender process for a new CRM product supplier, the Council of Management designated a further £285,911 to the project.

Barbara Jean Quinn - South Wales Fund

Funds received from the estate of Barbara Jean Quinn which she wished to be used to support Epilepsy Action’s work in South Wales.

Roger Victor Crawley - Research

Funds received from the estate of Roger Victor Crawley which he wished to be used for research.

George Cowell Legacy - Liverpool

Funds received from the estate of George Cowell which he wished to be used in Liverpool.

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British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

----- Start of picture text -----
Balance Gains Balance
Restricted funds Income Transfers Expenditure
01/01/2021 (Losses) 31/12/2021
£ £ £ £ £ £
Octavia Morris Memorial Fund 11,754 - - - - 11,754
Research Fund - general 195,796 14,236 - (32,580) - 177,452
Research Fund - Causes and Cures 220,227 6,674 - (30,148) 17,729 214,482
TeamMax research 5,216 - - - - 5,216
Local Services
DHSS Northern Ireland - 12,134 - (12,134) - -
Education Fund (Basildon & Thurrock) 3,685 - - 0 - 3,685
Gloucestershire 1,179 - - 0 - 1,179
My Family & Me Events 7,800 (4,200) - 0 - 3,600
Regional Funds - 5,890 - (5,890) - -
Salisbury & District 823 - - - - 823
South Warwickshire 1,500 - - - - 1,500
Branches
Essex 5,103 88 - - - 5,191
Stoke 5,400 - - - - 5,400
West Midlands Forum - Shrewsbury 161 - - - - 161
Other branches 128 - - - - 128
Projects
Colin Woods Memorial Fund 147,632 7,500 - (30,000) - 125,132
Commissioning Advocates 1,577 - - - - 1,577
Employment Project 28,727 - - (28,727) - -
Epilepsy Alliance 453 - - - - 453
Epilepsy & You Regional Bursaries 3,496 - - (3,496) - -
Epilepsy Commissioning Toolkit 1,025 - - - - 1,025
Extended Helpline project 26,997 - - (26,997) - -
HealthCoach 12,778 - - - - 12,778
Helpline Services - 25,085 - (24,085) - 1,000
Leeds - Hardcastle Legacy - 31,670 - (31,670) - -
Online Learning - 14,000 - (14,000) - -
People with Epilepsy And Learning
Difficulties 12,500 5,000 - - - 17,500
Sanofi - Web Mobilisation 5,000 - - - - 5,000
Sapphire Nurse Scheme 10,067 - - - - 10,067
Step Together Benchmarking Tool - 30,000 - (14,985) - 15,015
The Estate of Nellie Terrett - 38,157 - - - 38,157
Tricia's Fund - Learning Disability
Project 2,174 - - - - 2,174
Restricted Funds 711,198 186,234 - (254,712) 17,729 660,449
Total funds 3,444,587 3,314,918 - (3,299,536) 212,184 3,672,153
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Restricted income and expenditure, which is reviewed and monitored on a regular basis, represents monies received and expended on specific projects.

A comparative for the prior year can be found in the 2020 annual accounts.

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British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

Octavia Morris Memorial Fund

Funds being held to fund a campaign during 2015 - 2022 on the subject of epilepsy related death.

Research Funds

The balance retained on the general research fund is for social and medical research of a non-laboratory nature. £214,482 is retained specifically for Causes and Cures research. The Team Max fund is to support research into childhood epilepsies.

DHSS Northern Ireland

Statutory funding towards salary costs of the NI manager.

Education Fund - Basildon & Thurrock

To deliver awareness sessions in Basildon and Thurrock.

Gloucestershire

Donation for use in Gloucestershire only.

My Family & Me Events

Money raised to support UK wide family events.

Regional Funds

Comprises funds raised in England, Wales and Northern Ireland that are to be spent specifically in those areas.

Essex Branch

Money raised by the Essex forum for local projects across Essex.

Stoke Branch

Money raised by the branch for local projects.

West Midlands Branch

Money raised by the branch for local projects.

Colin Woods Memorial Fund

Money in this fund is invested by Epilepsy Action and income derived from the fund is used to support Epilepsy Action’s work, with a preference given to work in Northern Ireland and for educational work but the income is not restricted solely for these purposes.

Employment Project

To develop resources for employers to assist people with epilepsy in the workplace.

Epilepsy Alliance

Epilepsy Alliance is a collaboration between Epilepsy Action and the Epilepsy Nurse Association to provide a dedicated package of educational support for Epilepsy Specialist Nurses (ESNs) covering the UK.

