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2020-12-31-accounts

Registered Charity Number: 1107824 Registered Company Number: 5289161

Mission Direct Limited (Known as Mission Direct)

Report and financial statements For the year ended 31 December 2020

Report and financial statements For the year ended 31 December 2020

Mission Direct Limited

Contents Page
Legal and Administrative Information 1
Report of the Trustees 2 - 8
Report of the Independent Auditor 9 - 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes Forming Part of the Financial Statements 16– 24

Mission Direct Limited Legal and Administrative Information

Constitution

Mission Direct is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association. Charity number: 1107824. Company number: 5289161. The maximum contribution required by members of the company is an amount not exceeding £1 in the event of the company being wound up. Under the Memorandum and Articles of Association, any surplus of assets over liabilities on winding-up cannot, under any circumstances, be distributed to the Trustees or the Members, but shall be given or transferred to some other charity or charities with similar objects to those of Mission Direct.

Directors and Trustees

The Directors of the charitable company (hereafter referred to as 'the charity') are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees. The Trustees serving during the year and since the year end were as follows:

Felicity Cooper (Resigned 16 August 2020) Paul Holbrook (Deputy Chair) Christopher Knight Tim Martindale (Chair) Andrew Smart (Appointed 6 March 2020) Mark Vickers

New Trustees are appointed by a majority ballot of the existing Trustees. One third of the Trustees retire from office by rotation at each AGM and may seek re-appointment. The induction and training programme for new Trustees comprises a detailed discussion and orientation by the Chief Executive and 2 other board members. Each new Trustee confirms their agreement with the founding charity documents and agrees what contribution they expect to make. Trustees usually join a team or visit one or more of the charity's overseas programmes.

Chief Executive and Company Secretary: Wilhelm Horwood Registered office: Mission Direct, 27 Bury Mead Road, Hitchin, Herts, SG5 1RT Principal Bankers: Barclays Bank, George Street, Luton, LU1 2AE Auditor: Mazars LLP, The Pinnacle, 160 Midsummer Boulevard, Milton Keynes, MK9 1FF

1

Mission Direct Limited Report of the Trustees

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2020. The financial statements comply with the Statement of Recommended Practice, 'Accounting and Reporting by Charities' (SORP 2019). They also comply with the Financial Reporting Standard 102 (effective 2015) and the charity's Memorandum and Articles of Association. The accounts have been prepared in accordance with the accounting policies on pages 16 to 18.

Objectives and Activities

Vision

To demonstrate Christian faith through service to the materially poor and those in need around the world.

Mission

To take volunteers across the world, working in partnership with local communities, bringing practical help, hope and change.

Values

Mission Direct values were reviewed in 2020 and amended after consultation with trustees, staff and volunteers.

Christianity in action – While keeping our work Christ-centred, we serve others irrespective of their faiths or worldviews.

Equality – As an inclusive and welcoming family, we value human diversity and are committed to treating people equally.

Sustainability – We strive for long-term and sustainable impact through careful stewardship of resources to leave a positive lasting legacy.

Compassion – We treat people with compassion, kindness and respect to promote dignity and wellbeing.

Partnership – We believe in the power of teamwork, collaboration and cooperation to tackle poverty and injustice.

Integrity – We are committed to being authentic, accountable, reliable and trustworthy.

Ethos

Mission Direct’s ethos of operation is the Starfish Principle. Recognising that we cannot solve everything we work to make a difference ‘one by one’.

The Starfish Principle is captured by the story of the little boy who saw thousands of dying starfish on a beach. He started to pick them up and throw them back in the sea. “What are you doing?” his mother asked - “How can you hope to make any difference here?” Picking up the starfish and throwing them back into the sea the boy looked in his mother's eyes and said “Well, I made a difference to that one and that one.”

2

Mission Direct Limited Report of the Trustees

Charity’s Objects

Mission Direct’s objects are:

The Trustees understand (b) as ensuring Mission Direct is a catalyst enabling volunteers and mobilising resources to help the world’s materially poor, in keeping with our Christian ethos and articles of faith.

Public Benefit

The Trustees are aware of the Charity Commission’s guidance on public benefit and, in particular, the specific guidance offered to charities with these objects. As explained in the Achievements and Performance section set out below, the charity has addressed a range of such public benefit and the Trustees confirm that the charity’s activities fall within these objects.

