HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
(A company limited by guarantee)
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
Registered Company No 2215153 Registered Charity No 299525
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
Contents
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| Page | |
|---|---|
| Report of the Trustees | 2 – 7 |
| The Covid-19 pandemic | |
| Our purposes and activities | |
| Our achievements and performance | |
| Financial review | |
| Plans for future periods | |
| Reference and administrative details | |
| Structure, governance and management | |
| Trustees’ responsibilities in respect to the financial statements | |
| Independent Examiner’s Report and Statement | 8 |
| Financial statements | |
| Statement of financial activities - (inc. income & expenditure) | 9 |
| Balance sheet | 10 |
| Statement of cash flow | 11 |
| Notes to the financial statements | 12 - 20 |
| Management information | |
| Detailed statement of financial activities | 21 - 22 |
1
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
Report of the Trustees for the year ended 31 December 2020
The trustees present their annual directors’ report together with the financial statements of the charity for the year ending 31st December 2020 which are also 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 1 January 2015).
The Covid-19 pandemic
Centre Closure
A meeting of the Trustees was held on 18 March 2020 and it was agreed that the Centre would close on Saturday 21 March 2020 and would not reopen until it was deemed safe to do so. This decision was taken in order to protect both clients and staff. The majority of the staff has been furloughed under the Government scheme.
The Centre reopened for Oxygen therapies in July 2020 and for physiotherapy in August 2020. Apart from a brief closure in October therapies continued to be provide until 21 December 2020 when again it was decided, for reasons of safety, to close the Centre.
The Centre reopened for High dose Oxygen therapy on 1 March 2021 and for physiotherapy on 15 March 2021.
During 2020 received considerable financial support by way of the Government Job Support Scheme (Furlough) and from The National Lottery Community Fund (Covid Community Support Fund), details are given in the financial review note below.
The basis for the preparation of the financial statements is set out in note 1 on page 12.
Our purposes and activities
The principal object of the Charity is to offer therapies to people with Multiple Sclerosis in order to help manage the symptoms of the disease.
Achievements and performance
Client services, advice and information
The Charity’s core treatments remain neuro-physiotherapy and oxygen treatment. Access to these services is freely available to all affected by MS, subject to treatments and other service provisions being suitable and beneficial to the individuals concerned, and the charity’s available resources. Treatments are under the guidance of the Head of Physiotherapy Services, the day-to-day management of physiotherapy sessions is carried out by two Chartered Physiotherapists, supported by a team of professionals. Our domiciliary service has enabled members who were unable to come to the Centre to benefit, on a short-term basis, from treatment at home. The number of physiotherapy clients during the year was 160 (2019 – 162) and the number of physiotherapy treatments was 3462 (2019 – 4,827).
.
Our oxygen service, run by the Deputy Centre Manger, delivered 2,353 (2019 – 4,351) treatments in 2020 to a total of 139 (2019 - 177) clients.
During the year the Charity continued to call upon the expertise of professionals from a range of organisations for help with such matters as benefits advice, specialist MS services and rehabilitation.
2
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
Report of the Trustees for the year ended 31 December 2020 (continued)
Achievements and performance (continued)
Staff Training and Development
Our physiotherapy staffs continue to keep up to date with their professional skills, attending regular study days with staff from other members of MS National Therapy Centres. Oxygen therapy staff and volunteers also undergo regular training consistent with the standards laid down by MS National Therapy Centres.
Membership
During the year there were a total of 224 (2019 –250) members, of whom over half were active clients who came in for treatment and the remainder were family members, carers and supporters of the Charity and its work.
Members are required to pay an annual subscription of £30 at the beginning of each year. Membership lapses if the subscription is not paid within 12 months.
Volunteers
The work of the Charity would not be possible without the continuing help of our volunteers. Particular thanks are due to the volunteer operators who helped with the oxygen chamber and to those who helped manage our system of claiming Gift Aid and also the many members, friends and staff who contributed to our income through sponsored fundraising events and gave time and expertise to help us. The Trustees would like to thank them all for their generosity and support.
