mdac.uk tnental d", bility odvococy cenlre MENTAL DISABILITY ADVOCACY CENTRE Company number.. 06240151 Registered charity no: 1124016 Annual Report and Financial Statements for the year ended 31 December 2022 PAentolD1sobilityAd￿CryCVcentrè Compunyno.. 0524Q151 Chorityno.. 1124016 Annual Report of the Trustees The Mental Disabllity Advocacy Centre IMDACI is a UK charity that raises funds to support the charétable actSvltles of the Valldity Foundation, a charltable foundation headquartered in BudapÈs¢ Hungary. The Valldlty Foundation Is an international non-governmentsl human rights organisation that uses legal strategies to promote, protect and defend the human rights of people with mentsl disabilities worldwide. In addition to raislng funds to support ValidiWs activities, MDAC has an artive Board of Trustees whlch provides the Hun8arlan Foundatlon with supporton strate8ic, le8al, fjnanclal and communlcatlons matter5. Irision. Mi$5ion. and Artlvltl•s Validity strives for a world of equality, where emotional, mentsl, and learnln8 dlffèrènces are valued equally; wherethe inherent autonomyand dlgnity of each person is ful￿ respected,. and where human rights are realised fer all people Wr(hO￿ discrimination. The Valldity mission, fully adopted by the MDAC Board, Ss to: Act on the Instructions of people wlth mental disabllities,. Serve a5 a wat¢hdo& monitorlng governments, exposing abuses and 3dvocatin8for change: and Contribute to the broader disability rights movement by offering its legal expertise. All of Validitvs work is grounded in the rights set out In the UN Conventlon on the Rlghts Df Persons with Disabilities. We were part of a large communlty of NG05 and others that lobbied the drafters to frame these vSolations as rights.. the rightto legal capacity-this meansthe rightto make d8clsions in yourown life and to receive support to do this,. the rlght to 1Sve independendy and be included in the community - with serviees to provide support rather than being forced to live in institutions,. the ri8htto inclusive edu¢ation forall- pushingfor incluslve, mainstream schools which provide individualised support when needed; and the rl8ht to reasonable accommodatlon5 which means that publir service5 fTIU5t learn to respond to the indlvldual needs of people with disabilitie5 as of ri8ht Since the adoption of the Convention, Validity has direrted every effort towards promoting th rights and 5UPPOrting people with mental disabilities to tum these rights into reality. We do so bv focussing on three international campaigns which tackle the m05t widespread and systematic human rlghts vSolitions faced bypeople with mental disabilities worldwide. These ¢)verarchin8 campaigns are: Tackle institutionalisation and pmmote inclu5ion-.my Home. My Choice" Challenge guardianship and promote support-"I'm a Person"; and Fight segregated education in favour of inclusive educatlon-"Schools for All" mentcl£Xscblllty￿￿VUcUtycertre c0fflptsnyr￿.' 06240251 Chorityng.. 1124016 Achievemeb)ts and Perfomiance After a year of recovery from the pandemic in 2021, Valldity saw Its activities expand slgnificant during 2022. This involved working closely with lawyer5 in Europe and Africa to consolldate its global litlEation docket. Validitys lawyers were involved in several major j(tdgments, such a5 the European Court of Human Rightsfinding Moldova in violatlon of article 3 of the European ConventiLin on Human Rights in a case concerning forced abortion5 and contra￿ptIon of women with intellectual disabilities in the country. Durlng the year, Validity convened a case conference involwng numerous State authorltles to advocatefor Implemenlation of the decision and callingfor broader reforms In an often neglected area of disability rights. During the year, Valldity also successfully applied to lead or partSclpate in major European Union to- funded Inftlatlves such as Child-Friendly Justice Ipromoting Justi￿ systems that uphold the ri8ht5 and need5 of ¢hildrenl, Voice5 for Justi￿ Iwhlch included the development of a specialist toolkit for professionals and persons Wlth disabllities who are victim5 of crimèl. ENABLE (research project concerning procedural8uarantees and barrlers in the criminalju5tice system foradult defendants wlth disabilitie5}. On 15 August2022. Ann Campbell Stepped down from her role a5 Co-Executive Direclorof the Validlty Foundation. During her time as Co-Executive Director. Ann jointly oversaw the growth and financial stability of Valldity alongside Steven Allen. and bulÈt and man3Bed a tearn of exceptlonal advocates and lawyers. Arnong5t many other achievements in her eight years with the organisation, Ann led the largest international docket of strategic di5ability-rights cases in the world. driving change through almost 111) cases Since 2014. including its first cases in Africa, zt