Charity registration number 1041449
MIRACLES
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
MIRACLES
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr R Bean | |
|---|---|---|
| Ms M Pereire | ||
| Mr B Williams | ||
| Mr R R Minguela | ||
| Ms H Clavel-Flores | ||
| Mr M Anderson | ||
| Mr T Wilson | (Appointed 15 February | |
| 2021) | ||
| Ms S Spires | ||
| Charity number | 1041449 | |
| Principal address | 85 Great Portland Street | |
| London | ||
| W1W 7LT | ||
| Independent examiner | RDP Newmans LLP | |
| Lynwood House | ||
| 373-375 Station Road | ||
| Harrow | ||
| Middlesex | ||
| HA1 2AW | ||
| Bankers | CAF Bank Limited, Kings Hill | |
| Kent | ||
| West Malling | ||
| ME19 4TA | ||
| Metro Bank | ||
| One Southampton Row | ||
| London | ||
| WC1B 5HA |
MIRACLES
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 14 |
MIRACLES
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2021
The Trustees present their annual report and financial statements for the year ended 31 October 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity 's trust deed , the Charities Act 2011 and "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)" (as amended for accounting periods commencing from 1 January 2016)
The Trustees have complied with the duty in Section 17 (5) of the 2011 Charities Act to have paid due regard t o guidance issued by the Charity Commission in relation to the activities being for the public benefit.
Objectives and activities
The aims and objects of Miracles remain to provide support to children and their families living in poverty and to help them through crises situations such as serious illness. T he allocation of funding is at the discretion of the Board of Trustees with advice taken on the eligibility of the beneficiaries from the UK referral agencies ( Children's Hospitals, CAs, Social Workers , Women's Refuges etc.) .
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the y charity should undertake.
Achievements and performance
As with all other charities, Miracles was hit hard in 2021 by the Covid Pandemic and has struggled to keep ahead of the ever rising call on its limited resources. Along with this, we had to deal with the retirement of Theo Ellert (Founder) and the resignation of Robert Linley-Munro (CEO), and Head of Bosnia, Matthew Proctor MBE.
The board of trustees would like to thank Theo, Robert, and Matthew for all their amazing help and endeavours over the years and wish them all the very best in the future.
Despite the Pandemic, we were able to assist a very high number of families and individuals in the last year with items such as food vouchers, travel assistance, accommodation, cookers and fridges, heaters, beds, and clothing. When the holiday park reopened after the Pandemic, we were able to send 11 families on respite breaks.
In addition, we launched the Feed London project as Miracle's response to the food crisis taking place amongst London children. The project is aimed at families with children living in poverty, over the school holidays when food poverty is at its most critical. We delivered essential food boxes packed with enough fresh ingredients for at least 7 main meals ensuring children get a really healthy start to the holidays. The boxes also included supermarket vouchers (for qualifying families), creative boxes for children and lots of treats.
In just a few short months we delivered over 8,500 healthy, individual meals to 350 families – 880+ children.
The Feed London project’s ongoing purpose is that children from some of the poorest families in the capital, whose diets have been significantly worsened during the pandemic, will have access to a fresh and nutritious meals, at home, for an entire week during the school holidays. Feed London delivers a box of hope, support, and a community connection to those carers feeling isolated, lonely, and depressed.
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MIRACLES
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
Financial review
Miracles is able to report incoming resources of £325,035 and finished the financial year with a net deficit of £12,241. It has funds amounting to £646,314 which comprised of designated funds of £522,475 relating to property ownership of the Miracles Centre, BiH, general unrestricted funds of £103,734 and restricted funds of £20,105 as of 31 October 2021.
Although incoming resources have increased by 38%, they are still exceeded by total resources expended (£337,276 in 2021) resulting in the overall deficit for the year.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised.
The principal funding resources were the donations received from various donors.
Risk management
The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Future developments
Fundraising for the year ahead is well in hand with appeals to Trusts and businesses and, of course, our existing and ongoing supporters. A fundraising dinner is planned for Autumn 2022 with other such events and sponsored activities in planning.
Structure, governance and management
Miracles is a C haritable Trust established on 12th October 1994 to ease the burden of suffering on person or persons in Supreme Need - primarily in the UK and Bosnia. The charity registration number is 1041449 and the principal office is 85 Great Portland Street, London, W1W 7LT.
The Trustees who served during the year and up to the date of signature of the financial statements were: Mr R Bean
Ms M Pereire Mrs T Ellert (Resigned 31 January 2021) Mrs S Gil - Alberdi (Resigned 21 July 2021) Mr D Lynch (Resigned 8 September 2021) Mr B Williams Mr R R Minguela Ms H Clavel-Flores Mr Rudi Fortson (Resigned 22 February 2021) Mr M Anderson Mr T Wilson (Appointed 15 February 2021) Ms S Spires
The charity is managed by its Board of Trustees personally introduced and integrated within the Board prior to signing the official Deed of Appointment.
