**REGISTERED CHARITY NUMBER: 1122376** 

## Trustees' Report and 

Audited Financial Statements for the Year Ended 31 December 2022 

for 

Mercy Relief 



Mercy Relief 

## Contents of the Financial Statements for the Year Ended 31 December 2022 

||Page|
|---|---|
|Reference and Administrative Details|1|
|Trustees' Report|2 to 9|
|Report of the Independent Auditors|10 to 12|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Cash Flow Statement|15|
|Notes to the Cash Flow Statement|16|
|Notes to the Financial Statements|17 to 23|
|Detailed Statement of Financial Activities|24 to 25|





Mercy Relief 

Reference and Administrative Details for the Year Ended 31 December 2022 

**TRUSTEES** A A D Saif N A Korbani A W M Ghaleb Chairman A A Hussein T A A Al-Thubhani S S A Sobhy N Maflahi **PRINCIPAL ADDRESS** 565 Coventry Road Small Heath Birmingham West Midlands B10 0LP **REGISTERED CHARITY** 1122376 **NUMBER AUDITORS** Gardezi Jay & Co 4A The Avenue Highams Park London E4 9LD **SOLICITORS** Simon Muirhead Burton LLP, 87-91 Newham Street, London, W1T 3EY **ACCOUNTANTS** Midas Financial Ltd 20-22 Wenlock Road, London, N1 7GU 

Page 1 



Mercy Relief 

Trustees' Report for the Year Ended 31 December 2022 

The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. 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 'Aims & Objectives' of the Charity are to promote any & all charitable purposes, for the benefit & improvement of the quality of life for the beneficiaries, including their rehabilitation & development. The Charity will undertake & facilitate these activities through any means that fulfil the aims, including: 

- Provision of advice & guidance services 

- Provision of practical support & assistance 

- Promotion & provision of education 

- Development of skills via work-based training 

- Promotion & development of sport & physical training 

The Charitable objectives as set out in the governing documents are as follows; 1) The relief of financial needs and suffering among the people living overseas and the United Kingdom, especially those of Yemeni Origin 

2) The relief of sickness and the preservation of health among people residing permanently or temporarily overseas, in Yemen and the United Kingdom especially those of Yemeni origin. 3) The relief of poverty and the improvement of the condition of life in socially disadvantaged communities overseas, Yemen and the United Kingdom, especially those of Yemeni origin. 4) To advance the general education of the public Overseas, Yemen and the United Kingdom, especially those of Yemeni origin. 

## **Significant activities** 

- To sustain and increase orphan sponsorships. 

- Several charity collections at various mosques. 

- Family Fun days and Charity bazaars. 

- Orphans in Yemen benefited from our sponsorship scheme. 

- Bakeries for the poor were supplied to help them continue their work. 

- Food parcels were distributed to the needy. 

- A huge quantity of fresh meat (Qurbani) was distributed to the needy. 

Performance of the organisation has exceeded the charity's expectation. The charity has raised, this year £3,107,270 over a third more than the amount raised last year of £2,261,872, This was made possible by MR's generous supporters donating £2,077,504 and a new initiative providing £1,029,766 worth of in In-Kind medical supplies to address the shortage of medicine. 

MR delivered £1,378,596 worth of life saving aid and provided £1,029,766 in In-Kind medical aid supplies. Most of the stock contains lifesaving medicine for distribution in Yemen. 

## **Public benefit** 

Public benefit that is provided by the charity is: 

To educate the public of the conflict Yemeni people are facing, and how they can help to alleviate their suffering. 

The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity. 

Page 2 



Mercy Relief 

Trustees' Report for the Year Ended 31 December 2022 

## **OBJECTIVES AND ACTIVITIES Social investments** 

Many lives have been saved tackling malnutrition and lack of food. 

Due to the conflict, many medical institutions / centres have closed down or do not have essential medicine. MR's medical fund supported thousands of people, giving £1,040,000 worth of medicines and medical aid to those in deep poverty or have been displaced. 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Charitable activities** 

- Sustained and increased orphan sponsorships. 

- Provided flour to bakeries to continue providing bread to the poor. 

- Food parcels were distributed to the needy in Yemen, Pakistan and Gambia 

- A huge quantity of fresh meat (Qurbani) was distributed to the needy. 

