REGISTERED CHARITY NUMBER: 1167817 Report of the Trustees and Unaudited Financial Statements for the Year Ended 5 April 2024 for Malachi Community Trust Locke Williams Associates LLP Chartered Accountants clo Blackthorn House St Pauls Square Birmingham West Midlands B31RL Malachi Community Trust ## Contents of the Financial Statements for the Year Ended 5 April 2024 ||||||||||||||Page|| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Report ofthe Trustees||||||||||||1|to|3| |Independent Examiner's Report|||||||||||||4|| |Statement of Financial Activities|||||||||||||5|| |Balance Sheet|||||||||||||6|| |NotestotheFinancial|||||||||Statements
7||||to|13| Malachi Community Trust Report of the Trustees for the Year Ended S April 2024 The trustees present their report with the financial statements of the charity for the year ended 5 April 2024. 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 1021 (effective 1 January 20191. OBJECTIVES AND ACTIVITIES Objectives and aims Background Malachi Trustwas founded in 1992 to offer supportand give advocacy to children affected by family breakdown and the Trustees remain committed and dedicated not only to working on behalf of its clients, but also to continuing to build on its reputation of being at the forefront of innovation and Servi￿ improvement. The founders of the Trust Gordon and Lyn Lee, having learned from their community work background that in a growing number of schools there were growing numbers of children whose life chances were being affected by a disturbed family experience, committed themselves to acting on their behalf. The Trustees continue to uphold that commitment and dedication. 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 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. ACHIEVEMENT AND PERFORMANCE Significant activities and Charitable Activities l am pleased to be able to report continued positive progress in this, the thity-second year of the life of Malachi Community Trust CIO. We are pleased that our vision for multi-agency partnership working is now embraced by the newly elected Labour administration and that our multi-agency HUB model is recognised as visionary and highly relevant to both ￿ntral and local govemment strategy. We were particularly pleased to welcome the newly elected Labour MP to our HUB who took a keen interest in all that we were doing in support of all local residents. In line with our commitment to 'helping users of seNice to become providers of seNice' our local resident workforce, 'Billesley ARK Volunteers, have continued to grow and develop. We continue with our ambition to develop further such Family Centres. Our representation on the Lords & Commons Family & Child Protection Group continues to be recognised as valuable and highly relevant to its objective of promoting 'best-value' services to children and young people. Page 1 Malachi Community Trust Report of the Trustees for the Year Ended S April 2024 ACHIEVEMENT AND PERFORMANCE Achievements and Performance Billesley HUB Our building, Billesley ARK, continues to be the head Offi￿ for the delivery of the Government's Early Help programme in Birmingham and Staffordshire. Our volunteer led management group, 'Billesley ARK Volunteers,, continues to grow and flourish in line with our commitment to helping local people to take an increasing role in their own community. The number of volunteers continues to increase. Regular activities continue to be provided to people of all ages. FINANCIAL REVIEW Reserves policy The Trust currently holds reserves of £541.194 comprising restricted fund reseNes of £186,227 and general funds of £354,967. Of these general funds, £70,376 is currently invested in fixed assets, leaving free reserves of £284,591. These funds will be utilised to invest wherever ne￿SSary to protect and develop seNI￿s. 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 CIO remains committed to developing its vision and continues to seek further opportunities to develop the model in schools and communities in our reach area. 