Principal Areas of Work

The volunteer model has enabled a few thousand volunteers to work in partnership with the world’s materially poor. In going, each person makes a significant personal impact, directly engaging supporters and leaving a legacy of enduring relationships and projects. The Covid-19 pandemic curtailed our ability to send volunteers overseas, so our focus switched to supporting projects. During 2020, Mission Direct brought help and hope in 7 countries: Brazil, Cambodia, The Dominican Republic, Gambia, Uganda, Zambia, and Zimbabwe.

Principal Funding Sources

Mission Direct’s achievements are normally built on a foundation of mobilising people to raise funds for the building projects on which they have volunteered to work on. Their fundraising efforts continued to be the prime source by which the charity was funded initially before the pandemic took hold. The volunteers were supported by their friends, churches, companies, trusts and other networks. 100% of the funds raised by the volunteers for a building project went directly to the project the person was supporting. In 2020, the pandemic meant that normal business needed to be put on hold. This placed significant pressure on Mission Direct’s finances so the charity increased direct fundraising activities for both its own core costs and for projects overseas. It also reduced costs and took advantage of the government’s Job Retention Scheme. Our fundraising still had an emphasis on individual donors, major donors, and trusts. We proactively cared for our donors, provided them with information about the positive impact the work is having and expressed our gratitude. Direct Mail remained an effective means to raise awareness of the work and develop a long-term income stream.

Safeguarding Statement

Mission Direct acknowledges the duty of care to safeguard and promote the welfare of children, young people, and vulnerable adults and to safeguard the welfare of anyone who comes into contact with the Charity’s work. The Charity is committed to ensuring safeguarding practice is compliant with statutory responsibilities, the Charities Commission guidance and accords with best practice.

3

Mission Direct Limited Report of the Trustees

Trustees receive training in safeguarding, as do all staff and volunteers. Systems are in place to monitor safeguarding effectiveness and to respond quickly to any concerns.

Achievements and Performance

In 2020 – 23 volunteers, supported by 7 self-funding overseas staff, served on 5 mission trips in 3 of the world’s poorest countries.

The impact the teams were able to make was affected by Covid-19 due to the need to bring some teams home early to avoid them being stranded as borders closed and flights were cancelled. Both volunteers and staff gave of themselves and performed countless acts of kindness.

Volunteers, Trustees and staff historically represented our work at exhibitions and conferences and played a key part in letting people know about the opportunities to serve with Mission Direct and the impact achieved. However, the impact of the pandemic meant these exhibitions and conferences were cancelled in 2020 so we focussed our attention on regular communications with existing supporters and on increasing our social media presence.

Taking a bottom-up approach to working with the poor and seeing the money spent directly by the overseas staff means money raised is leveraged and used in a focused, well controlled and costeffective manner.

Below are a few highlights from each country in which we were able to continue activities.

Brazil

Although we did not take any volunteers or run any teams, we were able to raise funds to complete the remaining 2 houses (houses 7 & 8) with our principal partner, the ‘Open Hands’ charity in Campo Largo. The houses will be used to re-home families escaping from conflict and life in favelas.

Cambodia

Mission Direct took 16 volunteers on 3 teams early in the year. We continued to work with our partner, Serve Cambodia, and built 2 houses at Tarsha’s Legacy Centre, Happy Village in the suburbs of Phnom Penh. In addition, work was completed at Light of Hope School in Makak Village, with the school being officially opened in October. Towards the end of the year, we fundraised to help Serve Cambodia to provide relief after heavy flooding in Phnom Penh among the communities we support.

The Dominican Republic

Mission Direct were able to provide financial support for renovation and building work at the Nazareth House orphanage for disabled children after they were able to purchase the building and land where they are situated, making their work more secure and sustainable.

Gambia

We took 3 volunteers on 1 team to help to build a septic tank, with Evangelical Church of God (ECG) at House of Skills (HOS).

Uganda

Kumi

Although we did not take any volunteers or run any teams to Uganda, we were able to raise funds to provide emergency support.

We built teachers accommodation at Kumi Bazaar School after fundraising for the project. This will help the school to be sustainable and to retain teachers.