- Emergency aid provided clean water, food and medical kits in Pakistan and Yemen. 

- Several charity collections at various mosques. 

- Family Fun days and Charity bazaars. 

Page 3 



Mercy Relief 

Trustees' Report for the Year Ended 31 December 2022 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Fundraising activities** 

Due to the end of covid restrictions the charity returned to its normal activities of organising fundraising events across the country as well as focusing on activities that engaged supporters online. Resources were directed towards online marketing using Google and showcasing the life saving projects on YouTube, building the profile of MR online. 

The Charity saw an increase in the number of individuals contributing to its work, ending 2022 but due to the cost of living crisis the average donation was less than in 2021. The increase in income was due to a new initiative to bring in In-Kind stock worth £1,029K contributing to a growth in donations from partners sourcing medical supplies. Raising funds from individuals continues to be our main source of funding to invest in humanitarian aid in Yemen, Pakistan and Gambia. Income source diversification continues to be critical in the current climate. We plan to do this by focusing on building on our expertise of providing emergency aid quickly to affected areas, working closely with our partners, implementing innovative campaigns with our supporters and influencers. In 2022 our partners contributed over 

£240K to help those hard to reach communities in Yemen. 

We have continued to innovate, developing the Donor Care department: a team dedicated to supporting our supporters and ensuring they receive feedback of the work we do. Innovation and developing our case for support both contributes towards diversifying our fundraising and growing income. 

The charity follows a set of five fundraising principles, which we use to guide our fundraising policy, strategy and the behaviour of our fundraisers and the professional fundraising agencies we work with. 

These principles lay out our commitment to our supporters: 

1. Our fundraising respects and protects our mission. 

2. We fundraised with integrity 

3. We work in partnership with those who support us 

4. We value and respect our supporters 

5. We are transparent in our fundraising and use of funds. 

The Charity's fundraising activity complies with all relevant legislation and regulation. The Charity complies with the Code of Fundraising Practice and is registered with the Fundraising Regulator. Training and procedures are provided to enable staff to put the fundraising policy and principles into practice and to carry out fundraising activities in compliance with relevant legislation, regulation and the standards set out in the Code of Fundraising Practice. 

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Mercy Relief 

Trustees' Report for the Year Ended 31 December 2022 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Investment performance** 

By raising new funds and carefully managing out existing funds, MR supported over 700 orphans and their families over the year. Providing much needed clean water to over 500,000 people and food including regular bread to over 1,000,000 people most of which are families with young children. 

When considering where to focus our attention our teams assess the needs of the people and prioritises lifesaving interventions. 

This year we continued to build on our success of: 

Sponsoring over 700 orphans and supporting their families with over £195,000 of aid. The support was over the full year. 

Providing lifesaving interventions; £134,000 of Emergency aid to beneficiaries that have been displaced due to the conflict. 

Facilitating new bread factories in key locations and supporting the existing bread factories with over £150,000 of funding for flour and running costs etc, enabling our teams on the ground to reach even more people desperate to find food. 

MR made real progress to tackle the shortage of food to those in need providing £230K of food aid comprising of food parcels for the whole family. £25K to feed the fasting over the Ramadan month. £57K of Qurbani for the hard to reach displaced families. 

Many lives have been saved tackling malnutrition and lack of food. 

Page 5 



Mercy Relief 

Trustees' Report for the Year Ended 31 December 2022 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Internal and external factors** 

Risk and assurance management is an integral part of our governance. We identify and address our key strategic risks in order to mitigate their likelihood and impact. There are two levels to the risk and assurance process. Our strategic risk approach is designed to identify the key risks which could prevent the Charity from achieving its strategic objectives. It also identifies the assurance processes which we have in place to mitigate these risks and any outstanding actions around these assurance processes. 

We also consider the operational risks which underpins the strategic risk framework, dealing with a greater number of potential risks at a more detailed level. 

The cost of living crisis impacted the Charity's operations in 2022. The fundraising environment has been impacted due to covid, with more fundraising now happening online, and activities requiring face to face gradually restarting. This is particularly the case for fundraising events such as speaker tours. Our supporters have maintained their regular payments, with lower cancellation rates throughout 2022 than in prior years. That highly valued support has helped limit the overall financial impact of the cost of living crisis and the past Covid-19 restrictions. 

