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MERCURY PHOENIX TRUST
Trustees’ Report
and Unaudited Financial Statements
for the year ended 31 March 2024
Registered Charity Number 1013768
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MERCURY PHOENIX TRUST
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
INDEX
Page
Charity information Trustees’ report Independent examiner’s report Statement of financial activities Balance sheet Statement of Cash Flows
Accounting policies Notes to the financial statements
1 2 5 6 7 8 9 11
MERCURY PHOENIX TRUST
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
CHARITY INFORMATION
Trustees
M Austin (resigned 30 January 2025) H J Beach B H May R M Taylor
Principal office
Mercury Phoenix Trust 2nd Floor 88/90 Baker Street London W1U 6TQ
Registered charity number
1013768
Independent examiner
Geoffrey Frost Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY
Bankers
Coutts & Co 440 Strand London WC2R 0QS
Page 1
MERCURY PHOENIX TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
TRUSTEES’ REPORT
The trustees have pleasure in presenting their annual report for the purposes of the Charities Act 2011, together with the accounts for the year ended 31 March 2024. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
STRUCTURE GOVERNANCE AND MANAGEMENT The Mercury Phoenix Trust is a registered charity constituted under a trust deed dated 29 July 1992, and registered as a charity 18 August 1992.
The power to appoint and remove Trustees is vested in the Trustees and exercised by deed. A Trustee may retire by notice in writing. The number of Trustees shall be not less than three nor more than four and in the event of their number falling below three, such additional Trustees or Trustee shall forthwith be appointed as shall be necessary to make their number up to a maximum of four.
On agreeing to becomea trustee of the charity, the trustees are thoroughly briefed by the existing co-trustees on the constitution of the Trust, the day-to-day management, responsibilities of the trustees, the current objectives and future plans.
The Trustees are responsible for authorising grant payments, for ensuring all grants are made in pursuance of the objectives of the Trust and for ensuring the objectives of the Trust are met
The Trustees are responsible for identifying and reviewing the major risks to which the Trust is exposed and confirm that, as far as is possible given the nature of the grant payments and locations to which they are made, arrangements have been established to mitigate those risks.
Key management personnel remuneration The Trustees consider the board of Trustees and the self-employed administrator as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. The trustees give of their time freely and no trustee remuneration or expenses were paid in the year (2023: £nil) with the administrator’s rate being set at an amount for comparable roles within similar organisations.
OBJECTIVES AND ACTIVITIES
The charity’s objects are: 1) To relieve the poverty, sickness and distress of people with Acquired Immune Deficiency Syndrome (AIDS) and Human Immuno-Deficiency Virus (HIV) Il) To advance the education of the public in general in the above conditions, their transmission, treatment and consequences Ill) The provision, support and maintenance of research into the causes and cure of and hospices services and other facilities for the treatment of and alleviation of the suffering of persons with the above conditions IV) The conduct and support of research into the causes and cure of the above conditions, together with other medical conditions related to/associated with or otherwise allied/linked to AIDS and/or HIV In pursuance of its objects, the charity's income is applied in the awarding of grants which are considered to be in accordance with the Trust's objectives. The Trust has established its grant making policy to achieve these stated objectives for the public benefit. The charity's grant making policy can be found on the website at ~~www.mercuryphoenixtrust.org/site/grants.~~
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's objectives in planning its future activities and agreeing its grant making for the year.
ACHIEVEMENTS AND PERFORMANCE During the year, donations of £939,192 (2023: £764,342) were made to charities and similar bodies whose objectives promote awareness of, and the fight against, AIDS. There was a deficit for the year of £532,924 (2023 deficit: £211,382).
Page 2
MERCURY PHOENIX TRUST
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
TRUSTEES’ REPORT
The Trustees are pleased with the Trust's performance during the year and believe its consistent awarding of grants to entities and bodies which are seeking to help relieve poverty, sickness and distress of people with AIDS and HIV demonstrates a public benefit.
The Trustees measure the performance of the Trust by assessing the value and nature of grants awarded during the financial year. The Trustees consider the value and nature of grants awarded this year to be appropriate and consistent with the objectives of the Trust.
FINANCIAL REVIEW
The Trustees aim to maintain a level of reserves at least equivalent to approximately 3-4 years' worth of grant payments in order to allow the Trust to continue in existence for the foreseeable future in the event that no further income is received. The Trustees regard this as being in the best long-term interests of the current and future beneficiaries. Reserves as at the year-end total £2,233,668 (2023: £2,766,592).
The Trustees are satisfied that the charity's assets are available and adequate to fulfil its obligations in relation to those funds.
Risk management
The Trustees have assessed the financial risk management objectives and policies of the Trust. The exposure of the Trust to price risk, credit risk, liquidity risk, and cash flow is considered not material for the assessment of the assets, liabilities, financial position and surplus of the Trust.
Investment policy and performance Given the short-term nature of the Trust's grant-making activities, the Trustees have decided to invest immediately any surplus funds in UK-based deposit accounts with a reputable bank.
The deposit accounts offer security and ease of access to funds, together with a market-based interest rate.
