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2022-03-31-accounts

Messrs Goldwyns 109 Baker Street London W1U 6RP

Dear Sirs

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your independent examination of the company’s financial statements for the year ended 31 March 2022. These enquiries have included inspection of supporting documentation where appropriate. All representations are made to the best of our knowledge and belief.

General

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to all appropriate persons within the company, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission.

Assets and liabilities

Accounting estimates

Loans and arrangements

Legal claims

Laws and regulations

Related parties

Subsequent events

Going concern

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Grants and donations

Internal Control and Fraud

Yours faithfully FOR AND ON BEHALF OF The Medical Council on Alcohol

Professor C Drummond, Chairman, Executive Committee

....………………............... Date: 22[nd] June 2022

Mr G Warner, MBA, FCA Honorary Treasurer

....………………............... Date: 22[nd] June 2022

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The Medical Council on Alcohol (A company limited by guarantee)

Report and Financial Statements Year ended 31 March 2022 Charity number: 265242 Company number: 952312 VAT number: 128992569

TABLE OF CONTENTS

REPORT OF THE TRUSTEES & DIRECTORS OF THE MEDICAL COUNCIL ON PAGES 3-16
ALCOHOL FOR THE YEAR ENDED 31 MARCH 2022
INTRODUCTION PAGE 3
MEDICAL DIRECTOR’S REPORT PAGE 3
OUR PURPOSE AND ACTIVITIES PAGE 5
ACHIEVEMENTS AND PERFORMANCE PAGE 7
FINANCIAL REVIEW PAGE 9
STRUCTURE, GOVERNANCE & MANAGEMENT PAGE 11
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE MEDICAL PAGE 17
COUNCIL ON ALCOHOL FOR THE YEAR ENDED 31 MARCH 2022
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH PAGE 19
2022
BALANCE SHEET AS AT 31 MARCH 2022 PAGE 21
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 PAGE 23
MARCH 2022

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REPORT OF THE TRUSTEES & DIRECTORS OF THE MEDICAL COUNCIL ON ALCOHOL FOR THE YEAR ENDED 31 MARCH 2022

The Medical Council on Alcohol is a Registered Charity (Number 265242) and a Company Limited by Guarantee and not having a share capital (Company Registration Number 952312) as well as being VAT registered (128992569). It is governed by its Memorandum and Articles of Association dated 28 February 1967 under which one third of the Executive Committee is elected or reelected at each Annual General Meeting. The Executive Committee appoints the Chairman and two Vice-Chairmen and is also entitled to appoint new Trustees and determine the method of their appointment.

The trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ended 31 March 2022 which are prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Effective October 2019).

MEDICAL DIRECTOR’S REPORT

The period covered by this report spans the gradual re-opening of society, and the MCA office, as the Covid-19 pandemic restrictions are released. Whilst the current infection rates in the UK remain high, hospitalisations and deaths have decreased and vaccination rates are encouraging.

The MCA office is now once again open for business in person. The MCA team is currently going in one or two days per week and working from home the rest of the time. We are in new premises at 2 St Andrew’s Place, still under the auspices of the RCP. A few technical issues remain to be finalised, including moving to a new IT support provider at a much more advantageous rate. The move was an opportunity to sort through large volumes of papers and other materials and has resulted in a much more streamlined office environment.

During the past year, the MCA has continued its work to reduce alcohol-related health harm, primarily through educational measures for health professionals. We continued to work with health professionals in the alcohol and health harm arena including of course students, promoting education for this group; our Journal is highly regarded in the field; we work with

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organisations which support health professionals themselves in difficulty with alcohol; and we remain committed to achieving evidence-based policy change through our links with the Alcohol Health Alliance and other organisations.