The major strategic risks of the Charity, together with plans and strategies in managing these risks, are shown below. 

## Financial 

We have a fundraising strategy which supports growth and a return on fundraising investments. Approval of budgets and KPT Oversight of spending and performance Periodic review of Financial Sustainability 

## Reputational 

We have policies and procedures in place to manage these risks covering acceptance of donations, unauthorised fundraising, fundraising by third parties, data protection and social media. 

## Compliance 

Staff are trained on data protection and GDPR 

The Donor care department monitors GDPR preferences of supporters with their data We undertake regular fundraising compliance checks and monitor developments in the sector. 

## Safeguarding 

Policies and procedures safeguarding our beneficiaries, supporters and staff are in place. Reporting of any safeguarding concerns to management and board. Training for our partners on keeping beneficiaries and children safe. 

## **FINANCIAL REVIEW** 

## **Financial position** 

The trustees consider the financial position at the reporting date to be of a healthy nature and will be able to continue to provide charitable activities in the future. 

## **Principal funding sources** 

The charity's main source of income is from donations from various fund raising activities that take place during the year and online donations. 

Page 6 



Mercy Relief 

Trustees' Report for the Year Ended 31 December 2022 

## **FINANCIAL REVIEW** 

## **Availability and adequacy of assets of each of the funds** 

In view of the financial performance and the reserves position as at the balance sheet date, the Board of trustees has a reasonable expectation that Mercy Relief will have the resources to continue in operational existence for the foreseeable future. 

The Trustees believe there are no material uncertainties that call into doubt our ability to continue as a going concern. The annual financial statements have therefore been prepared on the basis that the charity is a going concern. 

## **Reserves policy** 

Restricted reserves represent donations and grants for specific projects that are unspent at the balance sheet date, and which will be spent on the specified programmes in the coming financial years. 

General reserves (also known as unrestricted reserves) are not restricted to specific projects but ensure that the delivery of our vital programmes is not disrupted by unforeseen circumstances, such as a fall in income or rise in expenditure. 

The reserves is necessary to ensure that the charity's activities can continue on a day-today basis and, in particular, can continue in the event of a major unforeseen reduction of income or increase in expenditure. These reserves provide a contingency to enable the charity to take the necessary actions to bring income and expenditure into line. 

In line with recommendations of the Charity Commission, the Charity have adopted a risk-based reserves policy which is reviewed annually. The target range of reserves is determined by considering the key strategic and operational risks facing the charity, as well as the strategic plans and current financial position. Considering these factors, the charity has determined that reserves should be within the range of £50K to £200K. 

We have set a balanced budget for 2023, and undertake financial planning which delivers reserves within our target range. 

## **Going concern** 

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. 

## **FUTURE PLANS** 

Due to the current cost of living crisis and the effects of Covid-19 pandemic, the usual ways to raise money for the charity was challenging. The easing of restrictions meant that fundraising activities could now take place as usual. Even with the cost of living crisis in place the charity has performed excellently and is in a strong financial position to maintain the charitable work in the future. 

Our plans are to continue to increase our level of fundraising to achieve our target of £2.5m in donations plus in-kind raising it to above £3m annually which will help us work with our partners in delivering lifesaving sustainable projects to those most affected by the conflict and poverty in Yemen. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** 

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. 

Page 7 



Mercy Relief 

Trustees' Report for the Year Ended 31 December 2022 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees** 

The trustees are selected from the members of the local community who regularly attend events and functions organised by the charity. 

## **Organisational structure** 

The charity trustees are responsible for the general control and management of the charity. The trustees give their time freely and receive no remuneration or other financial benefits for completing their duties as a charity trustee. 

The trustees currently meet together usually 4 times per year and discuss decisions in relation to running the charity. To assist in the smooth running of the charity, the trustees have set up a lead trustee supported by other trustees to help oversee the smooth running of the day to day activities of the charity. 

## **Decision making** 

The major decisions are taken with a vote from the board of trustees. 

## **Induction and training of new trustees** 

The trustees are selected from individuals who are active in the local community. A comprehensive induction process and ongoing training in new or emerging areas of responsibility ensure we benefit from a professional and appropriate board of trustees. 

