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2020-12-31-accounts

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

Charity Registration Number 1175352

Mellon Educate (UK) Financial statements for the financial year ended 31 December 2020

Contents page
Administrative Details 2-3
Trustees’ Report 4-9
Trustees’ Responsibility Statement 10
Independent Auditor’s Report 11-13
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Financial Statements 17-26

1

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

ADMINISTATIVE DETAILS

Trustees Maeve McDonald (resigned 24 February 2020)
Andrew Thomas (resigned 24 February 2020)
Andrew Brennan (Chair)
Mike Butler (appointed 24 February 2020)
Jeremy Svejdar (appointed 24 February 2020)
Julia Dixon (appointed 24 February 2020)
Dominique Hainebach (appointed 24 February 2020)
Ben Cahill-Nicholls (appointed 24 February 2020)
Charity registration number 1175352
Registered office 26 Cadogan Square
London
SW1X 0JP
Solicitors Filanthropia Consulting Limited
Heath House
Alldens Lane
Godalming
Surrey
GU8 4AP
Bankers The Co-Operative Bank
P.O.Box 250, Delf House
Southway
Skelmersdale
WN8 6WT
Auditors BDO
Statutory Audit Firm
Beaux Lane House
Mercer Street Lower
Dublin 2
Ireland
Mellon Township Limited (Operating A charitable company registered with the Republic of Ireland
under the business name of Companies Registration Office under number 389423 and
“Mellon Educate”) registered with the Charities Regulatory Authority under
number 20058074
Explorium Sports Science Centre
Blackglen Road
Sandyford
Co. Dublin
Ireland

2

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

ADMINISTATIVE DETAILS - continued

Mellon Housing Initiative

A not for profit company limited by guarantee in South Africa and registered with the Companies and Intellectual Property Commission in South Africa, registration number 2006/037539/08

Mellon House Corner van Riebeeck (R102) & Station Road Blackheath, 7580 Western Cape, South Africa

3

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

TRUSTEES’ REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Legal Structure

Mellon Educate (UK) is a registered charity (No. 1175352) (“the Charity”). The Charity was registered with the Charity Commission for England and Wales (“Charity Commission”) on 25 October 2017.

The governing document of the Charity is a CIO Constitution dated 24 October 2017.

The Charity’s accounts are prepared on a ‘true and fair’ basis in accordance with accounting standards and the methods and principles of the applicable Statement of Recommended Practice (SORP).

Membership

As a foundation CIO the members of the Charity are the Trustees for the time being.

Governance

Mellon Educate (UK) is committed to holding a high standard of ethical and lawful behaviour in all our activities which are led by the Trustees and implemented by all associated with the Charity.

Trustees

Pursuant to the CIO Constitution the Trustees are appointed by the Founder, Niall Mellon, during his lifetime. The Trustees are identified through their ongoing contributions to the Charity and who have the appropriate experience and commitment to govern the Charity. The Trustees are responsible and accountable for the management of the affairs of the Charity.

The Trustees of the Charity are set out on page 1 and they have served for the entire financial year. The Trustees are appointed for a two year period, after which they may be re-appointed by the Founder.

4

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

TRUSTEES’ REPORT – continued

OBJECTIVES AND ACTIVITIES

The objects of the Charity as set out at clause 3 of the CIO Constitution are:

“The income and property of the CIO shall be applied for the benefit of the public worldwide for the purposes set out below in particular, but not limited to, for the benefit of the underprivileged and the socially and economically disadvantaged in South Africa:

in such ways as the charity trustees shall from time to time think fit in particular, but not limited to, by supporting the charity Mellon Township Limited (also known as Mellon Educate), a charitable company registered in the Republic of Ireland, Companies Registration Office registered number 389423 and Charities Regulatory Authority registered number 20058074.”

Activities

The Charity’s objects are primarily fulfilled by supporting the charity registered in the Republic of Ireland called Mellon Township Limited, also known as “Mellon Educate” (“Mellon Educate Ireland”) in connection with the annual Building Blitz and Teaching Blitz and related initiatives run by Mellon Educate Ireland each year. These initiatives are run for the benefit of the underprivileged in South Africa as a means of providing resources to improve classrooms and facilities and assist the teachers to improve the standard of education offered in the classrooms.

