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
## **Contents**
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
1
2
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
3
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
-
-
-
-
-
-
4
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.
5
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.
6
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
7
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.
8
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
9
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
10
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
11
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
12
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/
13
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/
14
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
15
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
**----- Start of picture text -----**
2021 INCOMING RESOURCES
Philantrophy
NGO 6.79% Other
4.88%
0.23%
Government
12.90%
Trusts and
Foundations
58.23%
Donated Services
16.97%
**----- End of picture text -----**
16
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
**----- Start of picture text -----**
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).
17
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
**----- Start of picture text -----**
2021 Expenditure 2020 Expenditure
**----- End of picture text -----**
18
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
19
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
-
-
-
-
-
-
-
20
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
-
-
-
-
-
21
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
22
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
-
-
-
-
-
-
-
23
Media Legal Defence Initiative | Reports and financial statements for the year ended 31 December 2021
24
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
25
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.
26
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.
27
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
28
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|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.
29
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
30
Media Legal Defence Initiative (Trading as Media Defence)
## Statement of cash flows
|For the year ended 31 December 2021|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|
31
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.
32
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.
33
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.
34
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
35
Media Legal Defence Initiative (Trading as Media Defence)
## Notes to the financial statements
## For the year ended 31 December 2021
- 3a Analysis of expenditure
|Note
Staff Costs
6
Other Staff Costs
Grants payable
4a
Translation services
Fundraising costs
Volunteers' expenses
Travel and subsistence
Meetings and events
Marketing and promotion
Monitoring, Evaluation & Research
Premises
Depreciation
Office costs
Bank Charges & Exchange
(gains)/losses
Board expenses
Audit and accountancy
Legal and professional
Sub-total
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020|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.
36
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
|Note
Staff Costs
6
Other staff costs
Grants Payable
4
Translation services
Fundraising costs
Volunteers' expenses
Travel and subsistence
Meetings and events
Marketing and promotion
Monitoring, Evaluation & Research
Premises
Depreciation
Office costs
Bank Charges & Exchange
(gains)/losses)
Board expenses
Audit and accountancy
Legal and professional
Sub-total
Support costs
Governance costs
Total expenditure 2020|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 .
37
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|
38
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.
39
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)
40
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|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|
41
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
42
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.
43