The MCA Symposium on Interventions and Recovery, originally due to be held in person in November 2020, was held instead digitally in November 2021. We were able to keep the entire programme as planned; the Max Glatt lecture was given by Peter Rice and speakers included Ed Day, Anne Lingford-Hughes, Mani Mehdikhani, David McCartney and John Kelly. The RCP provided the digital platform and the entire event ran very smoothly. The Max Glatt lecture and all the talks are available for delegates to view for six months after the event on the MCA website, thus giving an opportunity for increased exposure and impact. A total of 85 delegates viewed the event on the day and a further 75 viewed the event subsequently on line. Very pleasingly the event made a surplus of around £5,400, in part reflecting the lower costs associated with an entirely digital event.

Other regular educational projects include our competitions, of which there have been three in the past year. The 2021 NAAD competition for medical and other health professional students was to design a three-slide screensaver for students managing their use of alcohol in the university environment. The three excellent winning entries are available to view on the MCA website. A new competition was launched this year for newly qualified doctors, to present a poster reporting an alcohol-related Quality Improvement project. This is in the process of being judged and is particularly of note in that it is engaging a group with which we have not so far worked. The current Essay prize on the theme of managing a situation in which a more senior colleague has an alcohol problem is still open for entries. Our longstanding handbook has now formally been retired. We are continuing to develop digital alternatives for this stream of work, in association with colleagues at the Society for the Study of Addiction.

Our excellent relationship with Oxford University Press, our Journal co-owners, and the dedication of the chief Editors, are key to the on-going success of Alcohol and Alcoholism. The Journal is our principal source of income and over the past year this has resulted in an income of £169,457 (2021: £166,233). In addition, the Impact Factor improved to 2.826. At bi-annual Journal Committee meetings ways of continuing the Journal’s success are discussed, including Special Issues on topics of particular importance, the challenges posed by the growth in open access publishing and maximising marketing opportunities. Fortunately, a feared possible decrease in income due to Covid has thus far not materialised. Of note is the resignation from OUP of Paul Kidd, who had provided excellent support and communication between OUP and the MCA for over 10 years. New in post is Rachel Moriarty with whom we look forward to working.

Our investment income of course depends on the performance of the financial markets, which have shown the volatility expected due to Covid and now face the further challenges of other

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recent geopolitical events. We have benefited from the oversight of our financial advisors Charles Stanley with whom members of the Executive Committee and the Treasurer meet regularly.

Our aim for the next year is to continue our activities to meet our mission of improved outcomes for patients with alcohol related health harm, through all our streams of work and with the development of new initiatives. We aim to do this while staying in budget which requires careful scrutiny of all our activities and maximisation of fundraising opportunities.

OUR PURPOSE AND ACTIVITIES

Objectives

The Council was established in 1967 for “the benefit of the community to provide an organisation of registered health care professionals with a view to the co-ordination of effort, the better understanding of alcoholism and its prevention and the treatment and after-care of alcoholics”.

Our purpose

The vision that shapes our annual activities remains to create a workforce of health professionals educated and supported to reduce health harm from alcohol. Improving the competence of health professionals in the alcohol field will improve the quality of treatment for patients in the UK. The charity also supports healthcare professionals who have developed problems with their own use of alcohol.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity’.

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Educational Activities

We run a series of educational activities including student competitions and a yearly symposium. The income from this event is intended to ensure that the event itself is at least cost neutral, but ideally to increase sponsorship and price delegate income to create a small surplus to aid in covering the costs of educational activities. Our activities have the benefit of improving the competence of health care professionals, particularly at the beginning of their careers, to manage health harm from alcohol in their patients.

Membership

The MCA has a small membership body of 76, all from the healthcare field. The membership fees cover the cost of the thrice-quarterly newsletter and also allow the MCA to offer reduced rates for members to its educational events. Membership increases exposure to the MCA’s activities, which in turn has increased the competence of health care professionals.

Journal

The MCA owns a 50% share with Oxford University press of the ‘Alcohol and Alcoholism’ journal. The income from the journal contributes towards the operational costs of the organisation. Within the next 3-5 years it is hoped that the impact factor will continue to increase and that the presence of the Journal in the US and Asia will have a positive influence on income. The Journal meets the MCA’s vision and mission statements by contributing to the academic endeavours of improving the knowledge and understanding of alcohol-related health harm. This in turn improves the management of patients with alcohol-related health issues.

