**REGISTERED COMPANY NUMBER: 02361986 (England and Wales) REGISTERED CHARITY NUMBER: 801279**
**REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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 2021**
||**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 2021**
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 2021. 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 Objectives
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 aspects of the illness, and to support research and to publish the useful results.
## 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 an terrific group of trustees who provide strategy and management on a voluntary basis. Trustees are supported by an experienced team of full and part time staff who are committed to supporting the M.E. community.
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
The ME Association funds research through the Ramsay Research Fund (RRF) which was named after Dr Melvin Ramsay who helped bring awareness of M.E. to the medical profession in 1955.
Dr Ramsay also helped establish the ME Association and was its president for a number of years. He 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
Page 1
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **OBJECTIVES AND ACTIVITIES Objectives and aims**
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.
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
The ME Association's website and social media platforms continue to attract strong numbers of visitors with reach and engagement rates showing we are being effective.
The trend continues towards social media where we have allocated more human resource in 2021.
## **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 one of the busiest and important years for the charity and its members. Three subjects have dominated its work. First, Covid; secondly, the NICE Guideline on ME/CFS and thirdly, the collaboration of ME/CFS organisations within Forward ME.
Covid has been the 'hot' topic for our ME Connect telephone helpline service where we provide information and support on ME/CFS. Whether enquiring about vaccinations and the effect they may have on people with ME/CFS, seeking support in coping with isolation or battling with local health authorities to achieve 'clinically vulnerable status' for vaccination priority, our services have been much in demand. Our professionally managed volunteers have dealt with a record number of calls.
Our medical adviser, Dr Charles Shepherd, compiled and continually updated leaflets on Covid and these were disseminated both in printed form for our members but also through our well respected social media outlets. The several similarities between some symptoms of 'Long Covid' and ME/CFS have brought many enquiries from the national media to our charity for comment and guidance.
The NICE Guideline for ME/CFS was finally published in October. It was the culmination of a huge effort by our medical adviser and the charity's staff to change the previous treatment and management of our illness. The new Guideline has been welcomed. It reflects greatly upon the work that the charity has put in over the past 14 years to change the original advice to medical professionals on how they should treat patients. We shall monitor the implementation of the Guideline and the trustees are working on how best this can be done.
Page 2
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STRATEGIC REPORT Achievement and performance Charitable activities**
Forward ME is an 'umbrella' grouping of a number of ME/CFS organisations including the ME Association. We sit on the Steering Group and therefore have oversight on what it plans to do. We make a substantial contribution to its knowledge base, especially on the medical side. It remains to be seen how effective Forward ME can be as a collaborative grouping, lobbying for a better understanding of ME/CFS. But, following the work on the NICE Guideline 'pause' rumpus, the portents are good.
The charity's membership has grown again this year with Long Covid thought to be a 'magnet' for new members wishing to learn about post viral infections. The visitors to our website and social media outlets have similarly followed this trend and many are appreciative of the information we provide, which is at the heart of the charity's mission.
Our quarterly magazine for members, ME Essential, goes from strength to strength, with its editor, Caroline Cavey, innovating ways in which members and the charity can support each other. This year we launched a Healthcare Professional Magazine for medical professionals which has proved popular. The charity's range of information leaflets continues to grow and has proved popular.
Donations, appeals and legacies have shown how well our charity is regarded amongst patients. We are overwhelmed at their generosity and their efforts to raise money through an amazing variety of events. Lockdowns and Covid have had some effect on our income but thanks to the ingenuity that our members have shown in raising money for their charity, it has not been severe. We are deeply grateful for all your help.
Research in the year had to be put on the back-burner. Covid saw to that. Patient recruitment for trials became a near impossibility and Universities faced staff absences that delayed research. The ME Association continued to fund the ME/CFS Bio-Bank at the London School of Hygiene and Tropical Medicine and our medical adviser chaired its meetings. Funding for the next two years has been approved by the trustees and we look forward to its continuing role in enabling research into ME/CFS.
With the coming of Covid and the attendant "Long Covid" symptoms, we anticipate a sizeable expansion in research throughout the world into fatigue and cognitive disabilities arising from the virus. It is a perfect opportunity for researchers who have an excellent chance of receiving the funding they need to discover why we have these lingering, chronic disabilities. This can only be beneficial to our knowledge of ME/CFS and the ME Association is ready to play its part in supporting the trials that will be needed.
## **STRATEGIC REPORT Financial review**
## **Financial position**
In 2021, the ME association saw total funds increase by £778,517 to £3,115,456 compared with the previous year. This was largely due to significant legacy income recognised in the year of £703,715 (2020 £732,793).
