REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
HEALING MINDS FOUNDATION
INDEX TO THE ACCOUNTS for the year ended 31 December 2022
Pages Trustees’ Report 1-3 Report of the Independent Examiner 4 Receipts and payments 5 Statement of Assets and Liabilities 6 Notes to the accounts 7-12
HEALING MINDS FOUNDATION
TRUSTEES’ REPORT
| TRUSTEES | Justine Hardy |
|---|---|
| Richard I Morris Jr (Chairman) | |
| Sarah Egerton-Warburton | |
| Denzil How | |
| Michael Foster | |
| CHARITY NUMBER | 1145308 |
| CONTACT ADDRESS | Flat 11 Shelley Court |
| 56 Tite Street | |
| London SW3 4JB |
Report of the Trustees for the period ended 31 December 2022
The charity is an unincorporated charity, constructed under a Trust Deed dated 14 December 2011. HMF UK was the original sponsor and funder of the work of its affiliate Healing Minds Foundation LLC (HMF India). From April 1, 2020 the HMF India’s principal project, Kashmir Lifeline & Health Centre (KLL) has been funded by Mariwala Health Initiative, an Indian non-governmental organization focused on grass roots mental health initiatives throughout the country.
The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the Charity Trust deed and the requirements are set out in The Charities (Accounts and Reports) Regulations 2008.
The objects of the charity are to act for the public benefit to promote and protect good health by providing effective integrated mental health services in India to communities psychologically traumatized by extended periods of violence, conflict, or as a result of natural disasters in particular but not exclusively by the provision of a three-tier system including a free trauma helpline, free counselling services and free primary mental health care education to rural communities, schools and colleges.
The entire Trust Fund and income thereof is held for unrestricted purposes.
There shall at no time be less than three Trustees. The power to appoint new Trustees vests in the continuing Trustees. With the exception of the first Trustees, subsequent Trustees are appointed for a term of three years. Trustees are provided with a copy of the Trust Deed and most recent accounts and briefed on their legal obligations under charity law, the Charity Commission guidance on public benefit and are encouraged to attend appropriate external training event where these will facilitate the undertaking of their role.
Activities in the period
HMF UK continues to have a very limited role in the operation of KLL. The Trustees are pleased to report that the project has continued its work, under the directorship of Dr Prerna Sud. The grass roots outreach programmes that were shut down as a result of state abrogation in 2019 and then Covid lockdowns have been re-launched and re-implemented over the past year. The team is expanding again and working on furthet outreach programmes over the up-coming year under a new management structure and expanded team.
Page 1
HEALING MINDS FOUNDATION
TRUSTEES REPORT – continued
Activities in the period (continued)
Funding
HMF UK is no longer accepting charitable contributions and KLL is funded by MHI as discussed above.
Expenses
HMF UK’s expenses were limited during 2022. Website management cost £682 while our annual accounting review cost £1,254. Miss Justine Hardy, founder and trustee, hopes to visit KLL in 2023 and a visa application was made with associated costs of £1,902.88
The consolidated expenses total is significantly affected by the exchange rate movements, which vary from year to year – please see note 7 to the accounts for full details of the costs of the charity and Appendix 1 which presents the receipts and payments for the HMF India in rupees.
Plans for future periods
The Trustees of HMF UK and the Directors of HMF India have agreed to transfer the ownership of HMF India to the directors or their nominees. When this has been completed, HMF UK’s Trustees will consider the appropriate uses for its remaining capital. The transition is underway and expected to be completed effective March 31, 2023, the end of HMF India’s fiscal year.
Financial review
The income and expenditure account for the year shows a deficit of £14,510, which includes an adjustment of £802 in respect of exchange rate movements which had the effect of increasing costs in India.
Investment powers and policy
HMF UK’s funds are now limited and are placed on deposit. HMF India continued to place reserves on deposit at interest rates that vary from 3-3.5%. These reserves have declined significantly. The initial agreement with MHI called for HMF India to pay certain expenses from its own reserves.
Reserves policy
As HMF UK is no longer funding HMF India and its KLL project, reserves currently being held will be evaluated once the transition mentioned above has been completed.
Public Benefit
The principles of public benefit ,as defined by the Charity Commission ,have been noted by Trustees. The Trustees confirm having given regard to the Charity Commission’s initial guidance and continue in their belief that the Fund provides identifiable benefits to a section of the public.
Risk Management
The Trustees consider they hold adequate funds to meet current liabilities. The Trustees have identified and examined the major risks to which the charity is exposed and have established procedures for taking all reasonable steps to lessen or mitigate them. The Trustees review these risk management procedures annually.
