DocuSign Envelope ID: 0D0BE5DF-F76E-4021-92A2-2B9673089037
Charity Registration No: 1175279
## **THE MELETE FOUNDATION**
**TRUSTEES’ REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
DocuSign Envelope ID: 0D0BE5DF-F76E-4021-92A2-2B9673089037
## **THE MELETE FOUNDATION**
## **CONTENTS**
||Page|
|---|---|
|Legal and administrative information|1|
|Trustees' report|2 - 3|
|Independent Examiner’s report|4 - 5|
|Statement of financial activities|6|
|Balance sheet|7|
|Statement of cash flows|8|
|Notes to the financial statements|9 - 13|
DocuSign Envelope ID: 0D0BE5DF-F76E-4021-92A2-2B9673089037
## **THE MELETE FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Charity registration**|1175279|
|---|---|
|**number**||
|**Trustees**|Catherine Alexandra Chisholm|
||John Alexander Raymond Chisholm|
||Emma Moody|
|**Principal address**|Womble Bond Dickinson (UK) LLP|
|**and Registered**|The Spark|
|**office**|Draymans Way|
||Newcastle Helix|
||Newcastle upon Tyne|
||NE4 5DE|
|**Legal advisor**|Womble Bond Dickinson (UK) LLP|
||The Spark|
||Draymans Way|
||Newcastle Helix|
||Newcastle upon Tyne|
||NE4 5DE|
|**Independent**|Claire Wills FCA DChA|
|**Examiner**|Saffery LLP|
||71 Queen Victoria Street|
||London|
||EC4V 4BE|
Page 1
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## **THE MELETE FOUNDATION**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
This report relates to the financial year ended 31 December 2022 for the Charity, The Melete Foundation Charitable Incorporated Organisation (CIO) Charity number 1175279.
## **Structure, Governance and Management**
The Charity is organised as a CIO and is governed by the Constitution, last amended on 20 October 2017.
The Constitution provides that there must be at least two Charity trustees including the founding trustees. If the number falls below this minimum, the remaining trustee or trustees may act only to call a meeting of the Charity trustees, or the founding trustees shall appoint a new Charity trustee. If the founding trustees cease to be Charity trustees, and the number of trustees falls below this minimum, then the remaining trustee(s) may act only for the purposes of calling a meeting of the Charity trustees, or appointing a new Charity trustee.
The maximum number of trustees that may be appointed to the CIO is seven. Apart from the first Charity trustees, every trustee must be appointed by a founding trustee. If the founding trustees cease to be Charity trustees, such appointment shall be by resolution of the Charity trustees.
The trustees manage the affairs of the CIO in accordance with the objectives and powers set out in the Constitution.
## **Objectives and Activities**
The objectives of the CIO are for the public benefit, to further such exclusively charitable purposes which support The Melete Foundation CIO's charitable purposes as per the Constitution.
The trustees operate a grant giving policy, providing funds for such charitable objects or institutions as the trustees think fit. Grants made in the year are set out in note 3 to the financial statements.
The trustees have had regard to the Charity Commission’s guidance on public benefit.
## **Financial Review**
## _**Results for the year**_
During the year ended 31 December 2022, total income amounted to £108,552 being income predominantly arising from the founders donations of £96,000 to the expendable endowment fund to be held as capital, until being spent on the charity’s objects. In 2021 total income was £732,276 made up of Donations and investment income.
The trustees made grants totalling £17,456 (2021 - £nil). Investment management costs amounted to £10,052 (2021 - £8,196), legal and professional fees totalled £4,635 (2021 - £3,866). Total expenditure was £36,953 (2021 - £17,222).
There were net investment losses during the year of £98,077 (2021 – gains £210,071) and a gain on foreign currency translation of £26,164 (2001 - £nil)
This results in a net decrease in funds of £314 (2021 – increase £925,125).
Page 2
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## **THE MELETE FOUNDATION**
## **TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022**
## _**Reserves policy**_
The expendable endowment fund represents the funds received by the charity on the creation of the charity adjusted for net movements since that date. The trustees have the power to meet administrative expenses from this fund and may apply the income of the fund towards the general purposes of the charity.
The charity is operated as a grant giving charity, and the trustees' policy is to administer the investment assets on an absolute return basis.
