MERU Medlcol Englneerlng Resource Unlt from disabilities to possibilities Medical Engineering Resource Unit Financial Statements For the year ended 31 March 2021 CHARITY NO. 269804 COMPANY REGISTRATION NO. 1214125 QEF achieving goals for life qei.org.uk 5tabJtory Report ?nd Accounts- Year Ended 31 March 2021
MERU Medlcal Englneerlng Resource Untt LEGAL AND ADMINISTRATIVE INFORMATION YEAR ENDED 31 MARCH 2021 PATRONS LAURENCE LLEWELLYN BOWEN SIR RICHARD STILGOE OBE DL BOARD OF TRUSTEES MOIRA BOWE GORDON BOWSER ALICE COLLINS MICHAEL CONNAUGTON TIMOTHY JASON DAVIES JOHN DENNING PETER GORDON (resigned 31 May 20211 ABIGAIL PRICE LYNN SCOTCHER (resigned 10 December 20201 ELIZABETH SHARP DIRECTORS MOIRA BOWIE GORDON BOWSER (appointed 15 June 20211 TIMOTHY JASON DAVIES PETER GORDON {resigned 31 May 2021} COMPANY SECRETARY PHILIP KIRK REGISTERED OFFECE LEATHERHEAD COURT WOODLANDS ROAD LEATHERHEAD, SURREY, l(r22 OBN BANKERS CAF BANK LTD 25 KINGS HILL AVENUE KINGS HILL WEST MALLING KENT ME19 INDEPENDENT AUDITORS MOORE KINGSTON SMITH LLP DEVONSHIRE HOUSE 60 GOSWELL ROAD LONDON ECIM 7A stst0ry Report and AOUnts- year ended 31 Marth 2021
MERU Medlcal Englneerlng Resource Unlt CONTENTS Trustees Report page 4 Main Activities page 4 Structure, Governance and Management page 6 Financial Review page 7 statement of Trustees Responsibilities page 9 Independent Auditors, Report to the Members of Medical Engineering Resource Unit page 11 Balance Sheet page 16 Statement of Financial Activities page 17 Notes to the Financial Statements page 18 StaOry Rep)rt and ACC¢unt$- year ende¢ 31 M¥rth 2021
MERU Medlcal Englneerfng Resovrce Unlt TRUSTEES. REPORT The Trustees are pleased to present their Report and Financial Statements for the year ended 315t March 2021. The accounts have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in J¢Jly 2014. The report and statements also comply with the Companies Act 2006. History On 1st April 2012 Medical Engineering Resource Unit (MERU) became a member of the Queen Elizabeth's Foundation for Disabled People (QEF) family of charities and QEF is the sole trustee of MERU. In this report, reference to 'Tru5tee5' means the Board of Trustees of QEF. The aim of the merger was to be able to enhance the range of services on offer from both charities. QEF is a national charity working with people living with physical and learning disabilities or acquired brain injuries, to gain new skills and increase independence. MERU has continued its work of providing innovative equipment which started at Queen Mary's Hospital for Children 40 years ago. QEF and MERU both support disabled people to achieve goals for life and realize their full potential. Vision and Strategic Direction MERU care deeply about helping young people with disabilities who are striving to enhance their ability to grow and achieve personal fulfilment. MERU'S core solutions are aimed at serving the unique needs of individuals for whom standard equipment solutions are inadequate. MERU foster an environment of innovation and creativity to deliver both the quality and efFicacy of solutions in a timely manner. All equipment is manufactured to the highest P055ible standards and compliant with the latest legislation in this field. MERU draw on the widest possible range of expertise in engineeringt design and disability, bringing new skills and experience into the organisation whenever possible. No child will be denied help on the grounds of cost, but where appropriate, statutory agencies will be expected to make a contribution. All employees, volunteers and clients of MERU are ambassadors for the organisation. MAIN ACTIVITIES All charitable activities focus on enabling children and young people with disabilities to take a more active, independent role in society through the provision of innovative aids. They are undertaken to further MERU'S charitable statutory Report atbd ACCOunts- year ended 31 Narch 2021
