2020-12-31-accounts

Charity Registration No. 1096068

Company Registration No. 04627969 (England and Wales)

MERCY IN ACTION

CONSOLIDATED FINANCIAL STATEMENTS AND ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Ke accounts : tax « legal - financial planning

The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN

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MERCY IN ACTION

CONTENTS

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||||||| |---|---|---|---|---|---| |Page| |Company|information|1| |Trustees’|report|2-5| |Independent|auditor's|report|6-8| |Consolidated|statement|of|financial|activities|9-10| |Consolidated|balance|sheet|11| |Company|balance|sheet|12| |Consolidated|statement|of|cash|flows|13| |Notes|to the consolidated|financial|statements|14-26| |Detailed consolidated statement of financial|activities|27-29|

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MERCY IN ACTION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mrs ATodd
	Mr TJones
	Ms A Farrands
	Ms H Law	(Appointed 27 April 2021)
Charitynumber	1096068
Company number	04627969
Principal address	Jubilee Centre
	Lower Bristol Road
	Bath
	United Kingdom
	BA2 4ES
Registered office	Jubilee Centre
	Lower Bristol Road
	Bath
	United Kingdom
	BA2 4ES
Auditor	TCGroup
	The Courtyard
	Shoreham Road
	Upper Beeding
	Steyning
	WestSussex
	BN443TN

MERCY IN ACTION

TRUSTEES’ REPORT

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FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements of the charity and the group for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 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).

Objectives and activities

The charity's objects are:

a) To advance the Christian faith in accordance with the Statement of Belief appearing in the Schedule to the memorandum of Association in Bath and in other such parts of the United Kingdom and the world as the trustees may from time to time see fit.

b) To relieve persons who are in conditions of need or hardship or who are aged or sick and to relieve the distress caused thereby in the said locations and in other parts of the United kingdom and the world as the trustees may from time to time think fit. c) To advance education in accordance with the Christian principles by such means as the trustees may consider appropriate including by means of establishing and operating any educational establishment or establishments in the said locations and in such parts of the United Kingdom and the world as the trustees may from time to time see fit.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

• , Despite the global pandemic affecting income and having every project and service stretched, the staff thought | outside the box to deliver creative solutions to be more effective than ever. | e We have grown Action Pantry and increased food distribution to 162 families, saving over 50 tons of food from landfill

• | e Over 60,000 meals were served during the year to over 600 families every week | e Two new Petra homes have opened providing support for young mums and their babies. | ® Helped to support school children in the Philippines by supporting 398 scholars Future aims

• | e The charity aims to update its safeguarding policy, provide safeguarding training for staff and , introduce a safeguarding advisory committee in the Philippines. ! 8 Create an ethical fundraising policy and update the fundraising strategy of the charity. : ® Launch a new website and offer online sales. : ® Develop the risk register and ensure that the charity is equipped to deal with any future risks and threats.

• Financial review The coronavirus pandemic meant that the charities shops had to close for periods during the year. This led to

• ! significant loss of revenue and the charity had to reduce costs to ensure the charities finances were not

The coronavirus pandemic meant that the charities shops had to close for periods during the year. This led to a significant loss of revenue and the charity had to reduce costs to ensure the charities finances were not diminished. Furloughing staff, agreeing rent holidays and claiming business rates grants were key in ensuring the charities finances were not diminished. Throughout 2020, our donors were giving more generously and the staff thought creatively to raise funds so the charity could operate more effectively than ever.

MERCY IN ACTION

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| 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.

| The trustees, who are also the directors for the purpose of company law, and who served during the year and , up to the date of signature of the financial statements were:

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TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Financial review (continued)

Mercy in Action Trading Limited, a wholly owned subsidiary, had a difficult year due to the coronavirus pandemic and the lockdowns entered in the UK. The company showeda loss of £20,131 for the financial year ending 31 December 2020 compared to a profit of £50,464 in the preceding 12 months. Reserves of the company currently stand at £114,337.

Reserves policy

MiA should hold in reserve approximately 3 months operating capital, which within the current budget period equates to £500,000. It is expected that we will add £100,000 or more each year to our reserves until the required level is reached.

Current free reserves are £367,803. This represents a deficit of reserves of £132,197 operating capital which within the current budget equates to one month’s operating capital.

| Structure, governance and management | The charity is controlled by its governing document, a deed of trust, and constitutes a limited company by guarantee, as defined by the Companies Act 2006.

Mrs A Todd

Mr T Jones Ms A Farrands Ms SJ Buckley (Resigned 27 April 2021) Ms H Law (Appointed 27 April 2021)

Recruitment and appointment of trustees

Trustees are recruited and appointed based on their ability to perform their duties effectively and that they share the same visions and beliefs as the charities articles.

The trustees must have been involved in a voluntary capacity previously, understand the commitment required to succeed in the role and have relevant skills.

: The trustees are all volunteers and are therefore not remunerated and only reimbursed expenses relevant to : their role.

Remuneration policy for senior management

Pay will be fair and competitive so that the charitable activities can be achieved. All remuneration of senior staff is agreed at board level and researched against national averages to ensure the fairness and competitiveness.