Mellon Educate UK supports Mellon Educate Ireland by providing, amongst other things:-

-grant funding.

The Trustees have read and understood the Charity Commission’s guidance entitled “Charities with a connection to a non-charity”. The Charity has in place various agreements; policies and procedures including, but not limited to:-

5

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

TRUSTEES’ REPORT – continued

Activities - continued

Public Benefit Entity

The Trustees of the Charity have given careful consideration to the Charity Commission’s guidance on public benefit to ensure that the charity’s activities have achieved the Charity’s objectives and provided a benefit to its beneficiaries.

ACHIEVEMENTS AND PERFORMANCE & FUTURE DEVELOPMENTS

Principal activities and review of the Charity

During the accounting year the Charity’s principal activities were:

Building Blitz 2020

The annual Building Blitz to Cape Town in South Africa was cancelled due to the Covid-19 pandemic and various restrictions imposed on international travel and gatherings. The build still went ahead but was limited to one school only, Wesbank Primary School. The scope of the build included 6 classrooms (Including 2 Grade R Classrooms), a kitchen and covered play area for the Grade R Children. This was only possible through our various fund-raising Initiatives, our partnership with the Western Cape Education Department and corporate sponsorships.

Education Programmes

The Mellon Educate team of specialists re organised their approach during this very difficult time of Covid19 restrictions and the shortened academic year by implementing programmes and developing revised curriculum to assist 11 schools with the following programmes:

Effective use was made of video conferencing, online support, recordings of experiments and one on one teacher support and training using ‘Teams” or ‘Zoom”.

Our programme in South Africa involves a team of highly accomplished teachers and subject specialists. Their activities continue to drive the programmes to improve the overall impact of the support the charity lends the schools we are supporting, The subjects supported in the Schools are Science, Mathematics and the Languages (English/Afrikaans/Isixhosa).

6

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

TRUSTEES’ REPORT – continued

Principal activities and review of the Charity – continued

Mellon Educate Teachers Blitz

The Teachers Blitz was unfortunately postponed to 2021 due to the travel restrictions imposed as a result of the outbreak of the Covid-19 pandemic globally.

Western Cape Education Department

Mellon Educate continues to develop a strong and meaningful partnership with Minister for Education in the Western Cape, MEC Debbie Shaffer and her department. The selection of schools where both the infrastructural work and education assistance takes place is done in consultation with the WCED in order to ensure the areas of most need are identified and helped to maximum effect. The WCED contributes 40% of the construction costs to the annual building blitz, thereby endorsing the work the charity is carrying out so successfully in the Western Cape.

Humanitarian Aid

In 2020 the Covid 19 pandemic created a humanitarian crisis of epic proportion. This created a dire need to provide emergency nutrition to school families and the broader community surrounding our partner schools. The Mellon Team adapted their support to include a humanitarian aid response from March through to December of 2020. In response to this situation, and thanks to the support of our international volunteer community and local donors Mellon Educate (Mellon Educate UK & Ireland) raised approx. R1,4 million for food distribution in 2020 and together with selected partners reached in excess of 250 000 recipients in communities surrounding our partner schools. Overwhelming requests from our schools highlighted the continuing food crisis for learners and their families resulting from the suspended school feeding programme, loss of employment and poor access to institutional support. The Mellon team’s ability to adapt to the ever-changing environment and demands of this crisis, while maintaining the critical support to teachers ensured that the efficient delivery of support where needed was achieved.

The future

Going forward, the Charity intends to continue supporting the work of Mellon Educate Ireland as referred to above. The Trustees will also consider supporting any new initiatives of Mellon Educate Ireland which fall within the Charity’s objects.

Due to the worldwide Covid-19 pandemic, the health risks of international travel, the unpredictable length of the pandemic and the risk to the communities in South Africa, the Trustees of the charity decided to cancel the 2020 Building Blitz and this was announced in April 2020.

