Registered Charity: 257636
THE MEDICASH FOUNDATION
Annual Report and Financial Statements 31 December 2021
THE MEDICASH FOUNDATION
ANNUAL REPORT AND FINANCIAL STATEMENTS 2021
| CONTENTS | Page |
|---|---|
| Trustee report | 1 |
| Statement of Trustee responsibilities | 10 |
| Independent auditors' report to the Trustee | 11 |
| Statement of financial activities | 14 |
| Balance sheet | 15 |
| Cash flow statement | 16 |
| Notes to the financial statements | 17 |
THE MEDICASH FOUNDATION
TRUSTEE REPORT
The Trustee presents its annual report and the audited financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out on pages 17 and 18, and comply with the charity’s trust deed, applicable laws and requirements of the Statement of Recommended Practice “Accounting and Reporting by Charities” under FRS 102 issued in 2019.
NAME AND REGISTERED OFFICE OF THE CHARITY
The name of the charity is The Medicash Foundation. The registered office and principal operating address is One Derby Square, Liverpool, L2 1AB.
CONSTITUTION
The charity was formed under a Charity Commission scheme sealed on 17 June 1969.
The charity is registered with the Charity Commission (number 257636).
The charity’s objects are to provide for, assist, promote, encourage, improve and extend the treatment, nursing and care of persons who are sick infirm or suffering from diseases, ailments or physical defects of any kind.
TRUSTEE
The Trustee that served throughout the year is Medicash Health Benefits Limited. The directors of Medicash Health Benefits Limited during the year were as follows:
J Brown J Ellis F Field Resigned 3 June 2021 P Gambon R C Hodson Resigned 3 June 2021 A Roberts W Tubey S Weir
Details of related parties are shown in note 14 of the financial statements.
No Trustee has any interest in the charity.
METHOD OF ELECTION OF TRUSTEES
Trustees are appointed by Medicash Health Benefits Limited in accordance with the Charity Commission Scheme sealed on 17 June 1969.
The Trustee meets at regular intervals, at which time relevant training is completed to ensure that Trustee has the appropriate competencies to fulfil its role as Trustee to the charity.
INVESTMENT POWERS
The Governing Instrument makes no mention of investment powers, but the Trustee has adopted a conservative approach, operating on advice given by its Investment Manager.
PROFESSIONAL ADVISERS
Independent Auditors Investment Managers Crowe U.K. LLP Rathbone Investment Management Ltd The Lexicon Port of Liverpool Building Mount Street Pier Head Manchester Liverpool M2 5NT L3 1NW
Bankers
Barclays Bank plc 46-50 Lord Street Liverpool L2 1TD
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THE MEDICASH FOUNDATION
TRUSTEE REPORT (CONTINUED)
ORGANISATION
The charity operates from its head office in Liverpool.
AVAILABILITY AND ADEQUACY OF ASSETS OF EACH OF THE FUNDS
The charity has sufficient available assets to fulfil its obligations.
The assets and obligations of the Charity are shown below:-
| Assets Liabilities Net assets |
2021 £ 2,195,219 (164,934) 2,030,285 |
2020 £ 1,526,850 (296,226) 1,230,624 |
|---|---|---|
GOING CONCERN
The Trustee of The Medicash Foundation has considered in detail the charity's forecast performance and liquidity requirements. On this basis the Trustee has a reasonable expectation that the charity will continue in operational existence for the foreseeable future. Accordingly, the Trustee has adopted the going concern basis in preparing financial statements.
OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT
The Trustee confirms that it has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities and setting the grant making policy for the year.
The objective of the Charity is to support other charities, local authority departments or trusts where the recipient organisation is using the funds to assist with improving the quality of health and wellbeing.
The Trustee measures performance of the charity by reviewing the various charitable grants offered during the period to ensure a broad range of health and wellbeing causes are being supported. Performance is also measured on the level of grants offered in comparison to the donations received from the parent company during the year to ensure a healthy surplus is maintained.
