The Charity Registration Number is :- 1147907
Mercy Welfare Trust
Report and Accounts
30-Jun-25
Mercy Welfare Trust
Report and accounts for the year ended 30 June 2025
Contents
| Page | ||
|---|---|---|
| Charity information | 1 | |
| Trustees' Annual Report | 1 | |
| Statement of directors' responsibilities | 10 | |
| Independent Accountant's Report | 11 | |
| Funds Statements:- | ||
| Statement of Financial Activities | 13 | |
| Balance sheet | 14 | |
| Cash flow statement | 15 | |
| Notes to the accounts | 17 |
Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
The Trustees present their Report and Accounts for the year ended 30 June 2025.
Reference and administrative details
The charity name.
The legal name of the charity is:- Mercy Welfare Trust.
The charity's areas operation and UK charitable registration.
The charity is registered in England & Wales with the Charity Commission in England & Wales (CCEW) with charity number 1147907.
.
The charity does not operate in any overseas jurisdictions.
Legal structure of the charity
The charity is constituted as an unincorporated charity, established by Trust Deed. The governing document of the charity is the Trust Deed establishing the charity.
There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law.
The trustees are all individuals.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
The principal operating address, telephone number, email and web addresses of the charity are:-
142A Marlborough Road Slough, England United Kingdom, SL3 7JY Telephone UK (+44) 03003655786 Email Address info@ihsanglobalrelief.com Web address www.ihsanglobalrelief.com
The Trustees in office on the date the report was approved were:-
M.F. Aleem K. Shah Resigned N.A. Raza - resigned 01.06.2025
Banker Santander Bridle Road, Bootle Merseyside L30 4GB
The trustees who served as a trustee in the reporting period were as shown above, and there was one change during the year.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
Objects and activities of the charity
The purposes of the charity as set out in its governing document.
The purpose of the charity as set out in its governing document is as follows:
-
The relief of poverty and sickness anywhere in the world and in particular those affected by natural causes, wars, conflicts; foreign and domestic by the provision of financial or other assistance including medicines, hospitals, shelter, food, clothing, sanitation and clean drinking water.
-
Advancing the education of those in need and orphans anywhere in the world by the provision of training
centres, workshops and education centres.
- The relief of poverty, sickness and distress in world.
The main activities undertaken in relation to those purposes during the year.
The main activities undertaken in relation to those purposes is achieved through close relationships with a number of overseas aid relief charities whose primary purposes are to alleviate the distress and poverty of families in disturbed areas. The charity monitors the use of such funds by obtaining regular reports from the charities to whom grants are made.
The main activities undertaken during the year to further the charity's purpose for the public benefit.
The main activities undertaken to further the charity's purposes for the public benefit and include confirmation that the trustees have given due consideration to the Charity Commission's guidance on the public benefit requirement when reviewing the aims and objectives of the charity and when planning future activities. In order to achieve the objectives including public benefit requirements, the charity has continued work on providing counselling, advice, education and local community activities.
The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
Grant making policies and how these contributed to the achievement of the charity's aims and objectives during the year.
Pakistan
Mercy Welfare Trust - previously named Ihsan Global Relief (same UK Charity Number) - has been continuously supporting people who were made homeless due to the floods in 2022. To date we have built 40 homes in South Punjab, Pakistan which can accommodate a family of up to 10. We now intend to move to a more permanent project in South Punjab. Over £5,000 in cash donations and food aid was distributed to poor families during field visits by our staff and volunteers in 2025.
Ramadan 2025
Our Ramadan campaign improved over last year, with volunteers raising funds through their networks. As a result, we distributed food parcels feeding thousands of people in need in Pakistan. We anticipate higher income during Ramadan 2026.
Qurbani 2025
We completed the annual Qurbani in Pakistan, benefiting around 3,000 people. This key fundraising event each year allows us to distribute meat— increasingly becoming a luxury item for many since the 2022 floods —to low-income families, as well as those below the poverty line. As a major fundraising initiative, we plan to expand this campaign and continue it in 2026.