Financial review
The Charity's income is derived from the following main sources: donations, membership subscriptions, legacies, fundraising income from trusts and foundations and many other fundraising activities.
Income on the General Fund increased by £13,940 compared with 2019. Running costs decreased by £48,705 arising from certain costs being meet from a restricted grant. This resulted in an overall surplus of £60,407 for the year (2019 deficit of: £2,237).
During 2020 the Centre benefitted from the Government Job Support Scheme (Furlough) receiving £53,305, this enabled staff to be retained. Also received was a grant of £58,956 from The National Lottery Community Fund (Coronavirus Community Support Fund.. This Grant was to support certain expenditure for the 6 month period to 31 March 2021. Finally, and unexpectedly the Centre received a donation of £48,000 from a local MS charity which had closed. Without all this support the Centre would have suffered a significant fall in its reserves.
Investment powers and policy
The day-to-day funds of the Charity are held in a CAF Bank Cash Account and an interest-yielding CAF Bank Gold Account. Under the CAF Bank's scheme of automatic transfers, whenever a payment is required or income is received, money is transferred between the Gold Account and the Cash Account, leaving the Cash Account balance at a constant £100. This has the advantage of maximising interest and reducing administration costs. There is also a current and deposit account with HSBC opened to minimise bank charges. In order to spread the investment risk, the Charity also has £80,000 in a charities term deposit account with the Shawbrook Bank.
3
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
Report of the Trustees for the year ended 31 December 2020 (continued)
Financial review (continued)
Policy on reserves
The Trustees review the Charity's requirements for reserves in the light of the main risks to the organisation on an annual basis. They have established a policy whereby unrestricted funds not committed or invested in tangible fixed assets held by the Charity should be divided between running costs, equivalent to not less than six months normal budgeted expenditure, and a Development Fund to be used to implement future plans to include the possible development of new premises. Budgeted expenditure for 2021 is forecast to be £243,820 making the target for reserves to cover six months running costs of £121,910. In normal circumstances the Trustees believe that at this level they would be able to continue the current activities and commitments of the Charity in the event of a significant drop in funding.
During the year the Charity's bank balances increased by £74,403 (2019 increase £675) and its capital and reserves increased by £60,067 (2019 decrease £3,914). Setting aside the £121,910 reserves to be held against running costs, the restricted funds recorded a surplus of £3,628 leaving the remainder of the Development Fund standing at the end of 2020 at £172,590.
Revenue Fundraising
The Trustees are very grateful to Trusts and Foundations for their continued generosity and support given that the low interest rates has led to stiff competition for donations.
The Trustees have decided to use the services of a professional Fund Raiser and are pleased to report that this has resulted in significant grants being received in early months of 2021.
Charity Fundraising
The pandemic has meant that the fundraising committee has not been as active as in previous years. It is hoped that it will resume its activities in 2021.
Never-the-less the Trustees wish to thank all those who gave their time and effort in raising a crucial part of our income, without which the Charity could not continue.
The Trustees also wished to thank those who used their birthdays and anniversaries as occasions to raise funds for the Charity.
Plans for future periods
The Trustees will continue to look closely at ways of increasing income and minimising expenditure without unduly reducing either the scale or quality of the service. They will be continuing their efforts to impress on members and friends that, unless they are willing to support the fundraisers and consider volunteering, in however modest a capacity, our Charity cannot survive. We continue our aspiration to find larger premises, although it seems unlikely in the present circumstances that this will come to fruition in the near future. We will explore further possibilities should any other avenue of enquiry present itself.
4
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
Report of the Trustees for the year ended 31 December 2020 (continued)
Reference and administrative details
Charity registration number: 299525 Company registration number: 2215153 Registered office: Harrow School Farm, Watford Road, Harrow, MIDDLESEX. HA1 3TS
Our advisers
Bankers:
CAF Bank Ltd, Kings Hill, West Malling, KENT ME19 4TA HSBC , 26-28 St Ann's Road, Harrow, MIDDLESEX HA1 1LA Solicitors: Genga & Co., 588 High Road, Wembley, MIDDLESEX HA0 2AF Insurers: Towergate MIA, Kings Court, London Road, Stevenage, HERTS. SG1 2GA Independent examiner: C Malanga ACA, Church Hill Cottage, Church Lane, Haslemere, SURREY
Directors and trustees
The directors of the charitable company (the charity) are its trustees for the purpose of charity law.