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2 The auditors, TC Group, will be proposed for re-appointment at the forthcoming annual general meeting. | Reference and administrative details | Registered company number | 04627969 (England and Wales) | Registered charity number | 1096068

MERCY IN ACTION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of trustees’ responsibilities

The trustees, who are also the directors of Mercy In Action for the purpose of company law, 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).

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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that year.

In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; and - 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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and the group and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

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Registered office

Jubilee Centre

Lower Bristol Road | Bath ! BA2 9ES : Auditors TC Group : The Courtyard 2 Shoreham Road Upper Beeding Steyning West Sussex BN44 31N

| Disclosure of information to auditor Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

MERCY IN ACTION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees’ report was approved by the Board of Trustees.

Mits-A Todd Trustee ; ; Dated: AB.-09. ° z oz!

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MERCY IN ACTION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF MERCY IN ACTION

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Opinion

We have audited the financial statements of Mercy In Action (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the notes to the consolidated 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

• In our opinion, the financial statements: - give a true and fair view of the state of the group and the parent charitable company's affairs as at 31 December 2020 and of the group’s incoming resources and application of resources, for the year then

• • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 Auditor's responsibilities for the audit | of the financial statements section of our report. We are independent of the charity in accordance with the 7 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 We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: ! - the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or : - the trustees have not disclosed in the financial statements any identified material uncertainties that may : cast significant doubt about the group’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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| the trustees' report; or | - sufficient accounting records have not been kept; or : - The financial statements are not in agreement with the accounting records; 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 charity for the purpose 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.

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MERCY IN ACTION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF MERCY IN ACTION

Other information

The trustees are responsible for the other information. The other information comprises the information included in the group’s annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the consolidated financial statements is inconsistent in any material respect with the trustees' report; or

| In preparing the financial statements, the trustees are responsible for assessing the group and the charity’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 group or the charitable company or to cease operations, or have no realistic alternative but to do so.

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MERCY IN ACTION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF MERCY IN ACTION

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 an auditor's report 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.

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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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Tc G reanp
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Mark Cummins FCCA (Senior Statutory Auditor) for and on behalf of TC Group

Statutory Auditor The Courtyard Shoreham Upper Beeding Steyning West Sussex BN44 3TN

pate: 291 Sephembar to)

TC Group is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 34 DECEMBER 2020

Current financial year

Current financial year
		Unrestricted	Restricted	Total	Total
		funds	funds
		2020	2020	2020	2019
	Notes	£	£	£	£
Income and endowments from:
Donations and legacies	2	298,684	48,953	347,637	188,657
Charitable activities	3	4,920	23,899	28,819	57,010
Othertrading activities	4	1,472,257	-	1,472,257	= 2,747,675
investments	5	164,172	-	164,172	73,160
Other non-charitable grants	6	686,289	-	686,289	-
Insurance proceeds	7	26,659	-	26,659	-
Total income		2,652,981	72,852	2,725,833	3,066,502
Expenditure on:
Raising funds	8	1,548,609	-	1,548,609	1,884,046
Charitable activities	9	914,265	26,067	940,332	1,104,847
Total resources expended		2,462,874	26,067	2,488,941	2,988,893
Netincome forthe year/
Net movement in funds		190,107	46,785	236,892	77,609
Fund balances at 1 January 2020 as restated		304,039	21,255	325,294	247,685
Fundbalancesat31December2020		494,146	68,040	562,186	325,294

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The consolidated statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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MERCY IN ACTION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year

Prior financial year
		Unrestricted	Restricted	Total
		funds	funds
		2019	2019	2019
	Notes	£	£	£
Income and endowments from:
Donations and legacies	2	178,951	9,706	188,657
Charitable activities	3	44,530	12,480	57,010
Othertrading activities	4	2,747,675	-	2,747,675
Investments	5	73,160	-	73,160
Totalincome		3,044,316	22,186	3,066,502
Expenditure on:
Raising funds	8	1,884,046	-	1,884,046
Charitable activities	9	1,103,916	931	1,104,847
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Total resourcesexpended		2,987,962	931	2,988,893
Netincomeforthe year/
Netmovement infunds		56,354	21,255	77,609
Fund balances at 1January2019		247,685	-	247,685
Fundbalancesat31December2019asrestated		304,039	21,255	325,294

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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The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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MERCY IN ACTION

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2020

					Restated
			2020		2019
	Notes	£	£	£	£
Fixed assets
Tangible assets	15		126,343		140,891
Current assets
Debtors	16	219,694		193,354
€ash atbankand inhand		622,193		77,532
.		841,887		270,886
Creditors:amountsfallingduewithin
oneyear	17	(188,544)		(86,483)
Netcurrent assets			653,343		184,403
Total assets less current liabilities			779,686		325,294
Creditors: amounts fallingdue after
morethanone year	18		(217,500)		-
Netassets			562,186		325,294
income funds
Restrictedfunds Unrestricted funds -general	28		68,040 494,146		21,255 304,039
			562,186		325,294

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Thecomplytrusteeswith sectionacknowledge386 of thetheirActresponsibilitiesand for preparingfor ensuring financialthatstatementsthe charitywhichkeepsgive aaccountingtrue and fairrecordsview whichof the state of affairs of the group and it’s charitable company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 2EA\ 202 ;

