REGISTERED COMPANY NUMBER:
|
REGISTERED CHARITY NUMBER:
|
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended |
31 December 2017 |
for |
Midland Doctors Association UK |
REGISTERED COMPANY NUMBER:
|
REGISTERED CHARITY NUMBER:
|
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended |
31 December 2017 |
for |
Midland Doctors Association UK |
Midland Doctors Association UK |
Contents of the Financial Statements |
for the Year Ended 31 December 2017 |
|
|
|
|
|
|
|
|
|
|
Page |
|
Report of the Trustees | 1 to 3 |
|
Independent Examiner's Report | 4 |
|
Statement of Financial Activities | 5 |
|
Statement of Financial Position | 6 to 7 |
|
Notes to the Financial Statements | 8 to 13 |
|
Midland Doctors Association UK |
Report of the Trustees |
for the Year Ended 31 December 2017 |
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 2017. 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 2015). |
|
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The charity's objectives are to relieve sickness and protect and preserve good health particularly, but not |
confined to, Pakistan. |
|
The concept behind Midland Doctors Association UK originated when a team of senior National Health |
Service doctors flew to Pakistan to provide medical assistance in the wake of the powerful earthquake which |
struck northern Pakistan on 8 October 2005, killing over 87,000 and displacing over 3.5 million people. |
|
Having witnessed at first hand the suffering of the local people and the destruction of their medical facilities, |
the doctors were inspired to establish this charity whose principal aims were to purchase, equip and operate a |
hospital facility in the Kashmir region of Pakistan, and to raise public awareness of health issues affecting |
people in developing countries. |
|
The charity has successfully achieved it's initial objectives and aims, and it currently is heavily involved in the |
day to day running and administration of projects already completed in Pakistan. |
|
Volunteers |
The trustees wish to express their heartfelt gratitude to all the individuals and organisations who have donated |
their time, money and services to the charity. Without the active support of these volunteers it would be |
impossible to realise the achievement of the vision shared by the trustees. |
|
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
As previously reported, the charity completed the construction of a hospital, now known as Midland Doctors |
Medical Institute, in Tendali District, Muzaffarabad, Kashmir, Pakistan in March 2013. The total cost of the |
hospital as at 31 December 2017 amounted to £1,955,968, which included £2,117 incurred in the year under |
review as part of the ongoing improvement and development of hospital facilities. The Nur Goth Village |
project, which was completed in 2013, is constantly monitored to ensure that full benefit continues to accrue |
to the poorest families who occupy the 100 houses constructed under the project. Ongoing maintenance |
costs are minimal. |
|
During the year the charitable company has received donated goods and services in furtherance of its |
operational activities and objectives. However, the economic benefit of such donated goods and services has |
not been recognised in these financial statements as it cannot be measured reliably. |
|
Fundraising activities |
Midland Doctors Association UK has a large network cluster, working on fundraising, with whom trustees |
have worked tirelessly, both nationally and internationally. Through these networked contacts, funds were |
donated during the year to 31 December 2017. In addition, fundraising and sponsorship events were also |
organised during the year, whereby monies were raised from individuals and local companies, with the costs |
of generating voluntary income being covered largely by sponsorship. As such costs have increased |
considerably in the current year and are expected to do so in further years, it remains the Trustees' intention |
to cover any such costs through further sponsorship and gift aid refunds. The remainder of the donations |
came directly from other benefactors and institutions. |
|
FINANCIAL REVIEW |
Principal funding sources |
The principal fundraising is made from the international network resources that have been built since |
formation of the charity. The Midland Doctors Association UK work is continually being promoted worldwide |
and the trustees are constantly working with the network to ensure the fundraising continues successfully. |
The trustees consider the results for the year to be satisfactory and the charity continues to remain in an |
extremely strong financial position. |
|
Midland Doctors Association UK |
Report of the Trustees |
for the Year Ended 31 December 2017 |
FINANCIAL REVIEW |
Reserves policy |
The ongoing requirements to run the hospital are being met through continued fundraising. |
|
FUTURE PLANS |
The charity will continue to raise further funds to meet the ongoing operational costs of the hospital, and |
further capital expenditure will be made to enlarge the hospital facility with the passage of time and needs of |
the local population. |
|
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited |
by guarantee, as defined by the Companies Act 2006. |
|
