Registered number: 04627969 Charity number: 1096068 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 *AOAOPOU8* 3110812024 COMPANIES HOUSE A11 Bishop Fleming MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) CONTENTS Page Reference and admlnlstratlve details of tho Cornpany. Its Trustees and advlsers Trustees. report Trusteas. responslbllities slatement Independent auditors. report on the financial statements Consolidated statement of financial activlties 10 15 Consolldated balance sheet 16 Company balance sheet Consolidated slatemènt of cash flows 17 18 Notes to the financlal statements 19-34 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEEI REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Tru$lee8 F H Clark S G Clelland, Chair (restgned 20 May 2023) A Farrands (resigned 26 November 2023) HJLaw R Bedicer (appointed 15 February 2023) C Kinnear (appointed 26 November 2023) Company registered nurnber 04627969 Charlty reglster•d number 1096068 Reglstered office 11 Foxcote Avenue Peasedown St John 8ath BA2 8SF Chlel éxecutlve officer A Todd Indep•nd•nt audltors Blshop Flernlng LLP Chartered Accountants Stalulory Audilors 10 Temple Back Bristol BS16FL Page 1 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report together with the audited financial statements of the Mercy In Actlon for the year 1 January 2023 to 31 December 2023. The Annual report serves the purposes of both a Trustees, report and a direclors, report under company law. The Trustees confirm that the Annual report and financlal statements of the charitable company comply with the current Statutory requirements, the requirements of the charitable cornpany's governing document and the provSslons of the Statement of Recornmended Practice (SQRP) appllcable to charities preparing thelr accounts In accordance with the Flnanc5al Reporting Standard applicable In the UK and Republic of Ireland (FRS102) (effectiV8 1 January 2019), Since the group and the Cornpany qualify as small under secliDn 383 of the Companies Act 2006, the Group strategic report requlred of medium and large companies under the Companles Act 2006 (Slrategic Report and Directors, Report) Regulations 2013 has been omitted. Pollcles and Obje¢tiv¢s Mercy in Action's objectives. for the public benefft and as contained in the compansls Memorandum and Articles of Associalion, are: (a) to advance the Chrlslian falth In accordance wÈth the Statemènt of Bellefs appearing In the Schedule hereto In Bath and In such oth8r parts of the Unlt8d Kingdom and in the Philippines and In such other parts of the world as the directors of the Charity (herein called 'the trustees.) may from time to tlme think fit and to fulfil such other purposes whlch are excluslvely charltable according ta the law of England and Wales and are connected wlth the charltable work of the Charity; (b) to relleve persons who are In conditions of need or hardshlp or who are aged or slck and to relleve the ¢istress caused thereby In the said locations and In such other parts of Ihe Unlted Kingdom and the world as the trustees may from time to time think fit: (c) to advance educatlon In accordance wllh Ihe Chrlstlan prlnclples by such means as the trustees may consider 8pproprlate including by means of establlshlng and operaling any educational 8Stablishrnent or eslablishments In the said locations and In such other parts of the United Kingdom and the world as the trustees may from time to time think fit. Publlc Beneflt In settlng object5ves and planning for actlvllles, the Trustees conflrm that they have complied with their duty in Sectlon 17 of the Charities Act 2011 to have due regard to the public benefit guldance publlshed by the Charity Commlsslon for England and Wale8. The Iruslees further confirm Ihal the activities of Mercy in Actlon are carried out, In Ilng With its objects, for the public benefit as described In thb report. Strategies for achlevlng objectives Our aim is to tackle poverty, injustice. and inequallty, through housing, food, education and care. Our cu￿ent ' activities fvrthering our charitable pU￿oSe are: In Ihe UK: Supported housing for young mothers 8nd murns to.be who are facing homelessness in Bath & NE Somerset, Trowbridge. and Wells. 11. Panlry style food banks In Bath, Radslock and Oxford for famllies on low Incomes. 111. Provision of fra& clolhing for children aged 0-15 in Bath & NE Somerset. IV. Provision of household goods to women leaving refuges. or to families In need. V. Offerlng lob creation and vnrk experience for young people In the Phlllpplnes, working through our pariner organisation KSK: Running residential accommodation for thildren who have been vlctims of or at-rlsk trafficking, neglect or abuse. 11. Community support for families 111. Day care for Street children IV. Supported housing for Care Leavers V. Work placements and work experience for young people. Pag¢ 2 MERCY IN ACTION {A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Elsewhere: Supporting young people who would ¢ilherwlse not continue thelr education after family bereavements. 11. Worklng wlth young people with leamlng difficulties In Sri Lanka. Soclal Investment pollGles We achieve our Investment In soclal Investment by supportlng young mothers In thelr parenttng and soclal skills, by encouraging and helping young men into ernplayment and offering work to returners to work at agreeable hours withln the school day. Granl.maklng pollcles We give grants to our partner organizalion5 In the Philippines, Thls Is carried out by an annual budgeted agreement. Volunteers Our bank of 350 dedicated volunteers o)ntinued to support Mercy In Action In various capacities. Whether serving In'our shops, helplng Sn the warehouse, supporting families at the Pantry, or giving tirne for advice arKI high4evel support, our volunteers were a continued strength. The recrultment of a Volunteer Coordlnatof thls year has enabled us to ensure wellbelng and safeguardlng of all volunteers is at the forefront of all operations. The rolo incudes wnducting risk assessments to ensure all vulnerable and under 18 volunteers are fully supported. Aehl•v¢m•nts and performan¢• Governance A revlew and subsequent adoptlon of changes and updates to our Arucles of Association were approved and accepted. Infra$tru¢tur• Auditlng of IT sep4ice providers at every level. DevelopSng the officB provislor) In central Balh and our warehouse Staffology HR software bought. and training provided. A review and update of all GDPR practices and