Education in the UK
In recent years, reliance on virtual teaching programs has increased. We collaborate with organizations offering mentoring and counselling both online and in person through community outreach events. We are currently engaging with several UK-based providers to expand our services and help people improve their mental health and wellbeing.
The main achievements and performance of the charity during the year.
The results for the year under review are as shown in the attached Financial Statements. This year has seen a slight decrease in income mainly due to the conflict in the Middle East.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
Fundraising activities during the year.
The results for the year under review are as shown in the attached Financial Statements. This year has seen a significant fall in our income mainly due to th previous years impact from Covid. The uncertainty and limited resources has meant that we were unable to carry out any grassroot fundraising activities for the past 12 months.
The difference the charity's performance during the year has made to the beneficiaries of the charity.
The main activities undertaken in relation to those purposes is achieved through close relationships with a number of overseas aid relief charities whose primary purposes are to alleviate the distress and poverty of families in disturbed areas. The charity monitors the use of such funds by obtaining regular reports from the charities to whom grants are made.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
The degree to which the achievements and performance during the year have benefited wider society.
The main activities undertaken to further the charity's purposes for the public benefit and include confirmation that the trustees have given due consideration to the Charity Commission's guidance on the public benefit requirement when reviewing the aims and objectives of the charity and when planning future activities. In order to achieve the objectives including public benefit requirements, the charity has continued work on providing counselling, advice, education and local community activities.
Structure, governance and management of the charity
The methods used to recruit and appoint new charity trustees.
Additional trustees may be appointed at the discretion of the trustees in accordance with the trust deed.
Potential trustees will be asked to attend trustee meetings as observers and given more details of the charity’s aims and objectives. If all trustees agree, the new candidate will be proposed as a new trustee at the subsequent trustees meeting. This process allows due consideration of a person’s eligibility, personal competence, specialist knowledge and skills.
The charity has a policy in place for the induction and training of trustees, should any new trustees be appointed.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
Financial review
The charity's financial position at the end of the year ended 30 June 2025
The financial position of the charity at 30 June 2025 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows:-
| Restricted Revenue Funds Total Funds Net income Unrestricted Revenue Funds available for the general purposes of the charity |
2025 £ 11,189 1,585 71,509 73,094 |
2024 £ 13,101 |
|---|---|---|
| 1,179 60,726 |
||
| 61,906 |
Financial review of the position at the reporting date, 30 June 2025.
The charity continues to implement its 100% donations policy where all donations are executed according to the donors wish without any admin costs being deducted. This policy is working extremely well. Most of the funds raised this year are unrestricted. We will continue to strive to raise more funds for Admin/General as it will mean the funds will be unrestricted and the Trustees can use them to develop the infrastructure of the charity. Currently all expenses are met through the admin fund and gift aid.
Policies on reserves.
Donations received for specific projects are posted to the restricted funds and the charity applies the resources in accordance with the rules relating to that specific fund. We have enough reserves currently to meet the costs of the charity for 6 months.
Availability and adequacy of assets of each of the funds
The board of trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
Plans For the Future
Summary of plans for the future and the trustees' perspective of the future direction of the charity.
It is vital to continue raising funds for long-term development projects, as only then will we be able to make a lasting change in the lives of people who have been made destitute due to natural disasters or conflicts. The charity will focus on raising awareness by working with grass roots organisations with the ability to mobilise in poor, remote disaster-stricken areas. We have noticed that it has become more difficult to raise funds in a worsening economic climate. Nevertheless, the charity is reviewing its fundraising strategies to meet future challenges.
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
Details of The Independent Examiner
Adam Badi FCMA Member of Chartered Institute of Management Accountants 69 Dagmar Avenue Wembley HA9 8DQ
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Mercy Welfare Trust
Trustees' Annual Report for the year ended 30 June 2025
Statement of Trustees' Responsibilities
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations,the Charities (Accounts and Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), .
In particular, charity law requires the Trustees, if they prepare accounts on an accruals basis, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Trustees are required to :-
-
to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
-
select suitable accounting policies and apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business;
-
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.
The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with regulations made under the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are also responsible for the contents of the Trustees' report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' report is limited to examining the report and ensuring that , on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements.