4

Mission Direct Limited Report of the Trustees

We continued to partner with the Pentecostal Assemblies of God (PAG) and supported their efforts to roll out large-scale food distribution throughout the Kumi District. This was necessary because Uganda was in lockdown due to the pandemic and poorer people did not have the benefit of a welfare system so were at significant risk of starvation due to not being able to work or purchase food. In early May we reached some 500 families with regular food supplies.

Rukungiri

In Rukungiri, just before the schools locked down we were able to provide 350 pairs of shoes to Rushararazi Primary School.

Zambia

Mission Direct has been able to provide lunch for over 1,200 pupils at least twice a week at our partner schools in Lusaka. Also, through Crown of Life and Kumbaya we’ve been able to provide food parcels to some of the most vulnerable families.

With no government support, most of our partner schools rely on collecting modest fees to pay their teachers, but during the pandemic few families can afford to pay. We’ve been able to provide support for several months to see teachers through this crisis period.

Zimbabwe

We took 4 volunteers on 1 team and continued to work with our partner, the United Baptist Church of Zimbabwe and built a toilet block for the Joshua Dhube Primary School in Mutare.

Financial Review

The Trustees consider the financial performance to be acceptable, particularly in the context of operating in a pandemic which affected our main income source. Seeking funding from fundraising from individuals and trusts, as well as utilising the government’s Job Retention Scheme, has sustained the organisation. Although overall income dropped, costs were aggressively managed also so that overall unrestricted reserves increased slightly. The Trustees are grateful to all the staff who helped make this possible. The Trustees have key financial policies in place and undertake appropriate risk assessments. Monthly accounts and KPIs ensure appropriate timely management information is available.

Income for 2020 was £792,653 (54.3%) less than in 2019 on all funds mainly as a result of the pandemic, but unrestricted fundraising donations increased by £47,894 (65%) more than 2019. Expenditure was significantly down due to careful management of costs and a reduction in staff numbers.

Plans for Future Periods

The three strategic initiatives for 2021 are:

  1. Invest in our excellent team

  2. Build sustainable volunteer experiences

  3. Increase our financial resources

Effects of BREXIT

The Trustees having considered the impact of BREXIT on the charity believe that, as Mission Direct operate internationally outside of Europe, it won’t be affected to any substantial degree.

5

Mission Direct Limited Report of the Trustees

Structure Governance and Management

Mission Direct Trustees bring core strategic, governance and tactical competencies to the organisation.

The governance and key policies are considered appropriate for Mission Direct’s current size and purpose. The strategy and plans are clear. The organisation’s structure is focused on securing the volunteers and maximising the value they add during their time on mission.

Management responsibilities are clearly defined and the Trustee group operates based on the Carver Model.

Fundraising

Mission Direct undertake fundraising internally and does not use a third party to assist with this. It raised 65% of it funds from those that have participated on a mission. The balance is raised from donations from individual donors, church donors, corporate donors, grants and direct mail appeals. Fundraising is reviewed as part of the monthly business cycle. Mission Direct is a member of The Fundraising Preference Service. In 2020 no fundraising complaints were received. One of the principles that Mission Direct holds close is “do no harm”. This applies to everything we do. In terms of fundraising we invite people to be part of the work but if they indicate they don’t wish to be contacted by us we remove them from the database. If they wish to understand more about the work they will be invited to visit the charity or have a telephone conversation if that is more appropriate.

Mission Direct’s organisation chart is :

----- Start of picture text -----
Overseas Staff (Volunteers)
Finance and
Regional Managers Volunteer Managers Communications
Administration
Chief Executive
Board of Trustees
----- End of picture text -----

Remuneration of staff is set with regards to market rates and the relevant experience of the staff member and reviewed on an annual basis to ensure that pay levels are fair.

6

Mission Direct Limited Report of the Trustees

Principal risks and uncertainties

The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. The two risks that would have the highest impact to the model of operation that the charity has are a) the cost of flights suddenly increasing beyond that economically acceptable to volunteers, and b) data loss from charity systems failing or being attacked.