The company, incorporated under the Companies Act 1985 and 1989, is limited by guarantee and does not |
have a share capital. Its registered number is 5818995, and the company is also registered as a charity under |
the Charities Act 1993, number 1114559. |
|
Recruitment and appointment of new trustees |
The company's Articles of Association allow for Trustees to serve for a three year term. Trustees must retire |
at the annual general meeting following their completion of three years' service, but may stand for re-election. |
|
The Board has the power at any time, and from time to time, to appoint any person to be a Trustee, either to |
fill a casual vacancy or as an addition to the existing Trustees. Any Trustee appointed holds office only until |
the next following annual general meeting, and then becomes eligible for re-election. |
|
Trustees are elected to the board in accordance with a voting system outlined in the charity's constitutional |
document. The responsibilities of trustees are allocated according to their skills, abilities and areas of interest. |
|
Organisational structure |
The Board of Trustees administers the charity. |
|
The finances of the charity are kept under review at Trustees meetings. |
|
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
|
|
Registered Charity number |
|
|
Registered office |
|
|
|
|
|
|
Trustees |
|
|
|
|
|
|
|
|
|
|
|
- appointed 15/5/18 |
|
Midland Doctors Association UK |
Report of the Trustees |
for the Year Ended 31 December 2017 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Company Secretary |
|
|
Independent examiner |
Kultaran Singh FCA |
Institute of Chartered Accountants in England and Wales |
HSKS Greenhalgh |
Chartered Accountants |
|
Pride Park |
Derby |
DE24 8JY |
|
Freehold property |
The land purchased in Tendali, District Muzaffarabad, Pakistan is held in the name of Dr Javed Ahmed, a |
trustee of the charity, as it was not possible for the land to be purchased in the name of the charity directly. |
|
PUBLIC BENEFIT |
The charity is committed to the alleviation of human suffering. |
|
The trustees confirm that they have referred to the guidance contained in the Charity Commission general |
guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. |
|
Approved by order of the board of
trustees
on
|
|
|
|
|
Independent Examiner's Report to the Trustees of |
Midland Doctors Association UK |
Independent examiner's report to the trustees of Midland Doctors Association UK ('the Company') |
I
report to the charity trustees on my examination of the accounts of the Company for the
year
ended
31 December 2017 . |
|
Responsibilities and basis of report |
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). |
|
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. |
|
Independent examiner's statement |
Since your charity 's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies |
|
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: |
|
1. | accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or |
2. | the accounts do not accord with those records; or |
3. | the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or |
4. | the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. |
|
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached |
|
|
|
|
|
|
|
Kultaran Singh FCA |
Institute of Chartered Accountants in England and Wales |
HSKS Greenhalgh |
Chartered Accountants |
18 St Christopher's Way |
Pride Park |
Derby |
DE24 8JY |
|
|
27 September 2018 |
Midland Doctors Association UK |
Statement of Financial Activities |
(Incorporating an Income and Expenditure Account) |
for the Year Ended 31 December 2017 |
2017 | 2016 |
|
Unrestricted
fund |
Restricted
fund |
Total
funds |
Total
funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
|
|
|
|
Investment income | 3 |
|
|
|
|
Total |
|
|
|
|
|
EXPENDITURE ON |
Raising funds |
|
|
|
|
Charitable activities | 4 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
NET INCOME |
|
|
|
|
RECONCILIATION OF FUNDS |
|
Total funds brought forward |
|
|
|
|
TOTAL FUNDS CARRIED FORWARD |
|
|
|
2,685,447 |
Midland Doctors Association UK |
Statement of Financial Position |
At 31 December 2017 |
2017 | 2016 |
|
Unrestricted
fund |
Restricted
fund |
Total
funds |
Total
funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
|
|
|
|
|
CURRENT ASSETS |
Debtors | 9 |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
|
|
|
CREDITORS |
Amounts falling due within one year | 10 |
( |
) |
|
( |
) |
( |
) |
|
NET CURRENT ASSETS |
|
|
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
|
|
NET ASSETS |
|
|
|
|
FUNDS | 11 |
Unrestricted funds | 2,745,942 | 2,685,447 |
TOTAL FUNDS |
|
2,685,447 |
Midland Doctors Association UK |
Statement of Financial Position - continued |
At 31 December 2017 |
The charitable company is entitled to exemption from audit under |
Section 477 of the Companies Act 2006 for the year ended 31 December 2017. |
|
The members have not required the company to obtain an audit of its financial statements for the year ended |
31 December 2017 in accordance with Section 476 of the Companies Act 2006. |
|
The trustees acknowledge their responsibilities for |
(a) |
ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387
of the Companies Act 2006 and |
(b) |
preparing financial statements which give a true and fair view of the state of affairs of the charitable