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 Chaimian, 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 periodically and sub committees are raised when appropriate 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 yearfs trustee meeting minutes. Trustees are encouraged to attend appropriate external training events where these will facilitate their undertaking of the role. Page 2 Malachi Community Trust Report of the Trustees for the Year Ended S April 2024 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: 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 Principal address Billesley Ark 725 Yardley Wood Road Birmingham West Midlands B130PT Trustees K l Bagby GLee S Jobson Independent Examiner Locke Williams Associates LLP Chartered Accountants clo Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL Approved by order of the board of trustees on 2011112024 and signed on its behalf by.. GJLee IYov?0,?024 14-.03GMTI G Lee - Trustee Page 3 Independent Examinerfs Report to the Trustees of Malachi Community Trust Independent examinerfs report to the trustees of Malachi Community Trust I report to the charity trustees on my examination of the accounts of Malachi Community Trust (the Trust) for the year ended 5 April 2024. Responsibilities and basis of report As the charity trustees of the Trust you are responsible ft)r the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act,). I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5}(b) of the Act. Independent examinerfs statement I have completed my examination. I confimi that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect= accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or the accounts do not accord with those records., or the accounts 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. David Williams FCA FCCA Locke Williams Associates LLP Chartered Accountants clo Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL Date. 2011112024 Page 4 Malachi Community Trust Statement of Financial Activities for the Year Ended S April 2024 5.4.24 Total funds 5.4.23 Total funds Unrestricted Restricted funds funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 63,932 63,932 53,201 Investment income 5.086 5.086 584) Total 69,018 69,018 52,617 EXPENDITURE ON Charitable activities Billesley Ark Malcolm Locker Selly Oak children and family 50.821 642 6.352 57.173 642 47,487 {152) 58,295 Total 51,463 6,352 57,815 105,630 NET INCOMEI(EXPENDITURE) 17.555 (6,352) 11.203 {53,013) RECONCILIATION OF FUNDS Total funds brought foNard 354,967 186,227 541,194 594,207 TOTAL FUNDS CARRIED FORWARD 372.522 179.875 552.397 541,194 The notes fomi part of these financial statements Page 5 Malachi Community Trust Balance Sheet 5 April 2024 5.4.24 Total funds 5.4.23 Total funds Unrestricted Restricted funds funds Notes FIXED ASSETS Tangible assets Investments 57,658 179,344 237,002 256,062 57.667 179,344 237.011 256,071 CURRENT ASSETS Debtors Cash at bank and in hand 10 863 316,305 863 316,836 2,031 286,532 531 317.168 531 317.699 288,563 CREDITORS Amounts falling due within one year (2.313) (2,313) (3,440) NET CURRENT ASSETS 314,855 531 315,386 285,123 TOTAL ASSETS LESS CURRENT LIABILITIES 372.522 179.875 552.397 541,194 NET ASSETS 372.522 179 875 552 397 541,194 FUNDS Unrestricted funds Restricted funds 12 372,522 179,875 354,967 186,227 TOTAL FUNDS 552 397 541,194 The financial statements were approved by the Board of Trustees and authorised for issue on 2011112024 and were signed on its behalf by.. G Lee - Trustee The notes fomi part of these financial statements Page 6 Malachi Community Trust Notes to the Financial Statements for the Year Ended S April 2024 ACCOUNTING POLICIES Basis of preparing the financial statements The financial ststements 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 ex￿ptIOn 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 perfomance 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 seNices 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 propety- It includes interest and rent. Interest income is recognised on receipt and rent income is recognised as the charity's right to re￿1ve payment is established. Expenditure Liabilities are recognised as expenditure as soon as there is a legal orconstructive 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 thataggregate 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 furtheran￿ 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 governan￿ 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 propety Plant and machinery Fixtures and fittings Straight line over 25 years 20 % on cost 20°k on cost Page 7 Malachi Community Trust Notes to the Financial Statements - continued for the Year Ended S April 2024 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 I 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 offunds 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. DONATIONS AND LEGACIES 5.4.24 5.4.23 Donations- general Donated profits - MSFSS CIC Donated profits - BAV CIC Grants 115 1,115 27,000 25,086 2.453 61.364 63,932 53,201 Grants received, included in the above, are as follows.. 