policies. Increased Safeguarding measures were rolled further to Trading and Charity. Communlty Practical help given to agencies helping Asylurn Seekers such as suitcases, clothing, toiletrie5. Providing toys, food, Christmas goods, dothing etc to several partner organisations such as Love Barton. Bristol Charities and Southside Family Project. Developments to further. good working relationships wtth relevant voluntary and statutory organisations and we feel our reputalion and reach, especially in Bath and North East Sornerset, Bristol and Oxford has increased significantly. Petra Project Inltially started as a housing project providing supported accommodatlon to young mothers and mothers-to- be. To date. these homes remaln safe and secure, nurturing an environrnent where mums and babies can build strong and loving attachments, In these homes we continue to strive towards having an inclusive, caring and welcoming environment for every family. All our Petra houses have accommodated 41 mums and 40 children. All locations continue to receive high number of refeffals with all houses remaining high levels of occupancy. Page 3 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Action Pantry Action Pantry Bath began as a local initiative in 2019 to make affordable food easily accessible to people experiencing financial hardship and lor health issues. Through Action Pantry, MIA provides accessible nourishing food to people living in some of the mosl deprtved areas in England. Quote from a mother of 5 who no longer needed our seNlces, sent this feedback: 'Thank you so rnuch for the last yearl We were in such a bad situation when we were referred to you in Oct 2022, you guys were warm and friendly. The Pantry has really been helpful to us every week., Key moment for out Pantry this year: The refrlgerated van continues to allow a delivery servlce to Pantry Members and to provlde 8merg8ncy deliveries when necessary. During the Christmas period MIA provided food for 335 households over the three pantries (378 adulls and 386 children). They came in to choosft Christrnas food, took their normal weekly 'shop', In addition to being provided with meat, fresh fruit and vegetables to see them through the Iwo weeks of Christmas. New toys and gifts were given to every child. An average of 91 households attended sesslons each week at Bath Pantry. We have received over 69,OOOKG of food from Fareshare South West. the majority of whlch Is classed as 'surplus food., whlch we have collectlvely pr8V8nted from enterlng landfill. The work of MIA contlnues to be hlghlighted In news and radlo. wllh Interviews at the Pantry with the CEO. An average of 91 households attended sesslons each week at Bath Panty. The Oxford Panty is fully staffed and operational and Is seein9 an average of 40 households a week. The Pantry In Radslock is seeing an average of 22 families a week. Across the three Pantries, MIA are increasing summer activities and looklng to expand thls further as It helps lo signpost and asslst familles when we are able lo Interact wlth them rnora. Clothesline Redi5tribuiing chlldren's clothlng to familles. Roughly 60 families a week used the clothesline. accessing free good quality clothlng and school uniform. MIA have seen a stgnificant increase in the number of famllles being refereed by local authorities, midwives, health visitors, schools and partner organisations for emergency help.wlth items such as clothing, bedding, tollelrles. fumiture, kitchenware etc. During 2023, we provided these items lo over 70 households in emergency situatlons, roughly 130 Indivlduals. Phlllpplnes Our Mission: We strive to provide a safe haven for abandon8d, abused, and neglected children. To give them a safe and happy famlly home where they are cared for, educated, and can find healing from trauma. The Mission of Kalihukan sa Kaluoy, Inc. Residenlial projecl 15 to provide both a family and safe haven for rescued Street Children. through our dedicated children's homes. We provide a programme which includes emotional, physical, social, educational and spiritual dirnensions of well-being. Through this mulli-faceted approach, we are able to achleve one of our most important values which is to provide a service that encourages and allows for the healing of Ihese children holistically. Residential Care The Mission of Kalihukan sa Kaluoy, Inc. Residential project is to provide both a family and safe haven for . rescued Street Children, through our dedicated children's homes. Helping children regain their lost years is at the Cent￿ of Our work. This is done through the provision of professional InteNentlon concentrated on education, play and health care. The overarching aim is to help Page 4 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUEO) FOR THE YEAR ENDED 31 DECEMBER 2023 each child in our care achieve their full potential, giving thern the opportunity to live Ihe rest of their lives free from the Involuntary poverty into which they were born. We provide a programme which includes emotional, physical, social, educational and splritual dimensions of well-being. Through this multi-faceted approach, we are able to achieve one of our most important values which Is to provide a service that encourages and allows for thè healing of these children holtstically. Accomplishments 29 clients supported In residential care 3 homes 1 supported living home 2 foster famllles Education Enrolled 34 cli8nts in school wtth a personalised educalion plans for each client. Daily Operations 36,000+ meals were served. Regular family meetings and devotionals were conducted. Life skllls 41 outings and workshops 4 cllants graduated frorn Tennls summer camp 8 finished swimming classes Movlng on One cll8nt moved io a foster famlly 4 Cllents movlng ¢)n Into Independent supported15vlng outsSde KSK School Programme- 350 scholars Our Schooling Programme provides equal opportunltles through educaiion to underprfvSleg8d children and youth In the community of Talisay with no certain exemplary grade requirement. These children are identified as the most vulnerable In the communty where Ihey ara living under the poverty Ihreshold, with some placed at risk. Food packages were supplied to all families on a fortnightly basis.and hot rneals prcNkJed every school day. A team of over 50 regular parent volunteers ensure all meals can be prepared and (5istributed at a low cost. The families of client5 and wÈder community take ownership of the program and are very engaged stakeholders. Daily Opératlons 497 cllents from Grade 1 to Unlverslty 5 University Graduates 54 dients giv8n medical car8 Feeding 20,946 rneals served 1,066 food pa￿e[S 849 Christmas foDd parcels and gffts cornrnu.nity Engagement g Interns 22 Workshops and meeting for Parents 55 regular parent volunteers (at least once per week) Child proteclion training and awareness for parents and clients Drop-ln Centr• The Drop-ln Centre provides welfare servlces to thlldren Ilving on the street and out of school aged from 7 years old to 16 years old. The Drop-ln Centre provides basic care for tho chlldren Including food. hygtene, Page 5 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 elothlng, health care, education, love and famlly reconciliation. The goal of the program Is to see chlldren live the way they deserve. Accomplishments: 47 individual clients accessed the drop-in centre. Clients given medical support 237 times. 