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Mrs A Todd - Trustee
Company Registration No. 04627969
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MERCY IN ACTION

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2020

						Restated
				2020		2019
		Notes	£	£	£	£
	Fixed assets
	Tangible assets			23,027		25,046
	Investments	24		1,000		1,000
				24,027		26,046
	Current assets
	Debtors	20	147,267		148,133
	Cash at bankand in hand		374,187		40,958
A .	3 Creditors:amounts fallingduewithin		521,454		189,091
	oneyear	21	(97,632)		(24,311)
	Net current,assets			423,822 es		164,780 fie
	Total assets less current liabilities			447,849		190,826
	Netassets			447,849		190,826
	Incomefunds
	Restricted funds			68,040		21,255
	Unrestricted funds - general			379,809 annul		169,571 seniaes
				447,849 re		190,826 pluie

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees On ................ee

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Mrs A‘Fodd — Trustee Company Registration No. 04627969

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MERCY IN ACTION

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

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||||||||| |---|---|---|---|---|---|---|---| |2020|2019| |Notes|£|£|£|£| |Cash|flows|from|operating|activities| |Cash|generated|from|operations|26|348,254|131,622| |Finance|costs|(20,433)|(23,241)| |Net|cash|generated|from|operating| |activities|327,821|108,381| |Investing|activities| |Purchase|of tangible|fixed|assets|(8,222)|(133,433)| |Interest|received|62|17| |Net|cash|generated|used|in|investing| |activities|(8,160)|(133,416)| |Financing|activities| |Bank|loan|advance|225,000|8| |Payment of obligations|under finance| |leases|-|(2,205)| |Net cash generated|from/(used|in)| |financing|activities|225,000|(2,205)| |Net increase/(decrease)|in|cash|and|cash| |equivalents|544,661|(27,240)| |Cash|and|cash|equivalents|at|beginning of year|77,532|104,772| |Cash and|cash|equivalents|at end|of year|622,193|77,532|

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MERCY IN ACTION

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Mercy In Action is a private company limited by guarantee incorporated in England and Wales. The registered office is Jubilee Centre, Lower Bristol Road, Bath, BA 2 4ES, United Kingdom.

1.1 Accounting convention

The consolidated financial statements of the group and the parent charitable company have been prepared in accordance with the charity's [governing document], the Companies Act 2006 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 financial statements have been prepared under the historical

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

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 unless the funds have been designated for other purposes. : 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. | Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

: 1.4 Incoming resources Income is recognised when the charity is legally entitled to it after any performance conditions have been | met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

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MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

• 1 Accounting policies

1.5 Resources expended

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.

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 and fittings 15% reducing balance Computers 15% reducing balance Motor vehicles 25% reducing balance

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 net income/(expenditure) for the year.

1.7 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10 Allocation and apportionment of costs

Head office costs are allocated 75% to fundraising and trading activities and 25% to charitable activities. Warehouse costs are allocated 72% to fundraising and trading activities and 28% to charitable activities. Shop costs are allocated 82% to fundraising and trading activities 18% to charitable activities.

1.11 Charitable funds

• Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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.

MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Donations and legacies

		Unrestricted	Restricted	Total	Unrestricted Restricted	Total
		funds	funds		funds funds
		general			general
		2020	2020	2020	2019 2019	2019
		£	£	£	£ £	£
	Donations and gifts	298,684	48,953	347,637	178,951 9,706	188,657
	Donations and gifts
	Donations	139,436	48,953	188,389	157,081 9,706	166,787
	Gift aid	159,248	-	159,248	21,870 o	21,870
		298,684	48,953	347,637	178,951 9,706	188,657
3	Charitable activities
					UK Projects	UK Projects
						2020	2019
	£ £
	Grants - UK Projects 28,819 57,010 —— os
		Analysis byfund
:	Unrestricted funds -general	general			4,920	44,530
		Restrictedfunds				23,899	12,480
						28,819	57,010

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MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

4 Other trading activities

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		Unrestricted	Unrestricted
		funds	funds
		general	general
		2020	2019
		£	£
	Shop income	1,461,980	2,721,091
	Online income	10,277	7,894
	Other income	-	18,690
	Othertrading activities	1,472,257	2,747,675
5	Investments
		Unrestricted	Unrestricted
		funds general 2020	funds general 2019
	Rental income	164,110	73,143
	Interest receivable	62	17
		164,172	73,160

6 Other non-charitable grants

Job retention scheme - £348,274 (2019: £nil) Shop rates grants - £338,015 (2019: £nil) Total - £686,289 (2019: fnil)

7 Insurance proceeds

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Insurance proceeds

Unrestricted	Total
funds
general
2020	2019
£	£
26,659	-

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MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

8 Raising funds

	Unrestricted	Unrestricted
	funds	funds
	general	general
	2020	2019
	£	£
Fundraising and publicity
Other fundraising costs	4,275	12,305
Staffcosts	49,019	26,573
Fundraisingand publicity	53,294	38,878
Trading costs
Operating charity shops	71,382	116,850
Othertrading activities	531,028	773,879
Staff costs	892,905	954,439
Trading costs	1,495,315	1,845,168
	1,548,609	1,884,046

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MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Charitable activities