MERU Medlcal Englneerfng Resovrce Unll purposes for the public benefit. This objective falls within the guidance contained in the Charity Commission's general guidance on public benefit and this guidance has been taken into account when planning MERU'S future. MERU offers a free loan scheme for our children's mini powered wheelchairs known as Bugzis. Following an assessment, Bugzis are available for the family to take home and use for as long as the child need it. It is then returned, refurbished and reloaned to another child. A wide range of bespoke, assistive products are available to purchase as well as adaptions to toys. MERU stopped providing engineering servlces during the year and these are no longer available, Due to the COVID-19 pandemic, the centre was closed between March 2020 and August 2020 and staff were furloughed. The team returned full time in October 2020. Between April 2020 and March 2021, MERU helped over 3,700 disabled people through the provision of its innovative products and services. Bugzi loan scheme 26 children received a Bugzi through the Bugzi Loan Scheme between April 2020 and March 2021. The school based Bugzi Club was not in operation during the year due to the COVID-19 pandemic. We provided 10 new Bugzis this year; 6 for the loan scheme and 4 were sold. A total of 26 Bugzis were refurbished throughout the year. There were 26 Bugzi assessments carried out during the year 14 of which were at QEF with the remaining 12 taking place at our partner centres. Outreach and partnerships MERU'S outreach work is carefully targeted to increase referrals and to support fundraising activities. MERU has continued to foster partnerships with charities and organisations who work directly with disabled children to ensure every child who needs MERU'S services knows how to acces5 them. There are now partnerships with organi5ations in Glasgow, Leeds, Birmingham, Truro, Thetford, London, Northern Ireland, St Helens, Newcastle, Aylesbury and Derby. MERU is also a member of the BHTA Paediatric Equipment Section with other manufacturers and providers of Medical Devices. Fundraising and Marketing Despite the challenging fundraising environment, overall funds raised totalled £334k (2020: £336k) of which £88k was raised specifically to build Bugzis. New appointments and a new strategy in the Engagements and Partnerships team stst0ry Report and ACCOunts- yearended 31 MJrch 2021
MERV Medlcol Englnèèrlng Resource Unlt will further develop relationships with corporate and community partners in the coming year, which is expected to increase support. Volunteers and Support MERU'S charitable activity is undertaken by our dedicated engineers and support staff. Volunteers a also a key part of the MERU story, in the workshop, in the office, in fundraising activities and as ambassadors for the charity. By opening the workshops to volunteers we have been able to recruit highly skilled engineers and designers who work for local engineering companies. This team is now responsible for much of our commercial output and have been instrumental in providing the toy adaptation service. STRUCTURE. GOVERNANCE AND MANAGEMENT structure The Charity is a company limited by guarantee. The governing documents are the Memorandum and Articles of Association. MERU is registered as a charity with the Charity Commission. The Trustees oversee the governance, management and administration of MERU. Trustees Trustees are elected by Members of QEF or co-opted by the Trustees, based on how their skill set and experience can benefit QEF and further improve the knowledge of the Board. A formal recruitment and selection process is agreed by the Board in advance of all appointments and is in line with best practice guidance. As stated in the Memorandum and Articles of Association, one third (or the number nearest one third) of the Trustees must retire at each AGM, those longest in office retiring first and the choice between any equal service being made by drawing lots. A retiring Trustee who is eligible may be re-elected. If at the date of the AGM a Trustee has held office for nine consecutive years, since first election, they may not be re-elected, except in exceptional circumstance of there being no other person eligible to be a Trustee and acceptable to the Members as such. The Trustees delegate day to day management and administration of MERU to the Chief Executive and Senior Management Team of QEF and the staff of MERU. Risk Management The Trustees regularly examine the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. statutory Report and Acwutlts- year ded 31 Marth 2021
