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2020-12-31-accounts

REGISTERED COMPANY NUMBER: 02361986 (England and Wales) REGISTERED CHARITY NUMBER: 801279

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

Astral Accountancy Services Limited 2B Marston House Cromwell Business Park Chipping Norton Oxfordshire OX7 5SR

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13 to 22
Detailed Statement of Financial Activities 23 to 24

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES Objectives and aims

Charitable objects

The charity is established to offer relief to persons of all ages with Myalgic Encephalopathy (M.E.) / Chronic Fatigue Syndrome (CFS) through the provision of information, to further education in all aspect of the illness, and to support research and to publish the useful results of such research.

What we do and why we do it

M.E. (myalgic encephalopathy or encephalomyelitis) is a complex multisystem disease with a wide range of disabling symptoms. The ME Association is here to support people through all stages of their illness because we desperately want to see everyone get the help they need and, through research, help to develop an effective treatment and one day even a cure.

We don't employ an expensive CEO. Instead we have a terrific team of trustees who provide strategy and management on a voluntary basis. Trustees are supported by members of staff at head office and other staff who work from home.

We also have a large number of dedicated volunteers who help ensure ME Connect - the telephone helpline - is available for people needing support or information.

Our main priorities are to provide support, reliable information, a voice and representation, and funding for vital medical research.

Lobbying for positive change

Trustees attend and report on the important external conferences and meetings that take place.

We are active members of Forward ME which is an influential advocacy group comprising charity and political representatives and is led by Andrew Morris and Carol Monaghan, MP. We also contribute to the CFS/ME Research Collaborative (CMRC) which is made up of scientists, clinicians and advocates.

The Ramsay Research Fund

We named our research programme in honour of Dr Melvin Ramsay who helped bring awareness of M.E. to the medical establishment.

He also helped establish the ME Association and was its president for a number of years. Dr Ramsay remained closely involved with the charity until his death in 1990.

We spend a lot of our time and effort working with scientists on new research grants because funding good quality biomedical research is a key priority for this charity

Support when it's needed

We put a lot of resource into giving as much support to people affected by this disease as we can. We do this by answering cries for help and providing extensive information, through phone calls at head office, emails or messages via social media or ME Connect - the telephone helpline.

Page 1

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES - continued Objectives and aims

Support when it's needed

We have around 5,000 paid-up members who receive our quarterly magazine ME Essential. We receive funds and support from members and an increasing number of non-members. Support for the ME Association continues to grow, most often by non-traditional methods e.g. social media.

Website and Social Media

Our website attracts over a million unique page views each year and we believe it is one of the most popular resources in the world. The What is ME? section and the MEA Blog are hugely popular.

We have significant followings on Facebook, Twitter and Instagram .

Public benefit

In preparing these financial statements and their report, the Trustees confirm that they have had regard to the Charity Commission's guidance on public benefit and that they consider that the objectives and activities of the charity have historically and continue to fall within the scope of that guidance.

STRATEGIC REPORT

Achievement and performance

Charitable activities

The last year has been difficult for all of us and charities are no exception. There's been a huge impact on our fundraising events. Many were cancelled or heavily revised to fit with Covid 19 restrictions. At the same time, the demand for information has grown hugely as patients with ME/CFS have come to us with their queries. Our support service, ME Connect, has seen telephone calls to our volunteers rocket upwards. It has been a salutary reminder of the important role that charities such as ours perform for society.

Through the past year we've provided support, reliable information and been a campaigning voice. We lobbied Government for change. Trustees have attended and reported on the important external conferences and meetings that took place. We are active members of Forward ME which is an influential advocacy group comprising charity and political representatives and is led by Andrew Morris. There, we hear from and question a range of professionals from the health, social care and research fields as well as ministers, politicians and civil servants from Government departments that have an effect on ME/CFS policy. We also contributed to the CFS/ME Research Collaborative (CMRC) which is made up of scientists, clinicians and advocates.

Our charity helped Carol Monaghan MP to reconstitute the All Party Parliamentary Group on ME at Westminster and now acts as Secretariat to the group. During the year the APPG has held a series of meetings where experts have been invited to talk about issues of major concern. This information is now being inserted into a parliamentary report on ME/CFS that will be published in 2021.