The impact to our primary fund raising, namely the fundraising activities of the volunteers that attend the Blitz, is significant to the Charity, and projected income for 2020 was reduced by 55%.

The reaction of volunteers and fundraisers to the challenge has been fantastic, and various new initiatives to fundraise for the charity and its initiatives have been very impactful. These initiatives include the provision of food parcels delivered to the communities we serve in South Africa, in and around the schools we are involved with.

7

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

TRUSTEES’ REPORT – continued

FINANCIAL REVIEW

The statement of financial activities and balance sheet are set out on page 13 and 14. The deficit for the year amounted to £122,578 (2019: £152,801) . The unrestricted funds carried forward amounted to £81,135. It is also noted that the administration and accounts functions of this entity are carried out by Mellon Educate Ireland (pursuant to a resource sharing agreement), effectively reducing the costs of the Charity to generate funds.

Reserves policy

Unrestricted Funds : Funds generated will be utilised to continue the support of the School Building Blitzes and Mellon Educate Results programme and related initiatives. The Trustees will continue to ensure that reserves remain in place to meet the current commitment to operations, and maximise the contributions the charity makes to its objectives.

At the current operating costs and activity levels the Trustees consider the minimum cash reserves requirement to be set at a level of £30,000 (Cash reserves in 2020: £99,349). Mellon Educate Ireland continue to support the operations of Mellon Educate (UK) and will continue to do so going forward.

Restricted Funds: When funds are received where it is the wish of the donor to assist in a specific project or to fund a particular activity the funds are held as a restricted fund and applied only for the specific purposes for which the monies were given.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that: - so far as that Trustee is aware, there is no relevant audit information of which the Charity's auditors are unaware, and

POST BALANCE SHEET EVENTS

There have been no significant events since the financial year end, other than the impact of Covid 19 which has been discussed above.

8

Mellon Educate {UK) Financial Statements for the financial yearending31 December 2020 TRUSTEES, REPORT - Continued AUDITORS The auditors, BDO. Statutory AuditFirni, weTe re-appointedas the charity's auditor durlngthe year and have expressed their Willin￿esStO continue in office. Signed by order of the Trustees Andrew Br¢Dnan Trustee Approv￿] bythe Tn￿tee8 on

Mellon Educate (UK) Flnancial Statements for the financiaiyearendAns31 December 2011 TRUSTEES, RESPONSIBILITY STATEMENT The Trustees are iesponsible forpreparingthe Trustees. report and the fmancial statenKnts in accordaDce with applicable law and regulations. Charity law requires the Trustees to prepare financial ststements for eath financial y¢ar in accordaDC¢ Wtb United Kingdom G¢n¢rally Accepted Accountiug Practice (United Kingdom A¢¢ounting Standards at]d applicable law). Undercharity law the Trnstees must not approvetbe financial statements unless they aLE satisfied thatthey give a tsue and fair view of the stste of affairs of the charity and of the incomingrewu and application ofresowces, includingthe income andeXp￿dI￿rq ofthe charity for that year. In preparing these financial statements.the Truste&8 are required to.. select suitabl¢ accountingpoli¢i¢s and then applytb¢mconsist¢ntly" mak¢ judgements and estimates that areTeasonabl¢ and pnKient' state whether applicable UK Accounting Stsndards bave been followe4 subject to any mataial departures disclosed andexplainedin the fin8ncial statements. Prepare the financial statementsonthegoingconcemb&8isunless itisinappropriatetopresumeibat the entity will continue ill busine&8. TheTrnstees ar¢ responsibl¢forkeepingadquate accountingrecordsthataresuffi¢i¢ntto showand ¢xpkn the Cbarity's transactions and disclose with reasonable accurdcy at any time the financial position of Ihe harity and enable them to ensurethat the financial statements con4)ly with the Cbarities Act 2011. They are also responsible for safeguarding the assets ofthe charity and hencefor tsking reasonable steps for d prevention and detection of fraud and other irregularities. On behalf of the board: Andreiv Brennan Trustee Dat¢.' /9/2oJl io

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MELLON EDUCATE (UK)

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Mellon Educate (UK) for the financial year ended 31 December 2020, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, inclusion 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:

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 below in the auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the entity in accordance with the ethical requirements that are relevant to our audit of financial statements in the United Kingdom, including the Financial Reporting Council’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.