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ACHIEVEMENTS AND PERFORMANCE

Performance Review 2021-2022

FINANCIAL GOAL DID WE ACHIEVE
IT?		 COMMENTS
To generate a 4% yield on investments NO We received an approximate
2.7% yield (£19,468) from the
investment portfolio during the
year.
EDUCATIONAL GOAL DID WE ACHIEVE
IT?		 COMMENTS
To hold one AGM as stated in the MCA
memorandum. To arrange one
symposium with the aim to break even
financially, and to have a minimum
attendance of at least 100 people.		 YES The 2021 event was held online.
It was well attended and had
excellent feedback. It achieved a
surplus of around £5,400.
To produce x3 copies of the newsletter
‘Alcoholis’		 YES We produced 3 copies of the
Alcoholis newsletter.

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JOURNAL GOAL DID WE ACHIEVE
IT?		 COMMENTS
To continue to increase the impact
factor with the aspiration of achieving
an impact factor of 2.5 – 3 within a 3-
year period		 YES Annual impact factor was 2.826
with a 5- year impact factor of
2.902 (a good increase)
To produce 6 issues of A&A Journal a
year, with at least 100 pages per
edition		 YES
POLICY GOAL DID WE ACHIEVE
IT?		 COMMENTS
To maintain links to the AHA (Alcohol
and Health Alliance) and other
organisations on issues of policy
relevance e.g. minimum pricing		 YES Supported them financially as
well as via social media
SUPPORT GOAL DID WE ACHIEVE
IT?		 COMMENTS
To continue to work with the BDDG
and SDT to promote both
organisations and also sign post
healthcare professionals suffering
from an alcohol problem to these
organisations		 YES Many links including committee
membership

This year the Journal’s impact factor increased from 2.078 to 2.826. The MCA strengthened its links with the AHA by supporting them financially with a £1,500 grant whilst we also highlighted

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each other’s social media campaigns. The MCA also continued to work closely with the BDDG (British Doctors and Dentists Group) and the SDT (Sick Doctors Trust).

The MCA Symposium in 2021 was entitled ‘Interventions and Recovery’ and had 85 attendees. The plans for the 2022 Symposium are currently in progress, hopefully for an in-person event but with a contingency plan for an online event.

FINANCIAL REVIEW

The MCA recorded a net income for the year of £42,626 (2021: £40,341) before realised and unrealised investment gains of £7,739 (2021: £184,988) showing a net increase in funds for the year of £50,365 (2021: £225,329). At the year end the Council had net funds of £917,535 (2021: £867,170).

Income

The Symposium was held was held online in 2021 and surplus of around£5,400 was achieved. MCA also benefited from the receipt of further legacy income amounting to £9,554.

Journal income showed a small increase over the previous year to £169,457 (2021: £166,233), including some minor adjustments relating to the previous year.

Following the reduction in dividend income in 2020 / 2021 due to the Covid-19 pandemic, there was some recovery during the year, although the amount received of £19,468 (2021: £17,689) was below the levels achieved in recent years.

Expenditure

Total expenditure for the year was £171,781 (2021: £166,182). The continued effect of ‘working from home’ for a large part of the financial year was to reduce MCA’s activities and related expenses.

Effective from 1 July 2021, MCA moved into its new premises on the RCP estate and the revised charging structure commenced.

Investment portfolio

In the first nine months of the financial year the investment portfolio performed strongly and at the end of December 2021 was valued at approximately £760,000. Thereafter, stock market

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valuations were adversely impacted by the prospect of increases in interest rates and, more recently, the Russian invasion of Ukraine.

As a result, the value of MCA’s portfolio declined to £702,828 at the year end, but was still marginally ahead of the £700,739 valuation at 31 March 2021.

Our Membership and Symposium Policies

The MCA’s s pricing policies with regards to membership and events reflect our strategy of being accessible and cost effective to all types of healthcare professionals especially as budgets within the NHS are very strict at present, whilst aiming for the MCA to remain financially viable.