The trustees and officers serving during the year and since the year end were as follows:
Jeremy Ridout Chair Ellie Brightman Anthony Flanigan Fotoula Karamouzos Farid Kazi Amit Pandoria Jane Perry Hetal Shah Secretary Key management personnel: Lynn Hurst Centre Manager Sam Martyn Deputy Manager Apeksha Patel Head of Physiotherapy Services
Structure, Governance and Management
Governing Document
The organisation is a charitable company limited by guarantee, incorporated on 29 January 1988 and registered as a charity on 14 November 1988. In the event of the company being wound up, Members are required to contribute an amount limited to £1.
The organisation was established under a Memorandum of Association which set out the objects and powers of the charitable company, and is governed under its Articles of Association. Appointment of Trustees
Under the Memorandum and Articles, the number of Trustees is limited to nine, including the officers of the Charity. A rotating system of retirement is in place in order to ensure the continued refreshment of the Board. Trustees are elected to serve for three years, after which they are eligible to be reelected for a further period of up to three years at the next Annual General Meeting, subject to their availability and the needs of the Charity.
The officers of the Charity (Chair, Treasurer and Secretary) are appointed from among their number by ordinary resolution of the Trustees. They hold office for three years from the date of their appointment as officers, and can be appointed for a further three years by their fellow Trustees if it is in the best interests of the Charity.
5
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
Report of the Trustees for the year ended 31 December 2020 (continued)
Structure, Governance and Management (continued)
Composition of the Board
Because of the nature of the organisation, and the self-help principle on which it is based, the Charity's work inevitably focuses on the needs of its Members with MS.
The Board wants to ensure that the composition of the governing body is balanced to include Trustees with the skills and experience to set the Charity's governance on a professional footing, and Trustees with personal insight into the needs and interests of the charity's users. Steps are being taken to fill the current vacancies and proposed candidates will be nominated at the next AGM Details of the current Trustees are given above.
The Charity's members are drawn mainly from the West London Boroughs of Harrow, Ealing, Barnet, Brent and Hillingdon, and also neighbouring areas of Hertfordshire. A significant proportion of members with MS are from ethnic minority communities, and the Charity wishes to ensure that they, too, are represented on the Board.
Organisation
The Trustees are responsible for the strategic direction and policy of the Charity. The day-to-day provision of services rests with the Centre Manager, her Deputy and the professional staff led by the Head of Physiotherapy Services. These three senior members of the team attend Board meetings in a reporting capacity, as do the Development and Community Fundraisers when required. There were four formal Trustee Board meetings during the year with an average attendance of 70%.
The Trustees have much appreciated the continued commitment of the staff, many of whom have freely given time in a voluntary capacity on top of their professional duties.
Related parties and co-operation with other organisations
None of our trustees receive remuneration or other benefit from their work with the charity.
The Charity remains an active member of Multiple Sclerosis National Therapy Centres, a federation from which we derive benefits including training, operation and treatment protocols, bulk buying concessions and mutual support.
We also have links with the MS Society and keep in touch with other leading MS organisations in the UK, including the MS Trust and MS Resource Centre.
Pay policy for senior staff
The pay of the physiotherapists is reviewed annually and at the trustees discretion normally increased in accordance with average earnings or inflation. In view of the nature of the charity, the trustees benchmark against pay levels in the NHS.
The pay of the other staff is again reviewed annually and at the trustees discretion normally increased in accordance with average earnings or inflation.
6
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
Report of the Trustees for the year ended 31 December 2020 (continued)
Structure, Governance and Management (continued)
Risk management
The Trustees assess the major risks to which the Charity is exposed on an annual basis. Where appropriate, systems and procedures have been put in place to mitigate the risks the Charity faces and any impact they may have in the future. Significant external risks to funding are assessed in the context of the current financial climate. The Charity's policy on reserves is adjusted accordingly and measures are put in place to develop new sources of funding and stabilise and consolidate running costs. Internal control risks are minimised by the implementation of procedures for the authorisation of all transactions and projects. These include the involvement of individual Trustees with fundraising and donations.
