Registered Charity: 257636
THE MEDICASH FOUNDATION
Annual Report and Financial Statements 31 December 2022
THE MEDICASH FOUNDATION
ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
| 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 2022. 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 P Gambon C Oddy (Appointed 1 April 2023) A Roberts W Tubey (Resigned 31 March 2022) 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 |
2022 £ 2,328,187 (169,698) 2,158,489 |
2021 £ 2,195,219 (164,934) 2,030,285 |
|---|---|---|
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.
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THE MEDICASH FOUNDATION
REVIEW OF THE YEAR’S ACTIVITY
During the year the charity paid £294,404 (2021: £371,903) and committed to £355,359 of grants (2021: £267,670). 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 & Young People
Children’s charities received £76,481 in donations with 17,820 beneficiaries. Some of the charities helped by the Medicash Foundation provide activity clubs for young children as well as youth clubs for teens and after school clubs. Children are encouraged to live a healthy lifestyle through sports and physical activities which takes place at the clubs, as well as campership places providing a range of challenges such as kayaking, sailing, canoeing, climbing, zip wire and abseiling. This also gives the children an opportunity to make new friends whilst having fun. Donations were also made to charities that improve the lives of disadvantaged children and young people in our communities who are affected by poverty, illness or neglect.
Earlier in the year The Medicash Foundation donated to KIND Childrens charity who provided Easter Family Food Packs to help children and families in need over the holiday period and supported respite holidays in specially adapted caravans through the charity Ruddi’s Retreat.
Health & Wellbeing
The Medicash Foundation was delighted to support 17,020 beneficiaries for projects associated with health & wellbeing, with donations totalling £112,966.
Some of these charities have helped people within our communities for projects such as bereavement counselling services, domestic abuse support, mental health support, along with community hubs for local people such as Penny Lane Development Trust. This local charity delivers a number of projects to help individuals tackle their emotional, mental and physical health. Some of these activities include mindfulness, yoga, pilates, gardening and craft classes and events. Walking with the Wounded who support those who have served in the Armed Forces received a donation for an Employment Adviser. The charity helps ex-service personnel who are struggling to find a secondary career, as this can have a severe impact on their mental health and the financial security of themselves and their families.
Donations were made to Beep Doctors earlier this year, who provide emergency services in remote areas, such as the Lake District and surrounding areas in Cumbria. North-West Air Ambulance Service also received a donation to purchase specially designed defibrillators for aircraft.
Independent art gallery dot.art received a donation, allowing three deprived schools in our area to take part in their annual art competition. This project helps celebrate children and young people’s creativity, build their confidence, and improve wellbeing.
Another project supported during 2022 was Jackpine. This charity ensures that people living in urban areas have access to green spaces and nature. They also aim to educate local communities on the importance of environmental conservation and how being surrounded by nature can also help improve mental and physical health.
Tranmere in the Community’s Christmas project was also supported delivering 300 food hampers to children and families in need, along with Christmas parties and matchday experiences.
This year we were also delighted to support a local community choir, ranging from age 15 – 90 years old. The choir is an opportunity for people to come together and sing a range of music from a wide variety of genres and bring joy to others. Some of these members have faced and overcome the many challenges that life brings, and the choir promotes wellbeing and positive mental health with its members. A donation was made towards equipment to enable many more outdoor performance opportunities in the local area, allowing other members of the community to access their work and benefit greatly from their music.
Hospices, Hospitals and Charities supporting those with an Illness or Medical Condition
Hospices and charities supporting those with an illness or condition have received donations totalling £116,727 with 154,815 beneficiaries.
The Medicash Foundation were delighted to support the 2022 Chester Santa Dash, an exciting and fun event which seen a number of Medicash staff members take part in the race dressed as Santa. The event supported two local charities; The Countess Charity and The Hospice of the Good Shepherd, with the funds being used to benefit those in their care.
Charities that help those living with an illness or medical condition have received donations such as Sepsis Research, Target Ovarian Cancer, Anaphylaxis Campaign, Strongbones Children’s Charity, Leukaemia Care and Bowel Cancer UK.
