2021-04-05-accounts - Malachi Community Trust

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REGISTERED CHARITY NUMBER: 1167817

Report of the Trustees and

Financial Statements for the Year Ended 5 April 2021

for Malachi Community Trust

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

Malachi Community Trust

Contents of the Financial Statements for the Year Ended 5 April 2021

		Page
Report of the Trustees	1	to	3
Report of the Independent Auditors	4	to	6
Statement of Financial Activities		7
Balance Sheet		8
Cash Flow Statement		9
Notes to the Financial Statements Ds	10	to	18

Malachi Community Trust

Report of the Trustees for the Year Ended 5 April 2021

The trustees present their report with the financial statements of the charity for the year ended 5 April 2021. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES Objectives and aims Background

Malachi Trust was founded in 1992 to offer support and give advocacy to children affected by family breakdown. The founders of the Trust Gordon and Lyn Lee, had learned from their community work background that in every school in which they had worked, there were children whose life chances were being affected by a disturbed family experience. Interventions with challenging children had tended to be short term and behaviour focused; often relying on punitive intervention or some form of reward based system. There was little evidence of any serious attempt to look behind the behaviour for an understanding of the underlying causes.

Malachi Community Trust remains committed and dedicated to working on behalf of its clients, striving to build on its reputation and remain at the forefront of innovation and service improvement.

Objectives

The objects of the charity are

The relief of children and young people who are suffering from conditions of poverty, deprivation, hardship and distress, particularly but not exclusively through the provision of workshops, counselling, information, teaching and advice and to provide support services to their families as the Trustees think fit
To advance and promote the spiritual and moral development of children and young people an development of family life values and to stimulate public awareness in the areas of social concern particularly using teachings, drama, music and the performing arts

In setting our objectives and planning our activities our Trustees have given careful consideration to the Charity Commission's general guidance on public benefit.

Significant activities and Charitable Activities

I am pleased to be able to report continued positive progress in this, the twenty ninth year of the life of Malachi Community Trust.

Our vision for multi-agency partnership working is exemplified in our multi-agency HUB model which continues to be recognised as visionary and highly relevant to central and local government strategy. Services and activities from our first community Hub, 'Billesley ARK' are increasingly used and valued by the local community. Our plans to be able to support homeless families with children from our second Hub, the Malcolm Locker Centre, continue to progress and enjoy the support of statutory and non-statutory partners.

ACHIEVEMENT AND PERFORMANCE Achievements and Performance Billesley HUB

We are pleased to report that our building, Billesley ARK, is now the head office for the delivery of Birmingham City Council's Early Help programme which we have been funded to deliver across the Selly Oak District of the City. As a consequence, a wide range of supportive and preventative services are being delivered for the benefit of all members of the community.
Our volunteer led management group, 'Billesley ARK Volunteers', continues to grow and flourish in line with our commitment in supporting user of service, into becoming providers of service, helping them to take an increasing role in their community. The number of volunteers continues to increase.
Regular activities continue to be provided to people of all ages.

Page 1

Malachi Community Trust

Report of the Trustees for the Year Ended 5 April 2021

FINANCIAL REVIEW

Reserves policy

The Trust currently holds reserves of £503,191 comprising restricted fund reserves of £224,619 and general funds of £278,572. Of these general funds, £70,376 is currently invested in fixed assets, leaving free reserves of £208,196.

These funds will be utilised to invest wherever necessary to protect and develop services. Consideration will be given to use funds to carry out feasibility studies and research in circumstances where the Trustees are unable to secure funds from other sources either grant aid or loan.

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. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

FUTURE PLANS

MCT remains committed to its HUB vision and continues to seek further opportunities to develop the model.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Malachi Community Trust is a foundation Charitable Incorporated Organsiation, registered with the Charity Commission on 23 June 2016.

Recruitment and appointment of new trustees

The trust document provides for a board of trustees to be elected, with officers comprising Chairman, Treasurer and Secretary. Any person is allowed to be nominated and the existing board is charged with accepting or rejecting such nomination by a simple majority. The election of officers takes place each year at an annual general meeting which is an open meeting.

Organisational structure

The board of trustees, which can have up to ten members, administers the charity. The board meets monthly and sub committees are raised from time to time to deal with finance, human resources and general resourcing.