Independence

We remain independent of the Charity in accordance with the ethical requirements 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.

Conclusions related 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 the date 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.

11

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF MELLON EDUCATE (UK) (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Act 2011 requires us to report to you if, in our opinion:

Respective responsibilities

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement, 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 has no realistic alternative but to do so.

12

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MELLON EDUCATE (UK) (CONTINUED)

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 the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. The description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

John O’Callaghan (Statutory Auditor) Date: Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006. for and on behalf of

BDO

Dublin Statutory Audit Firm

13

Mellon Educate (UK) Financial Statements for the financial yearending31 De￿rnb￿ 2020 STATEMENT OF FINANCIAL ACTIVITIES In¢orporating the Income and Expenditure Account For the fmaneialyear ended31 December 2020 Total Tot41 Financial year ended 3111212019 Restricted Fullds 2020 Unrestricted Funds 2020 Financial year end 3111212020 Notes INCOME FROM Donatsons & lega¢i¢s 88 12 116020 TOTAL INCOME 27,808 88,212 116,020 580,896 EXPENDITURE ON: Charitable actiTrities Raising funds (27,808) (95,000) 115790 (122,808) (179,644) 248 451 TOTAL EXPENDITURE (27,808) (210,790) {238,598) (428,095J NET SURPLUS I (DEFICIT) (122,578) (122,578) 152,801 TOTAL FUNDS BROUGHT FORWARD TOTAL FUNDS CARRIED FORWARD 14 203,713 203,713 50,912 14 81.135 81,135 203.713 All activities T¢latr to continuing activities. There are no recogllisedgains andlosses otberthan as ststedabove. Signed on behalf of the board. Andrew Brennan Trustee Date.. Th¢ notes on pag¢ 17 to 26 fonnpart ofth¢s¢ Financial Statenwnts. 14

Mellon Educate (U Financial Statements for the financial yearending31 DeLEmber 2020 BALANCE SHEET At 31 December 2020 2020 2019 Notes FIXED ASSETS Computer EqUipMe￿t 275 275 551 551 CURREIYT A&SETS Other Debtors Cash and cash equivalents TOTAL ASSETS io 3,422 211082 215,055 99.349 CBEDITORS (Amount falling du¢ within one fmanciai year) 12 IYET CURRENT ASSETS 80.860 203,162 IYET ASSETS 203 713 FUNDS Unrestricted fimds 14 203 713 TOTAL FUNDS 203 713 The financial statanentswere approvedalld authwi5￿ for issueby theboard.. Andrew Brennan Trustee Date: The notes on page 17 to 26 fornipart of th¢s¢Financial Statements. 15

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

CASH FLOW STATEMENT

For the financial year ended 31 December 2020

Net cash used in operating activities
(DECREASE)/INCREASE IN CASH & CASH
EQUIVALENTS
RECONCILIATION OF NET CASH FLOW
(Decrease)/Increase in cash & cash equivalents
Cash & cash equivalents at beginning of financial
year
CASH & CASH EQUIVALENTS AT END OF
FINANCIAL YEAR
11
RECONCILIATION OF NET
(OUTGOING)/INCOMING RESOURCES TO
CASH OUTFLOW FROM OPERATING
ACTIVITIES
Net (outgoing)/incoming resources
Depreciation
Increase/(Decrease) in Debtors
Increase /(Decrease) in Creditors
Net cash flows from operating activities		 2020
£
(111,733)
(111,733)
(111,733)
211,082
99,349
2020
£
(122,578)
275
3,423
7,147
(111,733)		 2019
£
156,451
156,451
156,451
54,631
211,082
2019
£
152,801
276
(1,491)
4,866
156,451

The notes on page 17 to 26 form part of these Financial Statements.

16

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

1. Accounting Policies

The following accounting policies are applied consistently in dealing with items which are considered material in relation to the Charity’s financial statements:

Basis of Accounting

The financial statements have been prepared with reference to the recommendations of the revised Statement of Recommended Practice (SORP) Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to Charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The financial statements are prepared under Charities Act 2011.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the entity's accounting policies.