Procedures are in place to ensure compliance with Health and Safety regulations in respect of staff, volunteers, clients and visitors to the Centre. Members of staff directly involved with patient care are subject to appropriate DBS checks.
Regulation of Type 3 Oxygen Chambers
The statutory requirement for independent regulation of Type 3 oxygen chambers ceased in April 2009 and the regulatory function became the responsibility of MS National Therapy Centres.
Due to the pandemic no training took place during 2020. However, during 2019 the trainer from MS National delivered our annual training session and kept the Centre up to date with new procedures throughout the year.
Trustees’ responsibilities in relation to the financial statements
The charity trustees (who are also the directors of Harrow Multiple Sclerosis Therapy Centre Limited for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing the financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any
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material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 other jurisdictions.
Independent Examiner
Caroline Malanga ACA was re-appointed as the Charity's Independent Examiner during the year and has expressed her willingness to continue in that capacity.
Approved by the Board of Trustees and signed on its behalf by:
Jeremy Ridout Chair and Trustee 11 August 2021
7
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
I report on the accounts of the company for the year ended 31 December 2020, which are set out on pages 9 to 20.
Respective duties of trustees and examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the general Directions given by the Charity Commissioners under section 145 (5) of the 2011 Act; and
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to state whether particular matters have come to our attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning such matters.
The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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to prepare accounts which accord with the accounting records, comply with the requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
has not been met, or
- (2) to which in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Caroline Malanga ACA
Chartered Accountant 12 August 2021
8
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes Income from:- Donations & legacies 3 Investments - interest Total income Expenditure on :- Raising funds Charitable activities 4 Total expenditure Net income 8 Transfers between funds Net movement in funds Reconciliation of funds:- Total funds brought forward Total funds carried forward |
2020 Unrestricted Restricted General Fund Develop - ment fund £ £ £ 248,999 - 49,438 1,329 - - 250,328 - 49,438 1,957 - - 187,964 - 49,778 189,921 - 49,778 60,407 - (340) (64,247) 64,247 - (3,840) 64,247 (340) 125,750 108,343 3,968 121,910 172,590 3,628 |
Total £ 298,437 1,329 299,766 1,957 237,742 239,699 60,067 - 60,067 238,061 298,128 |
2019 Total £ 241,333 1,604 |
|---|---|---|---|
| 242,937 | |||
| 8,192 238,659 |
|||
| 246,851 | |||
| (3,914) - |
|||
| (3,914) 241,975 |
|||
| 238,061 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
9
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED BALANCE SHEET AS AT 31 DECEMBER 2020
| Notes Fixed assets Tangible assets 9 Total fixed assets Current assets Debtors 10 Cash at bank and in hand Total current assets Liabilities Creditors, amounts falling due within one year 11 Net current assets Total net assets The funds of the charity:- Restricted Unrestricted - general - designated Total charity funds 13 |
2020 £ 3,672 3,672 9,781 323,196 332,977 38,521 294,456 298,128 3,628 121,910 172,590 298,128 |
2019 £ 4,470 |
|---|---|---|
| 4,470 | ||
| 8,712 248,793 |
||
| 257,505 | ||
| 23,914 | ||
| 233,591 | ||
| 238,061 | ||
| 3,968 125,750 108,343 |
||
| 238,061 |
For the finance year ended 31 December 2016 the Charity was entitled to exemption from audit under section 477 Companies Act 2006. No member has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006.
The trustees acknowledge their responsibilities for ensuring that the charitable company keeps proper accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the organisation as at the end of the financial year and of its surplus or deficit for the financial year in accordance with the requirements of section 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.
The notes at pages 12 to 19 form part of these accounts.