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 with the difference being made up through donations.
Membership subscription income also increased marginally compared within 2021. Legacy income was slightly reduced but the charity still had a very good year receiving £703.715 of legacies.
An Audit, Investment and Risk Committee was set up during the year to support the Board by closely monitoring how we spend and safeguard the charity's assets, improve Governance, strengthen internal controls, and manage risk. This will support the Board in fulfilling its duties and planning for the future of the charity. It meets on a regular basis throughout the year.
Page 3
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STRATEGIC REPORT Financial review Reserves policy** Reserves
## Total funds stood at £3,115,456 at 31 December 2021.
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 membership 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.
Free reserves (unrestricted reserves less net book value of fixed assets) increased by £0.2M to 2.2M in 2021. Total costs, including research and other charitable activities, are running at just under £0.5M per annum. The Trustees aim to hold 12 months of operating costs in reserves to deliver on membership fees paid in advance. The Trustees are also mindful of committed future costs for the Biobank of £0.2M and potential pressures on costs and reduction in membership income due to the current cost of living increases. Greater awareness of post-viral fatigue, arising from the prevalence of Long Covid, has increased the demand for high quality and urgent research into these diseases. The Trustees anticipate that there will more and much larger research projects to be funded or co-funded going forward and have been accumulating reserves to supplement restricted funds in anticipation.
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.
## Free Reserves
Free reserves at the end of 2021 were £2,207,334 (2020: £2,055,756). Free reserves are calculated as unrestricted reserves less the net book value of fixed assets.
## Unrestricted funds
Unrestricted funds increased by £142,847 in 2021. Donations, Subscriptions, Gift Aid recovered, and our online shop all saw an increase in income compared to 2020.
The charity saw a increase in unrestricted costs in 2021. Some of these costs were a result of taking on new staff to deal with the increase in needs of the charity.
Unrestricted funds at 31 December 2021 amounted to £2,335,719 (2020: £2,192,872).
## Restricted funds
Restricted funds relate to our research programme named the Ramsay Research fund. Restricted donations and legacies were significantly higher this year at 56% of total income in 2021 (2020 5%). The Increase this year is due to a significant restricted legacy received.
Restricted funds increased by £635,670 in 2021. There was a sizeable restricted legacy received in the year causing the rise.
Restricted funds at 31 December 2021 amounted to £779,737 (2020: £144,067).
Page 4
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
**STRATEGIC REPORT 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.
## **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)
Page 5
## **THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS 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
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are 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 auditors are aware of that information.
## **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 28 June 2022 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 2021 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'.
- In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 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:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
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:
- 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.
## **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.
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: 11 August 2022
Page 8
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|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**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
**502,658**
**43,981**
**9,456**
**556,095**
**413,248**
**142,847**
**2,192,872**
**2,335,719**|Restricted
fund
£
**707,484**
**-**
**1,264**
**708,748**
**73,078**
**635,670**
**144,067**
**779,737**|**2021**
**Total**
**funds**
**£**
**1,210,142**
**43,981**
**10,720**
**1,264,843**
**486,326**
**778,517**
**2,336,939**
**3,115,456**|2020
Total
funds
£
1,071,052
31,211
7,510
1,109,773
493,090
616,683
1,720,256
2,336,939|
|---|---|---|---|---|
Page 9
## **THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **BALANCE SHEET 31 DECEMBER 2021**
|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
£
**128,385**
**10,813**
**628,669**
**435,092**
**1,196,205**
**2,270,779**
**(63,445)**
**2,207,334**
**2,335,719**
**2,335,719**|Restricted
fund
£
**-**
**-**
**563,656**
**61,383**
**217,613**
**842,652**
**(62,915)**
**779,737**
**779,737**
**779,737**|**2021**
**Total**
**funds**
**£**
**128,385**
**10,813**
**1,192,325**
**496,475**
**1,413,818**
**3,113,431**
**(126,360)**
**2,987,071**
**3,115,456**
**3,115,456**
**2,335,719**
**779,737**
**3,115,456**|2020
Total
funds
£
137,116
9,018
716,869
502,061
1,022,006
2,249,954
(50,131)
2,199,823
2,336,939
2,336,939
2,192,872
144,067
2,336,939|
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 28 June 2022 and were signed on its behalf by:
Mr N H Riley - Trustee
Mrs N Anson - Trustee
The notes form part of these financial statements
Page 10
## **THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Net cash provided by 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**|**2021**
**£**
**381,995**
**(4,728)**
**377,267**
**(1,761)**
**5,586**
**10,720**
**14,545**
**391,812**
**1,022,006**
**1,413,818**|2020
£
38,810
(3,185)
35,625
(1,156)
99,298
7,510
105,652
141,277
880,729
1,022,006|
|---|---|---|
The notes form part of these financial statements
Page 11
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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
Increase/(decrease) in creditors
**Net cash provided by operations**
**ANALYSIS OF CHANGES IN NET FUNDS**
At 1.1.21
£
**Net cash**
Cash at bank
**1,022,006**
**1,022,006**
**Liquid resources**
Deposits included in cash
**-**
Current asset investments
**502,061**
**502,061**
**Total**
**1,524,067**|**2021**
**£**
**778,517**
**10,492**
**-**
**(10,720)**
**4,728**
**(1,795)**
**(475,456)**
**76,229**
**381,995**
Cash flow
£
**391,812**
**391,812**
**-**
**(5,586)**
**(5,586)**
**386,226**|2020
£
616,683
10,631
364
(7,510)
3,185
(1,774)
(556,795)
(25,974)
38,810
**At 31.12.21**
**£**
**1,413,818**
**1,413,818**
**-**
**496,475**
**496,475**
**1,910,293**|
|---|---|---|
## 2. **ANALYSIS OF CHANGES IN NET FUNDS**
The notes form part of these financial statements
Page 12
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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.