The objective of the investment portfolio is to provide the charity with additional funds should there be a requirement for the grants offered to exceed the level of donations from the parent company in any particular year. The charity implements an investment policy which limits exposure to volatility and delivers a modest level of income each year.
GRANT MAKING POLICY
The charity provides grants to health and wellbeing charities. Applications for grant assistance are requested throughout the year and are then presented to the Trustee for discussion and approval. The Trustee assigns its grant decision making to a sub committee made up of a group of its employees. The sub committee considers a number of factors when determining which applications to support including the relevance to health and wellbeing, the wider benefit to the community, the number of people who will benefit and the number of similar projects already supported in each financial year.
2
THE MEDICASH FOUNDATION
REVIEW OF THE YEAR’S ACTIVITY
During the year the charity paid £371,903 (2020: £737,305) and committed to £267,670 of grants (2020: £631,909). The grants were paid to charities across the region covering Merseyside, Wirral, Cheshire, Lancashire, Greater Manchester, Derbyshire, North Wales and Cumbria. National charities have also received support for projects based in our local area.
Children’s charities received £93,733 in donations with 209,022 beneficiaries. Projects supported this year included Stick ‘n’ Step who provide conductive education to children with Cerebral Palsy. A donation was made for their 2021 Summer School, providing a fun range of indoor and outdoor activities for the children to engage in. KIND children’s charity received a donation for their Summer Residential Club, which delivers educational activities and special projects. The projects are structured to help support children’s immediate and long-term development and inspire and empower them to be able to make changes in their everyday lives. Charities supporting children’s mental health and counselling/bereavement for children also received donations, as well as those providing physical activities such as football, combat sports and tennis.
The Teenage Cancer Trust which works with the NHS to create specialist cancer services for children and young adults across the UK also received a donation for their Youth Empowerment Project. The project aims to improve the experience, recovery and survival of young cancer patients which involves practical, emotional, and social support for young people during cancer treatment and as they adjust to life after treatment.
Health & Wellbeing
The Medicash Foundation supported 254,138 beneficiaries for projects associated with Health & Wellbeing, with donations totaling £76,081. Charities such as Liverpool Cares “Love Your Neighbour” programme received a donation to help reduce loneliness and isolation amongst older and younger people alike, improve the connection, confidence, skills, wellbeing, and belonging of all participants and to bridge gaps across generational, social, cultural and attitudinal divides.
Donations were also made to charities helping those suffering mental illness and suicide prevention charities as well as those facing poverty, disadvantage and crisis.
Homotopia who support the health & wellbeing of the LGBT community also received a donation. They deliver outcome based anti-hate crime projects to eliminate discrimination of this specific community.
Illness or Medical Condition
The Medicash Foundation has helped 52,313 beneficiaries for charities that support individuals with an illness or medical condition. The total amount donated was £59,590 . Charities such as The Huntington’s Disease Association received a donation for their Specialist Huntington's Disease Advisory service. The Motor Neurone Disease Association were supported for their equipment service in Merseyside and Shift.MS, Bowel Cancer UK and Rosemere Cancer Foundation also received donations.
Melanoma UK received a donation in conjunction with the SkinVision promotional concept which ran during the summer as part of Skin Cancer Awareness. Corporate Policyholders were to download the SkinVision app and check their skin spots and moles. The Medicash Foundation donated £1 for every newly activated account registered with at least one mole scanned between May and August. During this period, there were 1,566 skin checks resulting in a donation of £1,566 to Melanoma UK.
Disability
An amount of £14,954 was donated to charities that support individuals with a disability such as Walking with the Wounded supporting ex-service men and women with visible and invisible injuries. Galloways received a donation for their “Get Active” project. Disabled people are half as likely to exercise as non-disabled, leading to a sedentary lifestyle, with the accompanying muscle weakness, impact on weight, lower heart endurance and poorer immune system together with feelings of isolation and loneliness. The project went online during lockdown and delivered armchair exercises, yoga, keep fit in the home and wellbeing activities such as listening to garden birds, wildlife talks and inspirational speakers. These activities were aimed at keeping people with sight loss connected, positive and healthy. Henshaw’s Society for the Blind received donations for their “I can do it” Life skills course, supporting individuals to live an independent and fulfilling life. The total number of beneficiaries was 910.