MERU Medlcal Englneerlng Resource Unll Risk MERU remain heavily reliant on charitable donations to fund operations. There is diminishing availability and increasing competition for these funds. How this is ex ected to be mana ed MERU are increasing the proportion of income that is self-generated year on year and work closely with QEF Engagements and Partnerships team to su ort fundraisin initiatives. FINANCIAL REVIEW Income and Expenditure Income from charitable activities (Engineering Services, Ready-made Products, Bugzis and Travel Chairs) decreased to £174k in 2021 (2020 - £265k) as the centre was closed for part of the year due to the COVID-19 pandemic. The reduction was offset by government coronavirus support grant income of £92k. Despite the challenging environment, income from donations was broadly consistent with prior year at £334k (2020 - £336k). Overall, MERU managed to maintain total income at £600k (2020 £601k). This, coupled with a decrease in operating expenditure from £630k to £592k, resulted in an improvement in net operating income from a deficit of £28k in 2020 to a surplus of £8k in 2021. Balance Sheet The net book value of fixed assets reduced from £268k to £196k, a decrease of £72k. This reflects the disposal of equipment following the closure of the engineering services during the year, coupled with a reduced requirement for new equipment following the relocation of MERU to a smaller site within QEF property. Stock has also decreased slightly due to tighter stock controls; there is less space available at the new premises to hold large quantities of stock. The cash balance increased from £22k to £158k reflecting the sale proceeds from fixed assets, coupled with a reduction in capex and lower levels of working capital. Reserves policy The Board of Trustees reviews the reserves policy of MERU on an annual basis. The reserves include unrestricted and restricted reserves. An analysis of the reserves is shown in note 9 of the financial statements. The reserves policy is determined after assessing the capital requirements, considering the nature and timing of income and expenditure streams and by reviewing the specific business risks identified through the risk management process. The Board of Trustees aims to maintain a level of unrestricted reserves St*utory Report JThJ Accounts- year 31 MJrth 2021
MERU Medlcal Englneerlng Rèsource Unlt not tied up in fixed assets or free reserves whlch it believes will be sufficient to ensure the operational efficiency of the charity. The Board of Trustees has concluded that, given the current economic situation, the level of free reserves at the year-end should be three months, worth of operating expenditure. The actual level of free reserves is defined as the unrestricted net current assets (-£195k see note 9) divided by the average monthly operating expenditure (£44k see SOFA). However, the parent companyi QEF, calculates the resources required for the whole QEF Group, which includes Its subsidiaries and specifically MERU. QEF will ensure that MERU has adequate reserves at all times. Investment policy Any cash reserves have been deposited in a current account for ease of access. No reserves have been available for investment. Statutory Report Jnd Accounts- wr ended 31 March 2021
MERU Medical Engineerfng Resource Unlt STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees are required to prepare financial statements for each financial period which give a true and fair view of the financial activities of the charity and of its financial position at the end of that period. In preparing those financial statements the Trustees are required to: select suitable accounting policies and apply them consistently; make judgements and estimates that are reasonable and prudent. state whether the policies adopted are in accordance with the Companies Act 2006 and with applicable accounting standards and statements of recommended practice, subject to any material departures disclosed and explained i n the financial statements. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continLse in existence. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any ti me the financial position of the charity and enable them to ensure that the financial statements comply with the Companie5 Act 2006. 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. In 50 far as the Trustees are aware: there is no relevant audit information of which the charitable company's auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 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. This confirmation is given and should be interpreted in accordance with the provisions of the Companies Act 2006. Ststutory Report and ACCOunts- year entted 31 Marth 2021