Investment Powers and Policy

The Council has appointed Charles Stanley and Co. as MCA’s investment managers and members of the Executive Committee and the Treasurer have regular meetings with the investment manager to monitor performance. The investment manager is aware of the Council’s ethical stance on alcohol-related investments.

Reserves Policy

The Council’s policy is that it will at all times seek to retain sufficient cash and easily liquidated investments to cover at least 9 months estimated future expenditure, which in 2021/2022 was approximately £130,000. At the year-end cash at bank and investments amounted to approximately £869,724. All investment holdings are considered to be capable of being liquidated quickly should the need arise.

Aims for the Future

The Council’s continuing aim is for its income and expenditure to be in reasonable balance before any major charitable projects. The Council’s intention is to put income from its activities towards financing such projects, whilst being aware that there may be occasions when a project is of such importance that it may be appropriate to support out of the Council’s retained funds.

We will continue to strengthen our links with healthcare professionals through our membership, educational activities and Journal as well as using social media to raise the profile of the organisation.

Through our collaboration with OUP, we will continue to work to increase the income generated from the Journal. In particular we are aiming for an increase in the impact factor and the reach of the Journal in the USA particularly and other parts of the world.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Medical Council on Alcohol is a company limited by guarantee governed by its Memorandum and Articles of Association dated 1967. It is registered as a charity with the Charity Commission.

The Council is governed by the Executive Committee and its subordinate Committees: Education and Public Health and Journal. There is a network of Regional Advisors associated principally with Medical Schools and Universities, and a current membership of 76. Members of the Executive Committee are Directors under Company Law and Trustees under Charity Law. Members of the Company guarantee to contribute an amount not exceeding £1 each to the assets of the Company in the event of a winding-up during their membership or within one year of their ceasing to be a member. The total of such guarantees at 31 March 2022 was £76 (2021: £75).

Appointment of Trustees

Under the company’s articles, directors of the company are known as members of the Executive Committee. Under the requirements of the Memorandum and Articles of Association the members of the Executive Committee are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting. The directors retire by rotation and, if eligible, can offer themselves for re-election.

Most trustees are already familiar with the practical work of the Charity. Additionally, new trustees are encouraged to attend meeting sessions to familiarise themselves with the Charity and the context within which it operates.

Trustee Induction and Training

New trustees are briefed on their legal obligations under charity and company law, the Charity Commission guidance on public benefit and receive a copy of the Memorandum and Articles of Association. New trustees are presented with any recent financial documents and business plans.

Organisation

The board of trustees, which can have up to 30 members, administers the charity. The board normally meets three times a year. A Chairman is appointed by the trustees to manage the dayto-day operations of the charity. To facilitate effective operations, the Chairman has delegated authority, within the terms of delegation approved by the trustees, for operational matters including finance, employment and membership to the Medical Director and other committees (Education & Journal).

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Related Parties and Co-operation with other Organisations

The Medical Council on Alcohol has formal Agreements only with the Journal Publisher (Oxford University Press) and the European Society for Biological Research into Alcohol (a charity with similar objectives, subject to Belgian National Law, but administered from Vienna).

In pursuance of its charitable objectives The Medical Council on Alcohol co-operates with bodies such as the Sick Doctors Trust, the Alcohol Health Alliance and the British Doctors’ and Dentists’ Group but has no formal relationship with these bodies.

The Medical Council on Alcohol became affiliated to the Royal College of Physicians in 2006: this affiliation does not affect the independence of The Medical Council on Alcohol as a Charity.

Pay Policy for Senior Staff

The directors, who are also the trustees, give of their time freely and no director received remuneration in the year. Details of directors’ expenses are related party transactions and are disclosed in note 9 in the accounts.

The pay of MCA staff is reviewed annually in accordance with pay in other comparable organisations.

Risk Management

The Council is exposed to operational and financial risks as a result of its operating activities. To mitigate these risks a system of internal financial controls has been implemented that is designed to provide reasonable (although not absolute) assurance against material misstatement or loss.