This report was approved by the board of trustees on 11 April 2026.
K. Shah Trustee
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Mercy Welfare Trust
Report of the Independent Examiner to the Trustees of the charity on the accounts for the year ended 30 June 2025
I report to the Trustees on my examination of the financial statements of the charity on pages 13 to 24 for the year ended 30 June 2025 which have been prepared in accordance with the Charities Act 2011 (the Act) and with the Financial Reporting Standard 102, (effective 1st January 2016) adapted to meet the needs of unincorporated organisations, as modified by FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW) , and under the historical cost convention and the accounting policies set out on page 17.
Respective responsibilities of the Trustees and the Independent Examiner and the basis of the report
As described on page 10, you, the charity's Trustees, are responsible for the preparation of the financial statements in accordance with the Charities Act 2011 and all other applicable law and with United Kingdom Generally Accepted Accounting Practice, applicable to smaller entities, and for being satisfied that the financial statements give a true and fair view.
The Trustees consider that the audit requirement of Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the Governing Document for the conducting of an audit. As a consequence, the Trustees have elected that the financial statements be subject to independent examination.
Having satisfied myself that the financial statements are not required to be audited under any legal provision, or otherwise, and are eligible for independent examination, it is my responsibility to:-
a) examine the financial statements of the charity under Section 145 of the Act;
b) follow the applicable procedures in the Directions given by the Charity Commission under section 145(5)(b) of the Act.
Basis of Independent Examiner's Statement and scope of work undertaken
I report in respect of my examination of the charity's financial statements carried out under s145 of the Act. In carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act setting out the duties of an independent examiner in relation to the conducting of an independent examination. An independent examination includes a review of the accounting records kept by the charity and of the accounting systems employed by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you, as Trustees, concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of charity legislation and that, on a test basis of evidence relevant to the amounts and disclosures made, the financial statements comply with the SORP.
The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the Trustees in the course of the examination is not subjected to audit tests or enquiries and does not cover all the matters that an auditor would consider in arriving at an opinion. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide
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Mercy Welfare Trust
Consequently, I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.
I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalising the report I obtained written assurances from the Trustees of all material matters.
Independent Examiner's Statement, Report and Opinion
Subject to the limitations upon the scope of my work as detailed above, I have completed my examination: and can confirm that:-
This is a report in respect of an examination carried out under 145 of the Act and in accordance with Directions given by the Charity Commission under section 145(5)(b) of the Act which may be applicable;
and that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:-
accounting records were not kept in respect of the charity as required by with Section 130 of The Charities Act 2011;
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view, which is not a matter considered as part of an independent examination;
have not been prepared in accordance with the methods and principles set out in the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
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Signed:-
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Adam Badi FCMA - Independent Examiner
Chartered Institute of Management Accountants
This report was signed on 11 April 2026
12
Mercy Welfare Trust - Statement of Financial Activities for the year ended 30 June 2025
Statement of Financial Activities for the year ended 30 June 2025
| Current year Unrestricted Funds 2025 £ Income & Endowments from: Donations & Legacies A1 2,317 Investments A4 - Total income A 2,317 Expenditure on: Raising funds B1 1,911 Charitable activities B2 - Total expenditure B 1,911 Net (loss)/gains on investments B4 - Net income for the year 406 Net income after transfers A-B-C 406 406 Reconciliation of funds:- E Total funds brought forward 1,179 Total funds carried forward 1,585 SORP Ref Net movement in funds |
Current year Restricted Funds 2025 £ 97,720 - 97,720 - 86,937 86,937 - 10,783 10,783 10,783 60,726 71,509 |
Current year Total Funds 2024 £ 100,036 - 100,036 1,911 86,937 88,848 - 11,189 11,189 11,189 61,906 73,094 |
Prior Year Total Funds 2024 £ 105,546 - |
|---|---|---|---|
| 125,632 | |||
| 3,853 88,591 |
|||
| 126,709 | |||
| - | |||
| 13,101 | |||
| 13,101 | |||
| 13,101 48,806 |
|||
| 61,906 |
The 'SORP Ref' indicated above is the classification of income set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the Balance Sheet.