	Project	Support and	Total	Project	Support and	Total
	costs	governance	2020	costs	governance	2019
		costs			costs
	2020	2020		2019	2019
	£	£	£	£	£	£
Staff costs	282,676	=	282,676	318,574	-	318,574
Rent, rates and water	141,763	-	141,763	49,348	*	49,348
Insurance	9,257	-	9,257	7,699	-	7,699
Light and heat	18,089	-	18,089	6,649	-	6,649
Telephone Postage and stationery	4,892 1,595	= .	4,892 1,595	3,984 449	= -	3,984 449
Sundries Direct charitable	7,637	-	7,637	28,615	-	28,615
expenditure	295,759	-	295,759	385,742	-	385,742
Distribution costs	11,952	-	11,952	20,234	-	20,234
Stafftraining	2,127	-	2,127	3,087	-	3,087
Premises expenses	89,877	*	89,877	192,271	-	192,271
Travel expenses	17,688	=	17,688	37,916	-	37,916
Legal and professional fees	11,015	.	11,015	514	-	514
Commission	-	-	-	121	-	121
Supportand governance	-	36,706	36,706	-	43,675	43,675
	894,327	36,706	931,033	1,055,203	43,675	1,098,878
Grantfundingofactivities	9,299	-	9,299	5,969	-	5,969
	903,626	36,706	940,332	1,061,172	43,675	1,104,847
Analysis byfund
Unrestricted funds -
general	877,559	36,706	914,265	1,060,241	43,675	1,103,916
Restricted funds	26,067	-	26,067	931	-	931
	903,626	36,706	940,332	1,061,172	43,675	1,104,847

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MERCY IN ACTION

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

10	Grants payable
		Project	Project
		costs	costs
		2020	2019
		£	£
	Grants to institutions:
	Cebu Projects	9,299	5,969
11	Net movement in funds	2020	2019
		£	£
	Net movement in funds is stated after charging/(crediting)
	Depreciation ofowned tangible fixed assets	22,770	25,493
	Auditors remuneration	11,661	16,830
12	Auditor's remuneration
	The analysis ofauditor's remuneration is asfollows:	2020	2019
	Auditoftheannualaccounts	11,661	16,830

13 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

There were trustee expenses relating to travel costs paid during the year which amounted to £4,522 (2019: £7,686).

14 Employees Number of employees The average monthly number of employees during the year was:

:

2020	2019
99	112

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MERCY IN ACTION

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

14	Employees
	Employment costs	2020	2019
		£	E
	Wages and salaries	1,164,316	1,232,325
	Social security costs	49,715	55,881
	Pension costs	10,569	11,381
		1,224,600	1,299,587

During the year key management personnel comprised of Lee Giles, James Nicholas and John Todd and they were paid total remuneration (including Employers National Insurance and pension) of £77,772.

No employees received emoluments in excess of £60,000.

15 Tangible fixed assets

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Tangible fixedfixed assets
	Fixtures and	Computers	Motor vehicles	Total
	fittings
	£	£	£	£
Cost
At 1January 2020	157,225	9,186	12,600	179,011
Additions	4,739	3,483	-	8,222
At31 December2020	161,964	12,669	12,600	187,233
Depreciation andimpairment
At 1January 2020	27,083	2,423	8,614	38,120
Depreciation charged in the year	20,236	1,537	997	22,770
At 31 December 2020	47,319	3,960	9,611	60,890
Carryingamount
At 31 December 2020	114,645	8,709	2,989	126,343
At31December2019	130,142	6,763	3,986	140,891

MERCY IN ACTION

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

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|||||||| |---|---|---|---|---|---|---| |ee|a| |16|Group|debtors| |2020|2019| |Amounts|falling|due within|one|year:|£|£| |Trade|debtors|15,018|22,604| |Other|debtors|87,917|57,726| |Prepayments|and|accrued|income|116,759|113,024| |219,694|193,354| |17.|Group|creditors:|amounts|due|within|one year| |2020|2019| |Notes|£|£| |Bank|loans|19.|7,500|-| |Other|taxation|and|social|security|8,699|12,197| |Trade|creditors|100,718|53,363| |Other|creditors|7,836|6,316| |Accruals|and|deferred|income|63,791|14,607| |188,544|86,483| |18|Group creditors:|amounts due after more than one year| |2020|2019| |Notes|£|£| |Bank|loans|19|217,500|-| |19|Group|loans|and|overdrafts| |2020|2019| |Bank|loans|225,000|-| |Payable|within|one|year|7,500|-| |Payable|after one year|217,500|-|

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MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

19 Group loans and overdrafts

The bank loan is repayable over 60 months and interest is charged at 2.08% per annum. The loan is secured with an unlimited debenture from Mercy in Action Trading Limited.

