REGISTERED CHARITY NUMBER: 1122376
Trustees' Report and
Audited Financial Statements for the Year Ended 31 December 2023
for
Mercy Relief
Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
Contents of the Financial Statements for the Year Ended 31 December 2023
| 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 22 |
| Detailed Statement of Financial Activities | 23 to 24 |
Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
Reference and Administrative Details for the Year Ended 31 December 2023
| 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 | |
| BANKER | TSB |
| 134 New Street, | |
| Birmingham, | |
| B2 4NS |
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Mercy Relief
Trustees' Report for the Year Ended 31 December 2023
The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. 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:
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Provision of advice & guidance services
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Provision of practical support & assistance
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Promotion & provision of education
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Development of skills via work-based training
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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 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 and the United Kingdom, especially those of Yemeni origin.
4) To advance the general education of the public Overseas and the United Kingdom, especially those of Yemeni origin.
Significant activities
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To sustain and increase orphan sponsorships.
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Several charity collections at various mosques.
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Family Fun days and Charity bazaars.
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Orphans in Yemen benefited from our sponsorship scheme.
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Bakeries for the poor were supplied to help them continue their work.
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Food parcels were distributed to the needy.
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A huge quantity of fresh meat (Qurbani) was distributed to the needy.
The performance of the organisation has been what was predicted, the charity has raised £3,027,670 similar to 2022. This was mainly due to the effects of the cost of living crisis as supporters felt the effects of the increased cost on the food and home bills.
MR delivered £3,429,808 worth of life saving aid including provided emergency aid for Yemen, Syria and Gaza. Deployed volunteers to deliver food aid in Lebanon and Kenya. Delivered containers full of medical aid supplies 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.
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Mercy Relief
Trustees' Report for the Year Ended 31 December 2023
OBJECTIVES AND ACTIVITIES
Social investments
Many lives have been saved tackling malnutrition and lack of food.
Due to the conflict in Yemen, many medical institutions / centres have closed down or do not have essential medicine. MR's medical fund supported thousands of people, giving £2,014,580 equivalent to $2,557,000 USD worth of medicines and medical aid to those in deep poverty or have been displaced.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
o Sustained and increased orphan sponsorships.
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Provided flour to bakeries to continue providing bread to the poor.
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Food parcels were distributed to the needy in Yemen, Pakistan and Gambia
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A huge quantity of fresh meat (Qurbani) was distributed to the needy.
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Emergency aid provided clean water, food and medical kits in Pakistan and Yemen.
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Several charity collections at various mosques.
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Family Fun days and Charity bazaars.
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Mercy Relief
Trustees' Report for the Year Ended 31 December 2023
ACHIEVEMENT AND PERFORMANCE
Fundraising activities
The charity ran 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 lifesaving projects on YouTube, building the profile of MR online.
The Charity saw a similar number of individuals contributing to its work as in 2022, but due to the cost of living crisis the average donation was less than in 2022. However the actual delivery of aid increased compared to 2022 due to the new initiative to bring in In-Kind medical stock worth £2,014K 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 2023 our partners contributed over £184K 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:
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Our fundraising respects and protects our mission.
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We fundraised with integrity
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We work in partnership with those who support us
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We value and respect our supporters
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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 2023
ACHIEVEMENT AND PERFORMANCE
Investment performance
By raising new funds and carefully managing our existing funds, MR over the past 2 years have supported 1000's of families and 100's of orphans and their families 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:
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Sponsoring over 675 orphans and supporting their families with over £180,000 of aid. The support was over the full year.
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Providing lifesaving interventions; £131,000 of Emergency aid to beneficiaries that have been displaced due to the conflict in Yemen and Gaza or due to the Earthquake in Turkey Syrian border.
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Supported the existing bread factories with over £17,000 of funding for flour to enabling our teams on the ground to continue to provide bread to the people desperate to find food.
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MR made real progress to tackle the shortage of food to those in need providing
a. £45K of food aid comprising of food parcels for the whole family.
b. £125K of Ramadan related projects include zakat a fitra
c. £24K of Qurbani for the hard to reach displaced families.
Many lives have been saved tackling malnutrition and lack of food.
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Mercy Relief
Trustees' Report for the Year Ended 31 December 2023
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 and 2023. The fundraising environment has been impacted due to COVID, with fundraising happening online, as well as events or outdoor activities. This is particularly the case for fundraising events such as speaker tours. Our supporters have maintained their regular payments, with low cancellation rates throughout 2023 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, and 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 the 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.
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Mercy Relief
Trustees' Report for the Year Ended 31 December 2023
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 £150K.
We have set a balanced budget for 2024 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
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.
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Mercy Relief
Trustees' Report for the Year Ended 31 December 2023
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.
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).
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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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Mercy Relief
Trustees' Report for the Year Ended 31 December 2023
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
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 7 October 2024 and signed on its behalf by:
==> picture [110 x 57] intentionally omitted <==
A W M Ghaleb - Trustee
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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 2023 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:
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give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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.
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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:
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the information given in the trustees Report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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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.
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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.