Covid-19

At this point the charity has weathered nine months of Covid-19 restrictions that have severely affected aspects of what the charity does, however the charity has put in place measures to maintain income during the period of uncertainty through targeted fundraising and maintaining contact with existing supporters. Furthermore, constraints have been placed upon general expenditure and the trustees have taken advantage of the government’s job retention financial support package and are constantly reviewing other measures to manage cash flow during this period. Trustees are keeping the position under constant review and will take necessary steps to ensure the charity continues as a going concern.

Reserves Policy

It is the policy of the charity to maintain a minimum of unrestricted funds, which are the free reserves of the charity, at a level which equates to its unrestricted closure liabilities at any point in time. This level is currently £72,000 and provides sufficient funds to cover management, administrative and support costs. The Trustees are happy with the current level of unrestricted reserves held at the yearend of £193,708 (2019: £178,217) but will continue to monitor this in the future.

Investment Policy

Mission Direct will maintain its legal responsibility to optimise the return on investments, with regard to appropriate risk factors. This has been encompassed, together with its Reserves Policy, within the charity’s Investment Policy which is reviewed on an annual basis. The Policy ensures that there are sufficient funds within short term bank deposits to facilitate Mission Direct’s day to day cash requirements and with additional funds placed to gain a return commensurate with the risk.

Post Balance Sheet Event

As a result of the travel restrictions implemented due to the Covid-19 pandemic the charity has, unfortunately, had to cancel or postpone scheduled trips for 2021. The trustees have taken significant steps to ensure that other sources of income are being maintained.

The charity is already taking applications and enquiries for 2022 and are reviewing the business model to ensure it is well placed to move forward as restrictions are lifted.

Going Concern

The trustees have reviewed detailed cash flow projections and have agreed detailed budgets for the year ending 31 December 2021. All are being regularly revisited as situations change and actions taken as necessary to ensure that the charity can continue in these uncertain times. As a result of this the trustees are satisfied that it is appropriate to prepare the accounts as a going concern.

7

Mission Direct Limited Report of the Trustees

Statement of Trustees’ Responsibilities

The Trustees (who are also the Directors of Mission Direct Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to Disclosure of Information to Auditor

So far as the Trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each Trustee has taken all the steps that they ought to have taken as a Trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.

Auditor

The auditor, Mazars LLP, were appointed in the year and will be proposed for re-appointment at the forthcoming Annual General Meeting.

The Directors have prepared this report in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.

Approved by the Board of Trustees on 5 March 2021 and signed on its behalf by:

Tim Martindale Chair of Trustees

24-Jun-2021

8

Mission Direct Limited

Independent auditor’s report to the members of Mission Direct Limited

Opinion

We have audited the financial statements of Mission Direct Limited (the ‘charity’) for the year ended 31 December 2020 which comprise Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the 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 FRS 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:

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 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except

9

Mission Direct Limited

Independent auditor’s report to the members of Mission Direct Limited

to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the 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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Report of the Trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view,

10

Mission Direct Limited Independent auditor’s report to the members of Mission Direct Limited

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.

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

Auditor’s responsibilities for the audit of the financial statements

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 the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, the Charities Statement of Recommended Practice, UK, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

11

Mission Direct Limited

Independent auditor’s report to the members of Mission Direct Limited

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Vincent Marke (Jun 24, 2021 18:36 GMT+1)

Vincent Marke (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor The Pinnacle 160 Midsummer Boulevard Milton Keynes MK9 1FF

Date: 24-Jun-2021

12

Mission Direct Limited Statement of Financial Activities For the year ended 31 December 2020

Notes
Income and endowments
Donations and legacies
- Donations
- Legacies
Investment income
Government Grant Income from
Job Retention Scheme
Total Income
2
Expenditure
Costs of Raising Funds
Charitable activity
- Charitable activity costs
- Support activity
Total Expenditure
3
Net income/(expenditure)
4
Transfers between funds
Net movement in funds
Total funds 1 January
Total funds 31 December		 Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Funds
Funds
Funds
Funds
Funds
Funds
2020
2020
2020
2019
2019
2019
£
£
£
£
£
£