MERU Medlcal Englneerlng R950urce Unlt Auditors The auditors, Moore Kingston Smith LLP, have indicated their willingness to continue in office, and a resolution concerning their reappointment will be proposed at the next Annual General Meeting. Small Company Rules This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. This report was approved by the Trustees on 24 November 2021 and signed on its behalf. T J Davies Director 10 statutory RepDrt and A(count5- year ended 31 March 2021
MERU Medlcol Englneerlng Resource Untt INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MEDICAL ENGINEERING RESOURCE UNIT Opinion We have audited the financial statements of Medical Engineering Resource Unit for the year ended 31st March 2021 which comprise the Statement of Financial Activities, the Balance Sheet and 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 FRS 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31st March 2021 and of its incoming resources and application of resources, including 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 Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 11 statutory Report gnd Accounts- year ered 31 Mar(h 2021
MERU Medlcal Englneerlng Resource Unll other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there 15 a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the trustees, annual report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, annual report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees. Annual Report and from preparing a Strategic Report. 12 Statutory Report and Accounts- yeJr en¢ed 31 March 2021
MERU Medlcal Englneerlng Resource Unlt Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosin9, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Explanation as to what extent the aud•t was considered capable of detecting irregularities, including fraud The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows: We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most 13 Stslutory Report ¥nd Accounts- yejr end•J 31 ItJrch 2021
MERU Medlcal Englneerfng Resource Unlt significant are the Companies Act 2006 and the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council. We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. As part of an audit in accordance with ISAS (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detetting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concem basis of accounting and, based on the audit evidence obtained, whether material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial 14 Statutory Report and Accounts- year ended 31 MJrch 2021
MERU Medlcal Englneerlng Resource Untt statements represent the underlying transactions and events in a manner that achieves fa ir presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a bodyi for our audit work, for this report, or for the opinions we have formed. J.A LLe 7 December 2021 [ Date] Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor Devonshire House 60 Goswell Road London ECIM 7AD 15 Statutory Report AccoJnts- year ended 31 Marth 2021
MERU Medlcol Englneerlng Resource Unll MEDICAL ENGINEERING RESOURCE UNrr BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Note Flxed assets". Tangible assets 195 940 195,940 268,166 268,166 Current assets Stocks Debtors Cash at bank and in hand 63,443 50,927 158 281 272,651 86,739 83,293 192,058 Credltors Amounts falling due wf(hin one year {386,0371 (385,7891 Net current assets 113 386 193,731 Total assets less current liabilfcs Provi£Dns {57,142) {57,1421 Net asset or IkibilleS Accurnulated funds Restricted funds 23,993 4,566 Unrestrted funds 1,418 12,727 Total aCmUlated funds Approved by the Trustees on 24 November 202 1 and signed on fcs beha by: TJ Davies Director The annexed notes form part of these financial statements Company RegiStratn Number.. 1214125 16 Statutory Report and ACCOuDts- year ended 31 Marth 2021
MERU Medlcal Englneerlng Resource Untt srATEMENT OF FINANCIAL AcfIviTIES {INCLUDING XNCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 2021 2021 Unrestrirted Restricted Funds Funds 2021 2020 Notes Total Funds Total Funds INCOME: Donations and legacies Charitable artivities 8u5iness Grants li 12 12 246,406 174, 169 91,568 87,764 334,170 174,169 91,568 336,115 265,375 Total Operatlng Income 512,143 599,907 601,490 EXPENDITURE: Raislng funds Charltsble actlvltSes 13 14 15,631 507,621 9,192 59,145 25,023 566,766 83,308 546,512 Total Operating Expenditure 523,452 68,337 591,789 629,820 Het Operating Income (11,309) 19,427 8,119 (28,330) Reconc¢liatioTh of funds: Total funds brought forward 12,727 4,566 17,293 45,623 Total funds carried forward The statement of financial activlties Includes all gains and 1055es recognised In the year. All incoming resources and reSoUrS expended derlve from continuing activities. 17 Statory REPDrt and ACCtsunts- year ended 31 Marth 2021
