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2021-12-31-accounts

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

Charity Registration Number 1175352

Mellon Educate (UK) Financial statements for the financial year ended 31 December 2021

Contents page
Administrative Details 2
Trustees’ Report 3-8
Trustees’ Responsibility Statement 9
Independent Auditor’s Report 10-13
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Financial Statements 17-27

1

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

ADMINISTATIVE DETAILS

Trustees Andrew Brennan (Chair)
Mike Butler
Jeremy Svejdar
Julia Dixon
Dominique Hainebach
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

2

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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 25 October 2017.

On 1 January 2018 the Charity assumed the activities, assets and liabilities of Mellon Educate (UK) 2008, a charitable company registered in Northern Ireland, company number NI068969 and registered charity number 102874.

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.The current appointment of Trustees will run to the end of January 2023.

3

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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 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:-

-assistance regarding the recruiting of Blitz volunteers from the UK (including volunteer fundraising); and

-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:-

4

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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 2021

The annual Building Blitz to Cape Town in South Africa was cancelled due to the Covid-19 pandemic and restrictions imposed on international travel and gatherings. The Build went ahead, with local South African staff, through the generous donations received, in two schools in the Western Cape Township of Delft at Leiden Primary School and Leiden Secondary School. The Scope of the build included 13 classrooms (including 2 Grade R classrooms) and covered eating and play area’s and an ablution Block. This has been made possible through our partnership with the Western Cape Education Department, generous donors and corporate sponsorships.

Education Programmes

The Mellon Educate Team of Specialists, after adapting their approach due to Covid, implemented programmes and developed revised curriculum to assist our 9 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 with our literacy programme supporting foundation Phase Learners.

5

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

TRUSTEES’ REPORT – continued

Principal activities and review of the Charity – continued

Western Cape Education Department

Mellon Educate continues to develop a strong and meaningful partnership with Minister for Education in the Western Cape, MEC Debbie Schafer 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 2021 the Covid 19 pandemic created a humanitarian crisis of epic proportion. This created a dire need to continue 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 started in March 2020 and continued through to December of 2021.

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.

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.

We are excited to announce that the Building Blitz for 2022 will go ahead and we have received over 220 volunteers signed up to travel to Cape Town and participate in the building of 14 new Classrooms, Ablution Facilities & refurbish 1 Grade R Block. We can confirm the generous donation of £200 000 in support of our annual building Blitz to pay towards cost of the classrooms being built during the building Blitz.

We have also entered into an agreement with the Western Cape Education Department (WCED), whereby they have committed to fund 40% of the building cost at our annual building Blitz taking place at two

6

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

TRUSTEES’ REPORT – continued

The future (continued)

schools, Yomelela Primary School and Injongo Secondary school, in the Khayelitsha area, on the outskirts of the City of Cape Town.

The funds raised by our Volunteers, the Generous Donor and the partnership with the Western Cape Education Department, has secured sufficient funding to pay for the entire build in 2022 and continue the literacy programme supporting 9 of our previous Building Blitz schools.

FINANCIAL REVIEW

The statement of financial activities and balance sheet are set out on page 14 and 15. The surplus for the year amounted to £73,980 (2020 - deficit: £111,246) . The unrestricted funds carried forward amounted to £166,447. 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 Literacy 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 2021 £175,923). 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

7

Mellon Educate (UK) Finaneial Statements for the financial year ending 31 December 2021 TRUSTEES, REPORT - Continued POST BALANCE SHEET EVENTS The Covid restrictions on Travel have been lifted and th¢re has been significant success with the vacerne roll out. which ha5 SUPPOrt¢d our decision to go ahead with the 2022 volwitcer building trip to South Africa. We have over 220 volunteers signed up and we are excited to resum¢ the wonderful Work we do in south Afric4 helping to uplift ￿MmunitieS through education SUPEMTrrt and building safe facilities in which to The reaction of volunteers to the news of restartsng th¢ voluDtcer ￿ndraISing initiative and travelling to South Africa in 2022 to h¢lp build 14 new c]￿srOOMS has exceeded our expectations. The two schools who will benefit from th¢ volunteer fund raising progrdmme, our corporate friends. and priyate donor partners. will Yomclcla Primary School and Iniongo Se¢ondary Schi>ol situated in the Khayelitsha aJEa in near Cape Town. AUDITORS Th¢ auditor4 BDO, Statutory Audit Firm. were re-kppointed as th¢ charity's audilor during the year and h&v¢ expressed their willingness to continue in office. Signed by order of thc T￿￿tee3 ADdr¢w Trustee renna Approved by th¢ Tn￿le¢S on 202>