8 Stsff training. 6,862 meals served. 61 Sports actlvltles, workshops and outings. 6 Night Patrol Parentslfamlly quarterly workshops Mla's place Mla's place was used regularly to encourage healthy eating and well-b8Sng. Collaborated wlth Focus to provlde counselling spar2 at Mia's place, these spaces were especlally used for vulnerable girls and women. Fundraising actfvitles and income generation Mercy In Action w85 gratelul for all those who supported us throughout 2023, both finandally and practlcalty. Fareshare South West M&S Sargeant F.und Salvation Army. Genesis Wooden Spoon Charity Sainsburys Waitrose Nestle Free Masons Bath Hy.glene Bank Crop Drop Avon Gleanlng Network Local allotments Roots allotments Nandos Bath Unlverslty Flnanclal revlew 2023 continued lo provide challenges and unexpected costs. The extreme in wealher pattern5 significantly affected sales and the ever-in(yeasing inllation and cost of living led to costs running over budget. Goin co After making appropriate enquiries, the Trustees have a reasonable expectation that the Cornpany has adequate resources lo continue in operational exlstence for the foreseeable future. For this reason, they continue to adopt ihe going concem basis in preparing the financial statements. Further detalls regarding the adoption of the going concern basls Can be found In the accounting policies. ReseFves Poli The Trustees have considered the key risks to the sustainability of Mercy in Aclion and identified that belng able to continue to fund core projects free from financial diswption is the principal objective. Having onsidered feasible threats. including to income. the trustees consider that the policy for reserves should be 6 Tnonths of net proj'ect costs (after deducting guaranteed income). This represents £446,561 base(J on the 2023 financial year delivery. Page 6 MERCY IN ACTION {A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees have measured this target against 'free reserves. which are defined as total reserrfes net of restricted. designated and illiquid funds (e.9. fixed assets). For the 2023 financial year this Is £253.114 (reconciled as total funds of £484.373 less restricted funds of £7,819 and fixed assets of £223,440). The trustees note Ihat this represents a shortfall of £193.447. The trustees have conducted a thorough operational and spending review during 2024 to optimise costs and generate savings that will be used to address this shortfall In the comlng years. Investrnents Polic Mercy In Action's MIP Is to invest in growing our own portfollo of properties and to further invest In the growth of our highly SU￿esSfUl and profitable retail OLrtlets. rlncl al fundin Mercy in Action's prlnclpal funding Is by way of our Trading Company which operates a chain of 38 successful Ch8rlty Retail Outlets with 6 new outlets being added in 2023. Addltionally, Housing benefit, grants and fundlng are received to operate the Petra Houses. Storage facilities located at our warehouse provlde additional unrestricted Income. Chlld sponsorshlp programs provlde part of the essentlal fundlng for KSK. Inci un The risk reglster is monitored contlnuously and Is presented to the Board quarterly. The key risks IdentSfled In our rlsk register are priorltlsed In t8rms of potentlal Impact and likelihood of occurrence. We conslder ways of mltlgalln9 the rlsks and IdentSfy a lead member of Ihe Senlor Management Team responsible for iaking necessary actions. The Board recognises thal systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. Financial rfsk management objectives and policies: Appropriate authorisation18vels and segregation of accounting duties Pollcles In respect of preventing, delecllng and Investigating fraud. Preparallon of cashflow forecasts and budgets wthich allow the Board and Senior Management Team to monltor the key business risks and financial objectives and ￿￿entIfy variances arislng during the monthly and quarterly reporting cycles. Invesling sufficienlly in back-office functions and new technology to ensure our organisation ig robust and fit for fulure challenges A framework of key performanc8 indicators and regular reporting to the Senlor Management Team, subcommittees, and the Board, to ensure that any control issues are Identified, and that corrective action is tak￿. Annual external audit whlch produces a management letter to the Audit and Flnance Sub- Comrnittee on any internal control issues identified during the course of the audit. Programrne of third party provided internal audit whith provides reports to Ihe Audit and Finance Subcommittee on any intemal control issues identified during the course of each internal audit. Structure, governance and management Constitulion Mercy In kntion is registered as a tharitabl@ company limited by guarantee and was set up by a Trust deed. Methods of a olntment or election of Trustees The management of the Group and the Company Is the responsibility of the Trustees who are elected and co- opted under the terms of the Trust deed. Page 7 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Organisational structure and decision-making policies: mO￿Y In AGli¢m i?194Th1sUtlonol¢hort'" Mefcy in Action Trading'Ofgon5gatlon•l Ch•rt Policies ado ted for Ihe induction and trainin of Trustees Prospective Trustees are Identified by the Board and Senior Management Team. These are put forward to the Trustees who make their recommendations to the Members who make the final.decision and appoint new Trustees. All Trustees a￿ issued with Charity Commission guidelines on their duties and MIA policies on the behaviour