company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
|
These financial statements have been prepared in accordance with the |
special provisions of Part 15 of the Companies Act 2006 relating to |
charitable small companies. |
|
The financial statements were approved by
the Board of
Trustees
on
|
|
|
|
|
|
Midland Doctors Association UK |
Notes to the Financial Statements |
for the Year Ended 31 December 2017 |
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 2015)', 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. |
|
Midland Doctors Association UK is a private company, limited by guarantee. The charitable company's |
registered office is 11 Snelston Crescent, Littleover, Derby DE23 6BL. |
|
The charitable company's principal activity is to help alleviate human suffering. |
|
The presentation currency is the Pound Sterling (£). |
|
Financial reporting standard 102 - reduced disclosure exemptions |
The charity has taken advantage of the following disclosure exemption in preparing these financial |
statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and |
Republic of Ireland': |
|
- | the requirements of Section 7 Statement of Cash Flows. |
|
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. |
|
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. |
|
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated |
useful life. |
|
Freehold property |
|
Plant and machinery |
|
Fixtures and fittings |
|
Motor vehicles |
|
Computer equipment |
|
|
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
|
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. |
|
Midland Doctors Association UK |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
1. | ACCOUNTING POLICIES - continued |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at |
the statement of financial position date. Transactions in foreign currencies are translated into sterling |
at the rate of exchange ruling at the date of transaction. Exchange rate differences are taken into |
account in arriving at the operating result. |
|
Donated goods and services |
Donated goods and services are recognised as income when the charitable company has control over |
the item, the receipt of economic benefit from the use by the charitable company of the item is |
probable and that economic benefit can be measured reliably. |
|
Debtors |
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. |
|
Creditors and provisions |
Creditors and provisions are recognised where the charity has a present obligation resulting from a |
past event that will probably result in the transfer of funds to a third party, and the amount due to settle |
the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised |
at their settlement amount after allowing for any trade discounts due. |
|
Financial instruments |
The charitable 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. |
|
Interest receivable |
Interest on funds held on deposit is included when receivable and the amount can be measured |
reliably by the charitable company; this is normally upon notification of the interest paid or payable by |
the bank. |
|
Going concern |
The trustees are of the view that funds available, together with those expected to be received, will be |
sufficient to meet the day to day operational costs of the charitable company, and is therefore a going |
concern. |
|
2. | DONATIONS AND LEGACIES |
|
2017 | 2016 |
£ | £ |
Donations |
|
|
Gift aid refunds |
|
|
|
|
|
All donations were received in furtherance of the charity's activities in accordance with its constitution |
and further details given in the Report of the Trustees. |
|
3. | INVESTMENT INCOME |
|
2017 | 2016 |
£ | £ |
Deposit account interest |
|
|
|
Midland Doctors Association UK |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
4. | CHARITABLE ACTIVITIES COSTS |
|
|
Direct costs |
Support
costs |
Totals |
£ | £ | £ |
Hospital expenditure | 292,831 | 13,597 | 306,428 |
|
5. | NET INCOME/(EXPENDITURE) |
|
Net income/(expenditure) is stated after charging/(crediting): |
|
2017 | 2016 |
£ | £ |
Independent examiners fees | 3,000 | 2,880 |
Depreciation - owned assets |
|
|
|
6. | TRUSTEES' REMUNERATION AND BENEFITS |
|
There were no trustees' remuneration or other benefits for the year ended 31 December 2017 nor for |
the year ended 31 December 2016 . |
|
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 December 2017 nor for the year ended |
31 December 2016 . |
|
7. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
|
2017 | 2016 |
Medical staff | 20 | 18 |
Maintenance staff | 9 | 10 |
Security | 4 | 3 |
Administrative staff | 3 | 3 |
Other staff | 2 | 2 |
|
|
|
No employees received emoluments in excess of £60,000. |
|
The trustees have continued to incur expenses, especially travel costs, in the performance of their |
duties. Such expenditure is borne by the trustees personally, has not been quantified, and as no |
reimbursement has been sought by them, is considered to have been waived. |
|
Midland Doctors Association UK |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
8. | TANGIBLE FIXED ASSETS |
|
Freehold
property |
Plant and
machinery |
Fixtures and
fittings |
£ | £ | £ |
COST |
At 1 January 2017 |
|
|
|
Additions |
|
|
|
At 31 December 2017 |
|
|
|