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THE MEDICASH FOUNDATION
REVIEW OF THE YEAR’S ACTIVITY (continued)
Hospices
Hospices such as St. John’s Hospice received a donation for specialist equipment and St. Mary of Furness received a donation to equip their “Living Well Centre” for re-starting therapies on the easing of the covid-19 restrictions, along with a defibrillator from our CardiAct project. The total donated was £11,983 with more than 3,000 beneficiaries.
Education
A donation of £11,329 was made to educational establishments and projects with over 1,000 beneficiaries. Liverpool University received a donation for anatomy models for teaching which will benefit the many students undertaking this course.
A small number of Primary Schools were also helped this year, with one school receiving a donation for a canopy with a woodland theme for a reading corner and books, whilst another received a donation for a Summer House and a defibrillator from our CardiAct project.
The Medicash Foundation were also delighted to support dot.art’s school project celebrating children and young people’s creativity, building confidence and improving wellbeing.
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THE MEDICASH FOUNDATION
TRUSTEE REPORT (CONTINUED)
Grants Paid
| rants Paid | |
|---|---|
| £ | |
| Radio City Cash for Kids appeal | 475 |
| NMC | 506 |
| The Joshua Tree | 809 |
| Jackpine | 850 |
| St George's Primary School (Maghull) | 1,000 |
| Litherland High school | 1,000 |
| KIND | 1,000 |
| Hospice of St Mary of Furness | 1,218 |
| The Initiative Factory | 1,218 |
| Torrington Drive Community Association | 1,400 |
| Galloways Society for the Blind | 1,500 |
| Melanoma UK | 1,566 |
| Homotopia | 2,000 |
| Henshaws Society for the Blind | 2,000 |
| Walton Lea | 2,000 |
| The Firefighters Charity | 2,068 |
| St Elizabeths Primary School (Litherland) | 2,218 |
| Wallasey Junior Football League | 2,500 |
| Over the Wall | 2,500 |
| Time Out Group | 2,520 |
| The Stephen Beard Foundation | 2,813 |
| Young Minds | 3,000 |
| Merseyside Jewish Community Care | 3,000 |
| Shift.MS | 3,000 |
| Cash for Kids | 3,500 |
| Child Brain Injury Trust | 3,500 |
| Autism Inclusive | 3,700 |
| Venture Boxing Club | 4,000 |
| Walking with the Wounded | 4,000 |
| Crosby Group Riding for the Disabled | 4,000 |
| When you wish Upon A Star | 4,533 |
| Bradbury Fields | 4,934 |
| AGE Uk Wigan | 5,000 |
| Teapot Trust | 5,000 |
| Inspire | 5,000 |
| Team Oasis | 5,000 |
| Stick N Step | 5,000 |
| Edge Hill Youth & Community Centre | 5,000 |
| LifeNOW | 5,000 |
| Space | 5,000 |
| Daisy's Dream | 5,000 |
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THE MEDICASH FOUNDATION
| Liverpool Cares Frances House Children’s Hospice Teenage Cancer Trust Bowel Cancer UK Bury Hospice Autism Initiatives Whizz Kidz Chance Changing Lives Hospice of the Good Shepherd Roy Castle Lung Cancer Foundation Liverpool Biennial Centre 56 The Countess Charity Voice for Change (Domestic Violence) Rosemere Cancer Foundation The Big Help Project The Orchard Leonard Cheshire Compassionate Friends The Apex Trust L6 Community Association Wellchild Huntington's Disease Association KIND Children's Charity All Together Now Newlife The Hope Centre Running Head First CIC Back Up Trust Compass Counselling Shaftesbury Youth Club James Place MND Association Barnstondale St Helens Christian Life Centre Manchester Foundation Trust Charity Northern Vision |
5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,200 5,810 5,855 6,000 6,000 6,000 6,020 6,390 6,500 7,000 7,000 7,500 9,800 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 17,500 |
|---|---|
| 371,903 |
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THE MEDICASH FOUNDATION
TRUSTEE REPORT (CONTINUED)
Grants Committed
| rants Committed | |
|---|---|
| £ | |
| Radio City Cash for Kids appeal | 500 |
| Jackpine | 850 |
| St George's Primary School (Maghull) | 1,000 |