400,051
202,071
602,122
1,022,350
459,763
1,482,113
2,584
-
2,584
10,163
-
10,163
2,671
-
2,671
2,954
-
2,954
95,200
-
95,200
,
,
,
500,506
202,071
702,577
1,035,467
459,763
1,495,230
16,489
-
16,489
22,302
-
22,302
398.262
240,053
638,315
940,054
437,680
1,377,734
70,264
-
70,264
91,354
-
91,354
485,015
240,053
725,068
1,053,710
437,680
1,491,390
15,491
(37,982)
(22,491)
(18,243)
22,083
3,840
-
-
-
-
-
-
15,491
(37,982)
(22,491)
(18,243)
22,083
3,840
178,217
363,214
541,431
196,460
341,131
537,591
193,708
325,232
518,940
178,217
363,214
541,431

The charity’s income and expenditure all relate to continuing operations.

The charity has no recognised gains or losses.

The information presented within the Statement of Financial Activities for the year ended 31 December 2020 is equivalent to that which would have to be disclosed in an income and expenditure account and accordingly a separate income and expenditure account has not been presented, as permitted by Companies Act 2006.

The notes to the financial statements on pages 16 to 24 form part of these financial statements.

13

Mission Direct Limited Balance Sheet As at 31 December 2020

Company number: 5289161

Notes
Tangible fixed assets
7
Current assets
Debtors
8
Cash and cash equivalents
9
Creditors: amounts falling due
within one year
10
Net current assets
Funds of the Charity
Unrestricted funds
11
Restricted funds
11		 2020
£
91,954
569,976		 2020
£
14,983
503,957		 2019
£
88,128
568,773		 2019
£
23,539
517,892
661,930
(157,973)		 656,901
(139,009)
518,940 541,431
193,708
325,232		 178,217
363,214
518,940 541,431

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved by the Board of Trustees on 5 March 2021 and were signed on its behalf by:

Tim Martindale 24-Jun-2021 Chair of Trustees

The notes on pages 16 to 24 form part of these financial statements.

14

Company number: 5289161

Mission Direct Limited Statement of Cash Flows For Year ended December 2020

Cash flows from operating activities:
Net income
Depreciation
Interest received
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Net cash outflow from operating activities
Cash flows from investing activities
Purchase of fixed assets
Interest received
Net increase in cash & cash equivalents
Opening cash and cash equivalents
Movement in the year
Closing cash and cash equivalents		 2020
2019
£
£
(22,491)
3,840
8,844
13,327
(2,671)
(2,954)
(3,826)
12,676
18,964
(90,940)
(1,180)
(64,051)
(288)
(9,946)
2,671
2,954
1,203
(71,043)
568,773
639,816
1,203 (71,043)
569,976
568,773

The notes on pages 16 to 24 form part of these financial statements.

15

Mission Direct Limited Notes to the financial statements For the year 31 December 2020

1. Principal accounting policies

a) General information

Mission Direct is a company limited by guarantee, incorporated in England and Wales. The address of its registered office and principal place of business is disclosed in the Legal and Administrative information on page 1.

The principal activity of the charity is to demonstrate the Christian faith through service to the materially poor and those in need around the world.

The financial statements are presented in Sterling and this is the functional currency of the charity. The financial statements are rounded to the nearest whole pound.

b) (i) Basis of preparation

(ii) Going Concern

The trustees have reviewed detailed cash flow projections and have agreed detailed budgets for the year ended 31 December 2021. All are being regularly revisited as situations change and actions taken as necessary to ensure that the charity can continue in these uncertain times. As a result the use of the going concern basis of accounting is appropriate.

c) Income

When donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Income from legacies is recognised when the three criteria of entitlement, measurability and probability are met.

Income from the Government Job Retention Scheme is included in income when receivable.

16

Mission Direct Limited Notes to the financial statements (continued) For the year 31 December 2020

d) Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT, which cannot be recovered as the charity is not VAT-registered.

Certain expenditure is directly attributable to specific activities and is included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories according to the nature of the cost.

Termination payments of statutory redundancy payments are included when payable.

e) Classification of expenditure

Costs of generating voluntary income are costs incurred with third parties in the UK who promote fundraising, including events.