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THE MEDICASH FOUNDATION
REVIEW OF THE YEAR’S ACTIVITY (continued)
Francis House children’s hospice also received a donation and the charity LifeNow, for their “transition from hospice care project” supporting young adults as they experience fear and uncertainty about the future. This support is vital, empowering young people to take control of their lives and situations, whilst having continuous access to a trained team of support workers.
Also supported were Epilepsy Action, Young Lives v Cancer, the Pain Relief Foundation and Climbing Out’s residential outdoor activity programme for individuals with a range of health conditions.
Disability
Donations of £44,185 were made to charities supporting those who have a disability, such as The Rossendale Trust who support individuals with physical and learning disabilities and to create an environment to help them develop and grow. A donation was made towards their Oakwood Project Media Group, giving them the opportunity to learn all aspects of how to use a range of technologies and to use the internet safely. The charity also provides a number of activities such as horticulture, music, arts, crafts, day trips, cooking and “keep fit” to name a few. The number of beneficiaries for charities helping those with a disability was 3,614.
Homelessness
Earlier this year, the Medicash Foundation donated to homeless charity “Launchpad” who help homeless veterans rebuild their lives by providing accommodation and delivering specialist mental health services in Liverpool. The amount donated was £5,000 with 65 beneficiaries for this project.
Following the pandemic, 2022 was another difficult year for many people in our communities, particularly with rising costs of living and increasing energy prices.
The charity sector continues to face its own challenges such as generating income and achieving financial sustainability. Despite this, their mission and focus remain unchanged and they are still reaching out to those who need it the most within our communities.
The Medicash Foundation continues to provide invaluable support to help a wide range of charities across the region.
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THE MEDICASH FOUNDATION
TRUSTEE REPORT (CONTINUED)
Grants Paid
| rants Paid | |
|---|---|
| £ | |
| Wirral Mind | 50 |
| The Firefighters Charity | 406 |
| Rainhill Hi Notes | 500 |
| Merseyside Boating Station | 825 |
| The Neuromuscular Centre | 841 |
| dot.art | 900 |
| KIND | 1,000 |
| Chapter West Cheshire | 1,000 |
| King David High School | 1,000 |
| Papyrus | 1,107 |
| Ellergreen Community Centre | 1,199 |
| Mitchells Miracles | 1,500 |
| British Disabled Angling Association | 1,585 |
| Jackpine | 1,765 |
| The Willow Foundation | 1,875 |
| Food Cycle Liverpool | 2,000 |
| Guide Dogs for the Blind Association | 2,000 |
| Edge Hill Youth & Community Centre | 2,000 |
| MisGav | 2,000 |
| St Cyril's Children & Youth Project | 2,000 |
| Compass Counselling | 2,000 |
| Anaphylaxis Campaign | 2,000 |
| Catholic Blind Institute Bradbury Fields | 2,000 |
| Climbing Out | 2,125 |
| The Countess Charity | 2,500 |
| Hospice of St Mary of Furness | 2,997 |
| The Hospice of the Good Shepherd | 3,000 |
| Over The Wall | 3,000 |
| At a Loss | 3,000 |
| SEPSIS | 3,000 |
| Daisy's Dream | 3,000 |
| The Teapot Trust | 3,000 |
| Stephen Beared Foundation | 3,000 |
| The Rossendale Trust | 3,125 |
| Listening Books | 3,500 |
| Space 4 Autism | 3,558 |
| Deafblind UK | 4,000 |
| Stick n Step | 4,000 |
| Love Jasmine | 4,000 |
| Railway Children | 4,000 |
| Strongbones Childrens Charity | 4,000 |
| Cash for Kids | 4,500 |
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THE MEDICASH FOUNDATION
| East Cheshire Hospice Age UK Cheshire Support After Murder & Manslaughter AF & V Launchpad St Anne's Hospice The Bren Project Young Lives v Cancer Bolton Lads & Girls Club Initiative Factory (The Casa) Target Ovarian Cancer Triple C Liverpool Beep Doctors Pain Relief Foundation Centre 56 Compassionate Friends Leukaemia Care LifeNow Tranmere in the Community Medequip4kids Baby Beat The Wingate Special Children's Trust Liverpool Sunflowers BASIC Haemochromatosis UK The Joshua Tree James Place Tom's Trust St Johns Hospice Merseyside Counselling & Therapy centre KIND Children's Charity The Hive Wirral North West Air Ambulance Downs Syndrome Association |