The trustees have a risk management strategy which comprises:

This work has identified that financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of the investment portfolio and active management of debtors and creditors balances to ensure sufficient working capital.

The Council is also exposed to market risk as a result of holding investments in equities and bonds. To manage this risk the Council has given clear guidelines to the investment manager on

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the investment strategy to be followed and receives regular reports from the investment manager on the performance of the portfolio. Members of the Executive Committee and the Treasurer meet regularly with the manager to review investment performance.

Attention has also been focused on non-financial risks arising from fire and health and safety issues. These risks are managed by ensuring that all office machines are PAT tested regularly, having set policies and procedures in place, maintenance of equipment, back up of data to an external server and regular staff training.

REFERENCE AND ADMINISTRATIVE DETAILS:

Charity number: 265242

Company number: 952312 VAT number: 128992569

Registered Office: 2 St Andrews Place, London NW1 4LB

Our Advisors:

Independent Examiner: Martin Myers, Goldwyns 109 Baker Street, London, W1U 6RP Bankers: Natwest PO Box 2021, London, W1A 1FH Investment Manager: Charles Stanley 25 Luke Street, London, EC2A 4AR

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The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees as at 31 March 2022 were as follows:

OFFICERS
President
Vice President		 Professor Sir Ian Gilmore
Dr Bruce Ritson,		 MD, FRCP, DL
OBE, MD, FRCPsych, FRCP (Ed)
EXECUTIVE COMMITTEE
Officers:
Chairman
Education Committee
Chair
Journal Committee Chair		 Prof Colin Drummond
Dr Iain Smith
Dr Peter Rice		 MB ChB, MD, FRCP, FRCPsych, FFPH,
FRCGP(Hon)
MB ChB, BSc, FRCPsych
MB ChB, FRCPsych
Members: Prof Jonathan Chick,
Dr Claire Gerada,
Prof Eilish Gilvary,
Dr Anne McCune,
Dr Zulfiquar Mirza,
Dr Marsha Morgan,
Dr Andrew Thillainayagam,
Dr Alistair Young
Dr Michael Dougan		 MA, MPhil, DSc, FRCP(Ed), FRCPsych
MBE, FRCP, FRCGP, MRCPsych
FRPsych, MRCGP, DCH, FRCPI
MD, FRCP
MBCHB, DCH, DRCOG, MRCO, FRCP, FFAEM,
Tox FRCEM
MB ChB, FRCP
MD, FRCP
MB ChB, MRCPsych
MB, ChB, LLB, DA. (UK), FFARCSI, CCGPT

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In attendance:
Honorary Treasurer:
Medical Director:
Executive Assistant:
Admin Assistant:		 Mr Graham Warner
Dr Dominique Florin
Ms Trine Lyngsholm
Ms Clare Farrow		 MBA, FCA
MA, MB BS, MRCGP, MD, FFPHM
BA(Hons), AISTD
Distinguished Fellow Professor Peter Brunt CVO, OBE, MD, FRCP, FRCP(Ed),FRCS(Ed)

Trustees’ responsibilities in relation to the financial statements

The trustees (who are also directors of The Medical Council on Alcohol for the purposes of Company Law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under Company Law, the trustees must not approve the Financial Statement unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

On behalf of the board:

Dr Dominique Florin Medical Director

Date: 22[nd] June 2022

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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE MEDICAL COUNCIL ON ALCOHOL FOR THE YEAR ENDED 31 MARCH

2022

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2022 which are set out on pages 19 to 33.

Responsibilities and Basis of Report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities, applicable to charities preparing their accounts in accordance with the Financial reporting standard applicable in the UK (FRS102).