and expectations of Truslees. They spend time with particular teams to understand the day to day running and operations of Mercy in Aclion. Page 8 MERCY IN ACTION {A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Pay policy for key manag8mènt P8rsonnel, no stsff remuneration was above £60,000. Trustees, indemnities: Full indemnity insurance is held. Plans for future perlods The Trustees, CEO and Senior Management Team have Klentified several areas to develop In the coming year. To Identlfy and open 2 more retall outlets. To look at profitability and long-tem sustainability of shops and conslder closlng lower performing stores. To further strengthen partnership with overseas partners especlally the Ph511ppSnes, Srl Lanka and India as well as visiting Zambla and Mozamblque lo Invéstlg8te opporlunities. To continue to develop and strengthen Staffology, recrultment and r8tainm8nt of staff by Investigating and Implementing additional policies. procedures, and Improved employment practices. To develop collaborative partnerships wtth local organisations In appropriate locations to enable maximum impact together. This will include expanding our Clothesline project wtth minimal outlay and maximum Impact. Fundralslng events lo expand further and actively pursue.opportunltles starting with fashion shows and popup stalls at local festivals. Petra., to lurther expand by converting a ¢urrenl bullding into three self-corltained homes, it is hoped that outside funding will be able to facilitate this. To restruGture to ensure we are not over-employing centrally and are keeplng our overheads wlthin our budgets including brining payroll back'in-house,. Mercy In Action and Southsld8 Famlly Project will be worklng collaborallv81y to run an after- School hub In Twerton, where rnany of our service users are based. The after-school hub wlll provlde actlvities for the children and a hot meal for the entlre famlly, there wlll be support workers 8nd other signposting opportunities forlhe famllles. Planning to consolidate Oxford Pantry operations by collaboratlng wlth other Oxford*ased char5ties to provide a rnore holistic and economical ser￿Ice. Dlsclosure of Infomlatlon to auditors Each of the persons who are Trustees at the time when thls Trustees, report is approved has confirnied that.. so far as that Trustee is aware, there.ls no relevant audit infomiation of which tha charitable group's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee In order to be aware of any relevant audlt Information and to establlsh that the charitsble group's audSlors are awarè of that information. The Trustees, Report, Incorpo tlng a strateglc report, was approved by order of the Board ol Truslees, as the and signed on its behalf by: HJLaw Trustee Page 9 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees (tho are also the d1￿clOrS of the Company for the purposes of company law) are responsibte for preparing Ihe TN5tees' report and the flnancial slatements in accordance wilh applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting practi￿). Cornpany law requires the Trustees to prepare financial staternents for each financial . Under company law. the Trustees musl not approve the financial staternents unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their Incomlng resources and appllcatlon of resources, including their income and expenditure, for that period. In preparing these financlal statements, the Twstees are required to: sdect suilable accounting policies and then apply them consistently; observe the methods and princlplés of the Charities SORP (FRS 102); make ludgmenls and accounting estimates that are reasonabla and prudent; state whether applicable UK Accounllng Standards (FRS 102) have been followed, su*'ect lo any malerlal departures disclosed and explained in the financial slalements; prepare the financial statements on the going concern basis unless It Is in8pproprSate lo presume that the Group wlll continue In business. The Trustees are responslble for keeplng adequate accounting records thal are suffiGienl lo show and explaln the Group and the Companws transactions and disclose with reasonable accuracy at any tlrne Ihe financial position of the Group and the Company and enable them lo ensure that the financlal statements comply with the Companies Act 2006. They are also responsible for safeguarding the assels of Ihe Group and the Company and hence for taking reasonable steps for the prevention and detectlon of fraud and olher irregularities. Approved by order of the members of the board of and signed on its behalf tsy: TTUStees on Iqltivfr HJLaw Twslee Page 10 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS, REPORTTOTHE MEMBERSOF MERCY IN ACTION OPINION We have audited the financial statements of Mercy In Actlon (the 'parent chartlable compan￿} and Its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise trE Consolidaled Statement of Financial Activities, the Consolidated Balance Sheet, the Cornpany Balance Sheet. the Consolidated Statement of Cash Flows and the related notes. induding 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 Rep￿￿ng Standard applicable in the UK and Republic of Ireland, (United Klngdorn Generally Ac¢epted Accounting Practice). In our oplnlon the financial statements: give a true and fair view of the slate of the Group's and of the parent charitable companls affairs as at 31 December 2023 and ol the Group's incoming resources and application of resources, Induding its income and expendlture for the year then ended., have been properly prep8red In accordance wllh Unll8d Klngdom Gener811y Accepted AcGounlln9 Practice; and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act2011. BASIS FOR OPINION We conducted our audil In accordance with Inlernational Standards on Audiiing (UK) (ISAS (UKI) and applicable law. Our responslbllities under Ihose standards are further described In the Auditors, responsibilities for Ihè audit of the financlal statements section of. our report. We are independent OT the Group in accordance with Ihe ethical requlrernents that are relevanl to our audit of the financial statements in the United Kingdom, including the Flnancial Reporting Councll's Ethlcal Slandard. and we have lullilled our olher ethical responsibllllies In accordance wllh these requlrements. We believe that Ihe audlt evldence we have obtalned Is sufflclent and appropriale lo provlde a basls for our oplnlon. CONCLUSIONS RELATING TO GOING CONCERN In audlling the flnanclal