4,750 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 5,000 5,000 5,000 5,830 5,990 6,000 6,000 6,000 6,506 7,000 7,500 7,500 7,700 7,775 8,000 8,000 9,995 10,000 |
|---|---|
| 294,404 |
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THE MEDICASH FOUNDATION
TRUSTEE REPORT (CONTINUED)
Grants Committed
| rants Committed | |
|---|---|
| £ | |
| Wirral Mind | 50 |
| Rainhill Hi Notes | 500 |
| Merseyside Boating Station | 825 |
| Dot.art | 900 |
| The Neuromuscular Centre | 975 |
| King David High School | 1,000 |
| Epliepsy Action | 1,000 |
| FACT | 1,000 |
| Papyrus | 1,107 |
| Ellergreen Community Centre | 1,199 |
| Mitchells Miracles | 1,500 |
| British Disabled Angling Association | 1,585 |
| Jackpine | 1,765 |
| The Willow Foundation | 1,875 |
| Food Cycle Liverpool | 2,000 |
| Guide Dogs for the Blind Association | 2,000 |
| Edge Hill Youth & Community Centre | 2,000 |
| MisGav | 2,000 |
| St Cyril's Children & Youth Project | 2,000 |
| Compass Counselling | 2,000 |
| Anaphylaxis Campaign | 2,000 |
| Willowbrook Hospice | 2,000 |
| Catholic Blind Institute Bradbury Fields | 2,000 |
| Climbing Out | 2,125 |
| The Countess Charity | 2,500 |
| Joss Searchlight | 2,500 |
| Lifelites | 2,500 |
| The Hospice of the Good Shepherd | 3,000 |
| Over The Wall | 3,000 |
| At a Loss | 3,000 |
| SEPSIS | 3,000 |
| Daisy's Dream | 3,000 |
| The Teapot Trust | 3,000 |
| Stephen Beared Foundation | 3,000 |
| The Rossendale Trust | 3,125 |
| Penny Lane Development Trust | 3,350 |
| Autism Inclusive | 3,500 |
| Space 4 Autism | 3,558 |
| Wirral Hospice St Johns | 3,846 |
| Deafblind UK | 4,000 |
| Stick n Step | 4,000 |
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THE MEDICASH FOUNDATION
| Love Jasmine Railway Children Cyclists Fighting Cancer Strongbones Childrens Charity Walking with the Wounded Francis House Kids Out Cash for Kids East Cheshire Hospice Support After Murder & Manslaughter AF & V Launchpad St Anne's Hospice The Bren Project Young Lives v Cancer Bolton Lads & Girls Club Initiative Factory (The Casa) Target Ovarian Cancer Triple C Liverpool Beep Doctors Ruddi's Retreat Pain Relief Foundation Centre 56 West Coast Crash Wheelchair Rugby Newlife Compassionate Friends Leukaemia Care LifeNow Tranmere in the Community Bowel Cancer Uk Medequip4kids The Wingate Special Children's Trust Liverpool Sunflowers BASIC Shaftesbury Youth Club Baby Beat Haemochromatosis UK The Joshua Tree James Place Tom's Trust Merseyside Counselling & Therapy centre KIND Children's Charity The Hive Wirral North West Air Ambulance Action Radiotherapy Downs Syndrome Association Liverpool School of Tropical Medicine |
4,000 4,000 4,000 4,000 4,000 4,000 4,250 4,500 4,750 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 5,000 5,000 5,000 5,000 5,000 5,000 5,830 6,000 6,000 6,000 6,000 6,468 6,506 7,000 7,500 7,500 7,775 8,000 8,000 9,995 10,000 10,000 10,000 |
|---|---|
| 355,359 |
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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 £2,158,489 (2021: £2,030,285).
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 donations the charity makes therefore it 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 £35,417 (2021: £31,893) and the market value of investments was £1,034,228 (2021: £1,181,544).
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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
23 May 2023
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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 2022 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 2022 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)
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
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.
