2021-12-31-accounts

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MEDIA DEFENCE Company number.. 06621203 Charity number.. 1128789 Media Legal Defence Initiative (trading as Media Defence) RLport and t111ancial 3tcitements For theyear ended 31 Dece177ber2021 SAYER V INCENT

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

Reference and administrative information ....................................................................................................... 2 Trustees’ annual report ..................................................................................................................................... 3 Independent auditor’s report .......................................................................................................................... 25 Statement of financial activities (incorporating an income and expenditure account) .................................. 29 Balance sheet ................................................................................................................................................... 30 Statement of cash flows ................................................................................................................................... 31 Notes to the financial statements ................................................................................................................... 32

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

1 International Center for Journalists (ICFJ) and the Tow Center for Digital Journalism, Journalism & the Pendmic: a global snapshot of impacts , available at: https://www.icfj.org/our-work/journalism-and-pandemic-survey.

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

2 In 2020, we took on 241 new cases, which included an exceptional coordinated campaign of 131 cases initiated against one journalist to distract him from his reporting.

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

5 The strategic litigation work is reflected in the SOFA as ‘Strategic Litigation’, which includes grants to cover legal fees of local lawyers in strategic cases supported by in-house lawyers acting pro bono, as well as filing and translation costs.

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

13 We were unable to contact journalists for whom we did not have contact details or who were in detention. We also excluded cases in which we submitted third party interventions, as we represented ourselves in these cases. 14 See https://www.mediadefence.org/impact-publication/journalist-impact-survey-2021/

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

15 See https://www.mediadefence.org/news/

16 - For a full overview of our donors, see https://www.mediadefence.org/our organisation/

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

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2021 INCOMING RESOURCES
Philantrophy
NGO 6.79% Other
4.88%
0.23%
Government
12.90%
Trusts and
Foundations
58.23%
Donated Services
16.97%
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Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

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2021 EXPENDITURE
Strategic Cost of Raising funds
Litigation 6%
30%
Emergency
defence
25%
Training of
Grants to partner
lawyers
organisations
13%
26%
----- End of picture text -----

17 As set out above, we contracted 1 ~~4~~ . The total amount of grants also includes one grant to a local lawyer (rather than an organisation) to take multiple cases as and when they arise.

18 Excluding donated services, our support cost in 2021 represented 19% of total expenditure (compared to 23% in 2020).

Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

----- Start of picture text -----
2021 Expenditure 2020 Expenditure
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Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021

Independent auditor’s report

To the members of

Media Legal Defence Initiative

Independent auditor’s report to the members of Media Legal Defence Initiative

Opinion

We have audited the financial statements of Media Legal Defence Initiative (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
Have been prepared in accordance with the requirements of the Companies Act 2006

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 Media Legal Defence Initiative'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 other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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

Independent auditor’s report

To the members of

Media Legal Defence Initiative

of assurance conclusion thereon. 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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

The information given in the trustees’ annual report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The trustees’ annual report, has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
The financial statements are not in agreement with the accounting records and returns; or
Certain disclosures of trustees’ remuneration specified by law are not made; or
We have not received all the information and explanations we require for our audit; or
The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Independent auditor’s report

To the members of

Media Legal Defence Initiative

Auditor’s responsibilities for the audit of the financial statements

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 an auditor’s report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We enquired of management and the finance committee, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
We inspected the minutes of meetings of those charged with governance.
We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
We reviewed any reports made to regulators.
We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

Independent auditor’s report

To the members of

Media Legal Defence Initiative

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Orchard (Senior statutory auditor) 25 May 2022 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Media Legal Defence Initiative (Trading as Media Defence)