Charitable activity costs are costs in furtherance of the charity’s objects all of which is expenditure directly relating to the objects of the charity.

f) Support activity

Support activity represents those costs incurred by UK and overseas based staff, directly providing support for the international programme, including management, policy and advocacy work, programme supervision and technical support. They also include costs incurred in managing the charity, its organisational administration and compliance with constitutional and statutory requirements.

g) Tangible fixed assets

Assets intended for continuing use by the charity are capitalised at cost. Depreciation is provided at the following rates in order to write off each asset over its estimated useful life:

Leasehold Improvements - Lease Duration Computers - 3 years Office Equipment - 5 years Furniture - 10 years Program Assets - 3 years

h) Fund accounting

i) Foreign currencies

Transactions in foreign currencies are translated at rates prevailing at the date of transaction. Balances denominated in foreign currencies are translated at the rate prevailing at the year end.

17

Mission Direct Limited Notes to the financial statements (continued) For the year 31 December 2020

j) Operating leases

Rentals applicable to operating leases where substantially all the benefits of ownership and risk remain with the lessor are charged to the SOFA as stated.

k) Investments

The estimates and underlying assumptions should be reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Due to the nature of the charitable company’s activities and financial statements, the Directors do not consider there to be any significant judgements or sources of estimation uncertainty which could influence the reader’s understanding of the financial statements.

18

Mission Direct Limited Notes to the financial statements (continued) For the year 31 December 2020

2. Income

Income is attributable to the principal activities set out in the Charity’s vision, mission and values. See the Report of the Trustees for more details.

3. Expenditure

xpenditure
Cost of generating voluntary income
Direct Programme Delivery
Support cost		 Staff
Other
Total
Total
costs
Costs
2020
2019
£
£
£
£
5,655
10,834
16,489
22,302
201,898
436,057
637,955
1,377,734
33,931
36,693
70,624
91,354
241,484
483,584
725,068
1,491,390

4. Net income/(expenditure)

The net income/ (expenditure) is stated after charging/(crediting):

2020 2019
£ £
Auditor’s remuneration: Statutory audit fees 7,800 7,140
Auditor’s remuneration: Non-audit fees 600 360
Depreciation - owned assets 8,844 13,328

19

Mission Direct Limited Notes to the financial statements (continued) For the year 31 December 2020

5. Staff costs

The average number of employees working for the charity during the period was as follows:

Management and administration
Direct charitable activities
Gross wages and salaries
Statutory redundancy payments
Employer's National Insurance
Pension contributions		 2020
2019
No.
No.
2
2
6
8
8
10
2020
2019
£
£
217,125
269,872
1,771
-
15,993
22,803
6,595
8,112
241,484
300,787

No employee earned over £60,000 in 2020 (2019 – None).

Trustees’ remuneration for the year ended 31 December 2020 was £nil (2019– £nil). Remuneration of key management personnel for the year ended 31 December 2020 totalled £54,384 (2019 - £60,776).

Trustee/Directors Liability insurance premium for the year ended 31 December 2020 was £786 (2019 - £762)

Pension commitments

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £6,595 (2019: £8,112).

Contributions totalling £1,142 (2019: £1,454) were payable to the fund at the balance sheet date and are included in creditors.

6. Taxation

The company is exempt from Corporation Tax as a registered charity.

20

Mission Direct Limited

Notes to the financial statements (continued) For the year 31 December 2020

7. Tangible fixed assets

Cost
At 1 January
2020
Additions
Disposals
At 31 December
2020
Depreciation
At 1 January
2019
Charge for year
Disposals
At 31 December
2020
Net book values
At 31 December
2020
At 31 December
2019		 Leasehold
Computers
Office
Furniture
Program
Improvements
Equipment
Assets
Total
£
£
£
£
£
£
28,246
49,437
13,855
5,796
7,773
105,107
-
288
-
-
-
288
-
-
(8,324)
-
-
(8,324)
28,246
49,725
5,531
5,796
7,773
97,071
14,273
46,500
13,146
5,059
2,591
81,569
2,795
2,912
177
369
2,591
8,844
-
-
(8,324)
-
-
(8,324)
17,068
49,412
4,999
5,428
5,182
82,089
11,178
313
532
368
2,591
14,982
13,973
2,937
709
737
5,182
23,538

8. Debtors

Other debtors
Prepayments		 2020
2019
£
£
79,615
32,269
12,339
55,859
91,954
88,128

21

Mission Direct Limited Notes to the financial statements (continued) For the year 31 December 2020