We continued our work as a 'listening voice' by answering cries for help and providing information, through phone calls at head office, emails or messages via social media or ME Connect - our telephone helpline. We have over 5,000 members who receive ME Essential magazine and over the last few months that figure has grown rapidly with new members joining us.

During the past year the ME Association has been heavily involved with review of the National Institute for Health and Care Excellence (NICE) Guideline for ME/CFS. Many hundreds of hours of our charity work have been spent on this. Our medical advisor, Dr Charles Shepherd, is an expert adviser to the NICE guideline committee and has attended regular meetings in London for this. When Covid intervened, meetings continued by Conferencing Video.

We continued with our involvement in the sphere of benefits and attending meetings, when necessary, on line with the Department of Work and Pensions and Maximus, a company that is involved in benefit assessments.

Each quarter we published ME Essential, a substantial and high quality Magazine, which keeps our members fully informed of developments involving the illness. We also publish over eighty leaflets to help those with the illness cope with life. These were added to and during the year several were updated.

Page 2

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

STRATEGIC REPORT - continued Achievement and performance Charitable activities

The charity, mainly through the MEA Ramsay Research Fund, has been involved in funding several research studies in addition to the continued funding of the ME/CFS Biobank at the Royal Free Hospital in London. All the £50,000 basic running costs of the Biobank were provided by the Ramsay fund. We have research projects agreed (with some already completed) with a number of organisations and individuals: -

-At Leicester University which involves the investigation of oxygen consumption (VO2), Heart Rate, Blood Pressure, lactic acid levels and activity levels of people with ME during normal daily activities. RRF Investment = £30,000

-At the University of Manchester, a study revolved around a national patient survey to determine the factors affecting diagnosis and highlighted any issues that may relate to delays in the diagnostic process. General Funds = £25,000

-Scientists from the Universities of Oxford and Newcastle have been analysing nearly 300 blood samples from the UK ME/CFS Biobank to look for small molecular clues known as metabolites. These are left behind after chemical reactions have taken place at a cellular level.

It is hoped that this research will identify patterns of metabolites that could help to form either a diagnostic test for ME/CFS or help to sub-group people that come under the ME/CFS umbrella. RRF investment = £100,000

Financial review

Financial position

In 2020, the ME association saw total funds increase by £616,683 compared with the previous year. This was largely due to an increase in legacies received in the year of £732,793 (2019: £192,824).

Unless any donation, legacy or fundraising income is expressly restricted to the purpose of funding research activities, all income is allocated to general funds. General funds can be and have been applied to fund research in addition to restricted funds.

Annual membership subscriptions make up a small but significant contribution towards the operating costs of the charity. The membership cost is subsidised with the difference being made up through donations.

Donation and Subscription income also increased marginally compared with 2019.

Reserves policy Reserves

Total funds stood at £2,336,939 at 31 December 2020.

The MEA recognises its duty to hold reserves for general funds against the continuing accrued responsibility to deliver services over the 12 months from annual subscriptions, plus the practicality of budgeting for the potential costs of winding up the company should viability be deemed unachievable. A surplus has been built up in the unrestricted reserves which can potentially allow the company to continue trading at a small deficit for some period before having to consider the need to wind up, or until its trading balances recover.

The MEA holds separate funds restricted in purpose for financing research into aspects of the cause of and development of treatment of the disease. The company recognises it duty to hold reserves of restricted funds to meet accrued commitments to fund research projects, or to hold such reserves in both restricted and unrestricted funds, in addition to its existing obligations for holding unrestricted reserves.

Restricted reserves cannot be used for purposes other than the objectives of supporting and publishing research. In the event of the company winding up, the board has the responsibility of disbursing the balance of any restricted funds to a UK charitable fund with purposes closest to the objective of supporting and publishing research into Myalgic Encephalopathy.

Page 3

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

STRATEGIC REPORT Achievement and performance Reserves policy

Free Reserves

Free reserves at the end of 2020 were £2,055,756 (2019: £1,460,326). Free reserves are calculated as unrestricted reserves less the net book value of fixed assets.