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

Unrestricted Note £ Income from: 2 742,640 468 4,325 747,433 3 121,853 3 228,584 3 147,499 3 126,145 3 136,438 760,519 5 (13,086) - (13,086) Reconciliation of funds: 614,068 600,983 Donations and legacies Other Total income Expenditure on: Total funds carried forward Transfers between funds Net movement in funds Total funds brought forward Net income / (expenditure) for the year Raising funds Total expenditure Charitable activities Support for training & capacity building Strategic Litigation Support to Individuals for Legal Defence Support to NGO's for Legal Justice Investments	Restricted £ 1,345,224 - -	2021 Total £ 2,087,864 468 4,325	Unrestricted £ 959,215 2,292 3,035	Restricted £ 1,840,507 - -	2020 Total £ 2,799,722 2,292 3,035
747,433	1,345,224	2,092,657	964,542	1,840,507	2,805,049
121,853 228,584 147,499 126,145 136,438	- 259,862 369,186 139,874 462,434	121,853 488,446 516,684 266,020 598,872	92,511 267,710 192,669 133,350 159,150	- 334,371 226,057 121,729 1,243,691	92,511 602,081 418,726 255,080 1,402,841
760,519	1,231,357	1,991,876	845,390	1,925,850	2,771,240
(13,086) -	113,867 -	100,781 -	119,152 -	(85,343) -	33,809 -
(13,086) 614,068	113,867 225,472	100,781 839,541	119,152 494,916	(85,343) 310,815	33,809 805,732
600,983	339,339	940,322	614,068	225,472	839,541

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements.

Media Legal Defence Initiative (Trading as Media Defence)

Balance sheet

Balance sheet	Balance sheet
As at 31 December 2021			Company no. 06621203
Note £ Fixed assets: 10 Current assets: 11 48,558 18 1,547,900 1,596,458 Liabilities: 12 661,476 15 16.i 16.ii 357,500 243,483 Total unrestricted funds General funds Total charity funds Cash at bank and in hand The funds of the charity: Creditors: amounts falling due within one year Net current assets Total net assets Tangible fixed assets Debtors Restricted income funds Unrestricted income funds: Designated funds		2021 £ 5,340	£ 278,634 1,040,104	2020 £ 7,275
		934,982		832,266
	1,596,458 661,476		1,318,738 486,472
	357,500 243,483		350,000 264,069
		940,322		839,541
		339,339 600,983		225,471 614,069

		940,322		839,541

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the trustees on 18 May 2022 and signed on their behalf by Sarah Bull

SARAH BULL

Chair of the Board of Trustees

Media Legal Defence Initiative (Trading as Media Defence)

Statement of cash flows

For the year ended 31 December 2021
Note £ 17 468 (1,914) Loss on Disposal 1,830 18 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Change in cash and cash equivalents in the year Cash flows from operating activities Net cash (used in) investing activities Net cash provided by (used in) operating activities Cash flows from investing activities: Dividends, interest and rents from investments Purchase of fixed assets	£ 507,412 384 2021	£ 2,292 (2,479)	£ (142,516) (187) 2020

	507,796 1,040,104		(142,703) 1,182,807
	1,547,900		1,040,104

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies

a) Statutory information

Media Legal Defence Initiative is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address is 5 Chancery Lane, London. WC2A 1LG

b) Basis of preparation

The financial statements have been prepared in accordance with 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 (Charities SORP FRS 102-2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees’ report contains information on the uncertainties around the Covid-19 pandemic and the resulting social, legal and economic disruption, and on the steps the charity is taking to manage these risks and uncertainties. The trustees have made an assessment of the impact of these risks on the charity’s operations (such as collapse of the financial system, which could impact the charity’s income, or the collapse of regional courts and international human rights bodies, which would limit opportunities for achieving social change). The Trustees have concluded that, despite these risks and the wider risks and uncertainties facing large sectors of society, the charity has taken the relevant measures to mitigate the impact of these risks and uncertainties on its operations.

The Trustees are confident that the charity has the ability and intention to continue as a going concern because adequate resources are available (99% funding of Media Defence's expenditure budget for the current financial year, is confirmed; while funding confirmed for the coming 12 months period is 83%), In the pipeline for the 18 month period are sufficient funds to cover the 17% deficit. Adequate reserves are available to cover unrealised expected funding and Media Defence has adequate management programme.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose
Expenditure on charitable activities includes the costs of legal defence to individual, legal justice support to NGO's, support for training and capacity building and support towards strategic litigation undertaken to further the purposes of the charity and their associated support costs
Other expenditure represents those items not falling into any other heading

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

the	amount attributable to each activity.
	Support to Individuals for Legal Defence	36%
	Support to NGO's for Legal Justice	25%
	Strategic Litigation	25%
	Support for Training & Capacity Building	14%

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer Equipment
Fittings and Office equipment

3 years 4 years

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

n) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

o) Pensions

MLDI will match pension contribution for individuals from 5% up to 8% of employees' qualifying earnings.

p) Foreign currency translations

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the average rate of exchange for the year. Exchange differences are taken into account in arriving at the net incoming resources for the year.