20 Company debtors

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:

20	Company debtors
		2020	2019
	Amounts falling due within one year:	£	£
	Trade debtors	802	-
	Other debtors	13,687	16,550
	Amounts owed bygroup undertakings	10,088	11,736
	VAT	33,574	33,995
	Prepayments and accrued income	89,116	85,852
		147,267	148,133
21	Company creditors: amounts duewithin oneyear
		2020	2019
	Other taxation and social security	1,011	2
	Trade creditors	81,415	14,966
	Other creditors	732	2,131
	Accruals and deferred income	14,474	7,213
		97,632	24,310

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MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

22 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

	2020	2019
	£	£
Within one year	308,348	308,348
Between two and five years	1,040,675	1,040,675
In over five years	259,324	526,770
	1,608,347	—-1,875,793

23 ~Related party transactions

Transactions with related parties

During the year the charity paid rent of £46,250 (2019: £42,010) to LT Jones Properties Limited, a company of which Mr T R Jones is a director. Rent paid was at normal commercial rates. There were no balances outstanding at the 31st December 2020.

!

24 Subsidiaries

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Details of the charity's subsidiaries at 31 December 2020 are as follows:

|||Name ofundertaking|Registered|Nature ofbusiness|Classof|% Held| |---|---|---|---|---|---| ||||office||shares held|Direct Indirect| ||
;|Mercy inActionTrading
Limited|Jubilee Centre,
Lower Bristol|Retail sales|Ordinary|100.00| ||(Company no: 11025273)|Road, Bath,|||| |||BA2 9ES|||| |||Name ofundertaking|Profit/(Loss) | Capital and|||| ||||Reserves||| |:
£
£||||£
£|£
£| ||
Mercy in Action Trading|||||| ||Limited||||| ||{Companyno:11025273)|(20,131)
114,373||||

~DA

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MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

25 Restatement of comparatives

The comparative has been restated to correct the value of restricted funds. The charity had received £22,186 of restricted funds and incurred £931 of expenditure relating to these funds in the year ending 31st December 2019.

26	Cash generated from operations		2020	2019
			£	£
	Surplus for the year		236,892	77,609
	Adjustments for:
	Interest received		(62)	(17)
	Finance costs		20,433	23,241
	Depreciation oftangible fixed assets		22,770	25,493
	Movements in working capital:
	(Increase) in debtors		(26,340)	(15,430)
	Increase in creditors		94,561	20,726
	Cashgeneratedfromoperations		348,254	131,622
27.	Analysisofchanges innetfunds	At1January2020	Cashflows	At 31December 2020
		£	£	£
	Cash atbankand in hand	77,532	544,661	622,193
	Loans falling duewithin oneyear	-	(7,500)	(7,500)
	Loans falling due aftermorethan oneyear	-	(217,500)	(217,500)
		77,532	319,661	397,193

MERCY IN ACTION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

28 Movement in funds Group

Movement in funds

Balance at incoming Resources Balance at 1 January 2020 resources expended 31 December 2020 £ £ £ £ Unrestricted funds - general funds 304,039 2,652,981 (2,462,874) 494,146 Restricted funds 21,255 72,852 (26,067) 68,040 Total funds 325,294 2,725,833 (2,488,941) 562,186

Company

Movement in funds

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||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Balance|at|Incoming|Resources|Balance|at| |1 January|2020|resources|expended|31|December|2020| ||| ||Unrestricted funds|-|general funds|169,571|1,141,765|(931,527)|379,809|!| |||Restricted funds|21,255|72,852|(26,067)|68,040||| |ae||| |Total|funds|190,826|1,214,617|(957,594)|447,849||| |Restricted|funds|relate|to|Action|Pantry|Bath|and|Oxford,|Petra|Housing|project|in|Bath|and CEBU CEBU|projects|in|||

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Restricted funds relate to Action Pantry Bath and Oxford, Petra Housing project in Bath and CEBU CEBU projects in the Philippines.

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MERCY IN ACTION

DETAILED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

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||||||| |---|---|---|---|---|---| |31.12.20|31.12.19| |£|£| |INCOME|AND|ENDOWMENTS| |Donations|and|legacies| |Donations|188,389|166,787| |Gift|Aid|159,248|21,870| |347,637|188,657| |Other trading|activities| |Shop|income|1,461,980|2,721,091| |Online|income|10,277|7,894| |Other|income|-|18,690| |1,473,257|2,747,675| |Investment|income| |Rents|received|164,110|73,143| |Interest|received|62|17| |164,172|73,160| |Charitable|activities| |Grants|28,819|57,010| |Other income| |Other|non-charitable|grants|686,289|-| |Insurance|proceeds|26,659|-| |712,948|=| |Total|incoming|resources|2,725,833|3,066,502| |EXPENDITURE| |Raising donations|and|legacies| |Wages|and|staff costs|48,902|26,573| |Pensions|117|-| |Insurance|404|646| |Telephone|262|-| |Postage|and|stationery|803|1,856| |Sundries|409|1,119| |Gift|aid|administration|297|7,987| |Staff training|-|5| |Subscriptions|143|634| |Travel|and|motor expenses|157|49| |Legal|&|professional|fees|1,801|7| |53,295|38,876| |Other trading|activities| |Purchases|8,620|15,489| |Wages|884,987|945,891| |Pensions|7,918|8,549| |Commissions|125,865|224,756| |Staff training|434|1,687| |Carry forward|1,027,824|1,196,372|

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MERCY IN ACTION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

