2021-12-31-accounts - The Mila Charitable Organisation

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THE MILA CHARITABLE ORGANISATION ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE MILA CHARITABLE ORGANISATION

ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

INDEX

	Page
Trustees’ Report	2-5
Independent Auditors’ Report	6-9
Statement of Financial Activities	10
Balance Sheet	11
Cash Flow Statement	12-13
Notes to the Accounts	14-18

THE MILA CHARITABLE ORGANISATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 December 2021

The Trustees submit their annual report and audited accounts for the year ended 31 December 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

The Trustees serving during the year were as follows:

	Kim Ashley Nasmyth
	Anna Lucina Nasmyth
	Laura Roxanne Nasmyth
	Kate Ariane Nasmyth
	David Leonard Bentley
	Andrew Hamish Forsyth
	Amanda Polly Phipps
	Mark Peregrine Francis
Treasurer:	J Walsh
Registered office:	Wedlake Bell LLP
	71 Queen Victoria Street
	London
	EC4A 4AY
Charity number:	1169936
Bankers:	Metro Private Bank
	One Southampton Row
	London
	WC1B 5HA
Investment managers:	Rothschild Bank International Limited
	St Julian’s Court
	St Julian’s Avenue
	St Peter Port
	Guernsey
	GY1 3BP
Solicitors:	Wedlake Bell LLP
	71 Queen Victoria Street
	London
	EC4A 4AY
Auditors:	Wenn Townsend
	Gosditch House
	5 Gosditch Street
	Cirencester
	Gloucestershire
	GL7 2AG

THE MILA CHARITABLE ORGANISATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 December 2021

(CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity is a Charitable Incorporated Organisation (CIO), governed by its Constitution.

Governance

The Trustees meet every six months. In selecting trustees, the board must have regard to the skills, knowledge and experience needed for the effective administration of the Charity.

Objects and activities

The objects of the CIO (as set out in its constitution) are to advance such charitable purposes (according to the law of England and Wales) as the Charity Trustees see fit, in particular but not limited to the advancement of education, the advancement of the arts, culture, heritage and science, and the advancement of environmental protection and improvement, by making grants to organisations and individuals.

Public benefit

The Trustees have compiled with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Organisational structure and relationship with related parties

The Charity is managed by its Board of Trustees. Day-to-day management is delegated to Wedlake Bell LLP.

ACHIEVEMENTS AND PERFORMANCE

During the year of operation the Charity supported King Edward VI Grammar £5,933, Sien Agosto £10,000, Studio Voltaire £20,000, Plimlico Opera £60,000, The Promise £15,000, Britten Pears Arts £15,000, Arcola Theatre Production £35,000, Britten Sinfonia £20,000, Oxford Botanic Garden and Arboretum £60,000.

Reserves policy

As at 31 December 2021, general undesignated funds are £8,168,120. These are invested in order to generate income that is to be spent on the Charity’s objects.

FUTURE PLANS

The Charity’s future plans are to continue to support smaller localised charities and other organisations.

THE MILA CHARITABLE ORGANISATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 December 2021 (CONTINUED)

FINANCIAL REVIEW

Funding sources

The Charity was provided in January 2017 with a donation of £3,245,000 and the funds for the work of the Charity are derived from further donations, income and capital gains generated from their investment. The financial surplus before investment gains and losses amounted to £893,353 detailed on page 8.

Investment policy

The Charity has adopted as its long term current target return for its investment portfolio of 3% over increases in the Consumer Price index and it is recognised that this policy envisages fluctuations in investment returns over the business cycle.

Rothschild & Co Wealth Management manage the Charity’s funds.

Risk

The investment policy has a conservative attitude to risk. The Charity Trustees have given consideration to the major risks to which the Charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks.

Anticipated disbursements

The long term aim of the Charity is to make annual grants of at least 3-4% of the Charity’s funds. The above spending rate is designed to preserve the real value of the Charity’s funds over the long term.

Monitoring of performance

The monitoring of the performance of the Charity’s investments increased from £6,184,292 to £7,824,538 following a net investment of £754,700. The annual expenditure as a percentage of invested assets (as at the end of the financial year) is approximately 3.08%.

Principal risks and uncertainties

The Trustees conduct the overall supervision and monitoring of the financial position of the Charity. There are risks to income as a result of fluctuations in world equity and bond markets, but the Charity’s investment policy adopted should minimise the risks to an acceptable level.

Internal risks are mitigated by the implementation of procedures for the authorisation of all transactions by at least two of the Trustees.