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

2 Income from donations and legacies

Income from donations and legacies
Legacies Donated services Gifts & Donations	Unrestricted £ 742,640 - - 742,640	£ 990,196 - 355,028 1,345,224 Restricted	2021 Total £ 1,732,836 - 355,028 2,087,864	2020 Total £ 1,648,023 - 1,151,699
				2,799,722

In 2020 there were unrestricted gifts and donations of £959,215, the balance of donations and legacies were restricted.

Donated services are comprised of pro-bono legal support services and are calculated on the basis of the value of the service to Media Defence

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

3a Analysis of expenditure

Fundraising £ 120,750 - - - 1,103 - - - - - - - - - - - -		Charitable activities	Charitable activities		Governance costs £ 30,721 944 - - - - - - - - - - - - 4,814 8,760 -	Support costs £ 92,162.34 2,831 - - - - 1,040 - 2,751 - 62,115 2,020 70,564 15,047 - - 14,718	2021 Total £ 735,166 18,875 1,006,440 15,005 1,103 - 1,160 27,188 2,751 5,280 62,115 2,020 70,564 15,917 4,814 8,760 14,718	2020 Total £ 658,496 15,775 1,802,263 5,014 1,168 21 5,821 6,750 7,930 23,143 90,749 3,637 73,071 43,774 840 8,520 24,269
	Support to Individuals for Legal Defence £ 184,325 5,663 186,936 - - - - - - - - - - 468 - - -	Support to NGO's for Legal Justice £ 92,162 2,831 344,439 - - - - - - - - - - 130 - - -	Support for training & capacity building £ 122,883 3,775 66,006 - - - - 24,798 - 5,280 - - - 90 - - -	Strategic Litigation £ 92,162 2,831 409,059 15,005 - - 120 2,390 - - - - - 182 - - -
121,853 - -	377,391 94,769 16,286	439,563 65,812 11,310	222,832 36,855 6,333	521,751 65,812 11,310	45,239 - (45,239)	263,248 (263,248) -	1,991,876 - -	2,771,240 - -
121,853	488,446	516,684	266,020	598,872	-	-	1,991,876	2,771,240
92,511	602,081	418,726	255,080	1,402,841	-
							-

Of the total expenditure, £760,519 was unrestricted and £1,231,357 was restricted.

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

3b Analysis of expenditure for prior year

Fundraising £ 91,343 - - - 1,168 - - - - - - - - - - - -		Charitable activities	Charitable activities		Governance costs £ 28,358 658 - - - 1 - - - - - - - - 840 8,520 -	Support costs £ 85,073 1,973 - - - 3 5,323 - 7,930 13 90,749 3,637 73,071 43,278 - - 24,269	2020 Total £ 658,496 15,775 1,802,263 5,014 1,168 21 5,821 6,750 7,930 23,143 90,749 3,637 73,071 43,774 840 8,520 24,269	2019 Total £ 521,913 26,856 1,614,668 27,332 2,710 1,815 30,825 143,130 1,035 6,132 91,464 1,830 63,829 9,654 481 8,520 34,690
	Support to Individuals for Legal Defence £ 170,146 3,946 293,156 - - 6 - - - - - - - 296 - - -	Support to NGO's for Legal Justice £ 85,073 1,973 238,163 - - 3 - - - - - - - 90 - - -	Support for training & capacity building £ 113,430 5,251 55,681 - - 4 - 5,176 - 23,130 - - - 90 - - -	Strategic Litigation £ 85,073 1,973 1,215,262 5,014 - 3 498 1,574 - - - - - 20 - - -
92,511 - -	467,551 120,715 13,816	325,303 83,830 9,594	202,763 46,945 5,373	1,309,417 83,830 9,594	38,376 - (38,376)	335,319 (335,319) -	2,771,240 - ()	2,586,883 - -
92,511	602,081	418,726	255,080	1,402,841	-	-	2,771,240	2,586,883

Of the total expenditure, £845,390 was unrestricted and £1,925,850 was restricted .