Induction and training of new trustees

New trustees are currently given a full briefing on the operations and methodology of the trust, along with relevant documents including the trust deed and the previous year's trustee meeting minutes. Trustees are encouraged to attend appropriate external training events where these will facilitate their undertaking of the role.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees have an risk management strategy which comprises:

Annual risk reviews
Development of systems and mitigation strategy for the risks identified above
Implementation of such strategy

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1167817

Page 2

Malachi Community Trust

Report of the Trustees for the Year Ended 5 April 2021

Principal address

Billesley Ark 725 Yardley Wood Road Birmingham West Midlands B13 0PT

Trustees

K I Bagby G Lee S Jobson

Auditors

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records which 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Approved by order of the board of trustees on 28 January 2022 and signed on its behalf by:

G Lee - Trustee

Page 3

Report of the Independent Auditors to the Trustees of Malachi Community Trust

Opinion

We have audited the financial statements of Malachi Community Trust (the 'charity') for the year ended 5 April 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:
give a true and fair view of the state of the charity's affairs as at 5 April 2021 and of its incoming resources and application of resources, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
have been prepared in accordance with the requirements of the Charities Act 2011.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 the charity'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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 of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Page 4

Report of the Independent Auditors to the Trustees of Malachi Community Trust

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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 is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of third parties where appropriate.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and checking the authorisation of expenditure as part of our substantive testing, using analytical review to identify any significant or unusual transactions and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 5

Report of the Independent Auditors to the Trustees of Malachi Community Trust

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

28 January 2022

Page 6

Malachi Community Trust

Statement of Financial Activities for the Year Ended 5 April 2021

5.4.21
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
5,862
-
5,862
Charitable activities
4
Billesley Ark
42,344
-
42,344
Malcolm Locker
10,000
-
10,000
BCC - Early Help
92,208
-
92,208
WIMN
49,000
-
49,000
Investment income
3
(59)
-
(59)
Total
199,355
-
199,355
EXPENDITURE ON
Charitable activities
5
Family services
-
-
-
Billesley Ark
31,828
19,196
51,024
Malcolm Locker
5,719
-
5,719
BCC - Early Help
21,542
-
21,542
WIMN
49,000
-
49,000
Total
108,089
19,196
127,285
NET INCOME/(EXPENDITURE)
91,266
(19,196)
72,070
RECONCILIATION OF FUNDS
Total funds brought forward
187,306
243,815
431,121
TOTAL FUNDS CARRIED FORWARD
278,572
224,619
503,191

5.4.20
Total
funds
£
5,111
24,544
-
-
-
40,556
70,211
2,673
19,196
49,024
-
-
70,893
(682)
431,803
431,121

The notes form part of these financial statements

Page 7

Malachi Community Trust

Balance Sheet 5 April 2021

Unrestricted Restricted funds funds Notes £ £ FIXED ASSETS Tangible assets 10 70,367 224,088 Investments 11 9 - 70,376 224,088 CURRENT ASSETS Debtors 12 1,888 - Cash at bank and in hand 243,490 531 245,378 531 CREDITORS Amounts falling due within one year 13 (37,182) - NET CURRENT ASSETS 208,196 531 TOTAL ASSETS LESS CURRENT LIABILITIES 278,572 224,619 NET ASSETS 278,572 224,619 FUNDS 14 Unrestricted funds Restricted funds TOTAL FUNDS	5.4.21 Total funds £ 294,455 9 294,464 1,888 244,021 245,909 (37,182) 208,727 503,191 503,191 278,572 224,619 503,191	5.4.20 Total funds £ 313,651 9 313,660 5,166 120,592 125,758 (8,297) 117,461 431,121 431,121 187,306 243,815 431,121

The financial statements were approved by the Board of Trustees and authorised for issue on 28 January 2022 and were signed on its behalf by:

G Lee - Trustee

The notes form part of these financial statements

Page 8

Malachi Community Trust

Cash Flow Statement for the Year Ended 5 April 2021

Notes Cash flows from operating activities Cash generated from operations 17 Net cash provided by operating activities Cash flows from investing activities Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	5.4.21 £ 123,363 123,363 66 66 123,429 120,592 244,021	5.4.20 £ 17,704
		17,704
		324
		324

		18,028 102,564
		120,592

The notes form part of these financial statements

Page 9

Malachi Community Trust

Notes to the Financial Statements for the Year Ended 5 April 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

The charity receives grants in respect of its direct charitable activities. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Contractual income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income is earned through holding assets for investment purposes such as bank deposits and property. It includes interest and rent. Interest income is recognised on receipt and rent income is recognised as the charity's right to receive payment is established.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Expenditure on charitable activities includes staff costs, premises and depreciation costs directly attributable to the furtherance of the charities objects.