A Statement of Total Recognised Gains and Losses is included as a primary statement in these accounts.
All activities derive from continuing operations
The notes attached on pages 17 to 24 form an integral part of these accounts.
13
Mercy Welfare Trust - Balance Sheet as at 30 June 2025
| Note SORP Ref Fixed assets A Tangible assets 9 A2 Investments held as fixed assets A4 Total fixed assets Current assets B Cash at bank and in hand B4 72,775 Net current assets The total net assets of the charity |
2025 £ 319 - 319 61,480 72,775 73,094 |
2024 £ 426 - |
|---|---|---|
| 426 61,480 |
||
| 48,805 |
The total net assets of the charity are funded by the funds of the charity, as follows:-
| Restricted funds Restricted Revenue Funds 12 D2 71,509 Unrestricted Funds Unrestricted Revenue Funds 12 D3 1,585 Total charity funds |
60,726 71,509 1,179 1,585 73,094 |
60,726 1,179 |
|---|---|---|
| 61,905 |
The 'SORP Ref' indicated above is the classification of Balance Sheet items as set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the SOFA.
The Trustees acknowledge their responsibilities for complying with the requirements of charity legislation with respect to accounting records and the preparation of accounts.
The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on page 12.
The Trustees are satisfied that, although the charity is not registered under the Companies Acts, if it were so registered, it would be eligible to prepare accounts in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.
K. Shah Trustee Approved by the board of trustees on 11 April 2026
The notes attached on pages 17 to 24 form an integral part of these accounts.
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Mercy Welfare Trust
Cash Flow Statement for the year ended 30 June 2025
| Cash flows from operating activities A Cash flows from investing activities Interest received Other investment income, including rents from investments Purchase of property, plant and equipment Purchase of investments Net cash provided by investing activities B Cash flows from financing activities Net cash provided by operating activities as shown below |
2025 £ 11,295 - - - - - |
2024 £ 13,243 |
|---|---|---|
| - - - - |
||
| - | ||
| Net cash provided by financing activities C Overall cash provided by all activities Cash movements Change in cash and cash equivalents from activities in the year ended 30 June Cash and cash equivalents at 1 July Change in cash and cash equivalents due to exchange rate movements A+B+C Cash at bank and in hand less overdrafts at 30 June |
- 11,295 11,295 61,480 - 72,775 |
- |
| 13,243 | ||
| 13,243 48,236 - |
||
| 61,480 |
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Mercy Welfare Trust
Cash Flow Statement for the year ended 30 June 2025
Mercy Welfare Trust
Cash Flow Statement for the year ended 30 June 2025 - Continued
Reconciliation of net income to net cash flow from operating activities
| Net income as shown in the Statement of Financial Activities Adjustments for :- Depreciation charges Write downs of investments Net unrealised losses on investment assets Dividends, interest and rents from investments Net cash provided by operating activities A Analysis of cash and cash equivalents Cash in hand at for the year ended 30 June Total cash and cash equivalents |
11,189 106 - - - 11,295 2025 £ 72,775 72,775 |
13,101 142 - - - |
|---|---|---|
| 13,243 | ||
| 2024 £ 61,480 |
||
| 61,480 |
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
1 Accounting policies
Policies relating to the production of the accounts.
Basis of preparation and accounting convention
The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW) , effective January 2016, , and in accordance with all applicable law in the charity's jurisdiction of registration, except that the charity has prepared the financial statements in accordance with the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), in preference to the previous SORP, the SORP 2005, which has been withdrawn, notwithstanding the fact that the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008 refer explicitly to the SORP 2005. This has been done to accord with current best practice.
Income is included in the Statement of Financial Activities (SoFA) when the charity becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
Going Concern
The charitable activities are entirely dependent on continuing grant aid and voluntary donations as well as trading revenues. As a consequence, the going concern basis is dependent on the future flow of these uncertain funding streams. Accordingly, the Trustees have obtained forecasts and, after reviewing the financial forecasts for future periods, the Trustees are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements. Other than these matters, the Trustees are not aware of any material uncertainites about the charity's ability to continue as a going concern.