| Chapter West Cheshire | 1,000 |
| dot.art | 1,000 |
| Hospice of St Mary of Furness | 1,218 |
| The Initiative Factory | 1,218 |
| Torrington Drive Community Association | 1,400 |
| Galloways Society for the Blind | 1,500 |
| Homotopia | 2,000 |
| Henshaws Society for the Blind | 2,000 |
| St Elizabeths Primary School (Litherland) | 2,218 |
| Wallasey Junior Football League | 2,500 |
| Time Out Group | 2,520 |
| The Stephen Beard Foundation | 2,813 |
| Young Minds | 3,000 |
| Merseyside Jewish Community Care | 3,000 |
| Shift.MS | 3,000 |
| Hospice of St Mary of Furness | 3,065 |
| Cash for Kids | 3,500 |
| Child Brain Injury Trust | 3,500 |
| Autism Inclusive | 3,700 |
| Venture Boxing Club | 4,000 |
| Walking with the Wounded | 4,000 |
| When you wish Upon A Star | 4,533 |
| Bradbury Fields | 4,934 |
| AGE Uk Wigan | 5,000 |
| Teapot Trust | 5,000 |
| Age UK Cheshire | 5,000 |
| Inspire | 5,000 |
| Team Oasis | 5,000 |
| Stick N Step | 5,000 |
| Edge Hill Youth & Community Centre | 5,000 |
| LifeNOW | 5,000 |
| Space | 5,000 |
| Eureka | 5,000 |
| Daisy's Dream | 5,000 |
| Liverpool Cares | 5,000 |
| Frances House Childrens Hospice | 5,000 |
| Teenage Cancer Trust | 5,000 |
| Bowel Cancer Uk | 5,000 |
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THE MEDICASH FOUNDATION
| Rosemere Cancer Foundation Compassionate Friends The Apex Trust Huntington's Disease Association KIND Children's Charity All Together Now Newlife Liverpool University St Johns Hospice Running Head First CIC Back Up Trust Compass Counselling Shaftesbury Youth Club James Place Melanoma UK MND Association |
5,200 6,000 6,000 6,390 6,500 7,000 7,000 7,111 7,700 9,800 10,000 10,000 10,000 10,000 10,000 10,000 |
|---|---|
| 267,670 |
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THE MEDICASH FOUNDATION
TRUSTEE REPORT (CONTINUED)
PLANS FOR FUTURE PERIODS
The Trustee considers the future prospects of the charity to be satisfactory and is confident the results of the parent company will continue to allow substantial donations to be made each year. The Charity aims to ensure a wide range of health and wellbeing charities will benefit in line with grant making policy.
RESERVES AND FINANCIAL POSITION AT THE YEAR END
The Trustee does not have a formal reserves policy in place, but considers the level of funds to be adequate for the Charity to meet its future commitments regarding donations to charities, local authority departments or other trusts. At the year end the level of reserves in the fund was £2,030,285 (2020: £1,230,624).
PRINCIPAL RISKS AND UNCERTAINTIES
The Charity is exposed to the following risks:
Reliance on ultimate parent company
The Charity relies on donations from its ultimate parent company, Medicash Health Benefits Limited, as it does not undertake any other funding activities and its only other revenue stream relates to its investment portfolio. The income generated from investments is not sufficient to cover the costs of the charity therefore the charity would not be able to continue operating at its current level if funding from Medicash Health Benefits Limited ceased. The risk of such an event occurring is however minimal as the board of Medicash Health Benefits Limited have no desire to cease funding.
Financial risk
The Charity holds a significant investment portfolio and is therefore subject to a level of investment risk associated with its portfolio and investment income. The majority of the investment portfolio is managed on a discretionary basis by an external investment manager, Rathbone Investment Management Limited, which has the authority to make the day to day investment decisions whilst operating within approved investment guidelines as set by the Trustee. The Charity mitigates the investment risk by monitoring the performance of each asset class within its portfolio, against the most suitable index comparators as shown below, and ensures the Trustee’s approved investment guidelines are adhered to.