Support costs include all other indirect costs, incurred in the management and administration of the charity in pursuing its charitable objectives. Also included in support costs are governance costs, being those costs attributable to the administration of the charity as a whole.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - Straight line over 25 years Plant and machinery - 20% on cost Fixtures and fittings - 20% on cost

Page 10

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Individual assets or groups of assets costing more than £1,000 are capitalised unless the expected useful life is less than two years.

Investments

Investments in ordinary, unlisted shares are measured at cost less impairment.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

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 twelve months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
	5.4.21	5.4.20
	£	£
Donations	5,862	5,111

Page 11

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

3. INVESTMENT INCOME

Rental, room hire and recharge of utilities
Deposit account interest
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Billesley Ark
Grants
Malcolm Locker
Grants
BCC - Early Help
Grants
WIMN
Grants received, included in the above, are as follows:
The Big Lottery Fund
Groundwork UK
Birmingham City Council - Local Inovation Fund
Awards 4 All
BCC - Covid-19 Business Support
Charities Aid Foundation
Lottery Community Fund - Covid-19 Response
BVSC - BCC Early Help
Screwfix Foundation
Heart of England National Emergency
Other

4. INCOME FROM CHARITABLE ACTIVITIES

5. CHARITABLE ACTIVITIES COSTS

Billesley Ark Malcolm Locker BCC - Early Help WIMN	Direct Costs £ 47,073 5,719 21,542 49,000 123,334	Support costs (see note 6) £ 3,951 - - - 3,951	Totals £ 51,024 5,719 21,542 49,000
			127,285

Page 12

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

6. SUPPORT COSTS

SUPPORT COSTS
		Governance
	Management	costs	Totals
	£	£	£
Billesley Ark	1,971	1,980	3,951
Support costs, included in the above, are as follows:
		5.4.21	5.4.20
		Billesley	Total
		Ark	activities
		£	£
Postage, stationery, telephone and
computer		204	1,318
Sundries		669	806
Events resources		1,098	1,295
Auditors' remuneration		1,980	1,880
		3,951	5,299

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 5 April 2021 nor for the year ended 5 April 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 5 April 2021 nor for the year ended 5 April 2020.

8. STAFF COSTS

The charity does not employee or pay any staff directly. Instead it was recharged £31,822 (2020 £4,007) for staff costs from Malachi Specialist Family Support Services CIC.

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 5,111 Charitable activities Billesley Ark - Investment income 40,556 Total 45,667 EXPENDITURE ON Charitable activities Family services 2,673 Billesley Ark - Malcolm Locker (7,500) Total (4,827)	Restricted funds £ - 24,544 - 24,544 - 19,196 56,524 75,720	Total funds £ 5,111 24,544 40,556
		70,211 2,673 19,196 49,024
		70,893

Page 13

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

9.	COMPARATIVES FOR THE STATEMENT	OF FINANCIAL	ACTIVITIES - continued	ACTIVITIES - continued
			Unrestricted	Restricted	Total
			funds	funds	funds
			£	£	£
	NET INCOME/(EXPENDITURE)		50,494	(51,176)	(682)
	RECONCILIATION OF FUNDS
	Total funds brought forward		136,812	294,991	431,803
	TOTAL FUNDS CARRIED FORWARD		187,306	243,815	431,121
10.	TANGIBLE FIXED ASSETS
		Improvements		Fixtures
		to	Plant and	and
		property	machinery	fittings	Totals
		£	£	£	£
	COST
	At 6 April 2020 and 5 April 2021	453,707	46,198	38,260	538,165
	DEPRECIATION
	At 6 April 2020	140,286	46,198	38,030	224,514
	Charge for year	19,196	-	-	19,196
	At 5 April 2021	159,482	46,198	38,030	243,710
	NET BOOK VALUE
	At 5 April 2021	294,225	-	230	294,455
	At 5 April 2020	313,421	-	230	313,651

All assets are used in direct furtherance of the charity's objects.

11. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
	Unlisted
	investments
	£
MARKET VALUE
At 6 April 2020 and 5 April 2021	9
NET BOOK VALUE
At 5 April 2021	9
At 5 April 2020	9

There were no investment assets outside the UK.

Included within other investments is a 9% holding in the ordinary share capital of Malachi Specialist Family Support Services CIC, a company incorporated in England. At the year end, the aggregate capital and reserves of the company amounted to £124,381 and a profit for the year amounted to £24,874.