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
23 May 2023
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 2022
| Note Incoming resources Incoming resources from generated funds Donations and legacies 12 Investments 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 (Loss) / gain on investment assets 7 Intercompany write off 12 Net movement in funds Total funds brought forward at 1 January Total funds carried forward at 31 December |
2022 £ 500,000 35,417 535,417 (339,745) (9,618) (349,363) 186,054 (101,276) 43,426 128,204 2,030,285 2,158,489 |
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 |
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 2022
| 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 2022 £ 1,034,228 1,034,228 - 1,293,959 1,293,959 (169,698) 1,124,261 2,158,489 - 2,158,489 2,158,489 |
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 |
|---|---|---|
The financial statements on pages 14 to 21 were approved by the Trustee on 23 May 2023 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 2022
| 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 |
2022 £’000 227,573 6,671 234,244 (49,043) 95,083 46,040 280,284 1,013,675 1,293,959 |
2021 £’000 545,208 3,447 |
|---|---|---|
| 548,655 (115,749) 85,831 - (29,918) |
||
| 518,737 494,938 |
||
| 1,013,675 |
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2022
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.
The Charity relies on donations from its ultimate parent company, Medicash Health Benefits Limited. The Board of Medicash made a donation of £500,000 to The Foundation in 2022. The total donated in the last five years alone is more than £3.5m, demonstrating the strong commitment of the parent company. At the year end the level of reserves in the fund was £2,158,489 (2021: £2,030,285).
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 2022
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 |
2022 £ 355,359 (15,614) 339,745 (294,404) 45,341 78,488 123,829 |
2021 £ 267,670 (31,355) 236,315 (371,903) (135,588) 214,076 78,488 |
|---|---|---|
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 Nil remuneration or reimbursement of expenses for the year (2021: Nil).
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2022
4. INVESTMENT INCOME
All the investment income arises from investment assets in the United Kingdom.
| Dividends – listed investments Interest – listed investments Bank interest |
Total 2022 £ 28,746 3,237 3,434 35,417 |
Total 2021 £ 28,446 3,421 26 31,893 |
|---|---|---|
5. SUPPORT COSTS INCLUDING GOVERNANCE COSTS
| Audit Investment fees Other resources expended |
Total 2022 £ 5,047 4,559 12 9,618 |
Total 2021 £ 4,140 4,491 - 8,631 |
|---|---|---|
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 Nil authorised or contracted capital commitments at 31 December 2022 (2021: Nil).
7. INVESTMENTS
| Fair value at 1 January Additions Disposals Net profit on disposals Net unrealised investment (loss) / gain Fair value at 31 December Historical cost as at 31 December |
2022 £ 1,181,544 49,043 (95,083) 10,529 (111,805) 1,034,228 808,392 |
2021 £ 1,031,811 115,749 (85,831) 3,473 116,342 1,181,544 844,072 |
|---|---|---|
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 2022
8. DEBTORS
| 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Amounts due to Medicash Health Benefits (Services) Limited (see note 12) Amounts due to Medicash Health Benefits Limited (see note 12) Grants (see note 1) Other creditors Prepayments and accrued income Amounts due from Medicash Health Benefits Limited (see note 12) |
2022 £ - 39,992 123,829 5,877 169,698 2022 £ - - - |
2021 £ 41,402 39,992 78,488 5,052 164,934 2021 £ - - - |
||
|---|---|---|---|---|
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 |
2022 £ 128,204 (6,671) - 46,166 (41,402) (10,529) 111,805 227,573 |
2021 £ 799,661 (3,447) - (135,320) 4,129 (3,473) (116,342) |
|---|---|---|
| 545,208 |
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THE MEDICASH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2022
12. RELATED PARTY
Medicash Health Benefits Limited is a health benefits insurance company with earned premiums in 2022 of £41,086,732 (2021: £34,447,592). 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 £500,000 (2021: £893,000) from Medicash Health Benefits Limited. This donation has been recognised as voluntary income with the Statement of Financial Activities.
During the year all amounts owed to Medicash Health Benefits (Services) Limited were written off and the income has been recognised within other recognised gains and losses on the Statement of Financial Activities.
At the year end the amounts due to Medicash Health Benefits Limited from The Medicash Foundation were £39,992 (2021: £39,992). At the year end the net amount due to Medicash Health Benefits (Services) Limited from The Medicash Foundation was £Nil (2021: £41,402).
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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