THE MILA CHARITABLE ORGANISATION

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of The Mila Charitable Organisation (the ‘Charity’) for the year ended 31 December 2021, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Charity’s affairs as at 31 December 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 Auditor’s 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 other information comprises the information included in the Trustees annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. 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.

THE MILA CHARITABLE ORGANISATION

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

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 course of 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the Trustees’ report; or
the Charity has not kept adequate accounting records; 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.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement (set out on page 5), the Trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 an auditor’s report 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 MILA CHARITABLE ORGANISATION

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Charity’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view).

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

THE MILA CHARITABLE ORGANISATION

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 December 2021

		Total	Total
	Note	2021	2020
		£	£
Income & endowments
Donations and endowment		1,142,331	463,874
Investments	2	62,781	61,754
		_	_
Total income		1,205,112	525,628
		_	_
Expenditure on
Raising funds
Investment management costs	3	53,690	40,105
Charitable activities	4	240,933	386,698
Support costs	5	17,136	18,714
		_	_
Total expenditure		311,759	445,517
		_	_
Net income before investment gains/(losses)		893,353	80,111
Net gains on investments unrealised	7	536,825	757,020
Net gains on investments realised		455,399	-
		_	_
Net income		1,885,577	837,131
		_	_
Transfers		-	-
Total funds brought forward		6,282,543	5,445,412
		_	_
Total funds carried forward		8,168,120	6,282,543
		_	_

		Total	Total
	Note	2021	2020
		£	£
Fixed assets
Investments	7	7,824,538	6,184,299
Current assets
Debtors	8	387,539	92,750
Cashatbank		106,743	126,954
		494,282	219,344
Creditors:amountsfallingduewithinoneyear	9	(110,700)	(101,100)
Netcurrentassets		383,582	118,244
Total assets less current liabilities		8,208,120	6,302,543
Creditors:amountsfallingdueafter oneyear	10	(40,000)	(20,000)
Net aaaeta		8,167,320	6,282,543
Funds
Unrestricied		8,168,120	6,282,543
Totalcharityfunds		8,168,120	6,282,543

THE MILA CHARITABLE ORGANISATION

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 December 2021

	2021	2020
	£	£
CASH USED IN
OPERATING ACTIVITIES(see below)	1,083,109	105,326
CASHFLOW FROM
INVESTING ACTIVITIES
Payments to acquire investments	(4,951,866)	(1,924,592)
Proceeds on sale of investments	3,848,452	1,699,751
Interest	454	164
Non cash movement	-	(1,100)
	______	______
	(19,851)	(225,777)
	______	______
	(19,851)	(120,451)
	______	______
INCREASE/(DECREASE) IN CASH	(19,851)	(120,451)
	______	______
CASH AND CASH EQUIVALENT AT THE
BEGINNING OF THE YEAR	126,594	247,045
	______	______
TOTAL CASH AND CASH EQUIVALENT AT
THE END OF THE YEAR	106,743	126,594
	______	______

THE MILA CHARITABLE ORGANISATION

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 December 2021

			2021	2020
			£	£
RECONCILIATION OF OPERATING (DEFICIT) TO NET
CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
Net Incoming/(outgoing) resources			1,885,577	837,131
Unrealised Gains on investments			(536,825)	(757,020)
Interest received			(454)	(164)
Decrease/(Increase) in debtors			(295,189)	(12,750)
(Decrease)/Increase in creditors			30,000	38,129
			______	______
Net cash inflow from operative activities			1,083,109	105,326
			______	______
ANALYSIS OF CHANGES IN NET FUNDS
			Other non-
			Cash
	1 Jan 2021	Cash flow	Changes	31 Dec 2021
Cash at bank and in hand	£ 126,594	£ (19,851)	-	£ 106,743
	______	______	______	______

THE MILA CHARITABLE ORGANISATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 December 2021

1 ACCOUNTING POLICIES

a) General information

The Mila charitable organisation is a UK Charitable Incorporated organisation (CIO) entity with its registered office at 71 Queen Victoria Street, London EC4V 4AY.

b) Basis of preparation

The accounts have been prepared in accordance with Accounting and Reporting by charities; Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in UK and Republic of Ireland (FRS102) – (Charities SORP (FRS 102)) and the Charities Act 2011.

There are no uncertainties about the Charity’s ability to continue as a going concern.

In common with many other charities of our size and nature we use our auditors to assist with the preparation of the accounts

c) Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the objects of the Charity and which have not been designated for other purposes.

No donations have been received with any restrictions applied to them and therefore no net assets fund analysis note is included within these accounts.

d) Income

Donations and investment income are included in the Statement of Financial Activities when they are received.

e) Grants payable

Grants are included in expenditure under charitable activities when they are approved by the Trustees and the commitment has been communicated to the beneficiaries. Any such grants not paid by the year end are included in creditors.

