26. Movements in group funds
(continued)
Purposes of restricted funds
Local appeals
Local appeal funds comprise income generated from
fundraising activities by Macmillan appeals throughout the
UK. Local appeal deficits arise where we commit to funding
the service early on in an appeal. Under our accounting
policy, we recognise the full cost of multi-year grants when
the commitment is made. Often, we will take three years to
raise the income necessary to meet this cost. Such appeals
will start in deficit and gradually work their way to break even
over the life of the appeal. During the year no funds (2022:
£nil) were transferred from unrestricted funds to restricted
appeal funds to cover deficits which will not be matched by
future fundraising. It is anticipated that the remaining deficits
will be matched by future restricted income flows.
Some appeals raise funds before the actual grant commitment
is made, particularly building appeals. As a result, they appear
in surplus for the first part of the life of the appeal. Appeals at
the year end in surplus totalled £673,000 (2022: £1,490,000).
Appeals in deficit totalled £422,000 (2022: £880,000).
Transfers between local appeals in surplus and local appeals
in deficit are to move the funds in those appeals which have
moved from deficit to surplus during the year.
Macmillan Horizon Centre
Expenditure in the year includes depreciation of £93,000
(2022: £93,000) funded from appeal funds relating to an
information and support centre adjacent to the Brighton
Cancer Centre. The fund balance at 31 December 2023 was
£3,948,000 (2022: £4,041,000).
Department of Health Grants -
National Cancer Survivorship Initiative
There were no funds received or expended in the year (2022:
£nil) and there were no grants released back to the fund in the
year (2022: £nil). The fund balance at 31 December 2023 was
£115,000 (2022: £115,000).
Other funds
Other restricted funds comprise income for specific Macmillan
activities. At 31 December 2023, the balance of £10,437,000
(2022: £10,937,000) is made up of:
• Healthcare and information funds
Income which has been restricted to these funds has
come from a variety of sources and is restricted either to
clinical or information services, including nurses, allied
health professionals, clinical and information buildings and
information services. The income is sometimes further
restricted to either a type of post or service or to a post or
service at a specific location. Funds will be expended as
appropriate posts are identified or developed. The balance
at the year end totalled £7,824,000 (2022: £7,401,000).
• Financial support and practical and emotional support funds
Income which has been restricted to these funds has come
from a variety of sources and is restricted either to financial
support or daily living including volunteer schemes and social
work. Much of this income is restricted to a geographical
area and it is likely that we will expend a significant
proportion of this income on Macmillan grants to individuals.
There may, however, be other service developments in the
area of the restriction and the income may be spent on such
new service developments. The balance at the year end
totalled £2,613,000 (2022: £3,536,000).
Designated funds
Tangible asset fund
The tangible asset fund represents the value of general funds
invested in tangible assets which are not, by the nature of
tangible assets, readily available for use for other purposes.
The transfer out of £202,000 (2022: transfer out of £315,000)
makes the value of the fund equal to the net book value of
the tangible assets less any restricted tangible assets at 31
December 2023. Tangible asset expenditure financed from
restricted funds is shown within the restricted fund balances.
Macmillan local services
£214,000 (2022: £299,000) was designated and spent in the
year on Macmillan professional posts, to match cause related
marketing raised to fund local Macmillan services.
Healthcare
The £1,165,000 (2022: £1,768,000) profits donated to the
Charity from Macmillan Healthcare Lottery Limited were
designated and spent during the year on healthcare services.
Information services
The £2,018,000 (2022: £2,481,000) profits donated to the
Charity from Macmillan Cancer Information Lottery Limited
were designated and spent during the year on information
services.
Macmillan grants
The £1,303,000 (2022: £2,102,000) profits donated to the
Charity from Macmillan Financial Grants Lottery Limited were
designated and spent during the year on Macmillan grants.
Influencing cancer care
The £1,226,000 (2022: £2,093,000) profits donated to the
Charity from Macmillan Influencing Cancer Care Lottery
Limited were designated and spent during the year on
influencing cancer care.
Direct services
£232,000 (2022: £175,000) was designated and spent in the
year on direct services, to match cause related marketing
raised to fund Macmillan services.
Other unrestricted funds
Investment revaluation reserve
The investment revaluation reserve is calculated as the
difference between the market valuation and the historical
cost of the Charity's investments. As at 31 December 2023,
the balance of the reserve was negative £3,470,000 (2022:
negative £7,902,000). The transfer in of £4,432,000 (2022:
transfer out of £4,709,000) is an adjustment to align the fund
to the difference between market value and historical cost at
31 December 2023.
115
Environmental, social
and governance review
Financial review
Strategic report
Overview
Financial statements
Thank you