Every future Trustee shall be appointed by resolution of the Trustees passed at a Trustees' meeting. In selecting persons to be appointed a s Trustees, the Trustees shall take into account the benefit of appointing a person (who through residence, occupation, employment or otherwise has special knowledge of the area of benefit or) who is otherwise able by virtue of his or her personal or professional qualification to make a contribution to the pursuit of the objects of the management of the Charity.
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MIRACLES
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
All new Trustees are introduced through existing Board Members. They are supplied with a copy of the Trust Deed of Miracles together with current and previous Annual Reviews before attending a full Board Meeting at which their roles will be discussed. Once they are happy to join the Board, a letter of welcome is sent to them with basic information on the role of a Trustee and details of the Charity Commission Website from which additional information can be found. A letter of appointment is then sent (in duplicate) with the request for them to sign and return the second copy as confirmation of their agreement/eligibility to serve.
The Trustees' r eport was approved by the Board of Trustees.
.............................. Mr R Bean Trustee / Hon. Treasurer Dated: .........................
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MIRACLES
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MIRACLES
I report on the accounts of the charity for the year ended 31 October 2021, which are set out on pages 6 to 15.
Respective responsibilities of Trustees and examiner
The Trustees of Miracles are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144 (2) of the Charities Act 2011, the 2011 Act, and that an independent examination is needed. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination being a qualified member of the Institute of Chartered Accountants in England and Wales .
It is my responsibility to:
-
(i) examine the financial statements under section 145 of the 2011 Act;
-
(ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
-
(iii) to state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner's statement
In connection with my examination, no material matter has come to my attention which gives me reasonable cause to believe that in any material respect:
-
(a)
-
(i) the accounting records were not kept in accordance with section 130 of the Charities Act 2011; or
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(ii) the accounts did not accord to those records
-
(b) the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
Paresh Radia FCA RDP Newmans LLP
Institute of Chartered Accountants in England and Wales
Lynwood House 373-375 Station Road Harrow Middlesex HA1 2AW
Dated: .........................
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MIRACLES
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Donations and legacies 2 156,824 164,297 Other trading activities 3 3,900 - Investments 4 14 - Total income 160,738 164,297 Expenditure on: Raising funds 5 - - Charitable activities 6 180,576 156,700 Total resources expended 180,576 156,700 Net (expenditure)/income for the year/ Net movement in funds (19,838) 7,597 Fund balances at 1 November 2020 646,047 12,509 Fund balances at 31 October 2021 626,209 20,105 |
Total 2021 £ 321,121 3,900 14 325,035 - 337,276 337,276 (12,241) 658,556 646,314 |
Total 2020 £ 228,113 6,610 460 235,183 386 321,682 322,068 (86,885) 745,439 658,554 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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MIRACLES
BALANCE SHEET
AS AT 31 OCTOBER 2021
| 2021 Notes £ Programme related investments 10 Current assets Cash at bank and in hand 99,894 Creditors: amounts falling due within one year 11 (4,931) Net current assets Total assets less current liabilities Income funds Restricted funds 12 Unrestricted funds Designated funds 13 522,475 General unrestricted funds 103,734 The accounts were approved by the Trustees on ......................... .............................. .............................. Mr R Bean Ms H Clavel-Flores Trustee Trustee |
£ 551,351 94,963 646,314 20,105 626,209 646,314 |
2020 £ 99,903 (6,093) 535,867 110,179 |
£ 564,744 93,810 658,554 12,508 646,046 658,554 |
|---|---|---|---|
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
MIRACLES
1 Accounting policies
Charity information
Miracles is a charitable trust governed by its government document dated 12 October 1994.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Donations are recognised as and when they are remitted to the charity.
Donated services and gifts in kind are included at the value to Miracles where this can be quantified. The value of services provided by volunteers has not been included in these accounts.
Listed and unlisted investment income is accounted for when receivable.
Advance payments received during the period for activities to be carried out in later financial years are not reflected in the statement of financial activities. These amounts have been deferred to the financial year in which the activities will be carried out, and are reported as deferred income. Deferred income is included in creditors.
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MIRACLES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
(Continued)
1.5 Resources expended
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is recognised on an accrual basis, inclusive of VAT.
Cost of generating funds are those costs incurred in attracting voluntary income, in particular grant funding and the costs of maintaining the charity's profile within the sector.
Expenditure relating to Supreme Needs projects are those elements of expenditure directly incurred in performing these activities.
Governance costs include those costs incurred in the governance of the charity's assets and are primarily associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to the sole charitable activity.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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MIRACLES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.8 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10 Foreign exchange
Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All gains are recorded as investment income and all losses as a support cost of the relevant activity.
1.11 Programme related investments
Programme related investments are stated at cost less depreciation.