	31.12.20	31.12.19
	£	£
Broughtforward	1,027,824	1,196,372
Till running costs	3,004	5,238
Light and heat	37,361	44,020
Sundries	30,478	38,305
Insurance	12,451	15,863
Postage and stationery	2,074	12,802
Rent, rates and water	238,295	393,085
Repairs and renewals	19,877	34,554
Subscriptions	4,919	6,512
Telephone	15,259	11,766
Travel and motorexpenses	42,557	39,279
Advertising	1,942	6,003
Legal and professional fees	34,705	18,131
Bank charges	20,443	23,241
Bad and doubtful debts	3,331	-
Interest on overdue taxation	144	-
	1,495,315	1,845,171
Charitable activities
Wages	280,142	315,853
Pensions	2,534	2,721
Rent, rates and water	141,762	49,349
Insurance	9,257	7,699
Light and heat Telephone Postage and stationery	18,740 4,892 1,595	6,649 3,982 449
Sundries	7,637	28,615
Direct charitable expenditure Distribution Stafftraining	295,759 11,952 2,127	385,742 20,234 3,087
Premises expenses	89,877	192,271
Travel expenses	17,688	37,916
Legal and professional fees	11,015	514
Commission	-	121
Grants to institutions	9,299	5,969
	904,276	1,061,171

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MERCY IN ACTION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

.

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |31.12.20|31.12.19| |£|£| |Support|costs| |Bank|charges|2,275|1,352| |Depreciation|— fixtures|and|fittings|20,236|22,968| |Depreciation —|motor|vehicles|997|1,329| |Depreciation|— computer|equipment|1,537|1,196| |25,045|26,845| |Governance|costs| |Auditors’|remuneration|11,661|16,830| |Total|resources expended|2,488,941|2,988,893| |Net income|236,892|77,609|

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WHY WE EXIST & OUR VISION WE TAKE AryfION AGAINST POVERTY, JUSllGE & EQUA￿ TD SEE CHILDREN & 11 FAMILIES LOURISH ot knowing where they Ihiir'mr y these '.)Ciii(-.i-i!-J',lJ j... ious kn&¢k dical car,q, thé éhaTh,c IL)v.<li.'lii.,. .:li-.(I xpei¥*tidi, Ico 07

MESSAGE FROM OUR FOUNDER Welcome to Our 20 It will come as no s that 2020 brought us change we've ever faced, I us foresaw a global pande would change everythi overni From mid March onwards e project and service was stratched t provide for more families in':ever area of our work. The almost immediate lock down meant tklqt income was greatly affected and it, wasn't clear what we could do to -1 help those in need. However, everyone at Mercy in Action, both in the UK and the Philippines came -,4k,4 together to find a way ahead. National and international projects nual report. e to say .biggest e of at quickly adapted to meet logistical, financial and practical constraints in order to Yneet the increased needs we faced. Those staff not furloughed thought outside the box to deliver creative solutions, our donors gave more generously than ever and we made use of government help. 28 shops were shut during the 19 weeks of national lockdown and several unable to reopen at all due to staff sickness, recruitment problems and other difficulties. Despite these barriers to trading, the shops that were open managed to keep sales high alongside keeping their teams and customers safe. Thorough Covid cleaning, isolation of donations and plenty of sanitiser meant we were confident that Mercy in Action shops were fully compliant with all government recommendations. The summer months brought in donated goods at a level proviously unseen which agair) meant additional work at a time of fewer staff. However, overall with changes to how goods were handled, additional collections and hard work we were able to resume trading as conditions allowed and were satisfied everything possible had been done to allow for maximum profits. Wè're proud to say that despite the concerns and difficulties, Mercy in Action was more effective than ever. As we look ahead we are hoping for a more settled time to take stock, reflect and build for the future. Founding Director

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CG ase Study HomelessnessInsecure and unstablelooks veryhousd i fferentng can aroundleave childrenthe world.and Aeciane25 yearopenold yyae +/ youngand exploitation.people highly vulnerable to abuse, trafficking had to flee the “ je ) sharinghome withshe washer ==[im 5 be ia. childrenIn the Philippinesrescued fromwe homelessnessprovide long-termand traffickingshelter forin boyfriends after a “= 4." person. Our Group Homes and foster families allow he became (ame. wk children to feel safe and accepted, and from abusive during . mf) attachment with loving careers whilst receiving holistic lockdown. ae Se) oafter care. Most children have regular contact with Knowing she needed sornewhere safe to go their birth families which is supervised by social aie Weeeeee maeGeronresen ook ae help workers. Our social workers support birth families to Petra Project team became aware of her try and see every child reunited in a safe and stable predicament and with the support ofthe police home wherever possible. supportshe was workersmoved intowerea Petraable Home.to offerTheherPetrathe In the UK Petra is our housing. project. providingemotional support, practical advice and supported accommodation to young mothers and encouragement she needed to move on. Both mothers-to-be. Petra homes are safe and secure, rum and child are thriving. The mum has nurturing an environment where mums and babies become a volunteer offering friendship to can build strong and loving attachments. We Strive to other mums in sirnilar situations. She has buitt °° . Inclusive, Caring and welcoming for every a life for her child with a great community family.provide low to medium support to prepare around herself with friends, neighbors and a YOU'S [UINS for independent living. The team of local church. She is a young entrepreneur trauma informed professionals are in house Mondays starting her own business and has a bright to Fridays. They are equipped to provide nurturing fullcire aenee en CE and helpful guidance during these most vital early Key Achievements @& ta Ne! 2 new Petra homes ‘ on | Spring Village housed children 43 1.2 er ua andyoung adults P| | Petra housed ‘7S adults & : Ui £ children in the UK hi , Petra Pad housed men 8 young =aTa“; % * =is ak ‘ * =