These financial statements have been approved by the Board of Trustees and signed on its behalf by:
Jeremy Ridout (Chair and Trustee)
Date 11 August 2021
10
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 DECEMBER 2020
| Cash generated in operating activity (see below) Cash flows from investing activities Interest income Purchase of tangible fixed assets Cash provided by (used in) investing activities Increase (decrease) in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year |
2020 £ 74,658 1,329 (1,584) (255) 74,403 248,793 323,196 |
2019 £ 1,150 1,604 (2,079) |
|---|---|---|
| (475) | ||
| 675 248,118 |
||
| 248,793 |
Reconciliation of net movement in funds to net cash flow from operating activities
| 2020 £ |
2019 £ (3,914) 2,296 (1,604) 3,414 958 |
|
|---|---|---|
| Net movement in funds _Add_back depreciation Deduct interest shown as investing activities Decrease/(increase) in debtors Increase in creditors Net cash generated/(used) in operating activities |
60,067 2,382 (1,329) (1,069) 14,607 74,658 |
|
| 1,150 |
11
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. Accounting Policies
The principal accounting policies adopted, judgments 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 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
- Harrow Multiple Sclerosis Therapy Centre Limited 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 notes.
b) Preparation of the accounts on a going concern basis and the Covid-19 pandemic
The Charity closed its therapy centre on Saturday 21 March 2020 following the Covid-19 pandemic. It reopened during the year but again closed on 21 December 2020. It re-opened in March 2021 but at a reduced level of activity. However, having considered the period twelve months from the date of the approval of these financial statements and the Centre’s financial resources the Trustees consider that the charity has adequate resources for this period. Accordingly, the going concern basis continues to be used in preparing the financial statements as outlined in the Statement of Trustees Responsibilities on page 7.
c) Income
Income is recognised when
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the charity has entitlement to the funds,
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any performance conditions attached to the item(s) of income have been met
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it is probable that the income will be received
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the amount can be measured reliably.
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Income from grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when:
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the charity has entitlement to the funds
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any performance conditions attached to the grants have been met
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it is probable that the income will be received
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the amount can be measured reliably and is not deferred .
12
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies (continued)
- c) Income continued
For legacies, entitlement is taken as the earlier of :-
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the date on which the charity is aware that probate has been granted
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the affairs of the estate has been finalised and the charity has been notified of the distribution
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when the distribution has been received.
Where legacies have been notified to the charity, or the charity is aware of the granting of probate the legacy is treated as a contingent asset and disclosed if material.
d) Donated services and facilities
In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised, the trustees’ annual report must be referred to for more information about their contribution. However, donated professional services and donated facilities are recognised as income if the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
e) Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of 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 Trust’s work or for specific projects being undertaken by the charity.
The Development Fund, which is a designated fund, represents funds transferred from the General Fund. The Development Fund is expendable at the discretion of the Trustees in the furtherance of the objects of the charity in implementing future plans, including the possible development of new premises.
f) 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. Expenditure is classified under the following activity headings: ● Costs of raising funds.
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Expenditure on charitable activities
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Other expenditure represents those items not falling into any other heading.
g) Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trusts activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 5.
13
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020
1. Accounting policies (continued)
h) Tangible fixed assets
Individual fixed assets costing £100 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
Furniture, fittings and equipment: - 5 years
- Leasehold improvements - remainder of lease
i) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
j) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
k) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
14
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020
2. Legal status of the Charity
The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1.