2 Donations and legacies
| Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 146,824 164,297 Government grants 10,000 - 156,824 164,297 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 311,121 57,483 145,831 10,000 24,799 - 321,121 82,282 145,831 |
Total 2020 £ 203,314 24,799 228,113 |
|---|---|---|
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MIRACLES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
3 Other trading activities
| 4 5 |
UnrestrictedUnrestricted funds funds 2021 2020 £ £ 25th anniversary event 1,650 1,650 Virtual Dinner and Xmas Dinner 2020 2,250 4,960 Other trading activities 3,900 6,610 Investments UnrestrictedUnrestricted funds funds 2021 2020 £ £ Interest receivable 14 460 Raising funds 2021 2020 £ £ Fundraising trading costs (events) 25th Anniversary event - 386 - 386 |
|---|---|
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MIRACLES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
6 Charitable activities
| Staff costs Depreciation Supreme Needs projects (UK and Bosnia) Share of support costs (see note 7) Share of governance costs (see note 7) Analysis by fund Unrestricted funds Restricted funds For the year ended 31 October 2020 Unrestricted funds Restricted funds |
2021 £ 211,428 13,393 94,540 319,361 13,536 4,379 337,276 180,576 156,700 337,276 |
2020 £ 145,644 13,392 154,610 313,646 2,872 5,164 321,682 166,809 154,873 321,682 |
|---|---|---|
Staff costs (including any related pension costs) are allocated in accordance with the activities worked on by each staff member.
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MIRACLES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
7 Support and governance costs
| Support costs Governance costs £ £ Foreign exchange losses 12,914 - Bank charges 622 - Independent examination fees - 3,897 Legal and professional - 482 13,536 4,379 Analysed between Charitable activities 13,536 4,379 |
2021 £ 12,914 622 3,897 482 17,915 17,915 |
2020 £ 2,446 426 3,120 2,044 8,036 8,036 |
|---|---|---|
Support costs are all allocated to the Supreme Needs charitable activity.
8 Trustees
None of the Trustees received any remuneration during the period , nor were they reimbursed expenses. (2020: £Nil)
9 Employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Other pension costs |
2021 Number 8 2021 £ 210,010 1,418 211,428 |
2020 Number 8 2020 £ 142,109 3,535 145,644 |
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
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MIRACLES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
10 Programme related investments
| At 1 November 2020 Depreciation At 31 October 2021 |
£ 564,744 (13,393) 551,351 |
|---|---|
11 Creditors: amounts falling due within one year
| Other taxation and social security Accruals and deferred income |
2021 £ 1,331 3,600 4,931 |
2020 £ 2,493 3,600 6,093 |
|---|---|---|
12 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement in funds | Movement in funds | |||
|---|---|---|---|---|
| Balance at | Incoming | Resources | Balance at | |
| 1 November | resources | expended | 31 October | |
| 2020 | 2021 | |||
| £ | £ | £ | £ | |
| Bosnia projects | 3,059 | 148,797 | (139,504) | 12,352 |
| Spink | 3,826 | - | - | 3,826 |
| The Sobell Foundation | 5,623 | 15,500 | (17,165) | 3,958 |
| 12,509 | 164,297 | (156,669) | 20,105 |
The Bosnia projects restricted fund represents donations received to be spent on The Roma project and the Prosthetic project.
The Roma project was initially set up to provide housing to families, it now continues to support these families and its children through education and has put in place an agricultural project to enable these families to be self-sustaining.
The Prosthetic project is a medical centre set up to provide prosthetic limbs to landmine victims.
The Spink project relates to 2 very disabled men and funds are used to pay for various items as and when required.
The Sobell Foundation is a restricted fund set up to support Caseworker and Co-ordinator salary.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
MIRACLES
12 Restricted funds
(Continued)
The T rustees are satisfied that adequate resources are in place to adhere to any restrictions.
13 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Movement | |||||
|---|---|---|---|---|---|
| in funds | |||||
| Balance at | Incoming | Balance at | |||
| 1 | November | Resources | 31 |
October 2021 | |
| 2020 | |||||
| £ | £ |
£ | |||
| Bosnia sites | 535,867 | (13,392) |
522,475 | ||
| 535,867 | (13,392) |
522,475 |
The assets fund is the value of the programme related assets in the balance sheet.
The T rustees have designated the programme related assets fund as The Miracles Centre, Roma housing and all other tangible fixed assets within are fundamental to meeting its charitable objects. 14 Analysis of net assets between funds
| Unrestricted funds Restricted funds 2021 2021 £ £ Fund balances at 31 October 2021 are represented by: Programme related assets 551,351 - Current assets/(liabilities) 74,826 20,137 626,177 20,137 |
Total 2021 £ 551,351 94,963 646,314 |
Total 2020 £ 564,744 93,810 658,554 |
|---|---|---|
15 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Aggregate compensation | 11,175 | 33,011 |
Robert Linley-Munro, a spouse of a T rustee received the above remuneration as Chief Executive during the period.
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Signed by robert bean using authentication code MVPCozkvMmI8MSZsOQ== at IP address 51.52.163.218, on 2022/07/28 07:10:59 Z. robert bean's e-mail address is: robertb@grunberg.co.uk.