At 31 December 2022, the reserves of the Foundation comprised an unrestricted income fund and an expendable endowment fund. Donations from the trustees in the previous period were treated as capital and recognised in the expendable endowment. £1,320,747 (2021: £1,215,612) of the balance is held in investments which will generate income for the Foundation. The trustees consider that the level of reserves is appropriate and will be spent down over the next few years as the trustees identify the main projects which they wish to support.
## _**Financial position**_
The balance sheet shows total funds of £1,671,781 (2021 - £1,672,095), the majority of which comprise expendable endowment funds.
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to Charities in England and Wales 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 income and expenditure, of the Charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to do so.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with The Charities Act 2011 and applicable accounting regulations. The trustees 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.
This report was approved by the trustees on………………….……..and signed on their behalf by: 30 October 2023
………………………………...
Sir John Chisholm Trustee
Page 3
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## **THE MELETE FOUNDATION**
## **INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Independent examiner’s report to the trustees of the Melete Foundation**
I report to the trustees on my examination of the accounts of the Melete Foundation (the Charity) for the year ended 31 December 2022.
## **Respective Responsibilities of trustees and examiner**
As the trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that the accounts for the Charity are not required by charity law to be audited and have chosen instead to have an independent examination.
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Charity 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; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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## **THE MELETE FOUNDATION**
## **INDEPENDENT EXAMINER’S REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022**
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.
Signed:
Claire Wills FCA DChA Saffery LLP Chartered Accountants 71 Queen Victoria Street, London, EC4V 4BE
30 October 2023
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## **THE MELETE FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Notes**
**Income and endowments from:**
Donations
**2**
Investments
Equalisation
Interest
**Total income**
**Expenditure on:**
Raising funds
**4**
Charitable activities
**3,5**
**Total expenditure**
**Net (expenditure)/income**
**before investment gains**
Gains/(losses) on investments
**6**
**Net income/(expenditure)**
Transfers between funds
Other recognised gains/losses:
FX gains/(losses)
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward at
1 January
**Total funds carried forward at**
**31 December**|**Unrestricted**
**income**
**funds**
**£**
**Expendable**
**endowment**
**funds**
**£**
**Total**
**funds**
**2022**
**£**
-
96,000
96,000
11,524
-
11,524
146
-
146
882
-
882
12,552
96,000
108,552
10,052
-
10,052
26,901
-
26,901
36,953
-
36,953
(24,401)
96,000
71,599
-
(98,077)
(98,077)
(24,401)
(2,077)
(26,478)
-
-
-
26,164
-
26,164
1,763
(2,077)
(314)
-
1,672,095
1,672,095
1,763
1,670,018
1,671,781|**Total**
**funds**
**2021**
**£**
725,000
7,276
-
-|
|---|---|---|
|||732,276|
|||8,196
9,026|
|||17,222|
||||
|||715,054|
|||210,071|
|||925,125
-
-|
||||
|||925,125|
|||746,970|
|||1,672,095|
All operations are continuing operations.
All recognised gains and losses during the year are included within the Statement of Financial Activities. The accompanying notes on pages 9 to 13 form an integral part of these financial statements.
Page 6
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## **THE MELETE FOUNDATION**
## **BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Notes**
**Fixed assets**
Investments
**6**
**Current assets**
Cash at bank and in hand
**Creditors**: amounts falling due within one
year
**7**
**Net current assets**
**Total assets less current liabilities**
Net assets
**Funds**
Unrestricted funds
**8,9**
Expendable endowment fund
**8,9**
**Total funds**|**£**
360,455|**2022**
**£**
1,320,747
(9,421)
351,034
1,671,781
1,671,781
1,763
1,670,018
1,671,781|**£**
464,596|**2021**
**£**
1,215,612
(8,113)|
|---|---|---|---|---|
||||
||
|||||456,483|
|||||1,672,095|
|||||1,672,095|
|||||-
1,672,095|
|||||1,672,095|
Charity Registration number 1175279
These financial statements were approved by the Trustees and authorised for issue on the …….......…………………and are signed on their behalf by: 30 October 2023
Sir John Chisholm Trustee
Page 7
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## **THE MELETE FOUNDATION**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Cash flows from operating activities:**
**_Net cash provided by operating activities_**
**Cash flows from investing activities:**
Dividends
Investment disposals
Purchase of investments
Gift of shares
**Net cash (used in) investing activities**
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January
**Cash and cash equivalents at 31 December**
**A) Reconciliation of net cash flows from**
**operating activities**
**Net income**
(Gains)/losses on investments
Dividend income
Increase/(decrease) in creditors
**Analysis of changes in net debt**
**Cash and cash equivalents**
Cash|**Notes**
A
**As at 1**
**January**
**2022**
464,596|**2022**
**£**
87,546
11,524
243,487
(446,698)
-
(191,687)
(104,141)
464,597
360,456
(314)
98,077
(11,524)
1,307
87,546
**Cash flows**
**Other**
**non-cash**
**changes**
(104,141)
-|**2021**
**£**
705,894
7,276
993,057
(763,077)
(725,000)|
|---|---|---|---|
||||(487,744)
218,150
246,446|
||||464,596|
||||925,125
(210,071)
(7,276)
(1,884)|
||||705,894|
||||**As at 31**
**December**
**2022**
360,455|
||464,596|(104,141)
-|360,455|
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## **THE MELETE FOUNDATION**
## **NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. ACCOUNTING POLICIES**
## **1.1 Basis of Accounting**
The financial statements have been prepared under the historic cost convention and in accordance with applicable accounting standards. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice.