Mellon Educate (UK) is a public benefit entity under FRS 102.

The following principal accounting policies have been applied:

Statement of Compliance

The financial statements have been prepared in accordance with FRS102 the financial reporting standard. Mellon Educate (UK) is a charity, their registered office is 26 Cadogan Square, London, SW1X 0JP.

Restricted Funds

Restricted funds are funds received which can only be used for particular purposes specified by the donors and are binding on the Charity. Such purposes are within the overall aims of the Charity.

Unrestricted Funds

Unrestricted funds are those which are expendable at the discretion of the entity in furtherance of the objects of the Charity.

17

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS – continued

1. Accounting Policies (continued)

Incoming Resources

All incoming resources are included in the Statement of Financial Activities when the entity is entitled to the income and the amount can be measured with reasonable accuracy and is probable. The following specific policies are applied to particular categories of income:

Resources Expended

Expenditure is recognised on an accruals basis as a liability is incurred and is recorded as part of the expenditure to which it relates.

Cost of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.

Expenditure on charitable activities comprise grants paid by the Charity in the delivery of its services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity. Where costs cannot be directly attributed, they have been allocated in proportion to estimated benefits received.

Tangible Fixed Assets

Tangible fixed assets currently in use in furtherance of the charity’s objectives are stated in the balance sheet at cost less accumulated depreciation. Depreciation is provided on tangible assets, so as to write off the cost less estimated residual value of each asset over its expected useful economic life on a straight line basis at the following annual rates:

Computer equipment

25% per annum

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Financial Activities.

Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

18

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS – continued

1. Accounting Policies (continued)

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Financial Instruments

The Charity only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like related party receivables and other payable. Basic financial instruments are recorded at transaction price.

Going Concern

The directors believe that the company has adequate financial resources to continue in operation for the foreseeable future and accordingly the annual financial statements have been prepared on a going concern basis.

Management has assessed the company's ability to continue as a going concern for the foreseeable future and is not aware of any factors beyond their period of assessment that may cast doubt on the company's ability to continue as a going concern. Management thus considers the use of the going concern principle to be appropriate in the preparation of the annual financial statements.

Mellon Township Limited staff commenced working from home from the end of March 2020, because of the Covid 19 restrictions imposed by government. The Charity was able to avail of the government support scheme, known as the temporary wage subsidy scheme, which contributed to staff salaries each week/month. Other cost overheads were further reduced as a result of this decision.

Arising from the impact of Covid, both in Ireland and South Africa, the charity decided to cancel the Annual November Building Blitz, in April of 2020. A number of volunteers donated their raised funds to the charity and volunteers also arrange three separate fundraising campaigns to raise additional funds to support the charity during 2020.

It is our primary goal to drive our fund raising initiatives to ensure that no further erosion of our reserves takes place and that we continue the good work we are doing in Africa.

The Charity initiated a feeding programme via food parcels, which were distributed to the families of the Learners who attend the Mellon Education partnered schools.

The directors have satisfied themselves that the company is in a sound financial position and that it has access to sufficient ongoing fundraising activities together with reserve facilities to meet its foreseeable cash requirements.

The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation, which may affect the company.

Judgements in Applying Accounting Policies and Key Sources of Estimation Uncertainty

The preparation of financial statements in conformity with FRS 102 requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.

The Trustees do not have any significant accounting estimates and assumptions which they consider to be critical accounting estimates and judgments.