THE MILA CHARITABLE ORGANISATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 December 2021

1 ACCOUNTING POLICIES (continued)

f) Expenditure

All expenditure is accounted for on an accrual basis under the appropriate expense category. Expenditure includes irrecoverable VAT where appropriate. Any support costs specific to one of the activities is allocated wholly to the activity. The remaining support costs are allocated to that activity in proportion to the combined costs of activities undertaken directly and grants. All costs are classified as charitable activities apart from those attributable to raising funds (investment management costs).

g) Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities.

h) Investments

Investments are stated at market value at the balance sheet date. Market value includes accrued interest where applicable. If an investment does not have a readily available market price it is valued by the relevant Investment Manager. The Statement of Financial Activities includes net gains and losses arising on revaluations and disposals throughout the year.

2 INCOME FROM INVESTMENTS

2	INCOME FROM INVESTMENTS
		Total 2021	Total 2020
		£	£
	Interest receivable	454	164
	Other investment income	62,327	61,590
		______	______
		62,781	56,402
		______	______
3	INVESTMENT MANAGEMENT COSTS
		Total 2021	Total 2020
		£	£
	Investment management fees	53,690	40,105
		______	______

THE MILA CHARITABLE ORGANISATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 December 2021

4 CHARITABLE ACTIVITIES

4	CHARITABLE ACTIVITIES
		Total 2021	Total 2020
		£	£
	Grants to institutions:
	Shobana Jeyasingh Dance	-	60,000
	Clontor Farm MusicTrust	-	5,000
	King Edward VI Grammar	5,933	-
	SienAgosto	10,000	10,000
	Institute of Molecular Pathology	-	50,000
	Ouseburn Farm Charity	-	31,000
	Ute Bock	-	15,000
	Koestler Trust	-	25,000
	Studio Voltaire	20,000	20,000
	Plimlico Opera	60,000	-
	Handpicked Productions	15,000	-
	Britten Pears Arts	15,000	-
	Arcola Theatre Production	35,000	100,000
	Bildungs und Kulturverein AREAL	-	50,698
	Britten Sinfonia	20,000	20,000
	Oxford Botanic Garden and Arboretum	60,000	-
		______	______
		240,933	386,698
		______	______
5	SUPPORT COSTS
		Total 2021	Total 2020
		£	£
	Charity administration and monitoring of activities	9,871	11,023
	Other expenses	305	240
	Exchange rate difference	-	106
	Governance costs (note 6)	6,960	7,345
		______	______
		17,136	18,714
		______	______
6	GOVERNANCE COSTS
		Total 2021	Total 2020
		£	£
	Auditors’ remuneration - audit and accountancy	6,620	6,925
	- other costs	340	420
		______	______
		6,960	7,345
		______	______

THE MILA CHARITABLE ORGANISATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 December 2021 (CONTINUED)

7	INVESTMENTS (AT VALUATION)
		2021	2020
		£	£
	Fixed income	589,987	468,168
	Equities	6,136,178	5,227,647
	Alternative investments	3,983	403,346
	Commodity and property funds	-	12,870
	Foreign exchange forward contracts	1,094,390	72,268
		______	______
		7,824,538	6,184,299
		______	______
		2021	2020
	Analysis of movement in investments (excluding cash)	£	£
	Brought forward	6,184,299	5,202,038
	Additions at cost	4,951,866	1,924,592
	Sale proceeds	(3,848,452)	(1,699,351)
	Net gain/(loss) on revaluation (Note)	536,825	757,020
		______	______
	Carried forward	7,824,538	6,184,299
		______	______
		2021	2020
	Analysis of net gain/(loss) on revaluation	£	£
	Foreign exchange gains/(losses)	87,754	(38,933)
	Revaluation gains	449,071	795,953
		______	______
	Net gain on revaluation	536,825	757,020
		______	______
8	DEBTORS
		2021	2020
		£	£
	HMRC Gift Aid	387,539	92,750
		______	______

THE MILA CHARITABLE ORGANISATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 December 2021

9	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2021	2020
		£	£
	Accruals and grant liabilities	110,700	101,100
		______	______
		110,700	101,100
		______	______
10	CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
		2021	2020
		£	£
	Accruals and grant liabilities	40,000	20,000
		______	______

11 RELATED PARTIES

Donations made to the Charity by Trustees totalled £ 754,700 (2020: £371,000).

No Trustee received any remuneration or reimbursement of expenses in the year.