continued...
Page 13
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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.
continued...
Page 14
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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**
|**2.**
**DONATIONS AND LEGACIES**|||
|---|---|---|
|Donations
Legacies
Subscriptions
**3.**
**OTHER TRADING ACTIVITIES**
Other incoming resources
Trading
**4.**
**INVESTMENT INCOME**
Investment income|**2021**
**£**
**416,465**
**703,715**
**89,962**
**1,210,142**
**2021**
**£**
**5,628**
**38,353**
**43,981**
**2021**
**£**
**10,720**|2020
£
258,805
732,793
79,454
1,071,052
2020
£
8,244
22,967
31,211
2020
£
7,510|
||||
Page 15
continued...
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **5. CHARITABLE ACTIVITIES COSTS**
|Direct
Costs (see
note 6)
£
Information and support
**406,274**
**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
Artwork Costs
Depreciation
Loss on sale of assets
Interest payable and similar charges
**7.**
**GRANTS PAYABLE**
Research - Bio bank
Research - Oxford University
Research - Dr Keith Geraghty
Research - Universidad Catolica de Valencia
Research - Northumbria University
Research - University of Leicester|Grant
funding of
activities
(see note
7)
£
**73,078**|Grant
funding of
activities
(see note
7)
£
**73,078**|Support
costs (see
note 8)
£
**6,974**
**2021**
**£**
**246,977**
**2,639**
**18,055**
**40,652**
**1,152**
**453**
**-**
**34,153**
**4,830**
**1,218**
**1,468**
**6,963**
**2,452**
**3,484**
**60**
**20,793**
**137**
**3,818**
**1,701**
**50**
**10,491**
**-**
**4,728**
**406,274**
**2021**
**£**
**39,913**
**17,915**
**-**
**-**
**-**
**15,250**
**73,078**||Totals
£
**486,326**
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
19,038
15,000
2,699
-
150,337|
|---|---|---|---|---|---|
|||||||
Page 16
continued...
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **8. SUPPORT COSTS**
|**SUPPORT COSTS**|||
|---|---|---|
|||Governance|
|||costs|
|||£|
|Information and support||**6,974**|
|Support costs, included in the above, are as follows:|||
||**2021**|2020|
||Information||
||and|Total|
||support|activities|
||**£**|£|
|Accountancy fees|**3,405**|**4,331**|
|Legal fees|**3,569**|**-**|
||**6,974**|**4,331**|
## **9. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
|Accountancy fees
Depreciation - owned assets
Equipment hire
Deficit on disposal of fixed assets|**2021**
**£**
**3,405**
**10,492**
**2,639**
**-**|2020
£
4,331
10,631
2,039
364|
|---|---|---|
## **10. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
## **Trustees' expenses**
1 Trustee received reimbursement of expenses amounting to £3,239 in the current year, (2020 - 4 Trustees - £4,862).
## **11. STAFF COSTS**
|**STAFF COSTS**|||||
|---|---|---|---|---|
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Average Employees||**2021**
**£**
**228,911**
**13,594**
**4,472**
**246,977**
**2021**
**10**||2020
£
182,121
7,663
2,444|
|||||192,228|
|||||2020
8|
No employees received emoluments in excess of £60,000.
continued...