Unrestricted funds

Unrestricted funds increased by £585,591 in 2020, partly due to sizeable legacy income received in the year.

The charity saw a marginal increase in unrestricted costs in 2020. Some of these costs were a result of producing new leaflets relating to the changing Covid 19 situation, and the effect on our members.

Unrestricted funds at 31 December 2020 amounted to £2,192,872 (2019: £1,607,281).

Restricted funds

Restricted funds relate to our research programme named the Ramsay Research fund. Restricted donations and legacies received remained low at 5% of total income in 2020 (2019: 14%).

Restricted funds increased by £31,092 in 2020. Restricted donations declined in the year, this was offset by lower research costs.

Restricted funds at 31 December 2020 amounted to £144,067 (2019: £112,975).

Principal risks and uncertainties

Covid-19 - Impact on the charity

There has been minimal financial impact on the Charity despite the challenges faced by Covid.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is established under a Memorandum of Association which established the objects and powers of the charitable company and is governed by its Articles of Association.

Charity constitution

The charity constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Membership

Members subscribe annually and voting rights are based on the currency of their subscription. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up.

Recruitment and appointment of new trustees

The charity is managed by elected trustees. The Articles of Association require that one third of the trustees retire every two years but remain eligible for re-election. Trustees are elected by the members of the charity and must comprise of people with an interest in ME/CFS.

Applications to become a trustee are advertised in both the quarterly magazine of the charity and its social network media. Reference is made that applications are welcome from all and to ethnic diversity. There is a limit of eight trustees but the Board can co-opt up to three additional members at any time. Co-opted trustees are then put forward to the membership for election at the next annual general meeting (AGM) at which elections will take place.

Voting takes place by either postal ballot or at the AGM.

Page 4

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

02361986 (England and Wales)

Registered Charity number 801279

Registered office

Unit 7 Apollo Office Court Radclive Road Gawcott Buckingham Buckinghamshire MK18 4DF

Trustees

Miss M Ainsworth-Wells Mrs N Anson Mr E S Dale Mr R W Osman Mr N H Riley Dr C B Shepherd Mrs C N Strong (resigned 25.1.21)

Auditors

Astral Accountancy Services Limited 2B Marston House Cromwell Business Park Chipping Norton Oxfordshire OX7 5SR

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Myalgic Encephalopathy Association for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which 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 that period. In preparing those financial statements, the trustees are required to

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

Page 5

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

In so far as the trustees are aware:

AUDITORS

The auditors, Astral Accountancy Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 20 September 2021 and signed on the board's behalf by:

Mr N H Riley - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE MYALGIC ENCEPHALOPATHY ASSOCIATION

Opinion

We have audited the financial statements of The Myalgic Encephalopathy Association (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE MYALGIC ENCEPHALOPATHY ASSOCIATION

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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, disclosing, 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.

Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Tracy Norris (Senior Statutory Auditor) for and on behalf of Astral Accountancy Services Limited 2B Marston House Cromwell Business Park Chipping Norton Oxfordshire OX7 5SR

Date: 27 September 2021

Page 8

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
5
Information and support
NET INCOME/(EXPENDITURE)
Transfers between funds
18
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
1,017,282
31,211
5,511
1,054,004
361,791
692,213
(106,622)
585,591
1,607,281
2,192,872		 Restricted
fund
£
53,770
-
1,999
55,769
131,299
(75,530)
106,622
31,092
112,975
144,067		 2020
Total
funds
£
1,071,052
31,211
7,510
1,109,773
493,090
616,683
-
616,683
1,720,256
2,336,939		 2019
Total
funds
£
513,588
26,620
15,503
555,711
499,965
55,746
-
55,746
1,664,510
1,720,256