19

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS - continued

2. Income from Donations and legacies

Notes
Volunteer Income (a)
Donations (b)
Donations in Kind (c)
Legacies (d)		 Restricted
Funds
Financial
year ended
31/12/2020
£
-
27,808
-
-
27,808		 Unrestricted
Funds
Financial
year ended
31/12/2020
£
-
72,712
15,500
-
88,212		 Total
Financial
year ended
31/12/2020
£
-
100,520
15,500
-
116,020		 Total
Financial
year ended
31/12/2019
£
303,763
261,633
15,500
-
580,896

3. Expenditure on Charitable Activities

Grant to Mellon Educate Ireland for
costs associated with building
schools
and
supporting
the
Education programmes in South
Africa
Grant re food parcels to MHI		 Restricted
Funds
Financial
year ended
2020
£
10,701
17,107
27,808		 Unrestricted
Funds
Financial
year ended
2020
£
95,000
-
95,000		 Total
Financial
year
ended
2020
£
105,701
17,107
122,808		 Total
Financial
year
ended
2019
£
179,644
-
179,644

The charity supports Mellon Educate Ireland and Mellon Housing Initiative (South Africa) in their objective to build quality facilities and to train teachers.

20

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS – continued

4. Expenditure on Raising Funds

General expenses
Benefit in Kind		 Restricted
Funds
Financial
year ended
2020
£
-
-
-		 Unrestricted
Funds
Financial
year ended
2020
£
100,290
15,500
115,790		 Total
Financial
year
ended
2020
£
100,290
15,500
115,790		 Total
Financial
year
ended
2019
£
232,951
15,500
248,451

Expenditure on raising funds includes the cost of the national fundraising team; materials for campaigns and events; plus allocated support costs. Included in general expense is an amount of £75,430 (2019: £81,846) for salaries, hosting a fundraising Gala event of £NIL (2019: £110,575) and general office expenses of £24,860 (2019: £40,530). Other office costs include professional fees, audit fees, insurance and telephone.

Benefit in kind relates to the donations in kind of an office space received free of charge.

5. Support Costs and Allocation of Expenditure

(a) Support Costs

Supports costs in the year include fees for setting up the Charity. Total costs have been allocated in full to the costs of raising funds below.

(b) Allocation of expenditure

Charitable expenditure
Cost of generating funds
Total resources expended		 Direct
Costs
£
122,808
102,286
225,094		 Support
Costs
£
-
13,504
13,504		 Total
Expenditure
£
122,808
115,790
238,598

21

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS – continued

6. Employees and Staff Costs

(a) Number of employees

(a) Number of employees
Average number of people employed (full-time and part-
time)
(b) Total staff costs
Wages & salaries
Social welfare costs
Pension costs
(c) Senior staff remuneration
The number of staff earning salaries over £60,000 was:
Band: £60,000 - £69,999		 2020
1
Financial
year ended
31/12/2020
£
68,750
4,289
2,391
75,430
2020
No.
1		 2019
3
Financial
year ended
31/12/2019
£
76,203
3,914
1,729
81,846
2019
No.
1

The Trustees oversee all matters relating to staff remuneration.

(d) Key management remuneration

There was no remuneration paid to key management during the year. Key management refers to the Trustees of the Charity.

22

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS – continued

7. Net Income / Expenditure

Financial Financial
year ended year ended
31/12/2020 31/12/2019
£ £
Net Income is stated after charging
External Audit Fees
8,874		 8,883

External audit costs are borne by the Irish entity, Mellon Township Limited. In 2020, a portion of the audit fee was recharged to Mellon Educate (UK). Mellon Township Limited is a related party due to a Director of Mellon Township Limited also being a Trustee of Mellon Educate (UK).

Trustees do not receive remuneration for their services as Trustees. Trustees are entitled to reimbursement of vouched expenses incurred in the performance of their duties as a Trustee. The amount charged in 2020 was £NIL (2019: £NIL).

8. Grant Expenditure

Grants were paid to Mellon Educate Ireland of £122,808 (2019: £171,768) and Mellon Housing Initiative of £7,876 (2019: £7,876), a South African non for profit organisation, in 2020 to assist with the Building of classrooms, food parcels and Education Programmes in South Africa.