MERU Medlcal Englneerlng Resource Unlt NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 l. Company Status The Company is limited by guarantee, has no share capital and is also a registered charity. The liability of each member is limited to a sum of no more than £1 in the event of a winding up. 2. Principle Accountlng Policies a) Basis of Accounting The financlal statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The company is a public benefit entity for the purposes of FRS102 and therefore the Charity also prepares its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Structure applicable in the UK and Republic of Ireland (The FRS102 Charities SORP) and The Companies Act 2006. A summary of the more important accounting policies, which have been applied consistently, is set out below. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. b) Going Concern The trustees have assessed whether the use of the going concern basis Is appropriate and have considered possible events or condltlons that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular the trustees have considered the charitable company's forecasts and projections and have taken account of pressures on donation Income. The trustees recognise that COVID-19 poses unique challenges, but wlll continue to utilise all government support available, includ ing furloughing staff where appropriate. Fundraising events have continued to be online and a specific COVID risk assessment for MERU is available. Procedures to maintain social distancing, enhance cleaning and facilitate home working have been continued to minimise risk. After making enquiries, the trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the golng concern basls In preparing its financial statements. c) Incoming Resources Grants and donations are included when receivable. Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be recelved. 18 statutory Report Accounts- year •ided 31 Mgrch 2021
MERU Medlcal Englneerlng Resource Unll NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) A grant that specifies performance conditions Is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions, it is recognised in income when the proceeds are received or receivable. A grant received before the recog nition criteria are satlsfled is recognised as a liability. All Income Is recognised when there 15 entitlement to the funds, the receipt is probable and the amount can be measured reliably. d) Fixed Assets and Depreciation Assets are purchased from donations and grants provided and are shown as direct charitable expenditure from the fund concerned. Individual tangible fixed assets costing more than £1,000 are capitalised at C05t. Tangible fixed assets are stated at cost less depreciation. All tanglble fixed assets are depreciated on a straight-llne basis. Plant & machinery Five to Ten years Motor vehicles Four years Leasehold improvements Flve years At the end of each accounting period the residual values and useful lives of assets are revlewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible fixed assets are reviewed for impairment. e) Stocks stocks comprise items purchased for resale and are stated at the lower of cost or net realisable value, after making due allowance for obsolete and slow moving stock. Resources Expended Costs of charitable activities, support costs and the costs of raising funds of the charity have been allocated between these headings directly to the relevant expense for which the cost was incurred. Where costs cannot be specifically identified within one of the above categories an estimated allocation has been made. g) Operating Leases Rentals payable under operating leases are charged on a straight-line basis over the term of the lease. h) Pensions Some staff participate In the NHS pension scheme. This is a defined benefit scheme; in the event of underfundingi liability would rest with the NHS. Contributions are charged on an accrual basis. There is an optional penslon scheme for the other employees. For each member of the Group Personal Pension Plan {GPPP) the company makes a contribution of 5¥0 of the employee's gross salary provided the employee has made personal contribution of at least 50/0. 19 stakntDry RÈPtsrt and ACCOunts- yearended 31 Iiarch 2021