We aoe fee know children Who grow up in food poverty are —iaaaay i ee ae more likely to under perform academically, have a (aa a “aaa AN higher level of malnutrition and face negative i —es fe outcomes. : es me } o Action Pantry Bath began as a local initiative in 2019 ‘ /»> = aa " | to make affordable food easily accessible to people Bee “a | experiencing financial hardship and/or nealth issues. ’ A .. as " Through Action Pantry, we make nourishing food y accessible to people living in some of the most | 3 ho deprived areas in England. Within a year, the Pantry wo | Was supporting over 100 families with weekly fresn : . ~ eetee4) fm food and cupboard essentials, and additional school § meals during the holidays. We opened our second ee eS Pantry in Oxford in 2020, and within a month were io — e NS | providing groceries and free school meals to over 35 aa 4 ‘| Ee families. With growing food insecurities due to the amr A mh> oweOnt Heefee impactresourceofto coronavirus,hundreds of families.our Pantries are a vital myR oo1aQ ge ueM e* ihe feeding program in Cebu has been running Meae fromOver 50 tonslandfill of infoodthe saved UK Me since 2009. It was more vital than ever in 2020as ~—tsé‘” | quarantine rules led to higher levels of cam. Pang at p unemployment and lower incomes for families [> ~ Se . VEr OY Tames Mee already living in extreme poverty. We adapted due to Ea” every week. Me Covid-19 restrictions. Food parcels were dropped : ™ directly to schooling program members homes and (MM Over 60,000 mealsserved M we increased the amount of food to ensure the [iY inthe year "7 | A entire family was fed. mand | Case Study , | In April of 2020 quarantine lockdown began in The Philippines as Covid-19 cases grew. Riezels is 12, her father is a taxi driver and her mother a laundry woman. Overnight both parents realised they | couldn't work. Taxis were banned and her mother couldn't travel to her place of work. Riezel and her siblings were not allowed to go to school and travel outside home was banned aside from a twice a week visit to the market. All their sources of income were lost and because her parents were self| employeed so not entitled to any compensation. In the first few weeks the local goverement gave them a monthly rice allowance. But on the 5th month the rice was rotten and then the support ended. However Mercy in Action delivered fresh food to for the whole family every week. Eventually at home learning modules for school began. The MiA teachers began to visit Reizel and do crafts with her and her neighbours. She had help with her maths and learnt her times tables properly. Without the weekly food Riezels parents would have gotten into incredible debt just to feed their children.

a | Our schooling program serves children from marginalised communities in the Philippines. | Growing up in poverty they face more barriers to access education, especially moving into higher = | education. Our team of teachers, support workers and social workers ensure students not only ES remain in school, but thrive and reach their potential. We give support to the family as a whole =| with parenting and marriage courses, training courses, counselling and more. In 2020 we were % | unable to offer our monthly parenting meetings and courses due to covid 19 restrictions. However ‘ the team focused on home visits and online material. They also offered one-on-one and group : tutoring and made sure each child was enrolled and receiving school work and modules from their @ teacher. Students were provided with school supplies and arts and craft activities.

Case Study

7

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----- Start of picture text -----
In April of 2020 quarantine lockdown began in The Philippines as Covid-19 cases grew. Riezels is
12, her father is a taxi driver and her mother a laundry woman. Overnight Taxis were banned and
her mother couldn't travel to her place of work. Riezel and her siblings were not allowed to go to
school or leave the house. All their sources of income were lost. As Riezel couldn't get her hot
schoo! lunch MiA would usually provide we delivered fresh food to for the whole family every
week. After a few months of uncertainty the Education Department announced children could be
enrolled for a year of home learning modules. Our support worker helped Riezels mum do the
enroll her and made sure she could collect the modules each week. The MiA teacners began to |
visit Reizel at home to do arts and crafts with her and her neighbors. She had help from her MiA
tutor with her maths and learnt her times tables properly. With weekly one-on-one help she's able ae
to ensure all her work gets done and submitt all her modules on time. She is due to finish her
school year with a special award from her teacher who has seen her hard work pay off! |
e~% » —. §6=Cl @ remote learning” as
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should be a priority for all charities’. Our approach to safeguarding isn't just about looking out

e Support workers training to level 2 minimum

Aims for 2021

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@ Post our safeguarding policy onthewebsite for the firsttime Orgarvise a safeguarding week for the wider team and volunteers & Introduce a safeguarding advisory committee in the Philippines Introduce safeguarding policies for our online charity activities andtrainings

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| / | SIE SA SSP ate Aa aca ATP | | | had to Invested more | our planned annual quarter of 2021 supporters | |

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The pandemic Nas MN igely Impacted our Tunaralsing tor 2U 20, We have had to Invested more into our online fundraising and raising our online profile. Many of our planned annual successful grant applications. Some of our highlights are as follows

e We have invested in a new website due to be launched in the first quarter of 2021 e Invested in film making to keep supporters engaged with projects e Updated our strategy for charity snops e Invested in a new CRM software to keep in better touch with our supporters

