**CHARITY REGISTRATION NUMBER: 1164793** 

## **MALKI FOUNDATION UK** 

**UNAUDITED FINANCIAL STATEMENTS** 

**28 FEBRUARY 2021** 



## **MALKI FOUNDATION UK** 

## **FINANCIAL STATEMENTS** 

## **YEAR ENDED 28 FEBRUARY 2021** 

||**PAGE**|
|---|---|
|Trustees' annual report|**1**|
|Independent examiner's report to the trustees|**4**|
|Statement of financial activities|**5**|
|Statement of financial position|**6**|
|Notes to the financial statements|**7**|





## **MALKI FOUNDATION UK TRUSTEES' ANNUAL REPORT** 

## **YEAR ENDED 28 FEBRUARY 2021** 

The trustees present their report and the unaudited financial statements of the charity for the year ended 28 February 2021. 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

**Registered charity name** Malki Foundation UK **Charity registration number** 1164793 **Principal office** 1339 High Road London N20 9HR **The trustees** Mr P Masters Mr R Eisner Mr L Kay Mr A Roth Ms D Toft Mr R Green Mr J Burchell Mr G D Hartnell **Independent examiner** Keith Sussman FCA New Burlington House 1075 Finchley Road LONDON NW11 0PU 

**- 1 -** 



**MALKI FOUNDATION UK** 

## **TRUSTEES' ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 28 FEBRUARY 2021** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

The official name of the charity is Malki Foundation UK and its constitution is of a Foundation Charitable Incorporated Organisation. 

It is registered with the Charity Commission and its charity number is 1164793. 

## **Appointment, training and recruitment of trustees** 

The trustees have no beneficial interest in the charity and are chosen by agreement of trustees at an annual meeting. The choice is based on applicants' business and community knowledge. 

New trustees are subject to trustee induction training which includes an understanding of the content of the governing document, their legal obligations under Charity Act, the organisational structure of charity and the recent financial performance of the charity. Trustees are encouraged to attend appropriate external training events which enhance their knowledge and skill thereby improving the performance of their role. 

## **Management of the charity** 

The trustees have delegated the charity's day-to-day activities to a management team. 

## **Related parties and co-operations with other organisations** 

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee of the charity with a supplier company must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. In the current year no such related party transactions were reported. 

## **OBJECTIVES AND ACTIVITIES** 

The charity is established to provide support to the families of children with special needs in Israel, to enable them to care for their special needs children at home, through the provision of specialist equipment and paramedical therapeutic care in particular, but not exclusively, by providing support and assistance to the Malki Foundation; and, such charitable purposes for the public benefit as are exclusively charitable according to the laws of England and Wales as the Trustees may from time to time determine. 

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grant making policy for the year. 

## **Grant making policy** 

Grants are made to charitable organisations in accord with objects of the charity. 

## **ACHIEVEMENTS AND PERFORMANCE** 

During the year, in order to provide the charity with a more stable footing going forward to in turn better support the Malki Foundation in Israel, the charity continued with its plan which included the engagement of a full-time consultant, stronger PR, advertising & marketing, recruitment of volunteers, fundraising events calendar, development of the trustee board and expansion of the grant application programme. 

**- 2 -** 



**MALKI FOUNDATION UK** 

## **TRUSTEES' ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 28 FEBRUARY 2021** 

## **FINANCIAL REVIEW** 

## **Risk management** 

The trustees have identified and reviewed the major risks to which the charity is exposed. Both manual and automated checks are regularly invoked, particularly those relating to the operations and finance of the charity. The trustees are satisfied that these systems and procedures mitigate any perceived risks. 

## **Reserves policy** 

At the year-end £11,190 (2020: deficit of £2,686) was held as unrestricted funds. It is the policy of the charity to maintain unrestricted funds, which are the free reserve of the charity, at a level, which the trustees think appropriate, in-order to maintain and finance the charity's administrative costs of the charity for the next year. 

The trustees' annual report was approved on 14 December 2021 and signed on behalf of the board of trustees by: 

Mr A Roth Trustee 

**- 3 -** 



**MALKI FOUNDATION UK** 

## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MALKI FOUNDATION UK** 

## **YEAR ENDED 28 FEBRUARY 2021** 

I report to the trustees on my examination of the financial statements of Malki Foundation UK ('the charity') for the year ended 28 February 2021. 

## **RESPONSIBILITIES AND BASIS OF REPORT** 

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’). 

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and 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. 