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HEALING MINDS FOUNDATION
TRUSTEES REPORT - continued
Trustees’ responsibilities in relation to the financial statements
The charity Trustees are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable; to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
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In preparing these accounts, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and estimates that are reasonable and prudent;
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to state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Approved by the Trustees on
And signed on their behalf by
………………………………………..
Trustee
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES
HEALING MINDS FOUNDATION
I report on the accounts of the Trust for the period ended 31 December 2022, which are set out on pages 5-11.
Respective responsibilities of trustees and examiner
As the charity's trustees you are responsible for the preparation of the accounts, you consider that the audit requirements of section 144(2) of the Charities Act 2011 (the 2011 Act) does not apply and that an independent examination is needed. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under section 145(5)(b) of the 2011 Act, whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair' view and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
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(a) which gives me reasonable cause to believe that in any material respect, the requirements:
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(i) to keep accounting records in accordance with section 130 of the 2011 Act; and
(ii) to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act;
have not been met; or
- (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Susan Kumar ACA Holden Granat LLP Date: 29 June 2023
Springfield House, 23 Oatlands Drive, Weybridge Surrey KT13 9LZ
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HEALING MINDS FOUNDATION
RECEIPTS AND PAYMENTS for the period ended 31 December 2022
| Note Receipts Voluntary income received 5 Gift Aid received 5 Investment income 6 Total Receipts Payments Cost of Charitable Activities 7 Governance Costs 8 Total Payments Net (payments)/receipts Cash funds brought forward Cash funds carried forward |
2022 £ 64,503 - 965 £65,468 76,421 3,557 £79,978 (14,510) 63,688 £49,178 |
2021 £ 71,776 - 1,525 |
|---|---|---|
| £73,301 | ||
| 75,617 3,882 |
||
| £79,499 | ||
| (6,198) 69,886 |
||
| £63,688 |
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HEALING MINDS FOUNDATION
SUMMARY OF ASSETS AND LIABILITIES as at 31 December 2022
| Note Fixed assets Investments 9 Current assets Cash at bank and in hand 10 Net current assets Total assets Represented by: Unrestricted funds Liabilities (Unrestricted Fund) Independent Examination fee |
Group 2022 2021 £ £ - - - - 49,178 63,688 £49,178 £63,688 £49,178 £ 63,688 49,178 £ 63,688 £1,254 £1,140 |
Charity 2022 £ 100 100 12,370 £ 12,370 £ 12,370 £ 12,370 £1,254 1 |
2021 £ 100 |
||
|---|---|---|---|---|---|
| 100 | |||||
| 16,210 | |||||
| £16,210 | |||||
| £16,210 | |||||
| £16,210 | |||||
| £1,140 |
The notes on pages 7 to 12 form part of these accounts.
The accounts were approved by the Trustees on and signed on their behalf by
………………………………………..
Trustee
Page 6
HEALING MINDS FOUNDATION
NOTES TO THE ACCOUNTS for the period ended 31 December 2022
1) Accounting policies
- a) Basis of preparation of accounts These Accounts have been prepared on a receipts and payments basis and 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice
The results of the charity’s subsidiaries have been consolidated on a line by line basis.
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b) Donations received
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All income from donations received is included in income upon receipt. The charity has not received any goods for use by itself.
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c) Investment income Deposit interest is accounted for in the period in which it is received.
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d) Investments Unquoted investments are valued at cost on the Statement of Assets and Liabilities.
e) Expenditure Expenditure is recognised upon payment and allocated to the entity incurring the expense – reallocation of costs ids not considered necessary.
Cost of charitable activities relates to the operational costs of the Kashmir Lifeline and Health centre. This includes the ongoing statutory and professional costs of operating the legal structures required to allow the charity to operate in India.
Governance costs include those costs incurred in the governance by the Trustees of the charity’s assets and are primarily associated with constitutional and statutory requirements of operating the charity.
- f) Foreign currencies
Transactions in foreign currencies are recognised in the Receipts and Payments account at the average exchange rate for the period and in the Statement of Assets and Liabilities at the rate on 31 December 2022. All exchanges differences are recognised through the Statement of Financial Activities.
- g) Operating leases
Rental payments are charged as expenditure as paid over the term of the lease.
h) Going Concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. Taking into account the funding commitment from MHI, the budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
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HEALING MINDS FOUNDATION
NOTES TO THE ACCOUNTS for the period ended 31 December 2022
2) Taxation
The Trust is a registered charity and accordingly is exempt from taxation on its income and gains where these are applied to charitable purposes.
3) Transaction with Trustees
None of the Trustees received any remuneration for his/her services during the period ended 31 December 2022.