Page 9 The notes form part of these financial statements

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

BALANCE SHEET 31 DECEMBER 2020

Notes
FIXED ASSETS
Tangible assets
13
CURRENT ASSETS
Stocks
14
Debtors
15
Investments
16
Cash at bank
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
18
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
fund
£
137,116
9,018
716,869
436,269
943,733
2,105,889
(50,133)
2,055,756
2,192,872
2,192,872		 Restricted
fund
£
-
-
-
65,792
78,275
144,067
-
144,067
144,067
144,067		 2020
Total
funds
£
137,116
9,018
716,869
502,061
1,022,008
2,249,956
(50,133)
2,199,823
2,336,939
2,336,939
2,192,872
144,067
2,336,939		 2019
Total
funds
£
146,955
7,244
160,074
601,359
880,727
1,649,404
(76,103)
1,573,301
1,720,256
1,720,256
1,607,281
112,975
1,720,256

The financial statements were approved by the Board of Trustees and authorised for issue on 20 September 2021 and were signed on its behalf by:

Mr N H Riley - Trustee

Mrs N Anson - Trustee

Page 10 The notes form part of these financial statements

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
(Increase) / Decrease in Term Deposits
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2020
£
38,814
(3,185)
35,629
(1,156)
99,298
7,510
105,652
141,281
880,727
1,022,008		 2019
£
(30,247)
(3,883)
(34,130)
(3,688)
76,078
15,503
87,893
53,763
826,964
880,727

Page 11 The notes form part of these financial statements

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest received
Interest paid
Increase in stocks
Increase in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) operations
ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.20
£
Net cash
Cash at bank
880,727
880,727
Liquid resources
Deposits included in cash
-
Current asset investments
601,359
601,359
Total
1,482,086		 2020
£
616,683
10,631
364
(7,510)
3,185
(1,774)
(556,795)
(25,970)
38,814
Cash flow
£
141,281
141,281
-
(99,298)
(99,298)
41,983		 2019
£
55,746
10,741
145
(15,503)
3,883
(1,552)
(84,828)
1,121
(30,247)
At 31.12.20
£
1,022,008
1,022,008
-
502,061
502,061
1,524,069

2. ANALYSIS OF CHANGES IN NET FUNDS

Page 12 The notes form part of these financial statements

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Myalgic Encephalopathy Association 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.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either; the company is aware that the probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified to the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Donated services of facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company 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.

Other income is recognised in the period in which it is recoverable and to the extent the goods have been provided or on completion of the service.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Resources are expended in the furtherance of the charity's objectives.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.

Page 13

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

Expenditure

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

All assets costing more than £100 are capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold property - Over 20 years Fixtures and fittings - Over 4 years Office equipment - Over 4 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Taxation

The charity is exempt from corporation tax on its charitable activities offered by the Corporation Tax Act Part 2 of chapter 3. Accordingly there is no corporation tax charge in these accounts.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Operating leases

Rentals under operating leases are charged to the Statement of financial activities incorporating income and expenditure account on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Interest receivable

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

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 14

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

Cash at Bank in hand

Company status

Cash at bank 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.

Cash deposits that are not readily accessible within 3 months are classified as Term deposits.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipated it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Financial instruments

The company 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2. DONATIONS AND LEGACIES

Donations
Legacies
Subscriptions
3.
OTHER TRADING ACTIVITIES
Other incoming resources
Trading
4.
INVESTMENT INCOME
Investment income		 2020
£
258,805
732,793
79,454
1,071,052
2020
£
8,244
22,967
31,211
2020
£
7,510		 2019
£
243,099
192,824
77,665
513,588
2019
£
3,319
23,301
26,620
2019
£
15,503