## **Key management remuneration** 

There is no pay or remuneration to key management personnel. All key personnel are offering their services voluntarily. 

Trustees remuneration and other benefits would be nil during the year. 

## **Related parties** 

Bankers TSB, 134 New Street, Birmingham, B2 4NS 

## Solicitors 

Simons Muirhead Burton LLP, 87-91 Newham Street, London , W1T 3EY 

## Accountants 

Midas Financials, 20-22 Wenlock Road, London, N1 7GU 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Page 8 



Mercy Relief 

## Trustees' Report 

for the Year Ended 31 December 2022 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued** 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Approved by order of the board of trustees on 25 October 2023 and signed on its behalf by: 

A W M Ghaleb - Trustee 


Page 9 



Report of the Independent Auditors to the Trustees of Mercy Relief 

## **Opinion** 

We have audited the financial statements of Mercy Relief (the 'charity') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **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 Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 

Our opinion on the financial statements does not cover the other information and, except 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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. 

Page 10 



Report of the Independent Auditors to the Trustees of Mercy Relief 

## **Matters on which we are required to report by exception** 

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

- the information given in the trustees Report is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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. 

## **Our responsibilities for the audit of the financial statements** 

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Examining the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. 

Researching the laws and regulations which would be considered of significance in the context of the entity. 

Obtained an understanding of the legal and regulatory framework applicable to the charity and how the charity is complying with that framework. 

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 Report of the Independent Auditors. 

Page 11 



Report of the Independent Auditors to the Trustees of Mercy Relief 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters 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 not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

Gardezi Jay & Co 4A The Avenue Highams Park London E4 9LD 

25 October 2023 

Page 12 



## Mercy Relief 

## Statement of Financial Activities for the Year Ended 31 December 2022 

|Unrestricted<br>Restricted<br>fund<br>funds<br>**INCOME AND ENDOWMENTS FROM**<br>Notes<br>£<br>£<br>Donations and legacies<br>2<br>545,592<br>2,548,506<br>**EXPENDITURE ON**<br>Donations<br>3<br>543,264<br>1,352,034<br>**NET INCOME/(EXPENDITURE)**<br>2,328<br>1,196,472<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>13,774<br>97,252<br>**TOTAL FUNDS CARRIED FORWARD**<br>16,102<br>1,293,724|<br>31.12.22<br>Total<br>funds<br>£<br>3,094,098<br>1,895,298<br>1,198,800<br>111,026<br>1,309,826|31.12.21<br>Total<br>funds<br>£<br>2,261,872<br>2,267,309<br>(5,437)<br>116,463<br>111,026|
|---|---|---|



The notes form part of these financial statements 

Page 13 



Mercy Relief 

## Balance Sheet 

## 31 December 2022 

|Unrestricted<br>Restricted<br>fund<br>funds<br>Notes<br>£<br>£<br>**FIXED ASSETS**<br>Tangible assets<br>7<br>400<br>-<br>**CURRENT ASSETS**<br>Stocks<br>8<br>-<br>1,029,766<br>Debtors<br>9<br>223,138<br>10,000<br>Cash in hand<br>(137,318)<br>253,959<br>85,820<br>1,293,725<br>**CREDITORS**<br>Amounts falling due within one year<br>10<br>(70,118)<br>(1)<br>**NET CURRENT ASSETS**<br>15,702<br>1,293,724<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>16,102<br>1,293,724<br>**NET ASSETS**<br>16,102<br>1,293,724<br>**FUNDS**<br>Unrestricted funds<br>11<br>Restricted funds<br>**TOTAL FUNDS**|<br>31.12.22<br>Total<br>funds<br>£<br>400<br>1,029,766<br>233,138<br>116,641<br>1,379,545<br>(70,119)<br>1,309,426<br>1,309,826<br>1,309,826<br>16,102<br>1,293,724<br>1,309,826|31.12.21<br>Total<br>funds<br>£<br>800<br>-<br>10,000<br>112,166<br>122,166<br>(11,940)<br>110,226<br>111,026<br>111,026<br>13,774<br>97,252<br>111,026|
|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on 25 October 2023 and were signed on its behalf by: 