slalemenls, we have concluded thal the Trustees, use of Ihe golng concem basls of accounting in the preparation of the financial stalenients is appropriale. Based on the work we have performed, we have not identified any malerial uncertainties relating lo events or conditions that, Indlvldually or collectively, may cast Significant doubt on the Group's or the parent ch8rilable compan518 ablllty to continue as a going concern for a period of at lea81 Iwelve months frorn when ihe financial sialemenls are authorised lor issue. Our responsibilities and the responsibilities of the Trustees with respeGt to going concern are described in the relevant sections of this report. Page 11 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF MERCY IN ACTION (CONTINUED) OTHER INFORMATION The other infonnatlon comprises the infomiation included In Ihe Annual report other than the financial statements and our Auditors, report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent othe￿ISe explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconslstent with the financial statements or our knowledge.obtained in the course of the audit, or otherwise appears to be materially misstated. If we Identify such material inconsistencies or apparent material misst8tement$, wa are requlred lo determine whether this gives rise to 8 material misstatement in the financial ststemenls themselves. If, based on the work we have perfonned. we conclude thai there is 8 material mlsSt8tement of this other Infomiation, we are requlred to report Ihat fact. We have nothlng to report In this regard. OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 . In our oplnlon, based on the work undertaken In the course of the audit: the Informalion given in the Trustees, Report for Ihe financial year for which the financial slatemenls are prepared Ss consistent wilh the financlal stalements. the Trustees, R8POrt has been prepared In eccordance wilh applicable legal requlrements. MAThERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the Ilght of our knowledge and understanding of the charltable company and Ils environment obtained in the cA)urse of the audit, we have not identified material rnisstatements In Ihe Trustees, Report. We have nothing lo report in respect of ihe following malters in relalion to whlch Companles Act 2006 requlres us to report to you if, in our opinion-. the parent charltable company has not kept adequate and sufficient accounting records. or relums adequate for our audit have not been received from branches nol wsited by us: or the parent charitable company financial statements are not in a9reement with the accountin9 records and returns. or certain disclosures of Trustees, remuneration specified by law are not made; or we have not recelved all the informatlon and explanations we require for our audll: or the Trustees were not entiued to prepare Ihe financial slatements in accordance with the small companies regime and take advanlage of the small ¢ompanles' exemplions In preparlng the TnJstees' Report and from the requirernenl to prepare a Slralegic Report. RESPONSIBILITIES OF TRUSTEES As explained more futly in the Trustees. responsibilities statement. the Trustees (who are also Ihe directors of the charitable company for the purposes of company law) are Tesponsible for the preparalion of the financial statements and for being satlsfied ihat they give a true and fair view, and for such internal control as the Trustees detemine is necessary to enable the preparation of financial statements thal are free from material misstatement. vA)elher due lo fraud or error. In preparing the financial slatements, Ihe Trustees are responsible for assessing ihe Group's and the parent charitable companvs ability to continue as a going concern. disclosing.-as appliGable, matters relaled ￿ goin9 concem and using the going concern basis of a¢counting unless the Trustees either intend lo liquidate the Group or the parent charllable company or lo cease operations, or have no realistic altemallve bul lo do so. Page 12 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUOITORS, REPORT TO THE MEMBERS OF MERCY IN ACTION (CONTINUED) AUDITORS, RESPONSIBILrriES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasOr￿b1e assurance about whether Ihe flnanclal statements 8s a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, report thal includes our opinion. Reasonable assurance Is a high level of assurance, but is not a guarantee that an audit conducled 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 agg￿gate. they tould reasonably be expected to influence the econornic deCisi(￿S of users taken on the basis of these financial statements. Irregularities, Including fraud, are Instances of non-compliance with laws and regulations. We deslgn procedures in line with our responsibllities, outlined above, lo detect malerial misstatements in respect of irregularities, Including fraud. The extent to whiGh our procedureB are capable of detecling irregularlties, Including fraud is detailed below., We have Considered the nature of the Industry end sector, control envlronment and business performance of the entlty: We have considered the results of our enquiries viith management and the directors to their own idenlification and assessmenl of the risk of irregularities wilhin the entity., and We have Teviewad Ihe documenlalion of key processes and ¢ontrol$ 'and perfomied walkthroughs of Iransadlons to confirm that the systems are operating In line wllh documentatlon. As a result of these procedures. we have considered Ihe opportunlties and Incentives Ihat may exlst wlthln the organisation for fraud and idenlified the areas of high risk io be in relatlon to revenu8 recognllion. In comrnon with all audils under ISAS (UK) we are also required to perform specific procedures to respond to the risk of management override. We have also obtsined an understanding of the legal and regulatory frameworks that the Company operates in. focuslng on provlslons of those laws and regulatlons Ihat had a direcl effect on the delerminallon of materlal 8rn0untS ané dlsclosures wllhin Ihe flnanclal statements. The key laws and regulations we con81dered In Ihts context Included the UK CompaTrles Act. Flnanclal Reporting Standard 102 and UK tax leglslatlon. In addillon. we consldered provlslon of other laws anLI regulallons that do not have a direct effect on the flnanclal statements but compliance with may be fundamental for the Company's ability to operate or avoid a