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

For the year ended 31 December 2021
4a Strategic Litigation Support to Individuals for Legal Defence Cost Grant making Support for Training & Capacity Building At the end of the year Support to NGO's for Legal Justice	Grants to institutions £ - 344,439 - 355,028	Grants to individuals £ 186,936 - 66,006 54,031	Support costs £ 94,769 65,812 36,855 65,812	2021 £ 281,705 410,251 102,860 474,871	2020 £ 413,871 321,993 46,945 1,299,092
	699,467	306,973	263,248	1,269,688	2,081,900

4b Grant making prior year

Grant making prior year
Cost Support to Individuals for Legal Defence Support to NGO's for Legal Justice Support for Training & Capacity Building Strategic Litigation At the end of the year	Grants to institutions £ - 238,163 - 1,151,699	Grants to individuals £ 293,156 - - 63,563	Support costs £ 120,715 83,830 46,945 83,830	2020 £ 413,871 321,993 46,945 1,299,092	2019 £ 258,835 376,325 40,540 1,228,537
	1,389,863	356,719	335,319	2,081,900	1,904,237

Grants are provided to individuals and institutions from MLDI based on the charitable objectives of the organisation and with consideration for affordability .

MLDI has a listing of the partner organisations with which it works on its website. MLDI does not provide the detail of the amounts given to individual institutions as it believes these could prejudice the furtherance of the charitable objectives of MLDI and the recipient.

5 Net income for the year

This is stated after charging / crediting:

This is stated after charging / crediting:
	2021	2020
	£	£
Depreciation	2,020	3,637
Operating lease rentals:
Property and Equipment	54,576	74,565
Auditors' remuneration (excluding VAT):
Audit	7,300	7,100
Foreign exchange losses (gains)	15,917	43,774

6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages Employer’s contribution to defined contribution pension schemes Social security costs	2021 £ 642,088 72,156 20,922	2020 £ 577,399 63,564 17,533
	735,166	658,496

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (continued)

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

		2021	2020
		No.	No.
£60,000	- £69,999	3	2
£70,000	- £79,999	1	-

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £82,206 (2020: £79,079).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses/development was £nil (2020: £nil).

7 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 16 (2020: 15).

8 Related party transactions

In 2021 the charity received pro bono support from the trustees or related parties of the trustees in the following instances:

there was some pro bono support provided by the law firm of one of our trustees, Steve Finizio, who is a partner at Wilmer Cutler Pickering Hale and Dorr LLP (2021:£35K; 2020:£1.1m).

9 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10 Tangible fixed assets

Tangible fixed assets
At the start of the year Additions in year Cost or valuation At the start of the year Eliminated on disposal At the end of the year At the end of the year At the start of the year At the end of the year Net book value Charge for the year Depreciation Disposals in year	Fittings and Office equipment £ 14,306 1,914 (7,320)	Computer equipment £ 12,007 - (5,930)	Total £ 26,313 1,914 (13,250)
	8,900	6,077	14,977
	8,896 1,193 (5,490)	10,142 826 (5,930)	19,038 2,020 (11,420)
	4,599	5,038	9,637
	4,300	1,039	5,340
	5,410	1,866	7,275

All of the above assets are used for charitable purposes.

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

For the year ended 31 December 2021
11 12 Deferred Income Trade Creditors Other Creditors Grants Payable Accruals Other Debtors Creditors: amounts falling due within one year Prepayments Debtors Grants Receivable	2021 £ 5,187 16,300 27,072	2020 £ 255,647 8,375 14,612
	48,558	278,634
	2021 £ 32,860 20,458 411,622 187,744 8,791	2020 £ 40,552 630 369,960 65,520 9,810
	661,476	486,472

13 Deferred income

Deferred income comprises an amount of £187,744/$250,000 received from OSI NY for 2022 activities.

Balance at the beginning of the year Amount released to income in the year Amount deferred in the year Balance at the end of the year	2021 £ 65,520 (65,520) 187,744	2020 £ 150,000 (150,000) 65,520
	187,744	65,520

14 Pension scheme

MLDI matches Employee’s Pension contribution from 5% and up to 8% of qualifying earnings.

15a Analysis of net assets between funds (current year)

Analysis of net assets between funds (current year)
Net current assets Net assets at the end of the year Tangible fixed assets Tangible fixed assets Net current assets Net assets at the end of the year Analysis of net assets between funds (prior year)	General unrestricted £ 5,340 238,143	£ - 357,500 Designated	Restricted £ - 339,339	Total funds £ 5,340 934,982
	243,483	357,500	339,339	940,321
	General unrestricted £ 7,275 256,794	£ - 350,000 Designated	Restricted £ - 225,471	Total funds £ 7,275 832,265
	264,069	350,000	225,471	839,541

15b Analysis of net assets between funds (prior year)