Page 17
## **THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. STAFF COSTS - continued**
The Key Management Personnel of the charity are represented by the trustees, who are not remunerated.
|**12.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
1,017,282
Other trading activities
31,211
Investment income
5,511
**Total**
1,054,004
**EXPENDITURE ON**
**Charitable activities**
Information and support
361,791
**NET INCOME/(EXPENDITURE)**
692,213
**Transfers between funds**
(106,622)
**Net movement in funds**
585,591
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
1,607,281
**TOTAL FUNDS CARRIED FORWARD**
2,192,872|
Restricted
fund
£
53,770
-
1,999
55,769
131,299
(75,530)
106,622
31,092
112,975
144,067|Total
funds
£
1,071,052
31,211
7,510
1,109,773
493,090
616,683
-
616,683
1,720,256
2,336,939|
|---|---|---|
continued...
Page 18
## **THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13. TANGIBLE FIXED ASSETS**
|Fixtures
Leasehold
and
property
fittings
£
£
**COST**
At 1 January 2021
**177,712**
**2,128**
Additions
**-**
**354**
Disposals
**-**
**-**
At 31 December 2021
**177,712**
**2,482**
**DEPRECIATION**
At 1 January 2021
**44,429**
**736**
Charge for year
**8,886**
**499**
Eliminated on disposal
**-**
**-**
At 31 December 2021
**53,315**
**1,235**
**NET BOOK VALUE**
At 31 December 2021
**124,397**
**1,247**
At 31 December 2020
133,283
1,392
**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||Computer
equipment
£
**7,528**
**1,407**
**(979)**
**7,956**
**5,087**
**1,107**
**(979)**
**5,215**
**2,741**
2,441
**2021**
**£**
**10,813**
**2021**
**£**
**-**
**3,600**
**1,278**
**1,170,500**
**16,947**
**1,192,325**
**2021**
**£**
**496,475**||||
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
continued...
Page 19
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
|**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 2021
Resources deferred during the year
Amounts released from previous years
Deferred income at 31 December 2021
Deferred income represents deferred annual membership subscriptions.
**18.**
**MOVEMENT IN FUNDS**
At 1.1.21
£
**Unrestricted funds**
General fund - unrestricted
**2,192,872**
**Restricted funds**
Ramsay Research Fund
**144,067**
**TOTAL FUNDS**
**2,336,939**
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund - unrestricted
**556,095**
**Restricted funds**
Ramsay Research Fund
**708,748**
**TOTAL FUNDS**
**1,264,843**||**2021**
**£**
**12,989**
**5,012**
**45,235**
**17,915**
**45,209**
**126,360**
Net
movement
in funds
£
**142,847**
**635,670**
**778,517**
Resources
expended
£
**(413,248)**
**(73,078)**
**(486,326)**|||
|---|---|---|---|---|
||||||
||||||
||||||
continued...
Page 20
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|Net
Transfers
movement
between
At 1.1.20
in funds
funds
£
£
£
**Unrestricted funds**
General fund - unrestricted
1,607,281
692,213
(106,622)
**Restricted funds**
Ramsay Research Fund
112,975
(75,530)
106,622
**TOTAL FUNDS**
1,720,256
616,683
-
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
**Unrestricted funds**
General fund - unrestricted
1,054,004
(361,791)
**Restricted funds**
Ramsay Research Fund
55,769
(131,299)
**TOTAL FUNDS**
1,109,773
(493,090)
A current year 12 months and prior year 12 months combined position is as follows:
Net
Transfers
movement
between
At 1.1.20
in funds
funds
£
£
£
**Unrestricted funds**
General fund - unrestricted
1,607,281
835,060
(106,622)
**Restricted funds**
Ramsay Research Fund
112,975
560,140
106,622
**TOTAL FUNDS**
1,720,256
1,395,200
-|At
31.12.20
£
2,192,872
144,067
2,336,939
Movement
in funds
£
692,213
(75,530)
616,683
At
31.12.21
£
2,335,719
779,737
3,115,456|
|---|---|
continued...
Page 21
**THE MYALGIC ENCEPHALOPATHY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. MOVEMENT IN FUNDS - continued**
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
£
1,610,099
764,517
2,374,616|Resources
expended
£
(775,039)
(204,377)
(979,416)|Movement
in funds
£
835,060
560,140
1,395,200|
|---|---|---|---|
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.
## **19. RELATED PARTY DISCLOSURES**
Within the year Highwire Design, a company that Richard Osman is a director of, invoiced the charity £630 in respect of monthly website hosting.
All transactions were undertaken at arms's length.
Page 22