Asset class Benchmark Index UK equity shares UK FTSE All Share Overseas equity shares FT/SP World (Exc UK) Debt securities UK Government All Stocks
INVESTMENT POLICY
The charity invests in a mixture of government stocks, fixed interest stocks and equities with the purpose of providing capital growth and investment income whilst retaining security of assets. The portfolio is managed by Rathbone Investment Management Ltd.
In the year under review investment income was £31,893 (2020: £26,299) and the market value of investments was £1,181,544 (2020: £1,031,912).
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THE MEDICASH FOUNDATION
TRUSTEE REPORT (CONTINUED)
VOLUNTEERS
The charity does not have volunteers and does not engage in fundraising activities.
Day to day administration of the charity is performed by employees of Medicash Health Benefits Limited. No charge is made in respect of work undertaken for the Charity by employees of Medicash Health Benefits Limited.
INDEPENDENT AUDITORS
Crowe U.K. LLP have expressed their willingness to continue in office as auditors and a resolution to reappoint them will be proposed at the forthcoming Annual General Meeting Medicash Health Benefits Limited.
STATEMENT OF TRUSTEE’S RESPONSIBILITIES
The trustee is responsible for preparing the Trustee’s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the Trustee is required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgments and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Account and Reports) Regulation 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustee and signed on their behalf
A Roberts
27 May 2022
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THE MEDICASH FOUNDATION
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE’S OF THE MEDICASH FOUNDATION
Opinion
We have audited the financial statements of The Medicash Foundation for the year ended 31 December 2021 which comprise the statement of financial activities for the year then ended, the balance sheet; and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
-
sufficient and proper accounting records have not been kept by the charity; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
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THE MEDICASH FOUNDATION
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE’S OF THE MEDICASH FOUNDATION (CONTINUED)
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were Charity Commission regulations.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
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THE MEDICASH FOUNDATION
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE’S OF THE MEDICASH FOUNDATION (CONTINUED)
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLP
Statutory Auditor Manchester
27 May 2022
Crowe U.K. LLP is eligible to act, and has been appointed, as auditor under section l44(2) of the Charities Act 2011.
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THE MEDICASH FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (incorporating the Income and Expenditure Account) Year ended 31 December 2021
| Note Incoming resources Incoming resources from generated funds Donations and legacies 12 Investments Other 4 Total incoming resources Resources expended Raising funds Charitable activities Grants payable in furtherance of the charity’s objects 1 Other 5 Total resources expended Net incoming resources before transfers Other recognised gains and losses Gain / (loss) on investment assets 7 Transfers between funds Net movement in funds Total funds brought forward at 1 January Total funds carried forward at 31 December |
2021 £ 893,000 31,893 - 924,893 (236,315) (8,631) (244,946) 679,947 119,714 - 799,661 1,230,624 2,030,285 |
2020 £ 692,000 26,299 250 718,549 (625,914) (8,879) (634,793) 83,756 (6,964) - 76,792 76,792 1,230,624 |
|---|---|---|
All activities of the charity are continuing and unrestricted.
All gains and losses recognised in the year are included in the Statement of Financial Activities.