Epilepsy and You Regional Bursaries

Funded places for our Epilepsy and You self-management course.

Epilepsy Commissioning Toolkit

To create a single access point of resources to support effective commissioning for children and adults with epilepsy.

Extended helpline project

To extend the opening hours of the helpline and increase access to the service.

Healthcoach

Telephone support for participants of Epilepsy and You.

Helpline services

Monies raised to enable the continuing running of the helpline.

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British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

People with Epilepsy and Learning Difficulties

To create resources for people with epilepsy and learning difficulties.

Sanofi - Web Mobilisation

To develop our website and make it mobile friendly.

Sapphire Nurse Scheme

To part fund epilepsy nurse posts in NHS services for adults or children with epilepsy.

Step Together Benchmarking Tool

To create an interactive tool to allow commissioners to gather information about services in their area.

The Estate of Nellie Terrett

Monies left to be spent in conjunction with Epilepsy Action Cardiff Branch.

Tricia's Fund - Learning Disability Project

To develop resources for people with epilepsy and learning disabilities.

18. Indemnity Insurance

During the year the Association incurred costs for insurance cover against the possible loss arising to the Association from the neglect of defaults of its trustees or agents and to indemnify the trustees and other officers against the consequences of any neglect or default.

19. Financial Commitments

At 31 December 2021 the Association had total minimum lease payments under non-cancellable operating leases as follows:

Land and buildings
 Land and buildings
 Other Other
2021 2020 2021 2020
£ £ £ £
Expiry date
Within 1year 63,000 63,000 4,021 2,146
Between 2 and 5years 105,115 168,115 - 994

20. Analysis of Trustee remuneration and expenses, and the cost of key management personnel.

The key management personnel of the charity, comprise the trustees, the Chief Executive and the Deputy Chief Executive.

Total employee benefits, including employers NIC, of the key management personnel of the charity were £163,807 (2020: £197,436).

No charity trustee received payment for professional or other services supplied to the charity (2020: £nil). Travel and subsistence expenses during the year of £714 (2020: £1,113), were reimbursed to or paid on behalf of the 16 trustees who served during the year (see also page 7 of the Trustees' annual report).

44

British Epilepsy Association Notes to the financial statements

for the year ended 31 December 2021

21. Related Party Transactions

There were no related party transactions during the year (2020: £nil)

22. Financial Instruments

The carrying amount of the company’s financial instruments at 31[st] December 2021 were:

Financial Assets
Debt instruments measured at amortised cost
Financial Liabilities
Measured at amortised cost		 2021 2020
£
122,357
99,589
£
124,001
102,315

23. Capital commitments

The Association has capital commitments of £246,960 (2020: £100,000) relating to the replacement of the CRM database.

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Glossary

The annual report and accounts have to provide detailed information to meet company and charity law. We know that many people will be unfamiliar with some of the words that we need to use. Here is a list of some of them with a brief explanation of what they mean.

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Accruals basis Income and expenditure is counted when the money is earned and when costs happen,
rather than when the money actually enters or leaves the account.
Accrued An expense that has happened but hasn’t been paid yet. For example, staff wages accrue
until the day they are paid.
Capital growth An increase in the market price of an asset.
Designated funds If part of an unrestricted fund is set aside for a particular project, it may be designated as a
separate fund.
Donations in kind A donation that is made in goods or services, rather than money.
Ex officio When someone is a member of a committee without being elected to it but because of
another post that they hold.
Fixed assets An asset with a useful life of more than one year.
Listed investments Investments like shares or bonds that are officially listed on a stock exchange for trading.
Materiality An amount of money is assessed on its importance. For example, a debt of £10 might not
be a concern. However, a debt of £10,000 could make a big difference to the financial
health of the organisation. It makes a material difference to the accounts.
Realised gains A gain from selling an asset for more than the original purchase price.
Reconciliation An accounting process that compares two sets of records to make sure the numbers match
and are accurate.
Residual value The value of an asset that it could be sold for at the end of its useful life.
Restricted funds If someone gives money to the charity for a particular purpose, the charity has to use it for
that purpose. The use of the money is restricted.
Straight line basis This is a way of spreading the cost of an asset equally over the number of years it is
expected to be used.
Tangible fixed assets Physical assets, like a computer system or improvements to a building.
Unrealised gain/loss A gain/loss from revaluing an asset at a higher value than the original purchase price.
Unrestricted funds If someone gives money to the charity without saying it is for a particular purpose, it can be
spent on any area of work for the charity’s objects. The use of the money is unrestricted.
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