## **INDEPENDENT EXAMINER'S STATEMENT** 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 

2. the financial statements do not accord with those records; or 

3. 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. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

Keith Sussman FCA Independent Examiner 

New Burlington House 1075 Finchley Road LONDON NW11 0PU 

14 December 2021 

**- 4 -** 



## **MALKI FOUNDATION UK** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **YEAR ENDED 28 FEBRUARY 2021** 

|||**2021**||2020|
|---|---|---|---|---|
|||Unrestricted|||
|||funds**Total funds**||Total funds|
||**Note**|**£**|**£**|£|
|**Income and endowments**|||||
|Donations and legacies|**4**|53,263|53,263|82,439|
|Other income|**5**|22,194|22,194|–|
|||`─────────`|`─────────`|`─────────`|
|**Total income**||75,457|75,457|82,439|
|||`═════════`|`═════════`|`═════════`|
|**Expenditure**|||||
|Expenditure on raising funds:|||||
|Costs of raising donations and legacies|**6**|(7,280)|(7,280)|(16,527)|
|Expenditure on charitable activities|**7,8**|(54,301)|(54,301)|(60,963)|
|||`─────────`|`─────────`|`─────────`|
|**Total expenditure**||(61,581)|(61,581)|(77,490)|
|||`═════════`|`═════════`|`═════════`|
|||`─────────`|`─────────`|`─────────`|
|**Net income and net movement in funds**||13,876|13,876|4,949|
|||`═════════`|`═════════`|`═════════`|
|**Reconciliation of funds**|||||
|Total funds brought forward||(2,686)|(2,686)|(7,635)|
|||`─────────`|`─────────`|`─────────`|
|**Total funds carried forward**||11,190<br>`═════════`|11,190<br>`═════════`|(2,686)<br>`═════════`|



The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 

**The notes on pages 7 to 10 form part of these financial statements.** 

**- 5 -** 



## **MALKI FOUNDATION UK** 

## **STATEMENT OF FINANCIAL POSITION** 

## **28 FEBRUARY 2021** 

|||**2021**||2020||
|---|---|---|---|---|---|
||**Note**|**£**|**£**|£|£|
|**CURRENT ASSETS**||||||
|Cash at bank and in hand||19,312||3,032||
|**CREDITORS: amounts falling due**||||||
|**within one year**|**11**|(8,122)||(5,718)||
|||`─────────`||`───────`||
|**NET CURRENT ASSETS**|||11,190||(2,686)|
||||`─────────`||`───────`|
|**TOTAL ASSETS LESS CURRENT**||||||
|**LIABILITIES**|||11,190||(2,686)|
||||`═════════`||`═══════`|
|**FUNDS OF THE CHARITY**||||||
|Unrestricted funds|||11,190||(2,686)|
||||`─────────`||`───────`|
|**Total charity funds**|**13**||11,190||(2,686)|
||||`═════════`||`═══════`|



These financial statements were approved by the board of trustees and authorised for issue on 14 December 2021, and are signed on behalf of the board by: 

Mr A Roth Trustee 

**The notes on pages 7 to 10 form part of these financial statements.** 

**- 6 -** 



**MALKI FOUNDATION UK** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDED 28 FEBRUARY 2021** 

## **1. GENERAL INFORMATION** 

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 1339 High Road, London, N20 9HR. 

## **2. STATEMENT OF COMPLIANCE** 

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011. 

## **3. ACCOUNTING POLICIES** 

## **(i) Basis of preparation** 

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. 

The financial statements are prepared in sterling, which is the functional currency of the entity. 

## **(ii) Going concern** 

The outbreak of the Covid-19 pandemic during 2020 has presented the charity with some challenges regarding fundraising which the trustees believe will continue for the foreseeable future. This risk is beyond the control of the charity and represents uncertainty to the income of the charity. 

Notwithstanding the uncertainty, the financial statements have been prepared in accordance with the accounting principles appropriate to a going concern, as the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due, based on the net current asset position of the charity and available sources of finance. The Trustees recognise that they have the ability to exercise control over the charity's grant making charitable activities due to the absence of any legally binding obligations. 

## **(iii) Judgements and key sources of estimation uncertainty** 

There are no judgements, estimates or assumptions that affect the amounts reported. 

## **(iv) Fund accounting** 

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. 

## **(v) Incoming resources** 

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: 

- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. 

**- 7 -** 



**MALKI FOUNDATION UK** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 28 FEBRUARY 2021** 

## **3. ACCOUNTING POLICIES** _**(continued)**_ 

## **(vi) Resources expended** 

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: 

- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. 

- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. 

- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. 

## **(vii) Financial instruments** 

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. 

## **(viii) Defined contribution plans** 

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. 

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. 