9. Tangible Fixed Assets

Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
On disposal
At 31 December 2020
Net Book Value
At 31 December 2020		 Computer
Equipment
£
1,102
-
-
1,102
552
275
-
827
275		 Total
£
1,102
-
-
1,102
552
275
-
827
275

23

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS – continued

10. Debtors (amounts falling due within one financial year)

10. Debtors (amounts falling due within one financial year)
Related party receivables (note 16)
All debtors are due within one year.		 2020
£
-
-		 2019
£
3,422
3,422

11. Cash & Cash Equivalents

2020
£
99,349
99,349		 2019
£
211,082
Cash and cash equivalents
211,082

12. Creditors (amounts falling due within one year)

Trade Creditors & accruals 2020
£
760
3,920
2,000
11,332
477
18,489		 2019
£
5,569
4,416
-
-
1,357
PAYE/NI
Related party payables (note 16)
Deferred Income
Other payables
11,342

Tax and social insurance are subject to the terms of the relevant legislation. Interest accrues on late payments at a rate of 2.75% per year. No interest was due at the financial year end date.

Other amounts included with creditors not covered by specific note disclosures are unsecured, interest free and repayable on demand.

13. Taxation

Mellon Educate (UK) is a registered charity and therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. The Charity’s HMRC charity tax reference number is EW90176.

24

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS - continued

14. Movement in Funds

Restricted Funds
Unrestricted Funds
Total
Restricted Funds
Unrestricted Funds
Total
Analysis of Net Assets
Fixed Assets
Current Assets
Creditors:
Amounts
falling due within one
financial year
Total		 At Start
of Year
2020
£

-
203,713
203,713
At Start
of Year
2019
£

-
50,912
50,912
Restricted
Funds
2020
£
-
-
-
-



Incoming
Resource
£
27,808
88,212
116,020
Incoming
Resource
£
52,555
528,341
580,896
Unrestricted
Funds
2020
£
275
99,349
(18,489)
81,135		 Outgoing
Resource
£

(27,808)
(210,790)
(238,598)
Outgoing
Resource
£

(52,555)
(375,540)
(428,095)
Designated
Funds
2020
£
-
-
-		 Transfers
between
funds
£

-
-
-
Transfers
between
funds
£

-
-
-

At end of
year
2020
£

275

99,349

(18,489)

81,135		 Transfers
between
funds
£

-
-
-
Transfers
between
funds
£

-
-
-

At end of
year
2020
£

275

99,349

(18,489)

81,135		 At End of
Year
£
-
81,135
81,135
At End of
Period
£
-
203,713
203,713
At end of
year
2019
£

551

214,504

(11,342)
203,713






- 81,135

Analysis of Net Assets

15. Financial instruments

The analysis of the carrying amounts of the financial instruments of the Charity required under section 11 of FRS 102 is as follows:

Financial Assets
Financial assets measured at amortised cost
Financial Liabilities
Financial liabilities measured at amortised cost		 2020
£
2019
£
99,349
214,504
2,477
1,357

Financial assets measured at amortised costs comprise cash at bank and in hand and related party receivables.

Financial liabilities measured at amortised cost comprise other payables and related party payables.

25

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS - continued

16. Related Party Transactions

Mellon Educate Ireland

Mellon Educate Ireland is a related party by virtue of a Director of Mellon Educate Ireland also being a Trustee of Mellon Educate (UK). During the year the Charity paid grants of £122,808 (2019: £179,644) to Mellon Educate Ireland. There is a balance owed to Mellon Educate Ireland of £2,000 at year end (2019: £3,422 owed by Mellon Educate Ireland ).

17. Capital Commitments

The Charity had no capital commitments at the financial year end.

18. Post Balance Sheet Events

Due to the ongoing worldwide Covid 19 pandemic, the health risks of international travel, the unpredictable length of the pandemic and the risk to the communities in South Africa, the Trustees of the charity decided to cancel the 2021 Building Blitz and this was announced in April 2021.

The impact to our primary fund raising, namely the fundraising activities of the volunteers that attend the Blitz, is significant to the Charity, and projected income for 2021 was reduced accordingly.

The reaction of volunteers and fundraisers to the challenge has been fantastic, and various new initiatives to fundraise for the charity and its initiatives have been very impactful. These initiatives include the provision of food parcels delivered to the communities we serve in South Africa, in and around the schools we are involved with.

19. Contingent Liabilities

At 31 December 2020, the Charity had no contingent liabilities.

20. Approval of financial statements

The financial statements were approved and authorised for issue by the Trustees on 3 September 2021.

26