PJayawardene
MR P. JAYAWARDENE - Senior Statutory Auditor
For and on behalf of Gardezi Jay & Company
Chartered Accountants and Statutory Auditors
4A The Avenue Highams Park London E4 9LD
7 October 2024
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Mercy Relief
Statement of Financial Activities for the Year Ended 31 December 2023
| Statement of Financial Activities for the Year Ended 31 December 2023 |
||
|---|---|---|
| Unrestricted Restricted Notes fund £ funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 1,387,700 1,639,971 EXPENDITURE ON Charitable Activities 3 1,071,688 2,905,325 NET INCOME/(EXPENDITURE) 316,012 (1,265,354) RECONCILIATION OF FUNDS Total funds brought forward 16,102 1,293,724 TOTAL FUNDS CARRIED FORWARD 332,114 28,370 |
31.12.23 Total funds £ 3,027,671 3,977,013 (949,342) 1,309,826 360,484 |
31.12.22 Total funds £ 3,094,098 |
| 1,895,298 | ||
| 1,198,800 111,026 |
||
| 1,309,826 |
The notes form part of these financial statements
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Mercy Relief
Balance Sheet
31 December 2023
| Notes £ £ FIXED ASSETS Tangible assets 6 - - CURRENT ASSETS Stocks 7 - - Debtors 8 337,335 250 Cash in hand 44,679 28,120 382,014 28,370 CREDITORS Amounts falling due within one year 9 (49,900) - NET CURRENT ASSETS 332,114 28,370 TOTAL ASSETS LESS CURRENT LIABILITIES 332,114 28,370 NET ASSETS 332,114 28,370 FUNDS Unrestricted funds 10 Restricted funds TOTAL FUNDS Unrestricted Restricted fund funds |
£ - - 337,585 72,799 410,384 (49,900) 360,484 360,484 360,484 332,114 28,370 360,484 31.12.23 Total funds |
£ 400 1,029,766 233,138 116,641 1,379,545 (70,119) 1,309,426 1,309,826 1,309,826 16,102 1,293,724 1,309,826 31.12.22 Total funds |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 7 October 2024 and were signed on its behalf by:
==> picture [110 x 57] intentionally omitted <==
A W M Ghaleb - Trustee
The notes form part of these financial statements
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Mercy Relief
| Cash Flow Statement for the Year Ended 31 December 2023 Notes Cash flows from operating activities Cash generated from operations 1 Net cash (used in)/provided by operating activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.12.23 £ (43,842) (43,842) (43,842) 116,641 72,799 |
31.12.22 £ 4,475 4,475 4,475 112,166 116,641 |
|---|---|---|
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 2023
1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
OPERATING ACTIVITIES |
||
|---|---|---|
| 31.12.23 | 31.12.22 | |
| £ | £ | |
| Net (expenditure)/income for the reporting period (as per | ||
| the Statement of Financial Activities) | (949,342) | 1,198,800 |
| Adjustments for: | ||
| Depreciation charges | 400 | 400 |
| Decrease/(increase) in stocks | 1,029,766 | (1,029,766) |
| Increase in debtors | (104,447) | (223,138) |
| (Decrease)/increase in creditors | (20,219) | 58,179 |
| Net cash (used in)/provided by operations | (43,842) | 4,475 |
2. ANALYSIS OF CHANGES IN NET FUNDS
| Net cash Cash at bank and in hand Total |
At 1.1.23 £ 116,641 116,641 116,641 |
Cash flow £ At 31.12.23 £ (43,842) 72,799 (43,842) 72,799 (43,842) 72,799 |
|---|---|---|
The notes form part of these financial statements
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Mercy Relief
Notes to the Financial Statements for the Year Ended 31 December 2023
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.
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Mercy Relief
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
| 2. DONATIONS AND LEGACIES Donations Gift aid Various Partners 3. CHARITABLE ACTIVITIES Raising donations and legacies Charitable Activities Support costs Other trading activities Advertising, publicity & trade Management fees Website maintenance and FR Sof Other fundraising costs Direct Wages Other Fundraising Costs Support costs Aggregate amounts |
Unrestricted Restricted funds funds £ £ 1,163,769 1,525,159 154,286 - 69,645 114,812 1,387,700 1,639,971 Unrestricted Restricted funds funds £ £ 524,483 2,905,325 - - 524,483 2,905,325 Unrestricted Restricted funds funds £ £ 126,595 - 11,000 - 10,750 - 250 - 14,310 - 42,490 - 341,810 - 547,205 - 1,071,688 2,905,325 |
31.12.23 Total funds £ 2,688,928 154,286 184,457 3,027,671 31.12.23 Total funds £ 3,429,808 - 3,429,808 31.12.23 Total funds £ 126,595 11,000 10,750 250 14,310 42,490 341,810 547,205 3,977,013 |
31.12.22 Total funds £ 2,558,466 295,599 240,033 3,094,098 31.12.22 Total funds £ 1,212,184 166,412 1,378,596 31.12.22 Total funds £ 168,936 46,868 3,750 260,476 - - 36,672 516,702 1,895,298 |
|---|---|---|---|
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Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
4. SUPPORT COSTS
| SUPPORT COSTS | |||||
|---|---|---|---|---|---|
| Information | Governance | ||||
| Management | Finance | technology | costs | Totals | |
| £ | £ | £ | £ | £ | |
| Other trading activities | 319,494 | 585 | 9,611 | 12,120 | 341,810 |
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.