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THE MEDICASH FOUNDATION
BALANCE SHEET AS AT 31 December 2021
| Note FIXED ASSETS Investments 7 TOTAL FIXED ASSETS CURRENT ASSETS Debtors 8 Cash at bank and in hand TOTAL CURRENT ASSETS CREDITORS: amounts falling due within one year 9 NET CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: Amounts falling due after more than one year NET ASSETS TOTAL CHARITY FUNDS |
Total 2021 £ 1,181,544 1,181,544 - 1,013,675 1,013,675 (164,934) 848,741 2,030,285 - 2,030,285 2,030,285 |
Total 2020 £ 1,031,912 1,031,912 - 494,938 494,938 (296,226) 198,712 1,230,624 - 1,230,624 1,230,624 |
|---|---|---|
The financial statements on pages 14 to 21 were approved by the Trustee on 27 May 2022 and were signed on its behalf by:
A Roberts
The Medicash Foundation
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THE MEDICASH FOUNDATION
CASH FLOW STATEMENT Year ended 31 December 2021
| Notes Cash inflow / (outflow) from operating activities 11 Interest received 4 Net cash inflow / (outflow) from operating activities Cash flows from investing activities Purchase of ordinary share and debt securities Sale of ordinary shares and debt securities Sale of fixed assets Net cash inflow / (outflow) from investing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2021 £’000 545,208 3,447 548,655 (115,749) 85,831 - (29,918) 518,737 494,938 1,013,675 |
2020 £’000 444,196 3,781 |
|---|---|---|
| 447,977 (115,372) 150,177 - 34,805 |
||
| 482,782 12,156 |
||
| 494,938 |
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2021
1. ACCOUNTING POLICIES
General information
The charity was formed under a Charity Commission scheme sealed on 17 June 1969 and is registered with the Charity Commission (number 257636). The address of the registered office is One Derby Square, Liverpool, L2 1AB.
Basis of Preparation
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 2019) – (Charities SORP (FRS 102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Medicash Foundation 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.
Going concern
The Trustee of The Medicash Foundation has considered in detail the Charity's forecast performance and liquidity requirements. In its assessment of going concern the Trustee has considered the current and developing impact on the Charity as a result of the Covid19 virus.
The Charity relies on donations from its ultimate parent company, Medicash Health Benefits Limited. The Board of Medicash has committed to a donation of £893,000 to The Foundation in 2021. The total donated in the last four years alone is more than £3m demonstrating the strong commitment of the parent company.
Having regard to the above, the Trustee believes it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
Accounting convention
The financial statements have been prepared under the historical cost convention as modified by the revaluation of investments, the revaluation of certain tangible fixed assets and in accordance with applicable United Kingdom accounting standards.
Taxation
The Trust is a registered charity and has no liability to corporation tax on its charitable activities.
Investments
Investments are normally held on a long term basis but the investment manager manages the portfolio on achieving the best return on a balanced risk investment approach. Profits or losses on the sale of investments have been included in the Statement of Financial Activities. Investments held as fixed assets are stated in the balance sheet at the quoted market prices.
Tangible assets
Tangible assets are stated at historic purchase cost less accumulated depreciation. Cost includes the original purchase price of the asset and costs attributable to brining the asset to its working condition for its intended use. All land and buildings, including freehold properties, are stated at fair value as determined by independent qualified surveyors. All land and buildings are revalued every year with the revaluation gains or losses being recognised in the statement of financial affairs within the income and expenditure account.
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2021
1. ACCOUNTING POLICIES (continued)
Donations and gifts
The charity accounts for donations and gifts on an “as received basis”.
Exemptions under FRS 102
The Charity has taken advantage of the exemption from presenting financial instrument disclosures, on the basis that it is a qualifying entity and its ultimate parent company, Medicash Health Benefits Limited, includes these disclosures in its own consolidated financial statements.
Grants
All grants are paid in support of the health and wellbeing of individuals. Grants are paid on submission of a bank account from the recipient. Any grants not claimed by 31 January following the payment year can be written back. Grants committed during the year are detailed on page 7 and the movement in grants payable is:
| Grants committed Grants written back Grants paid Grants returned Balance at 1 January Balance at 31 December |
2021 £ 267,670 (31,355) 236,315 (371,903) (135,588) 214,076 78,488 |
2020 £ 631,909 (5,994) 625,915 (737,305) (111,390) 325,466 214,076 |
|---|---|---|
Grants are only paid to institutions and not to individuals. Details of the types of activities and projects supported can be found an pages 3 and 4.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no critical accounting estimates contained within the financial statements.
3. TRUSTEE
The Trustee received no remuneration or reimbursement of expenses for the year (2020: Nil).