## **4. DONATIONS AND LEGACIES** 

||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|**DONATIONS**|||||
|Donations received|53,263|53,263|82,439|82,439|
||`═════════`|<br>`═════════`|`═════════`|`═════════`|



**- 8 -** 



## **MALKI FOUNDATION UK** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 28 FEBRUARY 2021** 

## **5. OTHER INCOME** 

|**5.**|**OTHER INCOME**|||||
|---|---|---|---|---|---|
|||Unrestricted|<br>**Total Funds**|Unrestricted|Total Funds|
|||Funds|<br>**2021**|Funds|2020|
|||£|**£**|£|£|
||Coronavirus Job Retention Scheme|||||
||grant|22,194|<br>22,194|–|–|
|||`═════════`|<br>`═════════`|`════`|`════`|
|**6.**|**COSTS OF RAISING DONATIONS**|**AND LEGACIES**||||
|||Unrestricted|<br>**Total Funds**|Unrestricted|Total Funds|
|||Funds|<br>**2021**|Funds|2020|
|||£|**£**|£|£|
||Costs of raising donations and legacies|7,280|<br>7,280|16,527|16,527|
|||`═══════`|<br>`═══════`|`═════════`|`═════════`|
|**7.**|**EXPENDITURE ON CHARITABLE**|**ACTIVITIES BY FUND TYPE**||||
|||Unrestricted|<br>**Total Funds**|Unrestricted|Total Funds|
|||Funds|<br>**2021**|Funds|2020|
|||£|**£**|£|£|
||Grants and donations|–|<br>–|10,000|10,000|
||Support costs|54,301|<br>54,301|50,963|50,963|
|||`─────────`|<br>`─────────`|`─────────`|`─────────`|
|||54,301|<br>54,301|60,963|60,963|
|||`═════════`|<br>`═════════`|`═════════`|`═════════`|
|**8.**|**EXPENDITURE ON CHARITABLE**|**ACTIVITIES BY ACTIVITY TYPE**||||
|||||**Total funds**|Total fund|
||||Support costs|**2021**|2020|
||||£|**£**|£|
||Grants and donations||54,301|54,301|60,963|
||||`═════════`|`═════════`|`═════════`|
|**9.**|**ANALYSIS OF SUPPORT COSTS**|||||
||||Grants and|||
||||donations|**Total 2021**|Total 2020|
||||£|**£**|£|
||Staff costs||45,845|45,845|43,099|
||General office||7,237|7,237|7,784|
||Finance costs||1,218|1,218|80|
||||`─────────`|`─────────`|`─────────`|
||||54,300|54,300|50,963|
||||`═════════`|`═════════`|`═════════`|



## **10. TRUSTEE REMUNERATION AND EXPENSES** 

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees. 

## **11. CREDITORS: amounts falling due within one year** 

||**2021**|2020|
|---|---|---|
||**£**|£|
|Other creditors|8,122|5,718|
||`═══════`|`═══════`|



**- 9 -** 



## **MALKI FOUNDATION UK** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**(continued)**_ 

## **YEAR ENDED 28 FEBRUARY 2021** 

## **12. PENSIONS AND OTHER POST RETIREMENT BENEFITS** 

## **Defined contribution plans** 

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £1,133 (2020: £1,008). 

## **13. ANALYSIS OF CHARITABLE FUNDS** 

## **Unrestricted funds** 

|**Unrestricted funds**||||||
|---|---|---|---|---|---|
||||||**At**|
||At|||**28**|**February**|
||1 March 2020|Income|Expenditure||**2021**|
||£|£|£||£|
|General funds|(2,686)|75,457|(61,581)||11,190|
||`═══════`|`═════════`|`═════════`||`═════════`|
||||||At|
||At|||29 February||
||1 March 2019|Income|Expenditure||2020|
||£|£|£||£|
|General funds|(7,635)|82,439|(77,490)||(2,686)|
||`═══════`|`═════════`|`═════════`||`═══════`|
|**ANALYSIS OF NET ASSETS**|**BETWEEN FUNDS**|||||
||||Unrestricted|<br>**Total Funds**||
||||Funds||**2021**|
||||£||**£**|
|Current assets|||19,312||19,312|
|Creditors less than 1 year|||(8,122)||(8,122)|
||||`─────────`||`─────────`|
|**Net assets**|||11,190||11,190|
||||`═════════`||`═════════`|
||||Unrestricted|<br>Total Funds||
||||Funds||2020|
||||£||£|
|Current assets|||3,032||3,032|
|Creditors less than 1 year|||(5,718)||(5,718)|
||||`───────`||`───────`|
|**Net assets**|||(2,686)||(2,686)|
||||`═══════`||`═══════`|



## **14. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

## **15. RELATED PARTIES** 

Included in other creditors is £3,000 (2020: £3,000) due to Malki Foundation in Israel, a charity with a common trustee (see note 11). 

**- 10 -**