9.
Cash and cash equivalents
Short-term deposits (100 days or less)
Cash at bank
Cash overseas
Petty cash
10.
Creditors: amounts falling due within one year
Deferred income
Taxation and social security
Accruals
Deferred Income
Opening balance
Released during the year
Income deferred in the year
Closing Balance		 2020
2019
£
£
190,757
188,399
357,817
358,328
9,670
9,705
11,732
12,341
569,976
568,773
2020
2019
£
£
141,098
117,604
5,378
6,781
11,497
14,624
157,973
139,009
2020
2019
£
£
117,604
204,056
(73,618)
(204,056)
97,112
117,604
141,098
117,604

Deferred income relates to donations received from team members in relation to trips taking place in the following year.

22

Mission Direct Limited Notes to the financial statements (continued) For the year 31 December 2020

11. Funds

The income funds of the charity include restricted and unrestricted funds comprising the following unexpended balances of donations, grants and other incoming resources to be applied for these purposes:

Unrestricted Funds
United Kingdom
Brazil
Cambodia
The Dominican Republic
Gambia
India
Kenya
Malawi
Moldova
Sierra Leone
Uganda
Zambia
Zimbabwe
Additional Campaign Cost
Total Unrestricted
Restricted Funds
Brazil
Cambodia
The Dominican Republic
Gambia
India
Kenya
Malawi
Moldova
Sierra Leone
Uganda
United Kingdom
Zambia
Zimbabwe
Total Restricted
Total Funds		 Brought
Income Expenditure
Transfers
Carried
forward
forward
£
£
£
£
£
50,067
388,461
(282,268)
-
156,260
1,500
-
(45)
45
1,500
1,500
35,929
(30,309)
(5,620)
1,500
1,500
2,169
(1,212)
(957)
1,500
1,500
5,404
(3,813)
(1,591)
1,500
1,500
-
-
-
1,500
1,500
-
-
-
1,500
500
-
(46)
46
500
1,500
-
-
-
1,500
1,500
-
-
-
1,500
4,500
-
(930)
930
4,500
2,000
909
(3,623)
2,714
2,000
1,500
13,539
(12,218)
(1,321)
1,500
107,650
54,095
(150,551)
5,754
16,948
178,217
500,506
(485,015)
-
193,708
5,204
16,946
(13,963)
-
8,187
28,105
14,898
(28,246)
-
14,757
92,549
7,266
(40,870)
-
58,945
2,319
1,490
(3,734)
75
6,667
-
-
-
6,667
28,191
23,734
(17,673)
-
34,252
7,702
2,469
(3,037)
-
7,134
4,783
1,288
-
-
6,071
24,034
2,189
(269)
-
25,954
55,580
67,270
(55,983)
-
66,867
20,477
1,417
(3,600)
-
18,294
46,100
47,728
(45,299)
-
48,529
41,503
15,376
(27,379)
-
29,500
363,214
202,071
(240,053)
-
325,232
541,431
702,577
(725,068)
-
518,940

23

Mission Direct Limited Notes to the financial statements (continued) For the year 31 December 2020

Note 11 (continued)

Transfers between the unrestricted funds reflect the cost of direct administrative support given to each country campaign or the subsidy given from the additional campaign cost fund to enable specific country campaigns to operate.

Restricted funds are held for income and expenditure arising from Mission Direct’s Overseas Projects and Partners.

12. Analysis of net assets between funds

Tangible fixed assets
Debtors
Cash
Current Liabilities
Total net assets		 Unrestricted
Restricted
Total
Total
Funds
Funds
2020
2019
£
£
£
£
14,983
-
14,983
23,539
91,954
-
91,954
88,128
244,744
325,232
569,976
568,773
(157,973)
-
(157,973)
(139,009)
193,708
325,232
518,940
541,431

13. Operating lease commitments

Financial commitments under non-cancellable operating leases will result in the following payments falling due as follows:

Office equipment expiring in less than 1 year
Office equipment expiring between 1 year and 5 years
Office equipment expiring in greater than 5 years		 2020
2019
£
£
6,322
6,802
12,729
19,051
-
-
19,051
25,853

14. Trustee Donations, expenses and related party disclosures

24