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I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached

MAMYERS

MAMYERS (Jun 29, 2022 12:56 GMT+1)

MARTIN MYERS, FCA CTA GOLDWYNS Chartered Accountants 109 Baker Street London W1U 6RP

Date: 22[nd] June 2022

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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31

MARCH 2022

Notes 2022 2022 2021
TOTAL Unrestricted Restricted Total
Income £ £ £ £
From generated
funds
Voluntary Income:
Donations and
Legacy Income		 4 10,557 9,554 1,003 17,381
Membership 3,610 0 3,610 3,580
Investment Income 6 19,468 19,468 0 17,689
33,635 29,022 4,613 38,650
From charitable
activities
Journal 169,457 117,782 51,675 166,233
Symposium 5 9,605 9,605 0 0
Other Incoming
Resources:
Sundry Income 1,710 1,710 0 1,640
180,772 129,097 51,675 167,873
Total Income 214,407 158,119 56,288 206,523
Expenditure
Charitable Activities 7a / 7b 118,988 62,700 56,288 114,469
Governance &
Administration		 7c 52,033 52,033 0
51,046
Other 760 760 0 667
Total Expenditure 171,781 115,493 56,288 166,182

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Net
Incoming/(Outgoing)
Resources		 42,626 42,626 0 40,341
Gains / (Losses) on
Investments
Realised investment
gains		 9,964 9,964 0 1,457
Change in value of
the investment
portfolio		 (2,225) (2,225) 0 183,531
7,739 7,739 0 184,988
Net surplus /
(deficit) and Net
Movement in Funds
for the year		 50,365 50,365 0 225,329
Reconciliation of
Funds
Total funds Brought
Forward		 867,170 867,170 0 641,841
Total funds Carried
Forward		 16 917,535 917,535 0 867,170

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities. The notes on pages 23 to 33 form part of these financial statements.

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BALANCE SHEET AS AT 31 MARCH 2022

Notes 31st March 2022 31st March 2021
£ £
Fixed Assets
Listed Investments 12 702,828 700,739
Total Fixed Assets 702,828 700,739
Current Assets
Debtors 13 71,912 12,238
Cash at Bank & in Hand 166,896 179,935
Total Current Assets 238,808 192,173
Liabilities
Creditors due within 1
year		 14 24,101 25,742
Net Current Assets 214,708 166,431
Total Assets less Current
Liabilities		 917,535 867,170
The funds of the charity
Unrestricted funds 15 828,861 776,274
Restricted funds 0 0
Revaluation Reserve 15a 88,674 90,896
Total Funds 917,535 867,170

For the year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies and under the Charities Act 2011.

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Directors’ responsibilities:

Approved by the Executive Committee on 22[nd] June 2022 and signed on its behalf,

Professor C Drummond, Chairman, Executive Committee

Mr G Warner, MBA, FCA

Honorary Treasurer

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

  1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) 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 October 2019) - (Charities SORP (FRS 102)) and the Companies Act 2006.

The MCA 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.

b) Income

Income is accounted for gross (excluding Value Added Tax where applicable) when receivable, as long as it is capable of financial measurement. This includes donations, subscriptions, income from publications and investment income. Income received in advance of a specific event is deferred until the criteria for income measurement are met.

c) Interest Receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

d) Fund Accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the MCA’s work or for specific projects being undertaken by the charity.

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e) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably

All expenditure is accounted for gross or net of value added tax where applicable, and when incurred. Rentals paid under operating leases are charged to the income and expenditure account on a straight-line basis over the term of the lease.

f) Allocation of Support Costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Seventy five percent of staff costs, rent/service charge, rates, insurance, and office expenses have been allocated to the charitable activities listed in note 7b.

g) Operating Leases

The charity leases its premises from the Royal College of Physicians. The lease is renewed periodically. The previous lease expired on 31st December 2019 and the MCA has agreed, but not yet signed, a new lease with RCP (see note 17).

h) Tangible Fixed Assets

Depreciation on office equipment is provided on a straight-line basis at a rate of 20% per annum. Items of expenditure are capitalised where the purchase price exceeds £1,000.

i) Debtors

Debtors are recognised initially at fair value. Trade and other debtors are recognised at the amount due on the day they arise. Prepayments are amounts paid in advance and are stated at the actual amount that has been prepaid.

j) Cash at bank and in hand

Cash at bank and cash in hand includes cash and deposits in the bank or similar accounts.

k) Investments

The listed investment portfolio is stated at market value.