## A W M Ghaleb - Trustee 


The notes form part of these financial statements 

Page 14 



## Mercy Relief 

## Cash Flow Statement for the Year Ended 31 December 2022 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash provided by/(used in) operating<br>activities<br>**Change in cash and cash**<br>**equivalents in the reporting**<br>**period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the**<br>**end of the reporting period**|31.12.22<br>£<br>4,475<br>4,475|31.12.21<br>£<br>(10,552)<br>(10,552)|
|---|---|---|
||4,475<br>112,166<br>116,641|(10,552)<br>122,718<br>112,166|



The notes form part of these financial statements 

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Mercy Relief 

## Notes to the Cash Flow Statement for the Year Ended 31 December 2022 

## **1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**OPERATING ACTIVITIES**|||
|---|---|---|
||31.12.22|31.12.21|
||£|£|
|**Net income/(expenditure) for the reporting period (as per**|||
|**the Statement of Financial Activities)**|1,198,800|(5,437)|
|**Adjustments for:**|||
|Depreciation charges|400|400|
|Increase in stocks|(1,029,766)|-|
|Increase in debtors|(223,138)|(10,000)|
|Increase in creditors|58,179|4,485|
|**Net cash provided by/(used in) operations**|4,475|(10,552)|



## 2. **ANALYSIS OF CHANGES IN NET FUNDS** 

|**Net cash**<br>Cash at bank and in hand<br>**Total**|At 1.1.22<br>£<br>112,166<br>112,166<br>112,166|Cash flo<br>At 31.12.22<br>£<br>£<br>4,475<br>116,641<br>4,475<br>116,641<br>4,475<br>116,641|
|---|---|---|



The notes form part of these financial statements 

Page 16 



Mercy Relief 

Notes to the Financial Statements for the Year Ended 31 December 2022 

## **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. 

## **Tangible fixed assets** 

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. 

Computer equipment is depreciated on a 20% straight line basis on cost. 

## **Stocks** 

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. 

## **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. 

Page 17 

continued... 



Mercy Relief 

## Notes to the Financial Statements - continued for the Year Ended 31 December 2022 

## **2. DONATIONS AND LEGACIES** 

|Gifts<br>Donations<br>Gift aid<br>Various Partners<br>**3.**<br>**DONATIONS**<br>**Raising donations and legacies**<br>Cost of Goods for Primary Purp<br>Charitable Activities<br>Support costs<br>**Other trading activities**<br>Advertising, publicity & trade<br>Management fees<br>Website maintenance and FR Sof<br>Other fundraising costs<br>Support costs<br>Aggregate amounts||Unrestricted<br>Restricted<br>31.12.22<br>Total<br>funds<br>funds<br>funds<br>£<br>£<br>£<br>(1)<br>(1)<br>(2)<br>193,868<br>2,364,600<br>2,558,468<br>295,599<br>-<br>295,599<br>56,126<br>183,907<br>240,033<br>545,592<br>2,548,506<br>3,094,098<br>31.12.22<br>Unrestricted<br>Restricted<br>Total<br>funds<br>£<br>funds<br>£<br>funds<br>£<br>674<br>1,211,510<br>1,212,184<br>166,412<br>166,412<br>167,086<br>1,211,510<br>1,378,596<br>Unrestricted<br>Restricted<br>31.12.22<br>Total<br>funds<br>funds<br>funds<br>£<br>£<br>£<br>140,936<br>28,000<br>168,936<br>46,868<br>46,868<br>3,750<br>3,750<br>147,952<br>112,524<br>260,476<br>36,672<br>36,672<br>376,178<br>140,524<br>516,702<br>543,264<br>1,352,034<br>1,895,298|31.12.21<br>Total<br>funds<br>£<br>-<br>1,673,919<br>45,127<br>542,826<br>2,261,872<br>31.12.21<br>Total<br>funds<br>£<br>82,057<br>1,454,678<br>-|
|---|---|---|---|
|||||
|||||
||||1,536,735|
||||31.12.21<br>Total<br>funds<br>£<br>35,390<br>128,678<br>39,664<br>223,615<br>303,227<br>730,574<br>2,267,309|