3. Donations and legacies
| Donations_(including_ membership fees) Legacies Fundraising Other activities Grants:- Job support scheme The National Lottery Community fund (Coronavirus Community Support Fund) Other |
General £ 179,548 2,000 12,142 2,004 53,305 - - 248,999 |
2020 Restricted £ - - 1,229 - - 46,659 1,550 49,438 |
Total £ 179,548 2,000 13,371 2,004 53,305 46,659 1,550 298,437 |
2019 £ 187,969 1,000 48,312 4,052 - - - |
|---|---|---|---|---|
| 241,333 |
4. Expenditure on charitable activities
| Physiotherapy Hyperbaric oxygen therapy Other therapies Premises expenses Office costs (note 5) Governance costs |
General £ 90,126 56,337 430 11,462 29,534 75 187,964 |
2020 Restricted £ 35,945 5,185 - 155 8,493 - 49,778 |
Total £ 126,071 61,522 430 11,617 38,027 75 237,742 |
2019 £ 125,981 57,746 2,001 17,454 35,406 71 |
|---|---|---|---|---|
| 238,659 |
15
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020
5. Analysis of support and governance costs
| Salaries General office Trustees' insurance Apportioned:- charitable activities fund raising Staff costs Staff costs: Wages and salaries Social security costs Pension costs |
Support 33,821 4,538 - 38,359 38,027 332 38,359 |
2020 Governance - - 75 75 75 |
Total Basis of apportionment 33,821 4,538 75 38,434 Cost of activity } } 38,434 2020 2019 £ £ 193,930 187,106 8,101 7,701 2,601 2,202 204,632 197,009 |
Total Basis of apportionment 33,821 4,538 75 38,434 Cost of activity } } 38,434 2020 2019 £ £ 193,930 187,106 8,101 7,701 2,601 2,202 204,632 197,009 |
|
|---|---|---|---|---|---|
| 197,009 |
6. Staff costs
No employee earned £60,000 per annum or more (2019 Nil)
7. Staff numbers
The average number of employees (all of whom were part time) during the year was 16 (2019: 16)
| Physiotherapy Hyperbaric oxygen therapy Office 8. Net income for the year This is stated after charging/(crediting):- Depreciation |
2020 No. 12 2 2 16 2020 £ 2,382 |
2019 No. 12 2 2 |
|---|---|---|
| 16 | ||
| 2019 £ 2,296 |
16
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020
| 9. Tangible assets Cost At beginning of the year Additions At the end of the year Depreciation At the beginning of the year Charge for year At the end of the year Net book value at beginning of the year Net book value at the end of the year 10. Debtors Prepayments Other debtors 11. Creditors Accruals Other creditors Taxation and social security costs |
Furniture, fittings and equipmen t £ 99,078 1,584 100,662 94,608 2,382 96,990 4,470 3,672 |
Leasehold Improve - ments £ 40,406 - 40,406 40,406 - 40,406 - - 2020 £ 2,186 7,595 9,781 2020 £ 4,986 28,865 4,670 38,521 |
Total £ 139,484 1,584 |
|---|---|---|---|
| 141,068 | |||
| 135,014 2,382 |
|||
| 137,396 | |||
| 4,470 | |||
| 3,672 | |||
| 2019 £ 912 7,800 |
|||
| 8,712 | |||
| 2019 £ 4,390 17,389 2,135 |
|||
| 23,914 |
17
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020
12. Rental commitments
The charitable company has an annual commitment of £6,500 under a property lease expiring in less than ten years.
The lease comes to an end on 30 April 2024.
.
13. Funds
| Fixed assets Net current assets |
General Fund £ 244 121,666 121,910 |
2020 Develop - ment fund Restricted fund £ £ - 3,428 172,590 200 172,590 3,628 |
Total funds £ 3,672 294,456 298,128 |
|---|---|---|---|
14. Analysis of charitable funds:-
Movements in unrestricted funds
| General fund Development fund |
Brought forward £ 125,750 108,343 234,093 |
2020 Incoming resources Outgoing resources £ £ 186,081 189,921 64,247 - 250,328 189,921 |
Carried forward £ 121,910 172,590 |
|---|---|---|---|
| 294,500 |
Description, nature and purpose of each fund.
The general fund is a ‘free reserves’ after allowing for the designated fund.
The designated fund is expendable at the discretion of the Trustees in the furtherance of the objects of the charity in implementing future plans, including the possible development of new premises.
18
NOTES TO THE ACCOUNTS (continued)
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2020
14. Analysis of charitable funds (continued):-
Movements in restricted fund
| Physiotherapy fund The National Lottery Community Fund (Coronavirus Community Support Fund) Equipment and equipment maintenance fund |
Brought forward £ - - 3,968 3,968 |
2020 Incoming resources Outgoing resources £ £ 1,229 1,229 46,659 46,659 1550 1,890 49,438 49,778 |
Carried forward £ - - 3,628 |
|---|---|---|---|
| 3,628 |
Description, nature and purpose of each fund.