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l) Foreign Currencies

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of execution. Exchange differences are taken to the SOFA. Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date.

m) Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event or activities and the amount due to settle the obligation can be measured or estimated reliably.

n) Financial Instruments

The MCA only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

o) Pensions

The Medical Director of the charity receives an employer’s contribution to a NHS pension on a monthly basis. The MCA is part of the NEST scheme with employer contributions in line with the government approved percentage. If staff meet the government requirements for a pension, then the MCA pay into either NEST on their behalf or into a private pension scheme at the same rate as the NEST scheme.

p) Going Concern

The Financial Statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these Financial Statements. The budgeted income and expenditure coupled with the level of reserves is considered sufficient for the charity to be able to continue as a going concern.

2. Legal Status of the Charity

The MCA is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

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For the purposes of the Companies Act, the persons regarded as Directors and the Board of Directors respectively, are the Members of the Executive Committee.

  1. Financial Performance of the Charity

The statement of financial activities shows the overall income and expenditure of the charity.

  1. Income from Donations and Legacies
Donations 2021-2022
2020-2021
£
£
GiftAid 786
1,149
Member & Product
donations		 217
232
Unrestricted
Legacies		 9,554
16,000
10,557
17,381

The income from donations and legacies was £10,557 (2021: £17,381) of which £9,554 was unrestricted (2021: £16,000) and £1,003 restricted (2021: £1,381).

The MCA benefits greatly from the involvement and enthusiastic support of its many board members, Regional Advisors and volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of these people is not recognised in the accounts.

  1. Income from Charitable Activities
le is not recognised in the accounts.
Income from Charitable Activities
Unrestricted funds
2021-2022		 Unrestricted funds
2020-2021
£ £
Income from Symposium: 9,605
0
Total income from charitable
activities		 9,605 0

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6. Investment Income

The MCA’s investment income of £19,468 (2021: £17,689) arises from dividends received during the financial period and any interest received on the MCA’s bank account.

During the financial period a number of investment holdings were sold resulting in a realised gain of £9,964 (2021 gain: £1,457).

7. Expenditure

7(a) Breakdown of costs by charitable activities (See note 16 for details of Restricted Expenditure):

Direct Costs Support Total
£ £ £
Journal
(inc.Committee)		 34,636 5,042 39,678
Member
Communication		 1,999 20,169 22,168
Education (External
Events)		 - 15,127 15,127
Education
(Publications)		 - 5,042 5,042
Education (Other) 270 2,017 2,287
Education (Symposia) 4,149 23,195 27,344
Education
(Competitions)		 2,300 5,042 7,342
43,354 75,634 118,988

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7(b) Analysis of costs by financial activity

TOTAL 5% 20% 15% 5% 2% 23% 5% 25%
Journal Member
Com		 Education:
External
Events		 Education:
Publications		 Education:
Other		 Education:
Symposium		 Education
Comp		 Governance &
Admin
£ £ £ £ £ £ £ £ £
Staff 81,839 4,091 16,368 12,276 4,092 1,637 18,823 4,092 20,460
Premises 16,456 823 3,291 2,468 823 329 3,785 823 4,114
Other
Office		 2,551 128 510 382 127 51 587 128 638
100,846 5,042 20,169 15,126 5,042 2,017 23,195 5,043 25,212
Total 75,634 25,212

7(c) Governance and Administration costs:

2021-2022
2020-2021
£
£
Support Costs 25,212
25,514
Professional Fees 20,251
19,531
Executive Committee
Costs		 (107)
-
Annual General Meeting
-
-
Investment
Management		 5,102
4,416
Funding /
Subscriptions		 1,576
1,585
TOTAL 52,033
51,046

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8. Net Income/(expenditure) for the year

This is stated after
charging:		 2021-2022 2020-2021
£ £
Operating leases 16,456 14,080
Bank interest
receivable		 (16) (40)
Accountancy
services		 7,564 7,548

9. Analysis of staff costs, trustee remuneration and expenses

2021-2022 2020-2021
£ £
Wages and Salaries 72,760 72,058
Social Security contributions 2,379 2,307
Pension contributions 6,170 6,423
Staff Travel 529 496
Total 81,839 81,284
Average number of employees during the year 3 3

No trustees were paid or received any other benefits from employment with the organisation in the year (2021: £nil) other than Professor J Chick who received an Honorarium for his editorship of the Journal which totalled £16,000.