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

16a Movements in funds (current year)

At the start of the year £ 16.i Adessium 201922 59,141 Donated Services - Dow Jones 202021 - DRL EWDRA - Ethiopia Fund 706 FB - Factcheckers Legal Support Initiative 34,698 Ford Foundation 47,852 Hivos 2021 - ICNL (CAID) - IWPR (DFID) 1,167 KAS LATAM - Matrix Causes - National Endowment for Democracy (NED)- 202021 57,010 NED202123 - Nicolas Peuch Fdn - Omidyar (Geographies) 21 OSF (Non - US) BAN (17 - 18) 16,126 OSI (CB) 2021 - Other - Rtd/cncld Grants 8,751 UNESCO - USSD DRL - Total restricted funds 225,471 16.ii 350,000 Total designated funds 350,000 General funds 264,069 614,069 839,541 Total unrestricted funds Unrestricted funds: Restricted funds: Designated Reserves Total funds	Income & gains £ 42,460 355,028 7,208 17,555 - - 203,998 77,043 68,672 5,924 8,527 1,250 77,399 31,058 49,123 49,780 - 129,647 - 25,157 195,397	Expenditure & losses £ (59,569) (355,028) (7,208) (2,704) (706) (34,698) (118,650) (77,043) (36,284) (2,502) - - (88,427) (10,785) (49,123) (49,801) (16,126) (129,647) 1,611 (25,041) (169,626)	Transfers** £ - - - - - - - - - - - - - - - - - - - - -	At the end of the year £ 42,032 - - 14,850 - - 133,200 - 32,389 4,589 8,527 1,250 45,981 20,273 - - - - 10,362 116 25,771
225,471	1,345,224	(1,231,357)	-	339,339
350,000	-	-	7,500	357,500
350,000	-	-	7,500	357,500
264,069	747,433	(760,519)	(7,500)	243,483
614,069	747,433	(760,519)	-	600,983
839,541	2,092,657	(1,991,876)	-	940,321

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

16b Movements in funds (prior year)

Movements in funds (prior year)	Movements in funds (prior year)
At the start of the year £ Dow Jones 201920 5,249 FOSI PIJ - LATAM 743 FB - Factcheckers Legal Support Initiative 104,325 Ford Foundation - Hivos 2020.a - - IWPR (DFID) 0 - Ethiopia Fund 3,214 Adessium 16-19 - Adessium 201922 30,083 Donated Services - OSF (Non - US) BAN (17 - 18) 22,036 OSIAF Eurasia 8 National Endowment for Democracy (NED)- 201920 2,816 National Endowment for Democracy (NED)- 202021 - Omidyar (Geographies) 127,412 Digital Rights Fund 10,647 Other - Rtd/cncld Grants 4,281 Total restricted funds 310,814 293,000 Total designated funds 293,000 General funds 201,917 494,917 805,731 Total funds Total unrestricted funds Designated Reserves Unrestricted funds: Restricted funds: Hivos 2020.b		Income & gains £ - (1) 80,382 103,373 36,306 40,744 23,817 - - 88,729 1,151,699 - - 28,633 89,567 - 197,257 -	Expenditure & losses £ (5,249) (742) (150,009) (55,522) (36,306) (40,744) (22,649) (2,508) - (59,670) (1,151,699) (5,910) (8) (31,449) (32,558) (127,391) (207,905) 4,469	Transfers £ - - - - - - - - - - - - - - - - - -	At the end of the year £ - () 34,698 47,852 () - 1,167 706 - 59,141 - 16,126 - - 57,010 21 - 8,751
	310,814	1,840,507	(1,925,850)	-	225,471
	293,000	-	-	57,000	350,000
	293,000	-	-	57,000	350,000
	201,917	964,542	(845,390)	(57,000)	264,069
	494,917	964,542	(845,390)	-	614,069
	805,731	2,805,049	(2,771,240)	-	839,540

16.i Purposes of restricted funds

Adessium - Support to ensure legal protection of journalists, citizen journalists and media outlets in Europe

Donated Services - free legal services provided in support of strategic cases

US State Department - develop legal communities to defend, promote and strengthen freedom of expression online US State Department - Empowering Women in Digital Rights Advocacy

Dow Jones - support legal defence to independent media, journalists and bloggers facing criminal charges for their reporting Ethiopia Fund - Support for journalists and online media in Ethiopia

