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← Malachi Community Trust

2025-04-05-accounts

REGISTERED CHARITY NUMBER: 1167817

Report of the Trustees and Unaudited Financial Statements for the Year Ended 5 April 2025

for

Malachi Community Trust

Locke Williams Associates LLP Chartered Accountants Studio 2 50-54 St Pauls Square Birmingham West Midlands B3 1QS

Malachi Community Trust

Contents of the Financial Statements for the Year Ended 5 April 2025

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 14

Malachi Community Trust

Report of the Trustees for the Year Ended 5 April 2025

The trustees present their report with the financial statements of the charity for the year ended 5 April 2025. 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 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 service 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

  1. 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

  2. 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.

Page 1

Malachi Community Trust

Report of the Trustees for the Year Ended 5 April 2025

ACHIEVEMENTS AND PERFORMANCE

Significant activities and Charitable Activities

I am pleased to be able to report continued positive progress in this, the thirty-third 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 continues to be recognised as visionary and highly relevant to both central and local government strategy.

We have been pleased to host the local Labour MP who continues to take a keen interest in all that we are doing in support of all local residents. He has conducted his surgery for our building.

In line with our commitment to 'helping users of service to become providers of service' our local resident workforce, 'Billesley ARK Volunteers' have continued to grow and develop. We continue with our ambition to develop further such Family Centres.

FINANCIAL REVIEW

Reserves policy

The Trust currently holds reserves of £507,177 comprising restricted fund reserves of £165,256 and general funds of £231,037. Of these general funds, £53,213 is currently invested in fixed assets, leaving free reserves of £177,824.

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

This year has seen a strengthening of the relationship with Sustain UK, a local housing association who support our work in many ways. Both organisations are united in their commitment to helping improve the lives of families who have acute housing issues.

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.

Page 2

Malachi Community Trust

Report of the Trustees for the Year Ended 5 April 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

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 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:

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

Independent Examiner

Locke Williams Associates LLP Chartered Accountants Studio 2 50-54 St Pauls Square Birmingham West Midlands B3 1QS

and signed on its behalf by:

G Lee - Trustee

Page 3

Independent Examiner's Report to the Trustees of Malachi Community Trust

Independent examiner's 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 2025.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for 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 examiner's statement

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

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

  2. the accounts do not accord with those records; or

  3. 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 Studio 2 50-54 St Pauls Square Birmingham West Midlands B3 1QS

Date:

Page 4

Malachi Community Trust

Statement of Financial Activities for the Year Ended 5 April 2025

5.4.25
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
34,577
-
34,577
Investment income
3
6,652
-
6,652
Total
41,229
-
41,229
EXPENDITURE ON
Charitable activities
Billesley Ark
27,895
14,619
42,514
Malcolm Locker
-
-
-
Family Support Services
43,935
-
43,935
Total
71,830
14,619
86,449
NET INCOME/(EXPENDITURE)
(30,601)
(14,619)
(45,220)
RECONCILIATION OF FUNDS
Total funds brought forward
372,522
179,875
552,397
TOTAL FUNDS CARRIED FORWARD
341,921
165,256
507,177		 5.4.24
Total
funds
£
63,932
5,086
69,018
57,173
642
-
57,815
11,203
541,194
552,397

The notes form part of these financial statements

Page 5

Malachi Community Trust

Balance Sheet 5 April 2025

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
9
53,204
Investments
10
9
53,213
CURRENT ASSETS
Debtors
11
817
Cash at bank and in hand
289,691
290,508
CREDITORS
Amounts falling due within one year
12
(1,800)
NET CURRENT ASSETS
288,708
TOTAL ASSETS LESS CURRENT
LIABILITIES
341,921
NET ASSETS
341,921
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
164,725
-
164,725
-
531
531
-
531
165,256
165,256		 5.4.25
Total
funds
£
217,929
9
217,938
817
290,222
291,039
(1,800)
289,239
507,177
507,177
341,921
165,256
507,177		 5.4.24
Total
funds
£
237,002
9
237,011
863
316,836
317,699
(2,313)
315,386
552,397
552,397
372,522
179,875
552,397

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

G Lee - Trustee

The notes form part of these financial statements

Page 6

Malachi Community Trust

Notes to the Financial Statements for the Year Ended 5 April 2025

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.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Tangible fixed assets

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

Page 7

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2025

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

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

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 - general
Donated profits - MSFSS CIC
Donated profits - BAV CIC
Grants		 5.4.25
£
115
20,000
14,462
-
34,577		 5.4.24
£
115
-
2,453
61,364
63,932

Page 8

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2025

2. DONATIONS AND LEGACIES - continued

Grants received, included in the above, are as follows:

5.4.25
£
BVSC - Selly Oak constituency
-
3.
INVESTMENT INCOME
5.4.25
£
Deposit account interest
6,652
4.
GRANTS PAYABLE
5.4.25
£
Billesley Ark
14,462
Family Support Services
43,935
58,397
The total grants paid to institutions during the year was as follows:
5.4.25
£
Malachi Specialist Family Support Services C.I.C.
43,935
Billesley Ark Volunteers CIC
14,462
58,397
5.
SUPPORT COSTS
Governance
Management
costs
£
£
Billesley Ark
560
1,800
Support costs, included in the above, are as follows:
5.4.25
Billesley
Ark
£
Sundries
560
Accountancy
1,800
2,360		 5.4.24
£
61,364
5.4.24
£
5,086
5.4.24
£
-
-
-
5.4.24
£
-
-
-
Totals
£
2,360
5.4.24
Total
activities
£
306
2,040
2,346

Page 9

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2025

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 5 April 2025 nor for the year ended 5 April 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 5 April 2025 nor for the year ended 5 April 2024.

7. STAFF COSTS

8.

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Administration and finance
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
63,932
Investment income
5,086
Total
69,018
EXPENDITURE ON
Charitable activities
Billesley Ark
50,821
Malcolm Locker
642
Total
51,463
NET INCOME/(EXPENDITURE)
17,555
RECONCILIATION OF FUNDS
Total funds brought forward
354,967
TOTAL FUNDS CARRIED FORWARD
372,522		 5.4.25
£
5,708
475
123
6,306
5.4.25
1
Restricted
funds
£
-
-
-
6,352
-
6,352
(6,352)
186,227
179,875		 5.4.24
£
5,370
436
114
5,920
5.4.24
1
Total
funds
£
63,932
5,086
69,018
57,173
642
57,815
11,203
541,194
552,397

Page 10

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2025

9. TANGIBLE FIXED ASSETS

----- Start of picture text -----
|||||| |---|---|---|---|---| |Improvements|Fixtures| |to|Plant and|and| |property|machinery|fittings|Totals| |£|£|£|£| |COST| |At 6 April 2024 and 5 April 2025|453,707|46,198|38,260|538,165| |DEPRECIATION| |At 6 April 2024|216,935|46,198|38,030|301,163| |Charge for year|18,842|-|231|19,073| |At 5 April 2025|235,777|46,198|38,261|320,236| |NET BOOK VALUE| |-| |At 5 April 2025|217,930|(1)|217,929| |At 5 April 2024|236,772|-|230|237,002|

----- End of picture text -----

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

10. FIXED ASSET INVESTMENTS

----- Start of picture text -----
||| |---|---| |Unlisted| |investments| |£| |MARKET VALUE| |At 6 April 2024 and 5 April 2025|9| |NET BOOK VALUE| |At 5 April 2025|9| |At 5 April 2024|9|

----- End of picture text -----

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 £226,671 and a profit for the year amounted to £47,950.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
|||| |---|---|---| |5.4.25|5.4.24| |£|£| |Trade debtors|722|722| |Prepayments and accrued income|95|141| |817|863|

----- End of picture text -----

Page 11

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2025

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Accruals and deferred income
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Designated building fund
Restricted funds
The Big Lottery Fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Designated building fund
Restricted funds
The Big Lottery Fund
TOTAL FUNDS		 At 6.4.24
£
296,100
76,422
372,522
179,875
552,397
Incoming
resources
£
6,767
34,462
41,229
-
41,229		 5.4.25
5.4.24
£
£
-
513
1,800
1,800
1,800
2,313
Net
movement
At
in funds
5.4.25
£
£
(65,063)
231,037
34,462
110,884
(30,601)
341,921
(14,619)
165,256
(45,220)
507,177
Resources
Movement
expended
in funds
£
£
(71,830)
(65,063)
-
34,462
(71,830)
(30,601)
(14,619)
(14,619)
(86,449)
(45,220)

13. MOVEMENT IN FUNDS

Page 12

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2025

13. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Designated building fund
Restricted funds
The Big Lottery Fund
TOTAL FUNDS		 At 6.4.23
£
263,931
91,036
354,967
186,227
541,194		 Net
movement
in funds
£
32,169
(14,614)
17,555
(6,352)
11,203		 At
5.4.24
£
296,100
76,422
372,522
179,875
552,397

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

Unrestricted funds Incoming
resources
£		 Resources
Movement
expended
in funds
£
£
General fund 66,565 (34,396)
32,169
Designated building fund 2,453 (17,067)
(14,614)
Restricted funds 69,018 (51,463)
17,555
The Big Lottery Fund - (6,352)
(6,352)
TOTAL FUNDS 69,018 (57,815)
11,203

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.

Page 13

Malachi Community Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2025

14. 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 £6,306 for the shared services of staff.

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

Page 14