6. TANGIBLE FIXED ASSETS
7.
| Computer | ||
|---|---|---|
| equipment | ||
| £ | ||
| COST | ||
| At 1 January 2023 and | ||
| 31 December 2023 | 2,000 | |
| DEPRECIATION | ||
| At 1 January 2023 | 1,600 | |
| Charge for year | 400 | |
| At 31 December 2023 | 2,000 | |
| NET BOOK VALUE | ||
| At 31 December 2023 | - | |
| At 31 December 2022 | 400 | |
| STOCKS | ||
| 31.12.23 | 31.12.22 | |
| £ | £ | |
| Finished goods | - | 1,029,766 |
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Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
| Notes to the Financial Statements-continued for the Year Ended 31 December 2023 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors Prepayments and accrued income Prepayments 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Taxation and social security Other creditors 10. MOVEMENT IN FUNDS At 1.1.23 £ Unrestricted funds General fund 16,102 Restricted funds Voluntary Income - Restricted 1,293,724 TOTAL FUNDS 1,309,826 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 1,387,700 Restricted funds Voluntary Income - Restricted 1,639,971 TOTAL FUNDS 3,027,671 |
31.12.23 31.12.22 £ £ 750 1,000 332,651 232,138 4,184 - 337,585 233,138 31.12.23 31.12.22 £ £ 36,174 65,919 1,726 - 12,000 4,200 49,900 70,119 Net movement in funds At 31.12.23 £ £ 316,012 332,114 (1,265,354) 28,370 (949,342) 360,484 Resources expended £ Movement in funds £ (1,071,688) 316,012 (2,905,325) (1,265,354) (3,977,013) (949,342) |
|---|---|
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Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
10. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Comparatives for movement in funds | |||
|---|---|---|---|
| Net | |||
| movement | At | ||
| At 1.1.22 | in funds | 31.12.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 13,774 | 2,328 | 16,102 |
| Restricted funds | |||
| Voluntary Income - Restricted | 97,252 | 1,196,472 | 1,293,724 |
| TOTAL FUNDS | 111,026 | 1,198,800 | 1,309,826 |
| Comparative net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 545,592 | (543,264) | 2,328 |
| Restricted funds | |||
| Voluntary Income - Restricted | 2,548,506 | (1,352,034) | 1,196,472 |
| TOTAL FUNDS | 3,094,098 | (1,895,298) | 1,198,800 |
| A current year 12 months and prior year 12 months combined position is as follows: | |||
| Net | |||
| movement | At | ||
| At 1.1.22 | in funds | 31.12.23 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 13,774 | 318,340 | 332,114 |
| Restricted funds | |||
| Voluntary Income - Restricted | 97,252 | (68,882) | 28,370 |
| TOTAL FUNDS | 111,026 | 249,458 | 360,484 |
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Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
10. 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 Restricted funds Voluntary Income - Restricted TOTAL FUNDS |
Incoming resources £ 1,933,292 4,188,477 6,121,769 |
Resources expended £ Movement in funds £ (1,614,952) 318,340 (4,257,359) (68,882) (5,872,311) 249,458 |
|---|---|---|
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2023.
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Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
Detailed Statement of Financial Activities for the Year Ended 31 December 2023
| INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Various Partners Total incoming resources EXPENDITURE Raising donations and legacies Charitable Activities Other trading activities Advertising, publicity & trade Management fees Website maintenance and FR Sof Other fundraising costs Direct Wages Other Fundraising Costs Support costs Management Rent Insurance Telephone Postage and stationery Advertising Sundries Consultancy Fees Computer equipment Finance Light and heat Bank charges |
31.12.23 £ 2,688,928 154,286 184,457 3,027,671 3,027,671 3,429,808 126,595 11,000 10,750 250 14,310 42,490 205,395 10,500 1,219 2,353 6,307 89,419 4,700 204,596 400 319,494 571 14 585 |
31.12.22 £ 2,558,466 295,599 240,033 |
|---|---|---|
| 3,094,098 | ||
| 3,094,098 1,212,184 168,936 46,868 3,750 260,476 - - |
||
| 480,030 8,250 1,160 1,072 13,179 58,417 2,089 95,326 400 |
||
| 179,893 - 2,109 |
||
| 2,109 |
This page does not form part of the statutory financial statements
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Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc
Mercy Relief
| Detailed Statement of Financial Activities for the Year Ended 31 December 2023 Finance Information technology Repairs and renewals IT Software and Consumables Governance costs Auditors' remuneration Accountancy and legal fees Total resources expended Net (expenditure)/income |
31.12.23 £ - 9,611 9,611 3,300 8,820 12,120 3,977,013 (949,342) |
31.12.22 £ 162 10,360 10,522 3,300 7,260 10,560 1,895,298 1,198,800 |
|---|---|---|
This page does not form part of the statutory financial statements
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Doc ID: 10e0bd8a86569e31051c95a4205813bc45a545bc