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Mercy Relief 

## Notes to the Financial Statements - continued for the Year Ended 31 December 2022 

## **4. SUPPORT COSTS** 

|**4.**|**SUPPORT COSTS**||||||||
|---|---|---|---|---|---|---|---|---|
|||||Information||Governance|||
||Management|Finance||<br>technology|||costs|Totals|
||£||£||£||£|£|
||Raising donations and||||||||
||legacies<br>153,743|2,109|||||10,560|166,412|
||Other trading activities<br>26,150||||10,522|||36,672|
||179,893|2,109|||10,522||10,560|203,084|
|**5.**|**TRUSTEES' REMUNERATION AND BENEFITS**||||||||
||There<br>were<br>no<br>trustees'<br>remuneration||<br>or|other|<br>benefits||for<br>the|year<br>ended|
||31 December 2022 nor for the year ended 31 December||||2021.||||
||**Trustees' expenses**||||||||
||There were no trustees' expenses paid for the year ended 31 December 2022 nor for the||||||||
||year ended 31 December 2021.||||||||
|**6.**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**||||||||
|||||Unrestricted|||Restricted|<br>Total|
||||||fund||funds|funds|
||||||£||£|£|
||**INCOME AND ENDOWMENTS FROM**||||||||
||Donations and legacies||||819,210||1,442,662|2,261,872|
||**EXPENDITURE ON**||||||||
||Donations||||817,920||1,449,389|2,267,309|
||**NET INCOME/(EXPENDITURE)**||||1,290||(6,727)|(5,437)|
||**RECONCILIATION OF FUNDS**||||||||
||**Total funds brought forward**||||12,484||103,979|116,463|
||**TOTAL FUNDS CARRIED**||||||||
||**FORWARD**||||13,774||97,252|111,026|



There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021. 

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Mercy Relief 

## Notes to the Financial Statements - continued for the Year Ended 31 December 2022 

## **7. TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1 January 2022 and<br>31 December 2022<br>**DEPRECIATION**<br>At 1 January 2022<br>Charge for year<br>At 31 December 2022<br>**NET BOOK VALUE**<br>At 31 December 2022<br>At 31 December 2021<br>**8.**<br>**STOCKS**<br>Finished goods<br>**9.**<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Other debtors<br>Prepayments and accrued income|31.12.22<br>£<br>1,029,766<br>31.12.22<br>£<br>1,000<br>232,138<br>233,138||Computer<br>equipment<br>£<br>2,000<br>1,200<br>400<br>1,600<br>400<br>800<br>31.12.21<br>£<br>-|
|---|---|---|---|
||||31.12.21<br>£<br>10,000<br>-<br>10,000|



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Mercy Relief 

## Notes to the Financial Statements - continued for the Year Ended 31 December 2022 

## **10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade creditors<br>Other creditors<br>**11.**<br>**MOVEMENT IN FUNDS**<br>**Unrestricted funds**<br>General fund<br>**Restricted funds**<br>Voluntary Income - Restricted<br>**TOTAL FUNDS**<br>Net movement in funds, included in the above are as<br>**Unrestricted funds**<br>General fund<br>**Restricted funds**<br>Voluntary Income - Restricted<br>**TOTAL FUNDS**|At 1.1.22<br>£<br>13,774<br>97,252<br>111,026<br>follows:<br>Incoming<br>resources<br>£<br>545,592<br>2,548,506<br>3,094,098|31.12.22<br>31.12.21<br>£<br>£<br>65,919<br>2,940<br>4,200<br>9,000<br>70,119<br>11,940<br>Net<br>movement<br>At<br> <br>in funds<br>31.12.22<br>£<br>£<br>2,328<br>16,102<br>1,196,472<br>1,293,724<br>1,198,800<br>1,309,826<br> <br> <br>Resources<br>expended<br>£<br>Movement<br>in funds<br>£<br>(543,264)<br>2,328<br>(1,352,034)<br>1,196,472<br>(1,895,298)<br>1,198,800|
|---|---|---|



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Mercy Relief 

Notes to the Financial Statements - continued for the Year Ended 31 December 2022 