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2021
4. INVESTMENT INCOME
All the investment income arises from investment assets in the United Kingdom.
| Dividends – listed investments Interest – listed investments Bank interest |
Total 2021 £ 28,446 3,421 26 31,893 |
Total 2020 £ 22,518 3,774 7 26,299 |
|---|---|---|
5. SUPPORT COSTS INCLUDING GOVERNANCE COSTS
| Audit Investment fees Other resources expended |
Total 2021 £ 4,140 4,491 - 8,631 |
Total 2020 £ 4,640 4,238 - 8,878 |
|---|---|---|
The charity does not have any employees. All services costs are borne by ultimate parent company and controlling party, Medicash Health Benefits Limited.
6. CAPITAL COMMITMENTS
There were no authorised or contracted capital commitments at 31 December 2021 (2020: Nil).
7. INVESTMENTS
| Fair value at 1 January Additions Disposals Net (loss) / profit on disposals Net unrealised investment (loss) / gain Fair value at 31 December Historical cost as at 31 December |
2021 £ 1,031,811 115,749 (85,831) 3,473 116,342 1,181,544 844,072 |
2020 £ 1,073,681 115,372 (150,177) (3,463) (3,602) 1,031,811 810,588 |
|---|---|---|
The investments were managed by Rathbone Investment Management Ltd, an authorised investment institution, who has provided the market values.
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2021
8. DEBTORS
| 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Amounts due to Medicash Health Benefits (Services) Limited (see note 14) Amounts due to Medicash Health Benefits Limited (see note 14) Grants (see note 1) Other creditors Prepayments and accrued income Amounts due from Medicash Health Benefits Limited (see note 12) |
2021 £ 41,402 39,992 78,488 5,052 164,934 2021 £ - - - |
2020 £ 37,748 39,517 214,076 4,885 296,226 2020 £ - - - |
||
|---|---|---|---|---|
Amounts due to Medicash Health Benefits Limited and Medicash Health Benefits (Services) Limited are unsecured, non-interest bearing and repayable on demand.
10. TAXATION
The Trust is a registered charity and does not trade for tax purposes. It is not liable to corporation tax on its surplus.
11. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
| Net movement in funds Interest received (Increase) / decrease in debtors Increase / (decrease) in creditors Increase / (decrease) in intercompany creditors Realised (gain) / loss on investments Unrealised (gain) / loss on investments Net cash outflow from operating activities |
2021 £ 799,661 (3,447) - (135,320) 4,129 (3,473) (116,342) 545,208 |
2020 £ 76,792 (3,781) 433,483 41,953 (111,215) 3,362 3,602 |
|---|---|---|
| 444,196 |
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2021
12. RELATED PARTY
Medicash Health Benefits Limited is a health benefits insurance company with earned premiums in 2021 of £34,447,592 (2020: £32,238,939). The report of the auditors on the parent company financial statements was unqualified.
Related Party Transactions
During the year The Medicash Foundation received a donation of £893,000 (2020: £692,000) from Medicash Health Benefits Limited. This donation has been recognised as voluntary income with the Statement of Financial Activities.
At the year end the amounts due to Medicash Health Benefits Limited from The Medicash Foundation were £39,992 (2020: £39,517 debtor). At the year end the net amount due to Medicash Health Benefits (Services) Limited from The Medicash Foundation was £41,402 (2020: £37,748).
Amounts due to related parties are interest free and repayable on demand.
13. ULTIMATE PARENT COMPANY
The immediate and ultimate parent company and controlling party is Medicash Health Benefits Limited, which is incorporated in England and is the smallest and largest group to consolidate these financial statements. The principal activity of the parent company continues to be the provision and underwriting of health cash plan insurance to policyholders, either direct to Individuals or provided as an Employer paid benefit across the UK. Copies of Medicash Health Benefits Limited financial statements can be obtained from its registered office at One Derby Square, Liverpool, L2 1AB. The company registration number of Medicash Health Benefits Limited is 258025.
As the sole trustee of The Medicash Foundation, Medicash Health Benefits Limited has the power to govern the financial and operating policies of the charity so as to obtain benefits from its activities.
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