5.4.24 5.4.23 BVSC - Selly Oak constituency 61,364 Page 8 Malachi Community Trust Notes to the Financial Statements - continued for the Year Ended S April 2024 INVESTMENT INCOME 5.4.24 5.4.23 Rental, room hire and recharge of utilities Deposit account interest (1,033) 449 5,086 584 SUPPORT COSTS Governan costs Management Totals Billesley Ark 306 2.040 2.346 Support costs, included in the above, are as follows: 5.4.24 Billesley Ark 5.4.23 Total activities Sundries Auditors, remuneration Accountancy 306 1,767 2,880 180 2,040 2,346 4,827 TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 5 April 2024 nor for the year ended 5 April 2023. Trustees. expenses There were no trustees, expenses paid for the year ended 5 April 2024 nor for the year ended 5 April 2023. STAFF COSTS 5.4.24 5.4.23 Wages and salaries Social security costs Other pension costs 5,370 436 114 49,809 5,073 815 5,920 55,697 The average monthly number of employees during the year was as follows: 5.4.24 5.4.23 No employees received emoluments in excess of £60,000. Page 9 Malachi Community Trust Notes to the Financial Statements - continued for the Year Ended S April 2024 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted funds funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 53,201 53,201 Investment income 584} 584) Total 52,617 52,617 EXPENDITURE ON Charitable activities Billesley Ark Malcolm Locker Selly Oak children and family 28,291 (152} 58,295 19,196 47,487 (152) 58,295 Totsl 86,434 19,196 105,630 NET INCOMEI{EXPENDITURE) (33,817) (19,196) (53,013) RECONCILIATION OF FUNDS Total funds brought fO￿ard 388,784 205,423 594,207 TOTAL FUNDS CARRIED FORWARD 354,967 186,227 541,194 TANGIBLE FIXED ASSETS Improvements to property Fixtures and fittings Plant and machinery Totals COST At 6 April 2023 and 5 April 2024 453,707 46,198 38,260 538,165 DEPRECIATION At 6 April 2023 Charge for year 197.875 19,060 46,198 38.030 282.103 19.060 At 5 April 2024 216,935 46,198 38,030 301,163 NET BOOK VALUE At 5 April 2024 236.772 230 237,002 At 5 April 2023 255,832 230 256,062 All assets are used in direct fijrtherance of the charity's objects. Page 10 Malachi Community Trust Notes to the Financial Statements - continued for the Year Ended S April 2024 FIXED ASSET INVESTMENTS Unlisted investments MARKET VALUE At 6 April 2023 and 5 April 2024 NET BOOK VALUE At 5 April 2024 At 5 April 2023 There were no investment assets outside the UK. Included within other investments is a 90/0 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 £178.721 and a profit for the year amounted to £14,929. 10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 5.4.24 5.4.23 Trade debtors Prepayments and accrued income 722 141 722 1,309 863 2,031 11. CREDITORS: AMOUNTS FALLING DUE ￿THIN ONE YEAR 5.4.24 5.4.23 Trade creditors Other creditors Accruals and deferred income 513 560 2,880 1,800 2,313 3,440 12. MOVEMENT IN FUNDS Net movement in funds At 5.4.24 At 6.4.23 Unrestricted funds General fund Designated building fund 263,931 91,036 32.169 14,614) 296,100 76,422 354,967 17,555 372,522 Restricted funds The Big Lottery Fund 186,227 (6,352) 179,875 TOTAL FUNDS 541,194 11.203 552.397 Page11 Malachi Community Trust Notes to the Financial Statements - continued for the Year Ended S April 2024 12. MOVEMENT IN FUNDS - continued Net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund Designated building fund 66,565 2,453 (34,396) 17.067) 32,169 14.614) 69,018 (51,463) 17,555 Restricted funds The Big Lottery Fund (6,352) (6,352 TOTAL FUNDS 69,018 57,815) 11,203 Comparatives for movement in funds Net movement in funds Transfers between funds At 5.4.23 At 6.4.22 Unrestricted funds General fund Designated building fund 349,834 38,950 {33,817) (52,086) 52,086 263,931 91,036 388,784 (33,817) 354,967 Restricted funds The Big Lottery Fund 205,423 {19,196) 186,227 TOTAL FUNDS 594,207 53,013) 541,194 Comparative net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund 52,617 (86,434> (33,817) Restricted funds The Big Lottery Fund (19,196) {19,196} TOTAL FUNDS 52,617 105,630) 53,013) Page 12 Malachi Community Trust Notes to the Financial Statements - continued for the Year Ended S April 2024 12. 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 fonn part of the ongoing, fundamental activities of the charity- Designated funds comprise those unrestricted funds which the trustees have set aside for a specific future purpose and therefore do not form part of the currently available free reserves. Restricted funds are fijnds 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. 13. RELATED PARTY DISCLOSURES The charity also owns 9 % of the issued share capital of Malachi Specialist Family Support servI￿s CIC, a community interest company incorporated in England. During the period the charity paid £5,920 for the shared seNices of stsff. All of the above charges and recharges were settled in full during the period. Page 13