REGISTERED CHARITY NUMBER: 1167817
Report of the Trustees and
Financial Statements for the Year Ended 5 April 2022
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 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Report of the Independent Auditors | 5 | to | 7 |
| Statement of Financial Activities | 8 | ||
| Balance Sheet | 9 | ||
| Cash Flow Statement | 10 | ||
| Notes to the Financial Statements | 11 | to | 20 |
Malachi Community Trust
Report of the Trustees for the Year Ended 5 April 2022
The trustees present their report with the financial statements of the charity for the year ended 5 April 2022. 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 tended to be short term and behaviour focused. 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
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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
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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 thirtieth year of the life of Malachi Community Trust.
We are pleased that our vision for multi-agency partnership working is now being promoted by central government. Our multi-agency HUB model continues to be recognised as visionary and highly relevant to both central and local government strategy.
In this reporting period, services and activities from our first Community Hub, ‘Billesley ARK’ continue to grow and develop and in line with our HUB strategy, are now increasingly used and valued by the local community.
We are supportive of the government’s policy of supporting children and young people considered to be vulnerable.
I am particularly pleased that in this reporting period, our contribution has led to an invitation to join the Lords and Commons Family and Child Protection Group.
Public benefit
The Trustees have complied with the duty in section 4 of the 2011 Charities Act to have due regard to guidance published by the Charity Commission including public benefit guidance.
Page 1
Malachi Community Trust
Report of the Trustees for the Year Ended 5 April 2022
ACHIEVEMENT AND PERFORMANCE Achievements and Performance Billesley HUB
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Although our building, Billesley ARK, has continued to be the head office for the delivery of Birmingham City Council’s Early Help programme this reporting period has seen the emergence of a Family Centre strategy which is the heart of our delivery strategy.
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As such, our volunteer led management group, ‘Billesley ARK Volunteers’, continues to grow and flourish in line with our commitment of supporting users of service, to become providers of service, helping local people to take an increasing role in their community. The number of volunteers continues to increase.
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Regular activities continue to be provided to people of all ages.
FINANCIAL REVIEW
Reserves policy
The Trust currently holds reserves of £594,207 comprising restricted fund reserves of £205,423 and general funds of £388,784 Of these general funds, £70,376 is currently invested in fixed assets, leaving free reserves of £318,408.
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.
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Malachi Community Trust
Report of the Trustees for the Year Ended 5 April 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
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:
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Annual risk reviews
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Development of systems and mitigation strategy for the risks identified above
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Implementation of such strategy
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1167817
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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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Malachi Community Trust
Report of the Trustees for the Year Ended 5 April 2022
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
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 30 January 2023 and signed on its behalf by:
G Lee - Trustee
Page 4
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 2022 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'.
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In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 5 April 2022 and of its incoming resources and application of resources, for the year then ended;
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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
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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:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Page 5
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.
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 charity and the sector in which it operates, and considered the risk of acts by the charity 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 Charities Act 2011, the Charities SORP (FRS 102) 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.