Risks and future assumptions
The charity is a public benefit entity.
• the judgements, apart from those involving estimations, that management has made in the process of applying the entity’s accounting policies that have the most significant effect on the amounts recognised in the accounts;
• the key assumptions concerning the future, and other key 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; and
- in respect of those assets and liabilities where there is a significant risk of material adjustment within the next reporting period, the notes must include details of their nature and their carrying amount as at the end of the reporting period.
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
Policies relating to categories of income and income recognition.
Nature of income
Gross income represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.
Categories of Income
Income is categorised as income from exchange transactions (contract income) and income from non-exchange transactions (gifts), investment income and other income.
Income from exchange transactions is received by the charity for goods or services supplied under contract or where entitlement is subject to fulfilling performance related conditions. The income the charity receives is approximately equal in value to the goods or services supplied by the charity to the purchaser.
Income from a non-exchange transaction is where the charity receives value from the donor without providing equal value in exchange, and includes donations of money, goods and services freely given without giving equal value in exchange.
Income recognition
Income, whether from exchange or non exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.
Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.
All income is accounted for gross, before deducting any related fees or costs.
Policies relating to expenditure on goods and services provided to the charity.
Recognition of liabilities and expenditure
A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated..
Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.
Allocating costs to activities
Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities.
The basis for apportionment, which is consistently applied, and proportionate to the circumstances, is :-
Staffing - on the basis of time spent in connection with any particular activity. Staffing - on a per capita basis, based on the number of of people employed within any partiular activity. Premises related costs - on the proportion of floor area occupied by a particular activity.
Non specific support costs - on the basis of the usage of resources, in terms of time taken, capacity used, request made or other measures
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
Policies relating to assets, liabilities and provisions and other matters.
Tangible fixed assets
Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described above. Cost value includes all costs expended in bringing the asset into its intended working condition.
Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives.
Plant and machinery 25 % Reducing balance
Current asset investments
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Fund Accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal or as implied by law.
There are no endowment funds.
2 Liability to taxation
The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
3 Winding up or dissolution of the charity
If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.
4 Significance of financial instruments to the charity's position
There are no significant implications of such matters.
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
| 5 The net surplus before tax in the financial year is stated after charging:- Depreciation of owned fixed assets 6 Investment gains Total realised gains/(losses) - - All the gains and losses in the prior year was unrestricted. 7 Staff costs and emoluments Salary costs Gross Salaries excluding trustees and key management personnel Employer's National Insurance for all staff Total salaries, wages and related costs The estimated full time equivalent number of all staff employed in the year was The estimated full time equivalent number of all staff employed as above Net surplus before tax in the financial year |
charging:- | 2025 £ 142 |
2024 £ 142 |
|
|---|---|---|---|---|
| - | - | - | - | |
| 2025 £ 12,000 - |
2024 £ 10,000 - |
|||
| 12,000 | 10,000 | |||
| 1 | 1 | |||
| 1 | 1 |
Neither the trustees nor any persons connected with them have received any remuneration from the charity or any related entity, either in the current or prior year.
No employees received emoluments (excluding pension costs) in excess of £60,000 per annum.
8 Remuneration and payments to Trustees and persons connected with them
No trustees or persons connected with them received any remuneration from the charity, or any related entity.