4) Related party transaction
During the period £ NIL (2020 £NIL) was transferred to the charity’s subsidiary, HMF India, a charitable purpose company registered in India, to fund the charitable activities undertaken by the company in Jammu and Kashmir.
5) Voluntary income
All voluntary income received during the period was unrestricted. Donations are received by both the charity and its subsidiary in Kashmir.
| Voluntary income received during the year: Donations from individuals and trusts Gift aid 6) Investment Income Investment income has arisen as follows: Interest received |
2022 £ 64,503 - £64,503 2022 £ £965 |
2021 £ 71,776 - |
|---|---|---|
| £71,776 | ||
| 2021 £ £1,525 |
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7) Cost of Charitable Activities
The amount spent on charitable activities during the period under review relate to the operation of the HMF India, incorporating the Kashmir Lifeline and Health Centre, for which the following expenses were incurred:
| Women’s Hygiene Project Salaries and Personnel expenses Helpline Telephone Line Hardware and Support Website costs Facilities and Marketing Travel & Accommodation Bank charges Local Taxes Loss/(Gain) on Exchange |
2022£ 0 59,217 968 3,917 0 5,057 8,099 0 (35) (802) £76,421 |
2021£ 0 55,319 1,684 5,446 1,278 6,002 6,345 0 (313) (144) |
|---|---|---|
| £75,617 |
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HEALING MINDS FOUNDATION
NOTES TO THE ACCOUNTS for the period ended 31 December 2022
7) Cost of Charitable Activities (continued)
At year-end KLL employed fifteen people full and part time. HMF UK has no employees.
8) Governance costs
The governance costs of the charity comprised the following costs:
| Independent Examiners Fees Other Professional and Statutory Fees |
2022£ 1,254 2,303 £3,557 |
2021£ 1,140 2,742 £3,882 |
|---|---|---|
9) Investment in subsidiary
The charity owns 99.90% of the share capital the Healing Minds Foundation LLC, which was established in order to allow the charity to undertake its charitable activities in India.
10) Cash at Bank and in Hand
| Bank balances Cash balances |
Group Charity 2022 2021 2022 2021 £ £ £ £ 49,038 63,407 12,370 16,210 140 281 - - |
|---|---|
| £49,178 £63,688 £12,370 £16,210 |
11) Subsidiary: Healing Minds Foundation LLC
The charity owns 99.9% of the share capital of Healing Minds Foundation LLC (referred to as HMF India) which operates the Kashmir Lifelines and Health Centre in Jammu and Kashmir. The assets and liabilities of the subsidiary are detailed below and the results are analysed in note 12.
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HEALING MINDS FOUNDATION
NOTES TO THE ACCOUNTS for the period ended 31 December 2022
| 12) Analysis of Receipts & Payments between charity and subsidiary Subsidiary Charity 2022 2022 £ £ Receipts Voluntary income received 64,503 0 Gift Aid - 0 Investment income 965 - Cash transfer to/(from) subsidiary 0 (0) Total Receipts/ (Payments) £65,468 £0 Payments Cost of Charitable Activities 73,836 2,585 Governance Costs 2,303 1,254 Total Payments £76,139 £3,839 Net Receipts / (Payments) (10,671) (3,839) Cash funds brought forward 47,479 16,209 Cash funds carried forward £36,808 £12,370 |
Total 2022 £ 64,503 965 - |
|---|---|
| £65,468 | |
| 76,421 3,557 |
|
| £79,978 | |
| (14,510) 63,688 |
|
| £49,178 |
Page 11
APPENDIX 1
HEALING MINDS FOUNDATION LLC (HMF India) RECEIPTS AND PAYMENTS for the period ended 31 December 2022
| Receipts Transfers from/To Healing Minds Foundation Donations Investment income Total Receipts Payments Professional Fees Personnel Expenses Helpline Phone Lines Hardware and Support Travel and Accommodation Local Taxes Facilities and Marketing Women’s Hygiene Project Total Payments Net (payments) / receipts Cash funds brought forward Cash funds carried forward |
2022 INR 0 6,129,533 91,666 6,221,199 218,850 5,627,172 92,041 307,369 588,752 (3,291) 480,544 0 (7,311,347) (1,090,238) 4,778,456 INR 3,688,218 |
2021 INR 0 6,677,018 141,875 |
|---|---|---|
| 6,818,893 | ||
| 238,315 5,143,854 , 148,711 504,607 589,922 (29,102) 542,770 0 |
||
| 7,139,077 | ||
| (320,184) 5,098,640 |
||
| INR4,778,456 |
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