the UN, and before the Court of Justlce of the EU. As she left the oreanlsatlon. the Trustees of MDAC thanked her for elght years, hard work and dedication to Validit￿S mission to enhance equ81ity and justice for persons with disabilities. Plans ft*r FU￿re Perlods Valldlty continues to Sncrease Its actlvltles In Africa, and MDAC Is supportive of Validitl5 plans to set up a new operatlng entity In Africa. Kenya has been chosen as the most appropriate location given Validi￿5 existlng presen￿ Sn the country. MDAC plansto provide financlal and organlsational support for the creation of a n8w Kenyan entity durin8 2023. Another lonE-term objett￿e of Valldlvs Board and management has been to secure a new seat of règistvdtion for the organisation as awhole to mitiuate 383inst the challÈngingopèrating environment In Hungary. Once again, MDAC will continue to provide financial and organisational support for thi5 oblettive in 2023. Financial Re¥iew and Reserves PoliLy MDACS primary purpose is to support the charltable artivities of the Validlty Foundation in Hungary. During the year, MDAC raised over £35.0(K) of unrestricted donations in support of this objective. Durlng the year, MDAC provided a total of £129,000 of fundin8 to the Valldlty Foundatlon. Thls total con515ted of £76,000 which had been committed in prevlous years and was paid in 2022. and a new commitment of £53,000 which was fully paid by the year-end. At the year.end, MDACS reserves totalled £47,018, all of whlch werè unrestricted and mostly held as cash in the charity's currerbt account. The Trustees have considered thi5 level of re5erve5 and conslder that it remains appropriate in the ojrrent operatlng envlronment. Mentol DisobllityAdvocGry CentrE Compony no.. 06240151 Chorltyno.. 1124016 Strurture, Governance and Management Validity continues to be comprised of two legal entities: the Hungarian Foundation which remains the centre of all operations and 5taffin& and MDAC, the primary purpose of which is to raise funds to support the charitable activities of the Hungarian Foundation. Both legal entities have boards of Trustees fulfilling the legal and regulatory requirements of each jurisdiction. Three board members (Phillippa Kaufmann QC. Peter Chivers, and Victoria MacDonaldl 51t on both boards. Regular board meetings of the two entitie5 take place consecutively on the same day with members of both boards present throughout, although only members can only vote on resolutions concerning the entityto which they are legally appointed. Board members of both entities provide strong support to Valldittys growing staff team. MDAC itself employs no staff, although its Board 15 SUPPOrted by the Executive Director of the Hungarian Foundation, Steven Allen. Public Benefrt The Trustees have eomplied with the duty in Section 17 of the Charitie5 Act 2011 to have due ￿gard to the Charity Commission's general guidance on public benefit. The Trustees consider that MDAC'S support forthe Validity Foundation, which uses legal strategies to advocate forand promote the rights of people with mental disabilities, means that the charity's activity support$111 the advancement of human rights and 121 the rellef of those in need by reason of disability, both of which are 'public beneftts. as defined in the Act. Thi5 report was approved by the Board on 25 September 2023 and signed on its behalf by Daniel Bird Trustee and Treasurer _Mental Disability Advocacy Centre Company no: 06240151 Charity no: 1124016_ ## **Reference and Administrative Information** **Company registration number** 06240151 **Charity registration number** 1124016 **Registered office address** 63/66 Hatton Garden Fifth Floor Suite 23 London EC1N 8LE **Board of Trustees** Victoria Macdonald (Chair) Peter Chivers (Vice-Chair) Jean Barclay (Company Secretary) Mike Bienenfeld Daniel Bird (Treasurer) Anthony Busser George Julian Phillippa Kaufmann KC Lamin Khadar Edwin Rekosh **Bankers** Co Op Bank PLC PO Box 101 1 Balloon Street Manchester M60 4EP 4 MÈniol DISGbili&V ALlvococy Cvntie Compony no.. 06240151 Chority no.. 1124016 Independent Examiner's report on the accounts to the Trustees of the Mental Disability Advocacy Centre Responsibilities and basls of report I report to the Trustees on my examination tsf the accounts of the Mental Disability Advocacy Centre I'the charity") for the year ended 31 December 2022. As the charity'5 trustees Iwho are also the directors of the company for the purptsses of company lawl. you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061"the 2006 Act-l. Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2(K)6 Act and are eligible for independent examination, I report in respect ol mv examination of your tharity's accounts as carried out under sertion 145 of the Charitie5 Act 20111.the 2011 Art"). In carrying out my examination, I have followed the Directions given by the Charity Commission under sertion 14515llbl of the 2011 Act. 8a515 of independent examlnerfs statement My examination wa5 carried our in accordance with general Directions given by the Charity Commission. An examination include5 a review of the accounting Tecords kept by the charity and a comparison of the account5 presented with those records. It 3150 include5 consideration of any unusual items or disclosures in the accounts and seeking explanations Irom the tru5tee5 concerning any such matters. The procedure5 undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion 15 given as to whether the accounts present a 'irue and fairf view and the report is limited to those matter5 Set out in the statement below. Independent examiner'5 Statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe thot in. any materia5 respert.. the accounting records were not kept in accordance with section 130 of the Charities Act., or the accounts did not accord with the accountinÉ records,. or the accounts did not comply with the applicable requiremenis concerning the form and conient of Jtcounts set oul in the Charities (Accounts and Report51 Regulation5 2CQ8 other than any requirement ihat the accounts give a 'true anLI fair, view whiih 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. Signed: Date: 22 Kim Christlna KniBhL ACMA Address: Apt 105 New Hampton Lofts. 99 8ranston Street, Birmingham, B18 6BG MentolDisabllityAdvrtqry centre CDmPUnY no.. D6240J51 Churityno.'1124016 Mentsl Disability Advocary Centre Statement of Hnanclal Artlvltles inc0rpornt1￿ Income and Empendlture A(count for the year •nded 31 December 2022 Restricted Unrestrirted Funds Funds Total 2022 Total 2021 Income from: Donation5 and le8acSes Total Income 35,611 35fi11 35,611 35,611 40.507 40.507 Expendlture on: Raising funds Charitsble activitles Totsl expendhure 153,4891 53,489} {53,489} 53.489) 154,2981 54,298 Net Income {17.878} 17,878) 13,791 Net movement in funds forthe year 117A78} 117,8781 113,7911 Reconciliation of funds Funds brou@ht foNiard l January 64.896 64.896 78.687 Funds ¢arrfed fonvard 31 December 47,018 47,018 64,896 The statement of financlal actSvltles includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 8 to 10 form part ofthese finanaal #ètements. lrfentttlDlstsbllltyAdvococy Centre Compony no.. 06240151 Choniyno.. 1124016 Mentsl Disability Advocary Centre Balance Sheet as at 31 December 2022 2022 2021 Note Fixed assets Total fixed assets Current assets Debtors, prepayment5 and accrued income Cash at bank and in hat)d Totsl turrent assets 5,763 41,255 47,018 4.188 136,651 140.839 Liabilities Creditor5 falling due within one year 175,9431 Net assets 47.018 64.896 Funds of the charlty Restrirted funds Unrestricted income funds 47,018 64.896 Total charity funds 47,018 64096 Forthe period ended 31 Oe￿Mber2022. the Company was entitlÉd to exemption from audit undersection 477 of the Companie5 Art 2W6 ￿lating to small cornpanie5. The mernber ha5 not ￿qUI￿d the Company to obtain an audit of its accounts for the period in question in accordance with sertion 476. The Dlrectors acknowled8e their responsibilitiesfor Complylng wlth the requirements of the Aet with respectto accountin8 ￿CordS and the preparation of accounts. The accounts have been prepared in accordance wr(h the provisions applitable io companies sublettto the small companies. re8ime. The Financial Statements on pages 6 to 10 were approved by the Board of Di￿¢tOrS on 25 September 2023 and signed on its behalf bv.. Daniel 8ird Trustee and Treasurer Registe￿d Company No= 06240151 MertGIDlsL*bllltyAdvococy Centre Cornpony no.. 06240151 ChGrityno.' 1124016 Mental Dlsability Advoca¢y Centre Notes to the Finantlal Statements for the yeaT ended 31 December 2022 Accountlng Policie5 Ba515 of PrePara￿On The finandal statements have been prepared in accordanTr with Accountlng ond Reporting by Charities.- Stotement of Recommended ProrticE oppli¢oble to chorltles preparing their uccounts In ¢7¢¢ordonce with the Finonclol Reporting StandJrd upplic¢ible An the UKtsnd Republic of Irelund {FRS 102), the tharltlès Act 20113nd UK General￿ A¢￿pted AccountSng Practice. The charity meets the definltion of a 'public benefit entity, under FRS 102. The tlnandal 5taternents are prepared under the hlstorl¢ cost conventlon except where othe￿Ise stated. The majority of the Foundation'5 assets and liabilities are denominated Sn Pounds Stsrllng. The functional currency of the Foundatlon 15 therefore considered to be Pound5 Sterling and the Financial Statements are presented in that cu￿enC¥. Incom• Income Is recogni5ed when the charlty has entitlement to the funds, Èt ts protsable thai the income wlll be received and the amount can be measured reliabty. The full analysis of incomè 15 shown in the Statement of Financial Attivitles. Gift Aid receNable Is recognised when the donor makes a donation wlth a valid Gift dedaration. Gift Aid receivable but not yet claimed at year*nd is accounted foras accrued income. Any fjift Aid received in respett of a donation is credlted to the same fund a5 the initial (k)nation unless the donor or the term5 Df the appeal have specified otherwise. 