rnalerlal penalty. These Included health and safely regulations: employment legislation: and daia proleclion laws. Our audit procedures performed to respond to the risks identified included, but were not limited to.. Revl8wing the financial statemenl disclosures and testing to supporting documentation to assess compliance with provlslotis of relevant laws and regulations descrlbed as havlng a direct..effect on the flnanclal statements", Reviewing the flnancial statament disclosures and testing to supportirvJ documentation to assess tp recognition of revenue; Dlscussions with management. Includ5ng conslderatlon of known or suspected instsnces of non-compliance with laws and regulation and fraud. Performlng ana]￿iCal procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due lo fraud: and In addressing the risk of fraud through rnanagement override of Gonlrols, testing the approprialeness of Journal entries and other adjustmenis; assessing whether Ihe judgments made in accounting eslimales are indicative of potential bias; and evaluating the buslness iatlonale of slgnlficant Iransactlons that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert lo any indicaiions of fraud or non-compliance with laws and regulalions throughout the audit. Our audit procedures were designed to respond to risks of malerial mlsstatemenl in the financial stalemenls. recognising that the risk of not delecting a material misstatement due lo fraud is higher than the rlsk of nol detecling one resulting from an error, as fraud may Involve delibèrate concealment by, for example, forgery, Page 13 MERCY IN ACTION {A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF MERCY IN ACTION (CONTINUED) mlsrepresentalions or through colluslon. There are inherenl limitations in the audit procedures performed and the fvrther removed non-compliance wilh laws and regulations 15 from Ihe events and transactions reflected in the financial statements. the less likely we would become aware of it. A further description of our responsibli iiies for the audit of the financial statements is Ioc8ted on the Financial Reporting Council's website at: rsres onsibiliti This descriptlon forms part of our Audltors, report. USE OF OUR REPORT Thig report Is made solely to Ihe charitable compansls members, as a body. In accordance wlth Chapier 3 of Part 16 of the Companies Act 2006. an(5 to the charitsble companys trustees, as a body, Part 4 of the Charities (Accoun15 and Reports) Regulalions 2008. Our audit work has been undertaken so that we might state to the charitable CoMpan￿S rnembers those rnatter5 we are required to State to them in an Auditors, report and for no other purpose. To the fullest extent permitted by law. we do nol accept or assume responsibility to anyone olher than the charltable company and Its members, as a body. for our audit V40rk, for Ihis report, or for Ihe oplnlons we have formed. Chris Tranlham FCA (Senior statutory audltor) for and on behalf of Bishop Flemlng LLP Chartered Accountants Slatutory Auditors 10 Temple Back Bristol BS16FL Data: 27 August 2024 Page 14 MERCY IN AGTION (A COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlcted funds 2023 Restricted funds 2023 Total funds 2023 Total funds 2022 Note INCOME FROM: Donatlons-and legacles Charltable actlvltles Other trading a¢tlvllles 409.253 171,173 239.928 580,426 239,928 4,394,135 668.186 158.945 3,711,630 4,394,135 TOTAL INCOME 4,803,388 411,101 5,214,489 4,538,761 EXPENDITURE ON: Raising funds Charitable activlties 4,496,728 663,970 4,741 449.081 4,501,469 1,113,051 3,309,125 1.274.870 TOTAL EXPENDITURE 5,160,698 453,822 5.614.520 4.583.995 NET MOVEMENT IN FUNDS {357.310> (42,721) (400,031) (45.234) RECONCILIATION OF FUNDS: Total funds brought forward Net movement In funds 833,864 (357,310> 50,540 (42,721) 884,404 (400,031) 929.638 (45,2341 TOTAL FUNDS CARRIED FORWARD 476,554 7.819 484,373 884,404 The Consolldated Statement of Ftnancial Activilies includes all gains and losses recognlsed In the year. The notes on pages 19 to 34 form part of these financial statements. Page 15 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:04627969 CONSOLIDATED BALANCE SHEEr AS AT 31 DECEMBER 2023 2023 2022 Note FIXED ASSETS Tangible assets 10 223,440 212.341 223,440 212.341 CURRENT ASSETS Debtors Cash at bank and in hand 12 458,909 265,602 548.(J)7 455.849 724,511 1,003,856 Creditors: amounts falling dua within one year 13 (381,078) (204,543) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 343,433 799.313 566,873 1.011,654 Creditors.. amounts falllng due after more than one year 14 (82,500) (127.250) TOTAL NEf ASSETS 484,373 884.404 CHARITY FUNDS Restrlcted funds Unrestricted funds, 15 15 7,819 476,554 50.540 833.864 TOTAL FUNOS 484,373 884,404 The Trustees acknowledge their responsibilities for complying wilh the requirements of the Act with respect to eccounling records and preparation of financial statements. The financial statements have been prepared in accordance with Ihe provisions appllcable to entities subject to the small compenies regime. The financial statem¢nts were approved and aulhorised for Issue by the Tnjstees on (qi&{z and signed on thelr behalf by: HJLaw Twstee The notes on pages 19 to 34 form part of these financial slatemenls. Page 16 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:04627969 COMPANY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note HXED ASSETS Tangible assets Inveslmenls 10 11 137,115 1,000 136,185 1,000 138.115 137,185 CURRENT ASSETS Debtor3 Cash at bank and in hand 12 393,668 151,497 440,450 264.427 545.165 704,877 Credltors: amounts falling due within one ye8r 13 (200,597) (178,903) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT UABILITIES 344.568 525,974 482,683 663,159 TOTAL NET ASSETS 482,683 663,159 CHARITY FUNDS Restrtcted funds Unrestricted funds 15 50.540 General funds 15 482,683 612.619 Total unrestrlcted funds 15 482,683 612.619 TOTAL FUNDS 482,683 663,159 The Truslees acknowledge their responsibllities for complying wilh the requlrements of Ihe Act with respect to accounling records and preparation of financial stalernents. The finandal statements have been prepared in accordance with the provisions applicable lo entities subject to Ihe small companies regime. The financlal siatement3 were approved 8nd authorised for issue by the Trustees and signed on their behalf by.. HJLaw Trustee The notss on pages 19 to 34 fomi part of these financial ststements. Page 17 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net cash used In operating activities (119,376 (355,612) CASH FLOWS FROM INVESTING ACTIVITIES Dividends, Interests and rents from investments Purchase of tsngible fixed assets 3,089 3.677 (28,960) (138.871) NET CASH USED IN INVESTING ACTIVITIES (25,871) (135,194) CASH FLOWS FROM FINANCING ACTIVITIES Repayrnents of borrowing (45,000) 145,000) NET CASH USED IN FINANCING ACTIVITIES (45,000) (45,000) CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR (190,247) 455,849 (535,806) 991.655 Cash and cash equivalents at the beglnnlng of Ihe year CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 265,602 455,849 The notes on pages 19 to 34 form part of these finanGial statements Page 18 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 . GENERAL INFORMATION Mercy in Action Is a private company limited by guarantee incorporated In England and Wales. The registered Offi￿ Is 11 Foxcote Avenue. Peasedown St John, Bath. BA2 8SF. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The flnanclal statements have been prepared In accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Ststement of Recommended practi￿ appllcable to charities preparing their accounts in accordance wlh the Financjal Reporting Standard applicable In the UK and Republic of I￿land (FRS 102) (effeclive 1 January 2019). Ihe Financlal Reporting Stsndard applicable in the UK and Republlc of Ireland (FRS 102) and the Companies Act 2006. Mercy In Action meets the definltion of a publlc benefit entity under FRS 102. Assels and Ilabllitles are Inltsally recognised at hlstorlcal cost or transaction value unless otheThilse slated In the relevant accountSng policy. The Consolidated Statement of Financial Aclivilies (SOFA) and Con501idated balance sheet consolidate the financial statements of the Company and ils subsidiary undertaking. The results of Ihe subsldiary are consolidated on a line by Ilne basls. Thé Company has taken 8dvant8ge of the exemptlon allowed under section 408 of the Companies Act 2006 and has not presented its ovm Statement of financlal actlvltles In Ihese financlal statements. 2.2 GOING CONCERN After rnaking 8pproprlate enqulres, the Trustees have a reasonable expectation Ihat the Charily has adequate resoufces to continue In operaiional existence for the foreseeable future. The charlty Is In a strong financial position with, healthy reseNes. The cash balance as at 31 December. 2023 was £265,602 and we consider th81 the charity holds sufficient funds to mltlgate against the risks of any loss of income. The Trustees are reviewing the financlal forecasts on a regular basls and conisder that Ihey are in a financially resilienl posltlon to manage foreseeable risks. For thls reason. il is considered approprlate to adopt the golng concern basis in preparSng the financlal stalements. 2.3 INCOME All Income Is recognised once the Company has enlillemenl to the Income. il is probable that the Income wlll be received and Ihe amount of Income receivable can be measured reliably. Grants are Included in the Consolidated statement of financlal activltie5 on a receivable basis. The balance of income re￿1Ve￿ for specific purposes but nol expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, Its recognition is deferred and included in credilors as deferred income. Where entitlemeni occurs before In￿Me is received, the income is accrued. Glfts In kind donaled for dlslrlbution are Sncluded at valuation and recognlsed as Income when they are dlstrlbuled to the projects. Glfts donated for resale are Included as Income when they are sold. In￿me tax recoverable In relation to donations received under Gift Ald or deeds of covenant is cognised at lh8 lime of the donation. Page 19 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE.YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (continued) 2.4 EXPENDITURE Expenditure Is re¢ognlsed once there Is a legal or constructive obllgation to transfer economic benefit to a third party, it Is probable Ihat a transfer of economic benefits will be required In settlement and the amount of the obligalion can be measured reliabty- Expenditure is classified by activity. The costs of each activity are made up of the totsl of'direct costs and shared costs. induding support costs Involved in undertaking each activity. Direct costs attributsble to a single activity are allocated directly lo that activity. Shared costs whlch contrlbute to more than one activity and support costs which are not atlribulable to a single aclivlty are apporttoned between those activities on a basis consistent with the use of resources. Central staff costs a￿ allocated on the basis of time spent, and depreciation charges allocated on the portion of tha asset's use. Expendlture on raislng funds Includes all expendllure Incurred by the Group to ralse funds for its charitable purposes and inclucles costs of all fundraising 8Clivities events and non-charflable Iradlng. Expenditure on charitable aclivlties is incurred on directly undertaking the activitles whlch further Ihe Group's objectives, as well as any associated support costs. Grants payable are charged in the year when the offer Is made except in those c8ses where the offer ig conditional. such grants belng recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been mel at the year end are noted as a commltment, but not 8ccrued as exp&ndilure. All expenditure Is incluslve of Irrecoverable VAT. 2.5 GOVERNMENT GRANTS Govemment grants relating to tangible fixed assets are treated as deferred income and released lo Ihe Consolidated slalement of financial aclivilies over the expected useful lives of the assets concerned. Olher grants are crediled to Ihe Consolidated statement of financial actlvities as the related expenditure is incurred. 