The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second edition) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Charity constitutes a public entity as defined by FRS 102. The functional currency for these financial statements is £.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Income**
All income is recognised in the statement of financial activities when the conditions for receipt have been met and there is reasonable assurance of receipt.
Investment income is accounted for when receivable. Donations are accounted for in the period in which the Foundation is entitled to receipt and include any associated gift aid.
## **1.4 Expenditure**
Expenditure is included on an accruals basis
Direct charitable expenditure comprises grants, directly related to the objects of the charity.
Governance costs comprise all costs involving the public accountability of the Charity and costs related with statutory requirements.
## **1.5 Foreign currency translation**
Foreign currency transactions are translated into pounds sterling at the exchange rate prevailing at the transaction date. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date.
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## **THE MELETE FOUNDATION**
## **NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1.6 Funds**
The Unrestricted Income Fund represents the balance of income from all sources after deduction of donations and other necessary expenditure.
The Expendable Endowment Fund represents all the donations of the trustees and can be invested to provide an income from which to make future payments or spent at the trustees’ discretion.
## **1.7 Investments**
Investments are stated at market value. Realised and unrealised gains and losses are accounted for in the Statement of Financial Activities.
## **2. DONATIONS AND GIFTS**
|Donations
Donations|**2022**
**Unrestricted**
**income**
**funds**
-
-
**2021**
**Unrestricted**
**income**
**funds**
-
-|**2022**
**Expendable**
**endowment**
**funds**
96,000
96,000
**2021**
**Expendable**
**endowment**
**funds**
725,000
725,000|**2022**
**Total funds**
**£**
96,000
96,000
**2021**
**Total funds**
**£**
725,000
725,000|**2021**
**Total funds**
**£**
725,000|
|---|---|---|---|---|
|||||725,000|
||||||
## **3. CHARITABLE ACTIVITIES – GRANT MAKING**
|**Grants were made to the following institutions:**
The Jinja Educational Trust
Queens College Dev
Joseph Kwarteng
Carbon Imagineering
Justgiving
Shuang AO
MS Society|**2022**
**£**
2,000
2,000
5,000
1,341
115
5,000
2,000
17,456|**2021**
**£**
-
-
-
-
-
-
-|
|---|---|---|
|||-|
Page 10
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## **THE MELETE FOUNDATION**
## **NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **4. CHARITABLE ACTIVITIES – GOVERNANCE COSTS**
|**5.**
**EXPENDITURE ON RAISING FUNDS**
**6.**
**INVESTMENTS**
**Market value at 1 January 2022**
Gifted donations at market value
Additions at cost
Disposal proceeds
Net gains on investments
**Market value at 31 December 2022**
**Historical cost at 31 December 2022**
_Investments comprise listed investments_
**7.**
**CREDITORS**
Trade Creditors
Accruals
Legal and professional fees
Accountancy fees
Bank charges
Investment management fees|||**2022**
**£**
1,215,612
-
446,698
(243,487)
(98,077)
**2022**
**£**
4,635
4,800
10
9,445
**2022**
**£**
10,052|
||**2021**
**£**
3,866
5,160
-|
|---|---|---|---|---|---|---|
|||||||9,026|
|||||||**2021**
**£**
8,196|
|||||||**2021**
**£**
510,521
725,000
763,077
(993,057)
210,071|
||||1,320,747|||1,215,612|