DEPRECIATION |
At 1 January 2017 |
|
|
|
Charge for year |
|
|
|
At 31 December 2017 |
|
|
|
NET BOOK VALUE |
At 31 December 2017 |
|
|
|
At 31 December 2016 |
|
|
|
|
Motor
vehicles |
Computer
equipment |
Totals |
£ | £ | £ |
COST |
At 1 January 2017 |
|
|
|
Additions |
|
|
|
At 31 December 2017 |
|
|
|
DEPRECIATION |
At 1 January 2017 |
|
|
|
Charge for year |
|
|
|
At 31 December 2017 |
|
|
|
NET BOOK VALUE |
At 31 December 2017 |
|
|
|
At 31 December 2016 |
|
|
|
During 2006 land was purchased in Tendali, District Muzaffarabad, Pakistan by the charity in order to |
construct a hospital. Whilst the charity paid for this land, it is held in the name of one of the trustees (Dr |
Javed Ahmed) on behalf of the charity, as it was not possible for the land to be purchased in the name |
of the charity directly. A statutory declaration was made on 7 September 2007 confirming that the land |
is held on trust for the charity until such time as it is possible for it to be transferred upon attainment of |
the appropriate international status of the charity. The cost and net book value of the hospital project, |
included within freehold property, amounts to £1,955,968 (2016: £1,953,851) and £1,764,754 (2016: |
£1,801,756) respectively. |
|
Midland Doctors Association UK |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
8. | TANGIBLE FIXED ASSETS - continued |
|
The Nur Goth Village project in Sindh Province, Pakistan, is a joint collaboration with Pakistan Medical |
Association. Although the entire project was funded by the Midland Doctors Association UK, for |
administrative and logistical purposes, the 8 acre site and the 100 dwellings constructed thereon, |
together with the infrastructure, are jointly owned between the Midland Doctors Association UK and the |
Pakistan Medical Association, as per an agreement dated 25th January 2012. However, all running |
costs of the village after completion are paid for and administered by the Pakistan Medical Association, |
with Midland Doctors Association UK making contributions for such expenditure. The cost and net |
book value of the Nur Goth Village project, included within freehold property, amounts to £450,261 |
(2016: £450,261) and £405,235 (2016: £414,240) respectively. |
|
All the dwellings in Nur Goth Village are occupied in perpetuity, rent free, by the 100 designated |
families and their descendants. There is no right to either dispose of the dwelling or pass it to another |
unconnected family. |
|
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
2017 | 2016 |
£ | £ |
Gift aid tax refund | 1,953 | 2,254 |
|
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
2017 | 2016 |
£ | £ |
Trade creditors |
|
|
Accrued expenses |
|
|
|
|
|
11. | MOVEMENT IN FUNDS |
|
|
At 1/1/17 |
Net
movement in funds |
At 31/12/17 |
£ | £ | £ |
Unrestricted funds |
General fund | 2,685,447 | 60,495 | 2,745,942 |
|
TOTAL FUNDS |
|
60,495 | 2,745,942 |
|
Net movement in funds, included in the above are as follows: |
|
Incoming
resources |
Resources
expended |
Movement
in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 393,655 | (333,160 | ) | 60,495 |
|
TOTAL FUNDS |
|
( |
) | 60,495 |
|
Midland Doctors Association UK |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
11. | MOVEMENT IN FUNDS - continued |
|
|
Comparatives for movement in funds |
|
At 1/1/16 |
Net
movement in funds |
At 31/12/16 |
£ | £ | £ |
|
Unrestricted Funds |
General fund | 2,591,681 | 93,766 | 2,685,447 |
|
TOTAL FUNDS | 2,591,681 | 93,766 | 2,685,447 |
Comparative net movement in funds, included in the above are as follows: |
|
Incoming
resources |
Resources
expended |
Movement in
funds |
£ | £ | £ |
Unrestricted funds |
General fund | 354,907 | (261,141 | ) | 93,766 |
|
TOTAL FUNDS | 354,907 | (261,141 | ) | 93,766 |
|
12. | RELATED PARTY DISCLOSURES |
|
All donated medical equipment is stored at the premises of M Najib & sons Limited, a company in |
which a trustee, Mr Ajaz Najib, is a director. The transaction occurs at arms length, as members of |
staff at M Najib & Sons Limited donate their charitable time to load the equipment, in order to transport |
it over to Pakistan. |
|
The following donations were received without conditions from trustees or other related parties: |
|
Dr Syed Yusuf Iftikhar, a trustee of the charity, donated £4,350 (2016: £2,200) to the hospital fund. |
|
Dr Asrar Rashid, a trustee of the charity, donated £240 (2016: £405) to the hospital fund. |
|
Mr Shafqat Hussain, a trustee of the charity, donated £555 (2016: £325) to the hospital fund. |
|
Dr Khaled Latief, a trustee of the charity, donated £1,350 (2016: £600) to the hospital fund. |
|
Dr Zahid Sheikh, a trustee of the charity, donated £5,500 (2016: £1,820) to the hospital fund. |
|
Mr Ajaz Najib and his wider family donated £17,470 (2016: £21,194) to the hospital fund; Mr Najib is a |
trustee of the charitable company. |
|
Mr Rahim Ullah Amin, a trustee of the charity, donated £600 (2016: £2,075) to the hospital fund. |
|
Ms T Kent-Chapman, a trustee of the charity, donated £nil (2016: £nil) to the hospital fund. |
|
M Najib & Sons Limited, a company in which Ajaz Najib is a director, donated £1,800 (2016: £1,800) to |
the hospital fund. |
|
Dr Iftikhar Ali, a trustee of the charity, donated £700 (2016: £Nil) to the hospital fund. |
|