PLANS FOR FUTURE PERIODS
The trustees acknowledge it is likely funding for the HIV/AIDS cause will become increasingly difficult. Therefore they will continue to monitor income streams and amend ongoing plans as necessary accordingly through the development of alternative funding, the altering of what the charity does or possible decision to wind the charity down.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: e select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP; e make judgements and estimates that are reasonable and prudent; e state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 3
MERCURY PHOENIX TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 TRUSTEES, REPORT APPOINTMENT OF AN INDEPENDENT EXAMINER The charity remained below the threshold for audit in respect of the year under review and retained Geoffrey Frost of Blue Spire Limited as examiner of the charity. Approved by the trustees and signed on their behalf. Trustee Date l41 /101S ¢Jl Page 4
Date 31 January 2025
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$ $ $ $
( 375,383 & 375,383
&
2 97,718 97,718
&
3 27,737 27,737
&
500,838 500,838
&
4 45,831 45,831
) 987,931 & 987,931
&
1,033,762 1,033,762
&
(532,924) (532,924)
(( & & & &
&
(532,924) (532,924)
&
11 2,766,592 2,766,592
&
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MERCURY PHOENIX TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 BALANGE SHEET AS AT 31 MARGH 2023 2024 2023 Note CURRENT ASSETS Cash at hand and in bank Total current assets 2.463,285 2,463,285 2,975,045 2,975,045 CURRENT LIABILITIES Creditors.. amounts falling due within one year 229,617 208,453 Net current assetsl{Ilabilitiesl 2,233,668 2,766,592 Net assetsl(liabilitSes} 2,233.668 2,766.592 THE FUNDS OF THE CHARITY Restricted funds Unreslricted funds 10, 11 10, 11 2.233.668 2,766,592 Total charlty funds 2,233,668 2,768,592 The accompanying notes form part of the financial slalements Approved by the trustees and signed on their behalf Trustee Page 7
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$ $ $ $
(539,497)
27,737 3,216
27,737
(511,760)
2,975,045
2,463,285
2,463,285
2,463,285
activities
2024 2023
$ $ $ $
(532,924)
(3,216)
& &
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MERCURY PHOENIX TRUST
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
ACCOUNTING POLICIES
General information, scope and basis of the financial statements The Mercury Phoenix Trust is an unincorporated charity constituted under a trust deed. The address of the principal office is given in the reference and administrative details section and the nature of the charity’s operations and principal activities are given in the trustees’ report.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Reclassification During the year under review it was identified income totalling £39,524 of the comparative year had been reported within donations and should have been included as income from trading activities. This has been reclassified within the comparatives of these financial statements with no impact on the overall results of the charity.
Incoming resources
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. Investment income consist of interest received or receivable and accrued at the balance sheet date when material.
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following expenditure headings: e Raising funds; these include costs of fundraising and events. e Charitable activities; these include grants to third parties and the costs of administering the charity inclusive of governance costs.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
Page 9
MERCURY PHOENIX TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
ACCOUNTING POLICIES
Resources expended
Support and governance costs are those that assist the work of the charity but do not directly represent charitable activities. They are incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in the governance of the charity and primarily associated with the constitution and statutory requirements.
VAT
The charity is not registered for VAT and is unable to recover VAT incurred. On this basis costs are recorded inclusive of VAT within the SOFA.
Taxation
The charity is considered to pass the tests set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the charity's activities.
Debtors receivable and creditors payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Cash and cash equivalents Cash and cash equivalents includes cash at bank and in hand.
Foreign currency Monetary assets and liabilities denominated in foreign currencies are translated into Pounds Sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Pounds Sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of
Fund accounting
Unrestricted general funds are incoming resources receivable or generated for use in furtherance of the general objects of the charity without restriction.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in notes to these financial
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
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$ $ $ $ $ $
& &
375,383 524,991
& &
375,383 524,991
2024
Restricted Total Income Restricted
Funds Funds Funds Funds
$ $ $ $ $ $
& &
97,718 97,718 77,973
& &
97,718 97,718 17,973
2024
Restricted Total Unrestricted Restricted
Funds Funds Funds Funds
$ $ $ $ $ $
& &
27,737 27,737 3,216
& &
27,(37 27,(37 3,216
2024
Restricted Total Unrestricted Restricted
Funds Funds Funds Funds
$ $ $ $ $ $
& &
45,404 45,404 42,534
& &
427 427 837
& & & &
5,277
& &
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$ $ $ $ $ $ & & 939,191 764,342 & & 22,902 22,902 20,697 & & 14,458 14,458 9,154 & & 2,772 2,772 (35,165) & & 5,280 5,280 5,762 & & 1,768 1,768 2,624 & & 1,560 1,560 4,500 & &
$
,$%'#
%$#%#
$
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$
$ 4,446 5,368 4,043 7,500 #$%,# "$"%% 2,349 3,579 2,950 20,000 5,000 11,500 7,600 ,$#'#
$
%$''%
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|---|---|---|---|---|---|
|$|$|$|$|$|$|
|&|&|
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$ $ 18,389 211,228 & 229,617 Brought Released Deferred Carried forward in year in year forward & & 7,000 (7,000) funds 2024 2023 Restricted Total Unrestricted Restricted Total Funds Funds Funds Funds Funds $ $ $ $ $ $ & & 2,463,285 2,975,045 & & (229,617) (208,453) & &
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$ $ $ $ $
& & & & &
&
500,838 (1,033,762)
&
500,838 (1,033,762)
Year ended 31 March 2023
funds Total Total Transfers Total
incoming resources between carried
resources expended funds forward
$ $ $ $ $
& & & & &
&
606,180 (817,562)
&
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$ $ $ ( 524,991 & & 2 77,973 & 3 3,216 & 606,180 & 4 48,648 ) 768,914 & & 817,562 & (211,382) (( & & & &
& &