13. &vpendititre and Trreco¥erydbleVAT Expendlture is rewÉnised once.. there is a legal or con5tructl¥e obli8ation to rnake a payment tD a third partv arising from a past event; it is probable that settlement wll be required,. and the amount of the obligation can be measured rellabty. EXpend￿ure relate5 either to raisin8 funds (the c05t5 355lKÉatsd with fiJndraisin81 or trj charrtable activitie5 (grants made to the Hun8arfjan Foundation along with thè support and govemance eosts assoclated wrf(h providiThgth05e The charlty Is not reqlstered forVATand irrecovernble VAT is therefore charged as a cost agalnst the actNltyfor whlch the expenditure was incurred. IA. Debto Debton IlncludSngtradedebtorsand loans receNablelare measured on initial recogn￿[0￿ atthecash settiernent amount after anytrade dlscounts or amount5 advanced bythe charity. Subsequentl¥, they are measured at the value of the cash or other consideration expected to be received. Golw concem The Board has reviewed budgets and cash flow forecasts for 2021 and 2022 ha5 a reasonable expectatlon the charity ha5 3dequate liquid resourc2S to ￿ntirtUe iss a¢tlvltles for a perlod of at least 12 months from the approval of these finantial statements. The maiorlty MDACS expenditure is discretionary and all of its unrestrictèd fund bèlanees are helé as cash. This provldes a sisnificant'buffee for un2xpectèd operational costs. Thè Trustees have therefore concluded that it is appropriate to continue to adopt the 8oin8 concern basis I prEparin8the financ(al $¢atÈments. MentolDIMbllMyAdvo¢u¢y Cen CDmpcny nD.' 06240J51 Churltyno.'1124016 Mental Disability Advocacy Centre Notes to the Financlal Statements forthe year ended 31 December 2022 Cash at bank and in hand 2022 2021 Cash at bank and in hand Totsl 41,255 136,651 41,255 136,651 All the CharIt￿S cash was held in a Sterllng current account wlth no notlce perlod or other restrictlon on the Trustees, ability to draw down on the balan￿. Analysis of charitable funds Current accountlng period Balance 01.01.22 Balance 31.12.22 Income Expenditure Unrestricted income fjJnd Total funds 64,896 64,896 35,611 35,611 153.4891 153A89) 47,018 47,018 Prevlous accourrting period Balance 01.01.21 Balance 31.12.21 Income ExpendittEre Unrestricted income fund Totsl fund$ 78,687 78,687 40,507 40,$07 154,2981 154,2981 64,896 64,896 The unrestricted income fund 15 used to meet the costs of all charitable activities, as well as operational and fundraising costs. Rolated party transartlons The charty's sole MeM￿r is the Validity Foundation, a non-profft organisation registered in Hun88ry. DurinB the year, MDAC had the following trdr￿art1LIns with the Validlty Foundatlon: Newgrant Payable New grant tommltsnents asat commitments 2022 31.112022 2021 Payable asgt 31.1120ZI Grants to the Validmy Foundation 53A29 54,249 75,943 The full balance outstandinB at 31 December 2021 was paid to the Validwty Foundation in Hungary on 4 January 2022. All new grants committed durlng thè 2022 fin3ncSal year were pald before the year- end. io MentolDtsobilityALfvocoryCentre Componyno.. 06240151 ChLrriryno.' 1124016 Mental Disability Advocacy Centre Notes to the Flnanclal Statements for the year ended 31 DÈcÈmber 2022 Anafy5i5 of expÈndlture on charitable artivitie5 Restwi¢ted Unrestrtcted Funds Fund5 2022 2022 Totsl 2022 Totsl 2021 Grants to the Validlty Foundatlon (Hungaryl Support and governan￿ costs Total 153,4291 1601 153.489) 153,4291 160) 153,4891 154,2501 1481 154,2981 Net income forthe year Net income for the year 15 stated after charging.. Totsl 2022 Totsl 2021 Independent examlnerfs fees Assurance services otherthan audit or independèrtt examination Tax advisory fees Other financial services Remuneration of staff. Trurtees and key management personnel During the year, the charity had na paid employees. There were no key management personnel, and no employee recelved a salary in excess of £60.000. The average monthly headcount was nll. The ¢harltVs Trustees were not paid any remunèration nor received any other benefits from the charity or any related entlty. Tru5tee5 are entitled to reimbursement for reasonable travel costs incLtrred irt the toursè of their duties. No such reimbursements werÈ made in 2022. Debtors. prepaymÈnts, and accrued Income Z022 2021 Accrued inconie Total 5.763 5.763 4.188 4,188 The accrued income balance relates to Glft Ald recelvable for whlch claims had been submltted to HMRC but payment not received before the year-end.