REGISTERED CHARITY NUMBER: 1110463
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 July 2021
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 2021
| 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 | 11 |
| Detailed Statement of Financial Activities | 12 |
MOUNTAIN OF MERCY
Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021
The trustees present their report with the financial statements of the charity for the year ended 31 July 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objects of the Charity are:
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The relief of financial need and suffering amongst victims of natural or other kinds of disaster and trouble in the form of money (or other means deemed suitable).
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The advancement of education, in particular for young people of all religions and ethnic backgrounds.
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To help young people develop their physical, mental, spiritual and moral capacities so they mature as individuals with opportunities to excel in society.
Main activities
How our activities deliver public benefit
The charity carries out a range of activities in accordance with its charitable aims. The trustees consider these activities summarised below provide benefit and aid to those in need of financial relief.
Currently, the charity is undertaking the following activities:
Food and shelter for refugees
Income generating projects
The relief of financial need and suffering amongst victims of natural or other kinds of disaster and trouble in the form of money (or other means deemed suitable);
The construction of water wells to meet basic human needs.
Distribution of winter essentials to harsh stricken countries in the form of clothes, blankets as part of the "The winter project"
The construction of water desalination unit for clean water.
Volunteers
Many volunteers give up their time to help out the charity, particularly at the weekend and in the evenings to help with collecting donations and promoting the charity.
We are greatly indebted to these volunteers for their commitment and support.
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MOUNTAIN OF MERCY
Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021
ACHIEVEMENT AND PERFORMANCE
Charitable activities
During the year, the charity undertook the following projects and activities:
The ongoing construction of Water wells in various locations of Sri Lanka, at Pealed, Welshmen, Giotto, Pandoura, Kuchen's and Atahualpa
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Distribution of Food Parcels to various countries including the Rohingya refugees
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The construction of water wells in Bangladesh Satkhira district
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Qurbani Meat distribution in Africa
Kenya Food distribution for Orphans
Aid for Refugees in the form of blankets and clothes
The construction of a water desalination plant for clean drinking water.
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
We plan to consolidate our current success and make our services available to a wider range of people. We also plan to look into further projects which will help us to fulfil our aims and objectives.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Mountain of Mercy is constituted under a Trust Deed adopted on the 20th February 2005. Mountain of Mercy was registered as a 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
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MOUNTAIN OF MERCY
Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021
Principal address Regent House Regent Street Blackburn Lancashire BB1 6BH
Trustees
M Z Hafiz F A Patel Miss F Ahmed S Dalal
Independent Examiner
Shamim Mahomed ICAEW 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 22 March 2022 and signed on its behalf by:
M Z Hafiz - Trustee
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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 2021.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Shamim Mahomed ICAEW SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU
22 March 2022
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MOUNTAIN OF MERCY
Statement of Financial Activities FOR THE YEAR ENDED 31 JULY 2021
| 2021 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 263,456 EXPENDITURE ON Charitable activities 3 Provision of Services 244,023 Management & Administration 880 Total 244,903 NET INCOME 18,553 RECONCILIATION OF FUNDS Total funds brought forward 181,766 TOTAL FUNDS CARRIED FORWARD 200,319 |
2020 Total funds £ 249,099 176,434 1,253 |
|---|---|
| 177,687 | |
| 71,412 110,354 |
|
| 181,766 |
The notes form part of these financial statements
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MOUNTAIN OF MERCY
Balance Sheet 31 JULY 2021
| 2021 Unrestricted fund Notes £ CURRENT ASSETS Cash at bank 200,559 CREDITORS Amounts falling due within one year 7 (240) NET CURRENT ASSETS 200,319 TOTAL ASSETS LESS CURRENT LIABILITIES 200,319 NET ASSETS 200,319 FUNDS 8 Unrestricted funds 200,319 TOTAL FUNDS 200,319 |
2020 Total funds £ 182,005 (239) 181,766 181,766 181,766 181,766 181,766 |
|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 22 March 2022 and were signed on its behalf by:
M Z Hafiz - Trustee
The notes form part of these financial statements
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MOUNTAIN OF MERCY
Notes to the Financial Statements FOR THE YEAR ENDED 31 JULY 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when 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 AND LEGACIES | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Donations | 263,456 | 249,099 |
continued...
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MOUNTAIN OF MERCY
Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021
3. CHARITABLE ACTIVITIES COSTS
| Support Direct costs (see Costs note 4) £ £ Provision of Services 244,023 - Management & Administration - 880 244,023 880 4. SUPPORT COSTS Governance Management costs £ £ Management & Administration 640 240 Support costs, included in the above, are as follows: Management 2021 Management & Administration £ Advertising - Repair & Renewal - Bank charges 640 640 Governance costs 2021 Management & Administration £ Accountancy and legal fees 240 |
Totals £ 244,023 880 |
|---|---|
| 244,903 | |
| Totals £ 880 2020 Total activities £ 30 160 823 1,013 2020 Total activities £ 240 |
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 July 2021 nor for the year ended 31 July 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 July 2021 nor for the year ended 31 July 2020.
continued...
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MOUNTAIN OF MERCY
Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021
6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Donations and legacies EXPENDITURE ON Charitable activities Provision of Services Management & Administration Total NET INCOME 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 At 1/8/20 £ Unrestricted funds General fund 181,766 TOTAL FUNDS 181,766 |
Unrestricted fund £ 249,099 176,434 1,253 177,687 71,412 110,354 181,766 2021 2020 £ £ 240 239 Net movement At in funds 31/7/21 £ £ 18,553 200,319 18,553 200,319 |
|---|---|
continued...
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MOUNTAIN OF MERCY
Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021
8. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 263,456 TOTAL FUNDS 263,456 Comparatives for movement in funds At 1/8/19 £ Unrestricted funds General fund 110,354 TOTAL FUNDS 110,354 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 249,099 TOTAL FUNDS 249,099 |
Resources Movement expended in funds £ £ (244,903) 18,553 (244,903) 18,553 Net movement At in funds 31/7/20 £ £ 71,412 181,766 71,412 181,766 Resources Movement expended in funds £ £ (177,687) 71,412 (177,687) 71,412 |
Resources Movement expended in funds £ £ (244,903) 18,553 (244,903) 18,553 Net movement At in funds 31/7/20 £ £ 71,412 181,766 71,412 181,766 Resources Movement expended in funds £ £ (177,687) 71,412 (177,687) 71,412 |
|---|---|---|
| 71,412 |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1/8/19 £ 110,354 110,354 |
Net movement in funds £ 89,965 89,965 |
At 31/7/21 £ 200,319 |
|---|---|---|---|
| 200,319 |
continued...
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MOUNTAIN OF MERCY
Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021
8. MOVEMENT IN FUNDS - continued
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 £ 512,555 512,555 |
Resources Movement expended in funds £ £ (422,590) 89,965 (422,590) 89,965 |
|---|---|---|
9. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 July 2021.
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MOUNTAIN OF MERCY
Detailed Statement of Financial Activities FOR THE YEAR ENDED 31 JULY 2021
| 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 |
2021 £ 263,456 263,456 244,023 - - 640 640 240 244,903 18,553 |
2020 £ 249,099 |
|---|---|---|
| 249,099 176,434 30 160 823 |
||
| 1,013 240 |
||
| 177,687 | ||
| 71,412 |
This page does not form part of the statutory financial statements
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