## **11. MOVEMENT IN FUNDS - continued** 

## **Comparatives for movement in funds** 

||||Net||
|---|---|---|---|---|
||||movement|At|
||At 1.1.21||in funds|31.12.21|
||£||£|£|
|**Unrestricted funds**|||||
|General fund|12,484||1,290|13,774|
|**Restricted funds**|||||
|Voluntary Income - Restricted|103,979||(6,727)|97,252|
|**TOTAL FUNDS**|116,463||(5,437)|111,026|
|Comparative net movement in funds, included in the above are as follows:|||||
||Incoming||Resources|Movement|
||resources||expended|in funds|
||£||£|£|
|**Unrestricted funds**|||||
|General fund|819,210||(817,920)|1,290|
|**Restricted funds**|||||
|Voluntary Income - Restricted|1,442,662|(1,449,389)||(6,727)|
|**TOTAL FUNDS**|2,261,872|(2,267,309)||(5,437)|
|A current year 12 months and prior year 12 months combined position is as follows:|||||
||||Net||
||||movement|At|
||At 1.1.21||in funds|31.12.22|
||£||£|£|
|**Unrestricted funds**|||||
|General fund|12,484||3,618|16,102|
|**Restricted funds**|||||
|Voluntary Income - Restricted|103,979|1,189,745||1,293,724|
|**TOTAL FUNDS**|116,463|1,193,363||1,309,826|



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Mercy Relief 

Notes to the Financial Statements - continued for the Year Ended 31 December 2022 

## **11. 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**<br>General fund<br>**Restricted funds**<br>Voluntary Income - Restricted<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>1,364,802<br>3,991,168<br>5,355,970|<br> <br>Resources<br>expended<br>£<br>Movement<br>in funds<br>£<br>(1,361,184)<br>3,618<br>(2,801,423)<br>1,189,745<br>(4,162,607)<br>1,193,363|
|---|---|---|



## **12. RELATED PARTY DISCLOSURES** 

There were no related party transactions for the year ended 31 December 2022. 

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Mercy Relief 

Detailed Statement of Financial Activities for the Year Ended 31 December 2022 

|**INCOME AND ENDOWMENTS**<br>**Donations and legacies**<br>Gifts<br>Donations<br>Gift aid<br>Various Partners<br>**Total incoming resources**<br>**EXPENDITURE**<br>**Raising donations and legacies**<br>Cost of Goods for Primary Purp<br>Charitable Activities<br>**Other trading activities**<br>Advertising, publicity & trade<br>Management fees<br>Website maintenance and FR Sof<br>Other fundraising costs<br>**Support costs**<br>**Management**<br>Rent<br>Insurance<br>Legal Expenses<br>Telephone<br>Postage and stationery<br>Advertising<br>Sundries<br>Consultancy Fees<br>Computer equipment<br>**Finance**<br>Bank charges|31.12.22<br>£<br>31.12.21<br>£<br>(2)<br>2,558,468<br>1,673,919<br>295,599<br>45,127<br>240,033<br>542,826<br>3,094,098<br>2,261,872<br>3,094,098<br>2,261,872<br>-<br>82,057<br>1,212,184<br>1,454,678<br>1,212,184<br>1,536,735<br>168,936<br>35,390<br>46,868<br>128,678<br>3,750<br>39,664<br>260,476<br>223,615<br>480,030<br>427,347<br>8,250<br>9,000<br>1,160<br>962<br>-<br>4,800<br>1,072<br>1,090<br>13,179<br>5,486<br>58,417<br>8,242<br>2,089<br>186<br>95,326<br>263,308<br>400<br>400<br>179,893<br>293,474<br>2,109<br>1,208|
|---|---|



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Mercy Relief 

|Detailed Statement of Financial Activities<br>for the Year Ended 31 December 2022<br>**Finance**<br>**Information technology**<br>Repairs and renewals<br>IT Software and Consumables<br>**Governance costs**<br>Auditors' remuneration<br>Accountancy and legal fees<br>Total resources expended<br>**Net income/(expenditure)**|31.12.22<br>£<br>162<br>10,360<br>10,522<br>3,300<br> <br>7,260<br>10,560<br>1,895,298<br>1,198,800|31.12.21<br>£<br>-<br>2,245<br>2,245<br>3,300<br>3,000<br>6,300<br>2,267,309<br>(5,437)|
|---|---|---|



This page does not form part of the statutory financial statements 

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