Facebook -direct assistance to fact-checkers, connecting them to pro bono legal support where none is available and providing support for local lawyers

Ford - legal assistance to journalists, bloggers and independent media under oppression

Hivos - legal defence to online media and bloggers

IWPR -to explore the freedom of expression landscape in three countries in the MENA region

KAS - training workshop for media lawyers in West Africa/rules of law factsheet and amicus briefs

MacArthur - Defence of journalists and other online media within Russia

NED - Defending Independent Media and Protecting at-risk Journalists

Nicolas Peuche Foundation - legal protection of journalists and media workers OSF Foundation - support for journalist and online media in Bangladesh

Omindyar Network - Emergency defence legal aid in South East Asia and Southern Africa

OSIAF Eurasia/FOSI LATAM - Support to Media defence centre in Eurasia/to independent media, bloggers and journalists in UNESCO - support for a free and safer environment for journalist

Media Legal Defence Initiative (Trading as Media Defence)

Notes to the financial statements

For the year ended 31 December 2021

16.ii Purposes of Unrestricted funds

Designated funds - maintained to ensure any significant financial risk to Media Defence are controllable

General funds - provided by the following funders: Chambers and Partners, Craig Newmark Foundation, Foundation for Promotion of Open Society, Luminate and Wellspring. These funds are carried forward to be utilised for ongoing operational activities in the upcoming financial year.

17 Reconciliation of net income to net cash flow from operating activities

Net Income for the reporting period (as per the statement of financial activities) Depreciation charges Dividends, interest and rent from investments Decrease/(increase) in debtors Increase in creditors Net cash provided by / (used in) operating activities	2021 £ 100,781 2,020 (468) 230,076 175,004	2020 £ 33,809 3,637 (2,292) (190,709) 13,039
	507,412	(142,516)

18 Analysis of cash and cash equivalents Cash in hand Notice deposits (less than three months) Total cash and cash equivalents	At 1 January 2021 £ 524,037 516,067	Cash flows £ 507,274 523	Other changes £ - -	£ 1,031,311 516,589 At 31 December 2021
	1,040,104	507,796	-	1,547,900

19 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

following periods
Less than one year	2021 2020 £ £ 13,392 35,713 13,392 35,713 Property
	13,392	35,713

20 Capital commitments

At the balance sheet date, the charity had made no capital commitments.

21 Contingent assets or liabilities

There are no contingent assets or liabilities.

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

Contents

To the members of

Media Legal Defence Initiative

Opinion

In our opinion, the financial statements:

Basis for opinion

Conclusions relating to going concern

Other Information

To the members of

Media Legal Defence Initiative

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

Responsibilities of trustees

To the members of

Media Legal Defence Initiative

Auditor’s responsibilities for the audit of the financial statements

Capability of the audit in detecting irregularities

To the members of

Media Legal Defence Initiative

Use of our report

Balance sheet

Statement of cash flows

Notes to the financial statements

For the year ended 31 December 2021

a) Statutory information

b) Basis of preparation

c) Public benefit entity

d) Going concern

e) Income

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

h) Expenditure and irrecoverable VAT

i) Allocation of support costs

j) Operating leases

Notes to the financial statements

For the year ended 31 December 2021

k) Tangible fixed assets

l) Debtors

m) Cash at bank and in hand

n) Creditors and provisions

o) Pensions

p) Foreign currency translations

Notes to the financial statements

For the year ended 31 December 2021

Notes to the financial statements

For the year ended 31 December 2021

Notes to the financial statements

For the year ended 31 December 2021

3b Analysis of expenditure for prior year

Notes to the financial statements

For the year ended 31 December 2021

4b Grant making prior year

5 Net income for the year

For the year ended 31 December 2021

7 Staff numbers

8 Related party transactions

9 Taxation

10 Tangible fixed assets

Notes to the financial statements

For the year ended 31 December 2021

13 Deferred income

14 Pension scheme

15a Analysis of net assets between funds (current year)

15b Analysis of net assets between funds (prior year)

Notes to the financial statements

For the year ended 31 December 2021

16a Movements in funds (current year)

Notes to the financial statements

For the year ended 31 December 2021

16.i Purposes of restricted funds

Notes to the financial statements

For the year ended 31 December 2021

16.ii Purposes of Unrestricted funds

17 Reconciliation of net income to net cash flow from operating activities

19 Operating lease commitments

20 Capital commitments

22 Legal status of the charity