Page 14

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 5.4.21 5.4.20 £ £ Trade debtors 1,740 4,602 Prepayments and accrued income 148 564 1,888 5,166 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 5.4.21 5.4.20 £ £ Trade creditors 3,306 116 Accruals and deferred income 33,876 8,181 37,182 8,297 Deferred Income 5.4.21 5.4.20 £ £ Balance as at 1 April 831 Released in the year (22,373) Deferrals in the year 47,000 831 Balance as at 31 March 25,458 831 Income under contractual arrangements is deferred where it is subject to the performance of certa terms or conditions. Where these have not been met at the balance sheet date, the income is n recognised in the statement of financial activities. £ £ Lottery Community Grant - 831 BVSC - BCC Early Help 25,458 - 14. MOVEMENT IN FUNDS Net movement At At 6.4.20 in funds 5.4.21 £ £ £ Unrestricted funds General fund 187,306 91,266 278,572 Restricted funds The Big Lottery Fund 243,815 (19,196) 224,619 TOTAL FUNDS 431,121 72,070 503,191		5.4.21 £ 1,740 148 1,888 5.4.21 £ 3,306 33,876 37,182		5.4.20 £ 4,602 564 5,166 5.4.20 £ 116 8,181 8,297
		5.4.21		5.4.20
		£		£

		831
		(22,373)
		47,000		831


		25,458		831

	£		£

	-		831
	25,458		-

At 6.4.20 £ 187,306 243,815 431,121	Net movement in funds £ 91,266 (19,196) 72,070		At 5.4.21 £ 278,572 224,619 503,191

Income under contractual arrangements is deferred where it is subject to the performance of certain terms or conditions. Where these have not been met at the balance sheet date, the income is not recognised in the statement of financial activities.

Page 15

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds General fund Restricted funds The Big Lottery Fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Restricted funds The Big Lottery Fund Birmingham City Council - Local Innovation Fund The Big Lottery Fund - Malcolm Locker A. Edmonds & Co. Charitable Foundation 2000 TOTAL FUNDS	Incoming resources £ 199,355 - 199,355 At 6.4.19 £ 136,812 263,011 18,000 9,980 4,000 294,991 431,803	Resources Movement expended in funds £ £ (108,089) 91,266 (19,196) (19,196) (127,285) 72,070 Net movement At in funds 5.4.20 £ £ 50,494 187,306 (19,196) 243,815 (18,000) - (9,980) - (4,000) - (51,176) 243,815 (682) 431,121

Page 16

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

14. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	45,667	4,827	50,494
Restricted funds
The Big Lottery Fund	-	(19,196)	(19,196)
Birmingham City Council - Local
Innovation Fund	3,000	(21,000)	(18,000)
The Big Lottery Fund - Malcolm Locker	9,144	(19,124)	(9,980)
A. Edmonds & Co. Charitable
Foundation 2000	-	(4,000)	(4,000)
Groundworks	9,900	(9,900)	-
Awards for All	2,500	(2,500)	-
	24,544	(75,720)	(51,176)
TOTAL FUNDS	70,211	(70,893)	(682)

Unrestricted funds comprise those funds which the trustees are free to use in accordance with charitable objectives. Although certain grants are received in order to enable the charity to meet its objectives, these funds are considered to be unrestricted as they form part of the ongoing, fundamental activit ies of the charity.

Restricted funds are funds which have been given for particular purposes and projects. Grants made by The Big Lottery Fund for the Reaching Community Buildings Grant have been expended on items of a capital nature and the balance on the fund represents their net book value in the accounts at the balance sheet date.

Grants made by the Big Lottery Fund and Birmingham City Council Local Innovation fund are in respect of the Malcolm Locker HUB, to fund the next phase of the development of the operating model.

15. RELATED PARTY DISCLOSURES

The charity also owns 9% of the issued share capital of Malachi Specialist Family Support Services CIC, a community interest company incorporated in England.

During the period the charity paid £31,822 for the shared services of staff and £12 for recharges of other costs.

All of the above charges and recharges were settled in full during the period.

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Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2021

16. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to assist with the preparation of the financial statements.

17. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Interest received Decrease in debtors Increase/(decrease) in creditors Net cash provided by operations	5.4.21 £ 72,070 19,196 (66) 3,278 28,885 123,363	5.4.20 £ (682) 19,196 (324) 3,710 (4,196)
		17,704

18.. ANALYSIS OF CHANGES IN NET FUNDS

	At 6.4.20	Cash flow	At 5.4.21
	£	£	£
Net cash
Cash at bank and in hand	120,592	123,429	244,021
	120,592	123,429	244,021
Total	120,592	123,429	244,021

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