2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION Tanglble fixed assets cosllng £1,000 or more are capllallsed and recognlsed when future economlc benefits are probable and the cost or value of Ihe asset can be measured reliably. Tengible fixed assels are initially recognised al cost. After recognilion, under Ihe ¢osl model. tangible ' fixed assets are measured at cost less accumulaled depreciation and any accumulated Impairment losses. All costs incurred to bring a tangible r￿ed assel into its intended working condition should be included in the measurement of cost. Deprecietion Is charged so as to allocate the cost of langible fixed assets less their residual value over their estimated useful lives, on a reducing balance basls. Depreclallon Is provlded on the following basls: Lon*lerm leasehold property Flxtures and filtings 2Vo reducing balan (1 S-25b/•) reducing balance Page 20 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (contlnued 2.7 INVESTMENTS. Fixed asset Invesbnents are a form of financial instrument and are initbally recognlsed at Iheir transaction cost and Subsequently measured 8t falf value at the Balance sheet date, unless the value cannot be rne8sured ieliably In whSch case it Is measured at cost less Impalmient. Inveslmenl galns and losses, whether realised or unrealised, are cornblned and presented as 'Galnsl(Losses) on Investrnents, in the Consolidated statement of financial activities. Investments in subsidiaries are valued at cost less provision for impairment. 2.8 DEBTORS Trade and olher debtDfs are recognlsed al the settlement 8mount 8fter any trade dlscounl offered. Prepayments are valued at the amounl prepaid nel of any trade discounts due. 2.9 CASH AT BANK AND IN HAND Cash at bank and In hand Includes cash and short.lerm highly liquid investments with a short maturity of three months or less from the date of acquisltion or opening of the deposlt or similar account. 2.10 LIABIUTIES AND PROVISIONS Llablllties are recognised when there Is an obllgallon al the Balance sheet date as a result of a past event, It Is probable that a transfer of econom1¢ benefit will be required in settlemenl. and the amount of the settlement can be esiimated reliably. Uabllllles are recognised at the amount ihat the Company 8nliclpat&s It wlll pay to settle the debt or th8 amount11 has received as advanced paymenls for the goods or servlces it musi provide. Provislons are measured at the best estlmale of the amounts required to settle the obligatlon. Where the effect of the time value of money is material. the provision is based on the present value of those amounts, discounted at the pre-tax discount rate thal ￿flec1S the risks specific to the liability. The unwinding of the discount Is recognised in the Consolidated statement of financial activities as a Ilnance cost. 2.11 FINANCIAL INSTRUMENTS Group only has financial ass81s and financial liabifities of a kind that qualify as basic financial instruments. Basic financial Instruments are initially recognised al transaction value and subsequenuy rneasured at their settlement value with the exception of bank loans which are subsequently rneasured at amorlised cosl uslng Ihe elfeGiive inleresl melhod. 2.12 OPERATING LEASES Rentals paid under operating leases 8re charged to the Consdidated statement of financlal activities on a slraight-line basis over Ihe lease term. 2.13 PENSIONS The Group operates a defined contribution penslon scheme and the penslon charge repr&seniS Ihe amounts payable by the Group to the fund in respect of Ihe sear. Page 21 MERCY IN ACTION .(A COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (continued) 2.14 FUND ACCOUNTING General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives. of the Group and which have not been designated for other Pufposes. Reslrlcted funds Bre funds which are to be used In accordance with Specific restri¢tion8 lrnposed by donors or whlch have been ralsed by the Group for particular purposes. The costs of ralslng and adminislering such funds are charged agalnst the speclfic fwd. The alm and use of egch restr￿ted fund is sei out in the notes to the financial statements. INCOME FROM DONATIONS AND GRANTS Unrestrlcted Restrlcted funds funds 2023 2023 Total funds 2023 Total funds 2022 Donations Government Grants 390,648 18.605 171,173 561,821 18,605 647.624 20.562 409,253 171,173 580,426 668,186 TOTAL 2022 539.716 128,470 668,186 Government grant IrKome received in Ihe year relates enlwely to Coronavirus Job Retenllon Scheme. INCOME FROM CHARITABLE ACTIVITIES Rgstrlcted funds 2023 Total funds 2023 Tolal funds 2022 PETRA project Grants 219,928 20.000 219,928 20,000 158.945 239.928 239,928 158,945 Page 22 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 INCOME FROM OTHER TRADING ACTIVITIES Incorne from fundraSsing adtvitios Unrestricted funds 2023 Total funds 2023 Total funds 2022 Mercy In Action Trading 4,363,242 4,363,242 3,684.847 In¢om• from non charltable tradlng actlvltles Unrestrlcled funds 2023 Total funds 2023 Total funds 2022 Other Income 30,893 30,893 26,783 ANALYSIS OF EXPENDITURE B Y ACTIVITIES Activities undertaken dlrectly 2023 Support ¢osts 2023 Total funds 2023 Total funds 2022 Charltable actlvllie3 617.343 495.708 1,113,051 1,274.870 TOTAL 2022 856,597 418.273 1,274,870 Page 23 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ANALYSIS OF EXPENDITURE B Y ACTIVITIES n charges Int8r8sI frorn investments Loss on the sala of fixed ass81s Decreasel(in¢rease)'In debtors Increasel(decrease) In creditors 17,590 (3,089) 16.143 (3.677} 14.706 . (335,242) {2,308) 89,098 177,056 NET CASH USED IN OPERATING ACTIVITIES (119,3761 (355,612) 17. ANALYSIS OF CASH AND CASH EQUIVALENTS Group 2023 Group 2022 Cash In hand 265,602 455,849 TOTAL CASH AND CASH EQUIVALENTS 265,602 455.849 18. ANALYSIS OF CHANGES IN NET DEBT At1 January 2023 Cash flows Other non- At31 cash December changes 2023 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 455.849 (45,250) (127,250) (190,247> 12,664) 265,602 145,000) 182,500) 2,914 44,750 283,349 1192,911) 47,664 138,102 Page 33 MERCY IN ACTION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 19. PENSION COMMITMENTS The gmup operates a defined contribution pension scheme. The assets of the scheme are hehJ separately from those of the group In an Independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £38,956 (2022: £25,690). Contributions totalling £10,764 (2022: £13,363) were payable to the fund.at the balance sPEet date and are Included in creditors. 20. OPERATING LEASE COMMITMENTS At 31 December 2023 the Group and the Company had comrrtltments to make future minimurn lease payments under non-cancellable operating leases as follows: Group 2023 Group 2022 Company 2023 Company 2022 Nol later than 1 year Later than 1 year and not later Ihan S years Later than 5 years 366,311 1,139,127 394,396 462,642 1.189,696 536,865 366,311 1,139,127 394,396 462,642 1,189,696 536,865 1,899,834 2,189,203 1.899,834 2,189,203 21. RELATED PARTY TRANSACTIONS The Company has not entered Into any related party transaction during the year. nor are there any outstanding balances owing belween related parties and the Company al 31 December 2023. 22. CONTROLLING PARTY There Is no controlllng paty. Page 34