Aims for 2021

a Create an ethical fundraisingpolicythat is clear andtransparent e Update our fundraising strategy

Ea Survey supportersforgreaterfeedback, mystery shoppers

Launch new website and offer online sales

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& Survey shoppers andhave mystery shoppers in charity retail shops

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: = ee The Board of Trustees for the charity and the Board of Directors for
a, 2 ca i Mercy in Action Trading are responsible for overall governance and
i ; " . ¥ a meet at least four times each year.
=. gaia : The Board receives regular reports on all aspects of the charity's work.
= : Yy 2 CG } The Board is responsible for setting an appropriate strategy for the
aa |eeDo oe chpl a rity.ce. It also ensures that relevant performance measures are in
a P | At the outset of the Covid pandemic in March 2020 The Board moved
- 2 ' to online meetings. They met much more frequently throughout the
.°
4 &. # "me, yearthe senior to monitormanagement our response team andto Covid,to offer to them make recommendationsadditional support. to
— — The directors reviewed the reserves policy which states that "the
fue 5 a Charity should hold free reserves of at least 3 months operating
.Le2 ae as ee eee—— Er ; - capital£500,000."whichCurrentwithin freethe reservescurrent yearequalequates£367,803to aapprsh o rtfallximatelyof
ee ee * £132,197 operating capital. We will add £100,000 each year to our
a ee es reserves until the required level is met.
| : Public benefit
.. oc We have reviewed our aims and objectives and planning our future
‘ oe - activities in line with our charity purposes to; Advance the Christian
; ee - faith, we show the love of god for all people and his care for people
=~ | sand the challenges they face in life, relieve hardship, sickness and
= ~—s distress.
a We have referred to and complied with the duty in section 17 and the
oe Charities Act 2011. This relates to having due regard to the Charity
Commission's published general guidance on public benefit. In
particular, the Trustees consider how planned activities will contribute
to the aims and objectives they have set.
Aims for 2021
To develop our risk register under the develop our risk register under the our risk register under the risk register under the register under the under the the guidance
of arisk register specialist company register specialist company specialist company company
= : Toon increaseouron increaseour increaseourour board the number and diversity of the number and diversity of number and diversity of diversity of ofDirectors
Se se To review our articles of review our articles of our articles of articles of of association to ensure
‘i we are complying are complying complying with best practice in every in every every area
— Saint
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We have referred to and complied with the duty in section 17 and the Charities Act 2011. This relates to having due regard to the Charity Commission's published general guidance on public benefit. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Aims for 2021 To develop our risk register under the develop our risk register under the our risk register under the risk register under the register under the under the the guidance of arisk register specialist company register specialist company specialist company company

Toon increaseouron increaseour increaseourour board the number and diversity of the number and diversity of number and diversity of diversity of ofDirectors To review our articles of review our articles of our articles of articles of of association to ensure we are complying are complying complying with best practice in every in every every area

OUR 2021/2022 GOALS oftim work

Our Board of Trustees and Senior Management Team together identify q «) | potential risks as we pursue our strategic objectives, looking at our impact, ey — our financial sustainability, our governance and compliance. Where we are "yam faced with hard decisions, we will need to take them based on our best View 3 of what the future will look like, for example how people will be living their 7g : lives and staying safe, and our likely income opportunities, so that we can be 4 i flexible as the future emerges. The coronavirus pandemic has thrown up . challenges. Our top challenges in 2020/2021 have been: 7"ry a | These will be our top priorities for 2021/2022. Cc Keeping people safe - It has been an immensely challenging time to care and . — support vulnerable children and families. During the pandemic a number of § ccc have been working from home wherever possible, we are using more online | Sle eee adjustments have been made to our services. For example, team members — services, PPE provisions and healthy and safety measures have been taken in <i ities dle all our homes so they could remain open as we know how vital they are. | o , we «a Raising money - Raising Money to keep our services going has been hugely = Pei 4 2 a challenging. Due to Covid our charity shops were closed for over 4 months of “| gi) aA Sasiea” fundraising.the year. We launchedAt the same an emergencytime, we appealhave taken for fundssome andtough newdecisi ns meth o ds ofto 4i” QVxy me ”- temporarily reduce our costs by furloughing many of our staff who do not *.” Se “= : work on the frontline. We will do everything we can to maximise our income, ¥ we “a but we need to make sure we can cover our costs in tne next few years and 4 ; this may lead to some changes. 5 é Being present for people through the toughest times - We will need to plan ‘: z for a future that is currently very uncertain. We know that children and young 3, < people need us more than ever, but, like everyone, there are many things we 7 do not know about the future. Where we are faced with hard decisions, we ‘a i will need to take them based on our best view of what the future will look like, Pee ane a for example how people will be living their lives and staying safe, and our oS oe 7 likely income opportunities, so that we can be flexible as the future emerges. We will draw on all the available insight and research we can in this. To engage with a Risk Consultancy Agency to audit + iion our current systems and methods so that we are gene ee Aims for 2021 ton Sa eg a ecee es oe ee Se ES ssi tees all | fully compliant with best practice in this area Ase -

Structure

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