MERU Medlcal Englneerfng Rèsource Unlt NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) A third-party pension provlder holds the assets of the GPPP. ) Taxation As the company is a registered charity, it Is exempt from corporatlon tax on Its charitable activities. j) Cash Flow The company is exempt from the requirement to prepare a cash flow statement as it is a wholly owned subsidiary of the Queen Elizabeth's Foundation for Disabled People and its cash flows are consolidated into the cash flow statement of that company. k) Unrestricted Funds These are donatlons and other incoming resources receivable or generated for the objects of the Charity without further specified purpose and are available as general funds. l) Restricted Funds These are funds to be used for the speclfic purposes laid down by the donor. See note 8 for more details of restrirted funds. Expenditure which meets these criteria is charged to the fund. m) Critical Accountlng Estimates and Areas of Judgement In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. In view of the trustees in applying the accounting policies adopted, no judgements were requlred that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. n) Other Financial Instruments Cash and Cash Equivalents Cash and cash equivalents include cash at banks and In hand and short-term deposits with a maturity date of three months or less. Debtors and Credltors Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are recelvable or payable in more than one year and not subject to a market rate of Interest are measured at the psent value of the expected future receipts or payment discounted at a market rate of interest. 20 statytory RepDrt Aonts- yejr eD¢ed 31 Mjrch 2021
MERU Medlcal Englneerfng Resource Unll NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) TANGIBLE FIXED ASS$ Leasehokl Xmprc*vements P¥nt and Equment Motor Vehkks Total Cost at 1.4.20 Additlons Disoosals Cost at 31.3.21 64.118 565,057 40,913 7.015 636.190 40.913 155 828 521,275 514.260 7.015 DeptIatIon at 1.4.20 Charoe for year On disposals DeDclatIOn at 31.3.21 64,118 297.417 91,838 6,489 449 368,024 92,286 134 975 325,335 318,398 6,938 NET BOOK VALUE at 31.3.21 NET BOOK VALUE at 31.3.20 77 526 195 940 srocK 2021 2020 Raw materia15 and finished goods 443 443 DEBTORS AND PREPAYMENTS With the extrption of ppayrrnt5, all debtors flnancial instruments and are measu at ptEsent value. 2021 2020 Amounts falling due within one year.. Debtot5 for equipment 501d Rent Deposit re Ep50m prnISes ppaYmentS 45,927 5,000 55,846 5,000 CREDThORS All creditor5 are financial instrument5 and a measured at present value. 2021 2020 Amounts falllng due within one year.. Accruals Sundry Credltor5 HMRC IRe VATI 4,990 5,003 13,601 11,197 347,202 14,0131 10.352 349,512 983 Amount due to parent organisation Purchase Ledger Control Bugzi Loan Deposit 21 5tstutory Aeport Jnd A¢cvunts- year ended 31 March 2021
MERU Medlcal Englneerlng Resource Unll NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) PROVISIONS 2021 2020 Dllapldation Reserve srATEMET4T OF FUNDS Openkng Balance Incomlny Resources Resources Expended Ck)sing Balance Unrestrkted Fund$: General Fund 12,726 512,144 523,452 1,418 Restrlcted Funds: Bugzi Engineer Salaries Students 87,766 63,772 23,994 4.566 4,566 Total Al Funds 591 790 ANALYSIS OF ASSETS BY FUND Unrestrkted Fund Restrkted Fund Total Funds 2021 Tangible Fixed Assets Current Assets cunt UabilltSes 195,940 248,657 195,940 272,651 443 179 23,994 Unrestrlcted Fund Restrktsd Fund Totsl Funds 2020 Tanglble flxed assets Current Assets CUnt Liabilities 268,166 187,491 268,166 192,057 4,566 The restrfrtlon Is defined to have been met If monev has been spent on the actlvltv It was intended for. 22 ststutory Report and Accounts- year ended 31 March 2021