Page 15

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

5. CHARITABLE ACTIVITIES COSTS

Direct
Costs (see
note 6)
£
Information and support
338,422
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Equipment hire
Purchases
Postage, telephone and stationery
Sundries
Travel and subsistence
Meeting costs
Printing
Office expenses
Repairs and maintenance
Cleaning
IT Consultant
Irrecoverable VAT
Subscriptions
Training
Magazine contractors
Medical literature
Other costs
Website Costs
Recruitment Expenses
Depreciation
Loss on sale of assets
Interest payable and similar charges
7.
GRANTS PAYABLE
Research - Bio bank
Research - Oxford University
Others		 Grant
funding of
activities
(see note
7)
£
150,337		 Grant
funding of
activities
(see note
7)
£
150,337		 Support
costs (see
note 8)
£
4,331
2020
£
192,228
2,039
13,977
30,186
2,193
2,773
44
30,477
5,958
389
1,142
6,986
1,732
1,857
-
23,539
210
2,690
5,821
-
10,632
364
3,185
338,422
2020
£
59,855
53,745
36,737
150,337		 Support
costs (see
note 8)
£
4,331
2020
£
192,228
2,039
13,977
30,186
2,193
2,773
44
30,477
5,958
389
1,142
6,986
1,732
1,857
-
23,539
210
2,690
5,821
-
10,632
364
3,185
338,422
2020
£
59,855
53,745
36,737
150,337		 Totals
£
493,090
2019
£
180,164
1,545
14,220
29,290
1,636
7,426
1,309
24,014
5,426
3,942
989
3,720
3,461
3,501
123
17,167
1,245
3,463
3,045
1,395
10,741
145
3,883
321,850
2019
£
73,238
50,319
50,259
173,816

Page 16

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

8. SUPPORT COSTS

SUPPORT COSTS
Governance
costs
£
Information and support 4,331
Support costs, included in the above, are as follows:
2020 2019
Information
and Total
support activities
£ £
Accountancy fees 4,331 4,299
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2020 2019
£ £
Accountancy fees 4,331 4,299
Depreciation - owned assets 10,631 10,741
Equipment hire 2,039 1,545
Deficit on disposal of fixed assets 364 145

9. NET INCOME/(EXPENDITURE)

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Trustees' expenses

4 Trustees received reimbursement of expenses amounting to £4,862 in the current year, (2019 - 4 Trustees - £10,333).

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2020
£
182,121
7,663
2,444
192,228		 2019
£
171,438
6,240
2,486
180,164

The average monthly number of employees during the year was as follows:

Average Employees 2020
8		 2019
7

No employees received emoluments in excess of £60,000.

The Key Management Personnel of the charity are represented by the trustees, who are not remunerated.

Page 17

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
438,414
Other trading activities
26,620
Investment income
11,516
Total
476,550
EXPENDITURE ON
Charitable activities
Information and support
319,982
NET INCOME/(EXPENDITURE)
156,568
RECONCILIATION OF FUNDS
Total funds brought forward
1,450,713
TOTAL FUNDS CARRIED FORWARD
1,607,281
13.
TANGIBLE FIXED ASSETS
Fixtures
Leasehold
and
property
fittings
£
£
COST
At 1 January 2020
177,712
2,128
Additions
-
-
Disposals
-
-
At 31 December 2020
177,712
2,128
DEPRECIATION
At 1 January 2020
35,544
245
Charge for year
8,885
491
Eliminated on disposal
-
-
At 31 December 2020
44,429
736
NET BOOK VALUE
At 31 December 2020
133,283
1,392
At 31 December 2019
142,168
1,883
Restricted
fund
£
75,174
-
3,987
79,161
179,983
(100,822)
213,797
112,975
Computer
equipment
£
8,495
1,156
(2,123)
7,528
5,591
1,255
(1,759)
5,087
2,441
2,904		 Total
funds
£
513,588
26,620
15,503
555,711
499,965
55,746
1,664,510
1,720,256
Totals
£
188,335
1,156
(2,123)
187,368
41,380
10,631
(1,759)
50,252
137,116
146,955

Page 18

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

14.
STOCKS
Stocks
15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Tax recoverable
Legacies
Prepayments and accrued income
16.
CURRENT ASSET INVESTMENTS
Term deposits
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Grant commitments
Accruals and deferred income
Deferred Income
Deferred income at 1 January 2019
Resources deferred during the year
Amounts released from previous years
Deferred income at 31 December 2019		 2020
£
9,018
2020
£
696
3,900
271
688,322
23,680
716,869
2020
£
502,061
2020
£
2,514
3,479
1,457
-
42,683
50,133		 2019
£
7,244
2019
£
-
19,685
997
138,692
700
160,074
2019
£
601,359
2019
£
4,722
2,782
1,355
28,789
38,455
76,103
£
33,403
33,670
(33,403)
33,670

Deferred income represents deferred annual membership subscriptions.