No charity trustee received payment for professional or other services supplied to the charity (2021: £nil). No payments were made to (2021: £1,562 to 14 members) Executive Committee members in reimbursement of travelling expenses incurred in attending meetings. No employees had remuneration and employee benefits in excess of £60,000.

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10. Staff Numbers

The MCA employs 3 part time members of staff. It also employs additional part-time staff when necessary during peak activity times (e.g. Symposium, other events etc).

11. Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12. Fixed Assets – Listed Investments

2. Fixed Assets – Listed Investments
2021-2022 2020-2021
£ £
Cost of investments at start of
financial year		 604,203 586,860
Additions at cost during the year 16,968 57,324
Disposals during the year (15,850) (41,438)
Realised gains on investments during
the year		 9,964 1,457
Cost of investments at end of
financial year		 615,285 604,203
Unrealised gains (loss) at year end 88,674 90,896
Market Value at end of financial year 703,959 695,099
Cash held pending investment (1,131) 5,640
Total 702,828 700,739

All investments were listed on a recognised stock exchange.

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  1. Debtors: Amounts Falling Due Within One Year
2021-2022 2020-2021
£ £
Prepayments & Accrued
Income		 71,245 12,238
Trade Debtors 667 -
Total 71,912 12,238

14. Creditors: Amounts Falling Due Within One Year

2021-2022 2020-2021
£
£
Accruals & Deferred Income 22,634
13,764
Trade Creditors 968
1,369
VAT payable 499
10,609
Total 24,101
25,742

15. Analysis of Net Assets Between Funds

2021-2022 2020-2021
£ £
Unrestricted Funds, Net Current
Assets		 828,861 776,274
Unrealised gains on revaluation of
investments		 88,674 90,896
Total 917,535 867,170

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15a. Movement in Revaluation Reserve

. Movement in Revaluation Reserve
2021-2022 2020-2021
Brought Forward balance at 1April 90,896 (92,635)
Net movement for the year (2,222) 183,531
Balance at 31 March 88,674 90,896

16. Movement in Funds

6. Movement in Funds
Unrestricted Funds: 2021-2022 2020-2021
£ £
At 1 April 867,170 641,841
Transfer from restricted
funds		 0 0
Net Movement in funds
for year		 50,365 225,329
At 31 March 917,535 867,170
Restricted Funds: 2021-2022 2020-2021
£ £
At 1 April 0 0
Income 56,288 56,636
Expenditure 56,288 56,636
Transfer to unrestricted
funds		 0 0
At 31 March 0 0

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Restricted funds received during the year and their subsequent expenditure was for:

Restricted Funds (in detail) Amount Expenditure
GiftAid Donations: Donations by
members for members only
activities, such as AGM costs		 £1,003 Members contribution
towards AGM costs (to aid in
covering costs)
Membership: The MCA receives
yearly subscriptions to pay for
member activities		 £3,610 AGM costs, newsletter,
website and member activity
costs
Journal: The MCA receives monthly
income from Oxford University
Press to contribute to editorial and
board expenses		 £51,675 Editors’ honoraria and board
meetings
£56,288

17. Operating Lease Commitments

MCA’s previous lease on premises it occupies at the Royal College of Physicians expired on 31 December 2019. A lease for new premises has been agreed with the College at an approximate annual cost of £19,867 (including service charge) with effect from 1 July 2021, but not yet signed.

The combined rent and service charges in respect of leased premises included in these accounts is £16,456 (2021: £14,080).

18. Post Balance Sheet Events

There are no post-balance sheet events to report.

19. Related Parties

Other than the items shown in Note 9 above, there are no related party transactions that require disclosure.

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