MERU Medlcal Englneerlng Resource Unll NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) 10 RecoNCILIATION OF MOVEMENT IN FUNDS 2021 Totèl 2020 Total OpenlrKJ funds Net movements of reseurces h the year Cbslng funds 17,293 45,623 11 DONATIONS AND LEGACIES 2021 Unrestrkted 2021 Restrkted 2021 Totsl Category Trusts Major Donor5 Dirert Mail Corporate Communitv Event Other 91,775 66.820 15,750 912 10.743 16.4611 158.595 15,750 943 19,489 23,010 16,383 loo 000 31 8.746 29.471 16,383 246 406 2020 Unrestrthd 2020 Restricted 2020 Totsl Category Trusts Major Dono Dirert Mail Corporate Community Event Other 31.642 109.034 5.100 91.110 26,174 12.460 36.176 140.676 5,100 91.796 26.493 30.862 36.176 12 336 115 685 319 18.402 280 054 12 CHARIT ABLE ACTIVITES & GRANTS All activities in the current and prior year were un$ttte. 2021 2020 Sale of Equipment by the Charity Business Gn¢$ 174.170 265.375 75 Business grnnts Sn 2021 comprfses Income from the Coronavirus Job Retention Scheme 23 stswrory Report Jnd Accounts- yeJr wded 31 March 2021
MERU Medlcal Englneerfng Resource Unlt NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) 13 RAISING FUNDS In the current ad prior year there were both restncted and unrestricted costs of raising funds. 2021 Dkert Costs 2021 st•ff C<+sts 2021 Totsl Funds UntEstdrted Restritted 8ugzi 5.023 10,808 15.831 2020 Dkert Costs 2020 staff Costs 2020 Total Funds Unrestrfrted Restricred Buozi 55.449 11,200 66.649 14 CHARThABLE ACTIVITIES 2021 Dkect C05t5 2021 Support Cost5 2021 Total Fund5 Bespoke Projects Travelchair Instant Solutions Auditor5, Remuneration inc VAT 121.395 55.717 177.112 257,367 130,007 387,374 378 762 L88 004 566 766 2020 Dtrect Costs 2020 Support C05t5 2020 Total Funds Bespoke Prt>jetts Travelchair Instant Solutions Auditor5, Remunerdtion inc VAT 102,730 12,727 243.712 148,051 18,506 18,506 250,781 31,233 262,218 359 169 187 343 15 SUPPORT COSTS 2021 staff Costs 2021 Other Costs 2021 Total Funds Bespoke Projects Tt7velChalr Instant Solutlons 23,045 33,356 56,401 77 817 111 187 24 StJrutory Report Jnd Accounts- year ended 31 Narth 2021
MERU Medlcal Englneerfng Resovrce Unlt NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) 2020 Staff Costs 2020 Other Costs 2020 Totsl Funds Bespoke Projects Travelchair Instant )lutionS 71,022 8.878 78.853 9,856 149,875 18,734 187 344 The basis of the cost allocatlon shown above Is as a Droportion of the c05t of each attivity. X6 STAFF cosrs 2021 2020 Salaries Social Secut1ty Costs Pension Costs Other Costs 89.732 18,307 12,998 492 121 $29 242,834 22,208 18,756 798 The avernge number of Detsons employed by MERU during the year was.. Ful tkne 2021 Ful tone 2020 Part twno 2021 Part tkne 2020 MERV No ernpbyee receed MuneratTr amountho to more than £60.000 li ether year. Inchjded syithn staff c05t5 above 15 £9,199 12020.. £20,241) of ktour costs that have been captali5ed e 455ets. The Trustee5 receed no remunerath)n NJr kncurred any reiMbuab expenses n ether year. Key management personnel inckndes Ten empbyees,. Flnanckl 0er. Seven Des&n Engineers and Project Leader5 and the Engineeriryj Team Leader. Remuneratbn for key management personnel syas £86,413 for the ye4r12020'. £284,304). 17 OPERATING INCOME 2021 2020 Surpkns before Audknrs Remuneratbn and Depret&4tK)n of FD(ed Assets 93,425 65,529 Auditorf5 Remuneration DepcIatIOn of Tangible Fixed A5set5 2.280 2,280 30 25 st•tutory Report Jnd ACCOUnts- vear ended 31 Marth 2021
MERU Medlcal Englneerlng Resource Unlt NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (cont'd) 18 RELATED PARTY TRANSACTIONS Medical Engineering Resource Unit is a IOOOh owned subsidiary OF Queen Elizabeth Foundatlon for Dlsabled People. Trnnsattions with parent company are follows.. QEF management fee charyed £28,85612020= £0}. There were no other group trdnsartlons In the year. Induded wlthln cxedltors at year end for MERU a*p the followino balances with the group of charities.. 2021 349 512 349 512 2020 347 202 347 202 Queen Elizabeth's Foundation for Disabled People 19 ULTIMATE PARENT UNOERTAKING The company Is a wholly owned subsidiary of Queen Elizabeth's Foundation for Disabled People, a company Incotpot3ted in England and Wales Icharfty number.. 251051} The immediate and ultimate controlling party is Queen Elizabeth's Foundation for Disabled People. whlch is the parent undertaking of the smallest and largest gnup to consolidate these financial statements. These accounts can be obtained from The Cornpany Secretaryi Leatherhead Court, Woodlands Road, Leatherhead, sUY KT22 OBN. Queen Ellzabeth's Foundatlon for Dlsabled People {QEFI is a leading national charity with over 80 years, experfence of developing innovatlve seNlces whlch enable and support people with disabilities to IncaSe inéependence and impmve opportunities for Ilfe. 26 siatutory Report ènd Accounts- yeèrended 31 NJrch 2021