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
9 Tangible fixed assets
| Current Year Cost At 1 July 2024 At 30 June 2025 Depreciation At 1 July 2024 Charge for the year At 30 June 2025 Net book value At 30 June 2025 At 30 June 2024 10 Income and Expenditure account summary At 1 July 2024 Surplus/(loss) for the year At 30 June 2025 |
£ - |
Plant & Machinery £ 3,367 |
£ - |
Total £ 3,367 |
|---|---|---|---|---|
| - | 3,367 | - | 3,367 | |
| - - |
2,940 106 |
- - |
2,940 106 |
|
| - | 3,046 | - | 3,046 | |
| - | 321 | - | 321 | |
| - | 427 | - | 427 | |
| 2025 £ 61,907 11,189 |
2024 £ 48,806 13,101 |
|||
| 73,096 | 61,907 |
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
11 Particulars of how particular funds are represented by assets and liabilities
| At 30 June 2025 Tangible Fixed Assets Current Assets At 1 July 2024 Tangible Fixed Assets Current Assets |
Unrestricted funds £ 319 1,266 |
Restricted funds £ - 71,509 |
Total Funds £ 319 72,775 |
|
|---|---|---|---|---|
| 1,585 | 71,509 | 73,094 | ||
| Unrestricted funds £ 426 753 |
Restricted funds £ - 60,726 |
Total Funds £ 426 61,480 |
||
| 1,179 | 60,726 | 61,905 |
12 Change in total funds over the year as shown in Note 11 , analysed by individual funds
| Unrestricted and designated funds:- Unrestricted Revenue Funds Total unrestricted and designated funds Restricted funds:- Zakat Reserve Sadaqa Reserve Prison Reserve Education Fund Reserve Zakat ul Fitr Reserve Pakistan Reserve Pakistan Flood Reserve Fidya Reserve Qurbani Reserve Madina Food Reserve Umrah Reserve Ambulance Reserve Ben Nevis 2024 Sadat Total restricted funds Total charity funds |
Funds brought forward from 2024 £ 1,179 |
Movement in funds in 2025 See Note 13 £ 406 |
£ - Transfers between funds in 2025 |
Funds carried forward to 2025 £ 1,585 |
|---|---|---|---|---|
| 1,179 | 406 | - | 1,585 | |
| 23,930 25,397 21 8,593 185 131 100 180 37 170 530 1,454 |
12,659 (7,994) - 3,576 (156) 1,090 - (180) (37) (170) - - 1,180 815 |
- - - - - - - - - - - - - - |
36,589 17,403 21 12,169 29 1,221 100 - - - 530 1,454 1,180 815 |
|
| 60,726 | 10,783 | - | 71,509 | |
| 61,905 | 11,189 | - | 73,094 |
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
13 Analysis of movements in funds over the year as shown in Note 12
| Unrestricted and designated funds:- Unrestricted Revenue Funds Restricted funds:- Zakah Reserve Sadaqah Reserve Education Fund Reserve Zakat ul Fitr Reserve Sadat Reserve Pakistan Reserve Pakistan Flood Reserve Qurbani Reserve Fidya Reserve Madina Food Umrah Reserve Ambulance Reserve Ben Nevis 2024 Ahlul bayt Ustada Dalia |
Income 2025 £ 2,317 29,659 6,413 37,018 579 815 1,090 - 5,945 20 3,483 - 9,282 1,416 2,000 - - |
Expenditure 2025 £ (1,911) (17,000) (14,407) (33,442) (735) - - - (5,982) (200) (3,653) - - (8,102) (1,417) (2,000) - - |
Other Gains & Losses 2025 £ - - - - - - - - - - - - - - - - - - |
Movement in funds 2025 £ 406 12,659 (7,994) 3,576 (156) 815 1,090 - (37) (180) (170) - - 1,180 (1) - - - |
|---|---|---|---|---|
| 97,720 | (86,937) | - | 10,783 |
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Mercy Welfare Trust
Notes to the Accounts for the year ended 30 June 2025
14 The purposes for which the funds as detailed in note 12 are held by the charity are:-
Unrestricted and designated funds:-
Unrestricted Revenue Funds
These funds are held for the meeting the objectives of the charity, and to provide reserves for future activities, and , subject to charity legislation, are free from all restrictions on their use.
Restricted funds:-
Restricted Revenue Funds
Zakah Reserve Sadaqah Reserve Education Fund Reserve Zakat ul Fitr Reserve Sadat Reserve Zakat ul Fitr Pakistan Reserve Pakistan Flood Reserve Pakistan Qurbani Reserve Pakistan Food distribution Gambia Project Muslim Prisons Turkey Earthquake Reserve
15 Ultimate controlling party
The charity is under the control of its legal members.
Every member of the charity has unlimited joint and several liability for the debts of the charity.
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