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2020-07-31-accounts

REGISTERED CHARITY NUMBER: 1110463

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

FOR

MOUNTAIN OF MERCY

SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU

MOUNTAIN OF MERCY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 10
Detailed Statement of Financial Activities 11

MOUNTAIN OF MERCY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

January 2019).

OBJECTIVES AND ACTIVITIES Objectives and aims

The objects of the Charity are:

other means deemed suitable).

  1. The advancement of education, in particular for young people of all religions and ethnic backgrounds.

to excel in society.

Main activities

How our activities deliver public benefit

below provide benefit and aid to those in need of financial relief.

Currently, the charity is undertaking the following activities:

Volunteers

donations and promoting the charity.

We are greatly indebted to these volunteers for their commitment and support.

Page 1

MOUNTAIN OF MERCY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year, the charity undertook the following projects and activities:

Atahualpa

FINANCIAL REVIEW

Reserves policy

The General fund represents funds arising from current operating results. The trustees are satisfied that the balance of the fund will enable the charity to meet its objectives. The trustees have also examined the requirement to maintain reserves for the on going work of the charity and concluded that the most appropriate level is between 3 to 6 months of operational expenditure.

FUTURE PLANS

further projects which will help us to fulfil our aims and objectives.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

charity with the Charities Commission on the 15th July 2005 (No:1110463)

Recruitment and appointment of new trustees

The members in the general meeting elect trustees or a maximum of three trustees may be co-opted by the Executive Committee.

All trustees hold office until the Annual General Meeting where trustees can offer themselves for re-election or re-appointment.

The appointment of the trustees is governed by the trust deed.

Organisational structure

The charity is controlled by the trustees who make up the Executive Committee. Details of the current trustees are set out below:

M Z Hafiz (Chairman) F A Patel (General Secretary) Miss F Ahmed S Dalal

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

1110463

Page 2

MOUNTAIN OF MERCY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

Principal address Regent House Regent Street Blackburn Lancashire BB1 6BH Trustees M Z Hafiz F A Patel Miss F Ahmed S Dalal Independent Examiner SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU

Bankers HSBC Bank PLC 490 Great West Road Hounslow Middlesex TW5 0TB

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

................................................................................ M Z Hafiz - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MOUNTAIN OF MERCY

Independent examiner's report to the trustees of Mountain of Mercy

I report to the charity trustees on my examination of the accounts of Mountain of Mercy (the Trust) for the year ended 31 July 2020.

Responsibilities and basis of report

Charities Act 2011 ('the Act').

examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements Charities (Accounts and Reports) Regulations 2008 other than any which is not a matter considered as part of an independent examination.

this report in order to enable a proper understanding of the accounts to be reached.

Shamim Mahomed ICAEW SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU

Date: .............................................

Page 4

MOUNTAIN OF MERCY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

2020
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
249,099
EXPENDITURE ON
Charitable activities
3
Provision of Services
176,434
Management & Administration
1,253
Total
177,687
NET INCOME
71,412
RECONCILIATION OF FUNDS
Total funds brought forward
110,354
TOTAL FUNDS CARRIED FORWARD
181,766
2019
Total
funds
£
192,720
174,692
1,430
176,122
16,598
93,756
110,354

The notes form part of these financial statements

Page 5

MOUNTAIN OF MERCY

BALANCE SHEET 31 JULY 2020

2020
Unrestricted
fund
Notes
£
CURRENT ASSETS
Cash at bank
182,005
CREDITORS
Amounts falling due within one year
7
(239)
NET CURRENT ASSETS
181,766
TOTAL ASSETS LESS CURRENT LIABILITIES
181,766
NET ASSETS
181,766
FUNDS
8
Unrestricted funds
181,766
TOTAL FUNDS
181,766
2019
Total
funds
£
110,594
(240)
110,354
110,354
110,354
110,354
110,354

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. signed on its behalf by:

............................................. M Z Hafiz - Trustee

The notes form part of these financial statements

Page 6

MOUNTAIN OF MERCY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

historical cost convention.

Income

that the income will be received and the amount can be measured reliably.

Expenditure

allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2. DONATIONS AND LEGACIES

Donations
CHARITABLE ACTIVITIES COSTS
Provision of Services
Management & Administration
Direct
Costs
£
176,434
-
176,434
2020
£
249,099
Support
costs (see
note 4)
£
-
1,253
1,253
2019
£
192,720
Totals
£
176,434
1,253
177,687

3. CHARITABLE ACTIVITIES COSTS

continued...

Page 7

MOUNTAIN OF MERCY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

4. SUPPORT COSTS

4. SUPPORT COSTS
Governance
Management costs Totals
£ £ £
Management & Administration 1,013 240 1,253
Support costs, included in the above, are as follows:
Management
2020 2019
Management Total
& Administration activities
£ £
Advertising 30 -
Repair & Renewal 160 -
Bank charges 823 1,190
1,013 1,190
Governance costs
2020 2019
Management Total
& Administration activities
£ £
Accountancy and legal fees 240 240
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 July 2020 nor for the year ended 31 July 2019.
Trustees' expenses

There were no trustees' expenses paid for the year ended 31 July 2020 nor for the year ended 31 July 2019.

6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 192,720
EXPENDITURE ON
Charitable activities
Provision of Services
174,692
Management & Administration 1,430
Total 176,122
NET INCOME 16,598

continued...

Page 8

MOUNTAIN OF MERCY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
7.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accrued expenses
8.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
Unrestricted
fund
£
93,756
110,354
2020
2019
£
£
239
240
Net
movement
At
At 1/8/19
in funds
31/7/20
£
£
£
110,354
71,412
181,766
110,354
71,412
181,766
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
249,099
(177,687)
71,412
249,099
(177,687)
71,412
Net
movement
At
At 1/8/18
in funds
31/7/19
£
£
£
93,756
16,598
110,354
93,756
16,598
110,354

continued...

Page 9

MOUNTAIN OF MERCY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

8. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
192,720
192,720
Resources
Movement
expended
in funds
£
£
(176,122)
16,598
(176,122)
16,598
Resources
Movement
expended
in funds
£
£
(176,122)
16,598
(176,122)
16,598
16,598

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Net
movement
At 1/8/18
in funds
£
£
93,756
88,010
93,756
88,010
At
31/7/20
£
181,766
181,766

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
441,819
441,819
Resources
Movement
expended
in funds
£
£
(353,809)
88,010
(353,809)
88,010
Resources
Movement
expended
in funds
£
£
(353,809)
88,010
(353,809)
88,010
88,010

9. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 July 2020.

Page 10

MOUNTAIN OF MERCY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Total incoming resources
EXPENDITURE
Charitable activities
Project construction costs
Support costs
Management
Advertising
Repair & Renewal
Bank charges
Governance costs
Accountancy and legal fees
Total resources expended
Net income
2020
£
249,099
249,099
176,434
30
160
823
1,013
240
177,687
71,412
2019
£
192,720
192,720
174,692
-
-
1,190
1,190
240
176,122
16,598

This page does not form part of the statutory financial statements

Page 11