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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
30 January 2023
Page 7
Malachi Community Trust
Statement of Financial Activities for the Year Ended 5 April 2022
| 5.4.22 Unrestricted Restricted Total funds funds funds Notes £ £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 39,065 - 39,065 Charitable activities 4 Billesley Ark 80,413 - 80,413 Malcolm Locker - - - BCC - Early Help 25,458 - 25,458 WIMN (27,764) - (27,764) Selly Oak children and family 169,477 - 169,477 Investment income 3 160 - 160 Total 286,809 - 286,809 EXPENDITURE ON Charitable activities 5 Billesley Ark 16,045 19,196 35,241 Malcolm Locker 871 - 871 BCC - Early Help 25,458 - 25,458 WIMN 51 - 51 Selly Oak children and family 134,172 - 134,172 Total 176,597 19,196 195,793 NET INCOME/(EXPENDITURE) 110,212 (19,196) 91,016 RECONCILIATION OF FUNDS Total funds brought forward 278,572 224,619 503,191 TOTAL FUNDS CARRIED FORWARD 388,784 205,423 594,207 |
5.4.21 Total funds £ 5,862 42,344 10,000 92,208 49,000 - (59) 199,355 51,024 5,719 21,542 49,000 - 127,285 72,070 431,121 503,191 |
|---|---|
The notes form part of these financial statements
Page 8
Malachi Community Trust
Balance Sheet 5 April 2022
| Unrestricted Restricted funds funds Notes £ £ FIXED ASSETS Tangible assets 10 70,367 204,892 Investments 11 9 - 70,376 204,892 CURRENT ASSETS Debtors 12 2,097 - Cash at bank and in hand 328,186 531 330,283 531 CREDITORS Amounts falling due within one year 13 (11,875) - NET CURRENT ASSETS 318,408 531 TOTAL ASSETS LESS CURRENT LIABILITIES 388,784 205,423 NET ASSETS 388,784 205,423 FUNDS 14 Unrestricted funds Restricted funds TOTAL FUNDS |
5.4.22 Total funds £ 275,259 9 275,268 2,097 328,717 330,814 (11,875) 318,939 594,207 594,207 388,784 205,423 594,207 |
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 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 30 January 2023 and were signed on its behalf by:
G Lee - Trustee
The notes form part of these financial statements
Page 9
Malachi Community Trust
Cash Flow Statement for the Year Ended 5 April 2022
| 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 |
5.4.22 £ 84,677 84,677 19 19 84,696 244,021 328,717 |
5.4.21 £ 123,363 |
|---|---|---|
| 123,363 | ||
| 66 | ||
| 66 | ||
| 123,429 120,592 |
||
| 244,021 |
The notes form part of these financial statements
Page 10
Malachi Community Trust
Notes to the Financial Statements for the Year Ended 5 April 2022
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
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Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
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 | ||
|---|---|---|
| 5.4.22 | 5.4.21 | |
| £ | £ | |
| Donations | 39,065 | 5,862 |
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Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
| 3. INVESTMENT INCOME Rental, room hire and recharge of utilities Deposit account interest 4. INCOME FROM CHARITABLE ACTIVITIES Activity Grants Billesley Ark Grants Malcolm Locker Grants BCC - Early Help Grants WIMN Grants Selly Oak children and family Grants received, included in the above, are as follows: The Big Lottery Fund BVSC - Selly Oak constituency Groundwork UK 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 Postcode Local Trust Household Fund Other |
5.4.22 £ 141 19 160 5.4.22 £ 80,413 - 25,458 (27,764) 169,477 247,584 5.4.22 £ - 169,477 - - 6,363 - (27,764) 25,458 - - 19,749 48,780 5,521 247,584 |
5.4.21 £ (125) 66 (59) 5.4.21 £ 42,344 10,000 92,208 49,000 - 193,552 5.4.21 £ 831 - 500 9,995 20,000 10,064 49,000 92,208 4,850 2,104 - - 4,000 193,552 |
|---|---|---|
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Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
5. CHARITABLE ACTIVITIES COSTS
| Billesley Ark Malcolm Locker BCC - Early Help WIMN Selly Oak children and family |
Direct Costs £ 29,588 871 25,458 51 133,963 189,931 |
Support costs (see note 6) £ 5,653 - - - 209 5,862 |
Totals £ 35,241 871 25,458 51 134,172 |
|---|---|---|---|
| 195,793 |
6. SUPPORT COSTS
| SUPPORT COSTS | ||||||
|---|---|---|---|---|---|---|
| Governance | ||||||
| Management | costs | Totals | ||||
| £ | £ | £ | ||||
| Billesley Ark | 2,443 | 3,210 | 5,653 | |||
| Selly Oak children and family | 209 | - | 209 | |||
| 2,652 | 3,210 | 5,862 | ||||
| Support costs, included in the above, are as follows: | ||||||
| 5.4.22 | 5.4.21 | |||||
| Selly Oak | ||||||
| children | ||||||
| Billesley | and | Total | Total | |||
| Ark | family | activities | activities | |||
| £ | £ | £ | £ | |||
| Postage, stationery, telephone and | ||||||
| computer | 1,363 | 209 | 1,572 | 204 | ||
| Sundries | 1,080 | - | 1,080 | 669 | ||
| Events resources | - | - | - | 1,098 | ||
| Auditors' remuneration | 2,400 | - | 2,400 | 1,980 | ||
| Accountancy and legal fees | 810 | - | 810 | - | ||
| 5,653 | 209 | 5,862 | 3,951 |
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 5 April 2022 nor for the year ended 5 April 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 5 April 2022 nor for the year ended 5 April 2021.