The physiotherapy fund. This represents donations made for the specific purpose of providing the services of physiotherapists.
The National Lottery Community Fund (Coronavirus Community Support Fund) A grant of £58,956 was received in September 2020 to be spent in the six months to 31[st] March 2021. By the 31[s ] December 2020 £46,659 of the grant had been spent. Accordingly this amount has been recognized as income in these financial statements and the balance of £12,297 has been carried forward.
The grant has been used to fund the cost of physiotherapy and certain support costs of the Centre.
The equipment and equipment maintenance fund. This represents donations made for the specific purpose of providing and maintaining equipment.
15. Transactions with trustees (directors)
The trustees received no remuneration and no expenses were reimbursed.
16. Corporation 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.
19
NOTES TO THE ACCOUNTS (continued)
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2020
17. Contingent liability
The roof of the premise occupied by the Centre is not watertight. The roof, which is made of asbestos-cement sheeting, needs to be repaired and may need to be replaced. The Centre occupies the premise under a tenant repairing lease and accordingly the Centre may have to bear the cost. In 2019 an estimate for the replacement was obtained. The estimate, which included additional items such as replacing the existing ceiling, insulation and electrical wiring, was in the region of £100,000. Should it prove necessary to replace the roof at the Centre’s expense it is hoped, once an extension to the lease has been agreed, to make an appeal for the necessary funds.
20
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
| Income Donations (including membership subscriptions) Legacies Events and other fund raising activities Grants: Job support grant (furlough) The National Lottery Community Fund (Coronavirus Community Support Fund) Other Yoga and exercise Interest received Total income Expenditure :- - Fund raising - Physiotherapy -Hyperbaric oxygen therapy - Other therapies - Premises - Office costs - Governance Total expenditure Net surplus/(deficit) |
2020 £ 179,548 2,000 13,371 53,305 46,659 1,550 2,004 1,329 299,766 1,625 126,071 61,522 430 11,617 38,359 75 239,699 60,067 |
2019 £ 187,969 1,000 48,312 - - - 4,052 1,604 |
|---|---|---|
| 242,937 | ||
| 6,864 125,981 57,746 2,001 17,454 36,734 71 |
||
| 246,851 | ||
| (3,914) |
21
HARROW MULTIPLE SCLEROSIS THERAPY CENTRE LIMITED DETAILED STATEMENT OF FINANCIAL ACTIVITIES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020
| Expenditure on: - Raising funds - external fund raisers - event expenses Physiotherapy -salary costs -equipment repairs -insurance, travel & recruitment -training - 50% Covid costs -equipment depreciation Hyperbaric oxygen therapy -salary costs -oxygen - 50% Covid costs -equipment repairs Other therapies -yoga, Premises costs - rent and rates - cleaning - light and heat - insurance - premises repairs - fixtures and fittings depn Office costs - salary costs - subscriptions - stationery and postage - telephone and IT - payroll charges - bank charges - depreciation - miscellaneous Governance - trustees' insurance - trustees' expenses Total expenditure |
2020 £ 1,393 232 1,625 121,779 212 1,012 - 998 2,070 126,071 47,686 10,708 998 2,130 61,522 430 430 4,041 3,189 2,439 1,124 616 208 11,617 33,821 273 812 1,738 1,002 70 104 539 38,359 75 - 75 239,699 |
2019 £ - 6,864 |
|---|---|---|
| 6,864 | ||
| 121,968 256 1,391 325 - 2,041 |
||
| 125,981 | ||
| 44,297 11,142 - 2,307 |
||
| 57,746 | ||
| 2,001 | ||
| 2,001 | ||
| 7,131 3,993 3,052 1,099 2,179 - |
||
| 17,454 | ||
| 31,456 273 1,045 1,703 912 81 255 1,009 |
||
| 36,734 | ||
| 71 - |
||
| 71 | ||
| 246,851 |
22