Page 19

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

18. MOVEMENT IN FUNDS

Unrestricted funds
General fund - unrestricted
Restricted funds
Ramsay Research Fund
TOTAL FUNDS
Net movement in funds, included in the above ar
Unrestricted funds
General fund - unrestricted
Restricted funds
Ramsay Research Fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund - unrestricted
Restricted funds
Ramsay Research Fund
TOTAL FUNDS		 At 1.1.20
£
1,607,281
112,975
1,720,256
e as follows:		 Net
movement
in funds
£
692,213
(75,530)
616,683
Incoming
resources
£
1,054,004
55,769
1,109,773
At 1.1.19
£
1,450,713
213,797
1,664,510		 Transfers
between
funds
£
(106,622)
106,622
-
Resources
expended
£
(361,791)
(131,299)
(493,090)
Net
movement
in funds
£
156,568
(100,822)
55,746		 At
31.12.20
£
2,192,872
144,067
2,336,939
Movement
in funds
£
692,213
(75,530)
616,683
At
31.12.19
£
1,607,281
112,975
1,720,256

Page 20

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund - unrestricted
Restricted funds
Ramsay Research Fund
TOTAL FUNDS		 Incoming
resources
£
476,550
79,161
555,711		 Resources
Movement
expended
in funds
£
£
(319,982)
156,568
(179,983)
(100,822)
(499,965)
55,746

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund - unrestricted
Restricted funds
Ramsay Research Fund
TOTAL FUNDS		 At 1.1.19
£
1,450,713
213,797
1,664,510		 Net
movement
in funds
£
848,781
(176,352)
672,429		 Transfers
between
funds
£
(106,622)
106,622
-		 At
31.12.20
£
2,192,872
144,067
2,336,939

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund - unrestricted
Restricted funds
Ramsay Research Fund
TOTAL FUNDS		 Incoming
resources
£
1,530,554
134,930
1,665,484		 Resources
expended
£
(681,773)
(311,282)
(993,055)		 Movement
in funds
£
848,781
(176,352)
672,429

Ramsay Research - This fund reflects funding restricted for use towards medical and scientific research into the nature and function of the disease processes involved in ME, plus CFS & PVFS as appropriate, and into the development of potential treatments for such aspects of the disease.

Page 21

continued…

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

19. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2020.

Page 22

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Legacies
Subscriptions
Other trading activities
Other incoming resources
Trading
Investment income
Investment income
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Equipment hire
Purchases
Postage, telephone and stationery
Sundries
Travel and subsistence
Meeting costs
Printing
Office expenses
Repairs and maintenance
Cleaning
IT Consultant
Irrecoverable VAT
Subscriptions
Training
Magazine contractors
Medical literature
Other costs
Website Costs
Recruitment Expenses
Depreciation
Loss on sale of tangible fixed assets
Bank charges
Carried forward		 2020
£
258,805
732,793
79,454
1,071,052
8,244
22,967
31,211
7,510
1,109,773
182,121
7,663
2,444
2,039
13,977
30,186
2,193
2,773
44
30,477
5,958
389
1,142
6,986
1,732
1,857
-
23,539
210
2,690
5,821
-
10,632
364
3,185
338,422		 2019
£
243,099
192,824
77,665
513,588
3,319
23,301
26,620
15,503
555,711
171,438
6,240
2,486
1,545
14,220
29,290
1,636
7,426
1,309
24,014
5,426
3,942
989
3,720
3,461
3,501
123
17,167
1,245
3,463
3,045
1,395
10,741
145
3,883
321,850

Page 23 This page does not form part of the statutory financial statements

THE MYALGIC ENCEPHALOPATHY ASSOCIATION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
2020
£
Charitable activities
Brought forward
338,422
Grants to institutions
150,337
488,759
Support costs
Governance costs
Accountancy fees
4,331
Total resources expended
493,090
Net income
616,683		 2019
£
321,850
173,816
495,666
4,299
499,965
55,746

Page 24 This page does not form part of the statutory financial statements