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Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
| 8. STAFF COSTS Wages and salaries Social security costs Other pension costs Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: No employees received emoluments in excess of £60,000. 9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 5,862 Charitable activities Billesley Ark 42,344 Malcolm Locker 10,000 BCC - Early Help 92,208 WIMN 49,000 Investment income (59) Total 199,355 EXPENDITURE ON Charitable activities Billesley Ark 31,828 Malcolm Locker 5,719 BCC - Early Help 21,542 WIMN 49,000 Total 108,089 NET INCOME/(EXPENDITURE) 91,266 RECONCILIATION OF FUNDS Total funds brought forward 187,306 |
5.4.22 £ 111,546 10,275 1,957 123,778 |
5.4.21 £ 31,822 1,988 347 34,157 5.4.21 £ 5.4.21 Total funds £ 5,862 42,344 10,000 92,208 49,000 (59) 199,355 51,024 5,719 21,542 49,000 127,285 72,070 431,121 |
|---|---|---|
| 5.4.22 | ||
| £ | ||
| 111 | ||
| 10,275 | ||
| 1,957 | ||
| 5.4.22 Restricted funds £ - - - - - - - 19,196 - - - 19,196 (19,196) 243,815 |
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Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
| 9. | COMPARATIVES FOR THE STATEMENT | OF FINANCIAL | ACTIVITIES - continued | ACTIVITIES - continued | |
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | |||
| funds | funds | funds | |||
| £ | £ | £ | |||
| TOTAL FUNDS CARRIED FORWARD | 278,572 | 224,619 | 503,191 | ||
| 10. | TANGIBLE FIXED ASSETS | ||||
| Improvements | Fixtures | ||||
| to | Plant and | and | |||
| property | machinery | fittings | Totals | ||
| £ | £ | £ | £ | ||
| COST | |||||
| At 6 April 2021 and 5 April 2022 | 453,707 | 46,198 | 38,260 | 538,165 | |
| DEPRECIATION | |||||
| At 6 April 2021 | 159,482 | 46,198 | 38,030 | 243,710 | |
| Charge for year | 19,196 | - | - | 19,196 | |
| At 5 April 2022 | 178,678 | 46,198 | 38,030 | 262,906 | |
| NET BOOK VALUE | |||||
| At 5 April 2022 | 275,029 | - | 230 | 275,259 | |
| At 5 April 2021 | 294,225 | - | 230 | 294,455 |
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 2021 and 5 April 2022 | 9 |
| NET BOOK VALUE | |
| At 5 April 2022 | 9 |
| At 5 April 2021 | 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 £153,735 and a profit for the year amounted to £29,354.
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Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Prepayments and accrued income 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Other creditors Accruals and deferred income Deferred Income Balance as at 1 April Released in the year Deferrals in the year Balance as at 31 March |
5.4.22 £ 742 1,355 2,097 5.4.22 £ 3,912 1,750 6,213 11,875 |
5.4.21 £ 1,740 148 1,888 5.4.21 £ 3,306 - 33,876 37,182 |
|
|---|---|---|---|
| 5.4.22 | 5.4.21 | ||
| £ | £ | ||
| 25,458 | 831 | ||
| (25,458) | (22,373) | ||
| - | 47,000 | ||
| - | 25,458 | ||
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.
| BVSC - BCC Early Help 14. MOVEMENT IN FUNDS Unrestricted funds General fund Designated building fund Restricted funds The Big Lottery Fund TOTAL FUNDS |
£ | £ | ||
|---|---|---|---|---|
| - | 25,458 | |||
| At 6.4.21 £ 278,572 - 278,572 224,619 503,191 |
Net movement in funds £ 110,212 - 110,212 (19,196) 91,016 |
Transfers between funds £ (38,950) 38,950 - - - |
At 5.4.22 £ 349,834 38,950 388,784 205,423 594,207 |
Page 17
Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
14. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 286,809 Restricted funds The Big Lottery Fund - TOTAL FUNDS 286,809 Comparatives for movement in funds At 6.4.20 £ Unrestricted funds General fund 187,306 Restricted funds The Big Lottery Fund 243,815 TOTAL FUNDS 431,121 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 199,355 Restricted funds The Big Lottery Fund - TOTAL FUNDS 199,355 |
Resources Movement expended in funds £ £ (176,597) 110,212 (19,196) (19,196) (195,793) 91,016 Net movement At in funds 5.4.21 £ £ 91,266 278,572 (19,196) 224,619 72,070 503,191 Resources Movement expended in funds £ £ (108,089) 91,266 (19,196) (19,196) (127,285) 72,070 |
|---|---|
Page 18
Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
14. MOVEMENT IN FUNDS - continued
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.
Designated funds comprise those unrestricted funds which the trustees have set aside for a specific future purpose a nd therefore do not form part of the currently available free reserves.
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 £17,909 for the shared services of staff and £2,677 for recharges of other costs.
All of the above charges and recharges were settled in full during the period.
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 TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Interest received (Increase)/decrease in debtors (Decrease)/increase in creditors Net cash provided by operations |
5.4.22 £ 91,016 19,196 (19) (209) (25,307) 84,677 |
5.4.21 £ 72,070 19,196 (66) 3,278 28,885 |
|---|---|---|
| 123,363 |
18..
ANALYSIS OF CHANGES IN NET FUNDS
| At 6.4.21 | Cash flow | At 5.4.22 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 244,021 | 84,696 | 328,717 |
| 244,021 | 84,696 | 328,717 |
Page 19
Malachi Community Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2022
| 18.. | ANALYSIS OF CHANGES IN NET FUNDS - continued | |||
|---|---|---|---|---|
| Total | 244,021 | 84,696 | 328,717 |
Page 20