||||1,302,374
**2022**
**£**
2,221
7,200
9,421|||1,112,881
**2021**
**£**
913
7,200
8,113|
||||||||
Page 11
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## **THE MELETE FOUNDATION**
## **NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **8. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**9.**
**MOVEMENT IN FUNDS**
**Unrestricted**
**income fund**
**£**
Investments
-
Current assets
1,763
Current liabilities
-
**Net assets**
1,763
**Unrestricted**
**income fund**
**£**
Investments
-
Current assets
-
Current liabilities
-
**Net assets**
-
**Opening balance at**
**01 January 2022**
**£**
**Incoming**
**resources**
**£**
**Expenditure**
**£**
Expendable
Endowment
1,672,095
96,000
-
Unrestricted
-
12,552
(36,953)
**Net assets**
1,672,095
108,552
(36,953)
**Opening balance at**
**01 January 2021**
**£**
**Incoming**
**resources**
**£**
**Expenditure**
**£**
Expendable
Endowment
746,970
725,000
-
Unrestricted
-
7,276
(17,222)
**Net assets**
746,970
732,276
(17,222)|**9.**
**MOVEMENT IN FUNDS**
**Unrestricted**
**income fund**
**£**
Investments
-
Current assets
1,763
Current liabilities
-
**Net assets**
1,763
**Unrestricted**
**income fund**
**£**
Investments
-
Current assets
-
Current liabilities
-
**Net assets**
-
**Opening balance at**
**01 January 2022**
**£**
**Incoming**
**resources**
**£**
**Expenditure**
**£**
Expendable
Endowment
1,672,095
96,000
-
Unrestricted
-
12,552
(36,953)
**Net assets**
1,672,095
108,552
(36,953)
**Opening balance at**
**01 January 2021**
**£**
**Incoming**
**resources**
**£**
**Expenditure**
**£**
Expendable
Endowment
746,970
725,000
-
Unrestricted
-
7,276
(17,222)
**Net assets**
746,970
732,276
(17,222)|**Expendable**
**endowment**
**fund**
**£**
**Total at**
**31 December**
**2022**
**£**
1,320,747
1,320,747
358,692
360,455
(9,421)
(9,420)
1,670,018
1,671,781
**Expendable**
**endowment**
**fund**
**£**
**Total at**
**31 December**
**2021**
**£**
1,215,612
1,215,612
464,596
464,596
(8,113)
(8,113)
1,672,095
1,672,095
**Transfers**
**/ gains/**
**(losses)**
**£**
**Closing balance at**
**31 December 2022**
**£**
(98,077)
1,670,018
26,164
1,763
(71,913)
1,671,781
**Transfers**
**/ gains**
**£**
**Closing balance at**
**31 December 2021**
**£**
200,125
1,672,095
9,946
-
210,071
1,672,095|**Total at**
**31 December**
**2022**
**£**
1,320,747
360,455
(9,420)|
|---|---|---|---|
||||1,671,781|
||||**Total at**
**31 December**
**2021**
**£**
1,215,612
464,596
(8,113)|
||||1,672,095|
||1,672,095
108,552
(36,953)|||
||**Opening balance at**
**01 January 2021**
**£**
**Incoming**
**resources**
**£**
**Expenditure**
**£**
746,970
725,000
-
-
7,276
(17,222)|||
||746,970
732,276
(17,222)|||
Transfers between funds relate to payment of legal and professional and management charges after payment through investment income.
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## **THE MELETE FOUNDATION**
**NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **10. RELATED PARTIES**
During the year Trustees made donations to the charity totalling £96,000 (2021: £725,000).
The charity does not have any employees (2021: nil).
Womble Bond Dickinson (UK) LLP, a law firm, raised charges for professional services in the year totalling £4,635 (2021: £3,866), of which £2,220 was outstanding at the year end. Emma Moody is a partner in Womble Bond Dickinson. Otherwise, during the year no payments were made to any Trustee for their services nor were any expenses reimbursed to them (2021: £nil).
There were no other related party transactions in the year (2021: £nil).
Page 13