Mellon Educate (UIQ Financial Statements for the finanaal year ending 31 December 2021 TRUSTEES, RESPONSIBILITY STATEMENT The Tr￿teeS responsibl¢ for preparing the Trustees. report 2nd the financial statements in accordance with applicable law and regulations. Charity law Tequires the Tn￿teeS to prepare financial Statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Praetice (United Kingdom Acwunling Standards and appli¢able law). Under ¢harity law the Trustees must not approve the financial stsiements unless they are satisfied that they give a true and fair view of the stale of affairs of the chwity and ofthe incoming resources and application of resources. including the income and expenditure. of the charity for y¢ar. In preparing these financial statements, the Trustees are required to- sel¢rt suitable awounting FK)licies and then apply them consistently> Jnak¢ judgcm¢nts and ¢stimates that are re&sonable and prudent. State whether appli¢abl¢ UK Accounting Standards have FKen followe& subject to any material departures disclosed and explained in the financial statem¢nts' prepare the financial statements on the goingcon¢ern b&8is unless it is inappri)priate to presume that th¢ entity will ¢ontinu¢ in bLL8ine5S. The Trustees are resronsible for keeping adequAte &ccounting records that arc suificiEnt to show and explain the charity's trdnsactions and disclose H'ith reasonable aceuracy at any time the financial position of the harity and enabl¢ them to ensure that tbe financial statemcnls romply with the Charities Act 201 l. They are also restx)nsible for safrguarding the ￿setS of the charity and hence for tsking r¢ason2ble steps for the prevention and detection of fraud and other irrcguiarities. On bchalf of thr trust￿.. Andrew Trllstee nnan lo oz

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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 2021, 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 directors’ 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 directors with respect to going concern are described in the relevant section of this report.

10

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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

Other information

The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 entity'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.

11

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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

Auditor’s responsibilities for the audit of the financial statements

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 objectives of our audit, in respect to fraud are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

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.

12

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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

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.

Simon Carbery (Statutory Auditor) 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 AI223876 Date: 19 October 2022

13

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021 STATEMENT OF FINANCIAL ACTIVITIES Incorpora￿Ag the Income gnd E￿end1th￿e Accollnt For the finonelal year ended 31 December 2021 Tot41 Total Financi year ended 3111212020 'Restated Restricted Funds Unrestricted FuDds Flnaneial year euded 2021 2021 3111212021 Note8 INCOME FROM Donations & legacies 480 000 179456 659 456 127352 TOTAL INCOME 480,0(KI 179,456 659.456 127J52 EXPENDITURE ON: Charitable activities Ralsing fi]nds (477,OIKJ) (809} (477,809) 107 667 (122,808) TOTAL EXPENDITURE (477,OIKI) (108,476) (585.476) (238,598) NET SURPLUS I (DEFICIT) 70980 73.9811 (liiJ46) TOTAL FUNDS BROUGHT FORWARD TOTAL FUNDS CARRtED FORWARD 15 92,467 92.467 203,713 15 3.01)0 103,447 100,447 91467 * See note 2 for details regardill8 restatement All activities relate to continuing activities. There are DO r￿OgnIsed gaiDS alld losses other than as stat¢d above. Signed oll behalf of the trusfru.. rennan Trustee Date.. 191,.1102% The notes on page 17 to 27 form part of tbese FiDan¢ial Statements. 14

Mellon Educate (UK) Financial Statements for the financial year endmg 31 Decemb￿ 2021 BALANCE SIIEET At 31 December 2021 2021 31ny2020 Res¢8ted F4otes FIXED ASSETS Compui¢r Equipment io 275 275 CURRENT ASSETS Other Debtors Cash and cash equivalents TOTAL ASSETS IE 12 549 175,923 176.472 99.349 CREDrfoRS (Amount falling due within one financi21 year) 13 NET CURRENT ASSETS 166.447 92.192 TIET ASSETS FUTr4DS Unrestricted fi￿(£8 R¢stricted funds 15 15 163,447 92,467 TOTAL FUNDS 166 447 * See llote 2 for details regarding restat¢ment The financial ststements wer¢ 8pprov¢d attd authori8￿ for issue by the twstees: Andre T[￿￿tee rennan Date". 19J,./ 202> The nos on page 17 to 27 forni p￿ of these Financi&l Statements. 15

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

CASH FLOW STATEMENT

For the financial year ended 31 December 2021

Net cash used in operating activities
INCREASE/(DECREASE) IN CASH & CASH
EQUIVALENTS
RECONCILIATION OF NET CASH FLOW
Increase/(decrease) in cash & cash equivalents
Cash & cash equivalents at beginning of financial
year
CASH & CASH EQUIVALENTS AT END OF
FINANCIAL YEAR
12
RECONCILIATION OF NET INCOMING
(OUTGOING) RESOURCES TO CASH
OUTFLOW FROM OPERATING
ACTIVITIES
Net incoming resources
Depreciation
(Increase)/decrease in Debtors
Increase/ (decrease) in Creditors
Net cash flows from operating activities		 2021
£
76,574
76,574
76,574
99,349
175,923
2021
£
73,980
275
(549)
2,868
76,574		 2020
£
(111,733)
(111,733)
(111,733)
211,082
99,349
2020
£
(111,246)
275
3,423
(4,185)
(111,733)

The notes on page 17 to 27 form part of these Financial Statements.

16

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

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 2021

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 2021

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 payables. Basic financial instruments are recorded at transaction price.

Going Concern

The Trustees believe that the charity has adequate resources to continue in the foreseeable future and accordingly the financial statements have been prepared on a going concern basis.

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.

2. Prior year restatement

During the year, management undertook an accounting review process to ensure that all relevant accounting standards were appropriately reflected in the Charity's financial statements. The said review has resulted in a prior year error in income and deferred income (explained below).

The charity received fundraising income for a number of “blitz” events in financial year 2020. Unfortunately, due to Covid 19, these events did not take place and have been rescheduled to 2022. In 2020 this income was deferred. However, following a review of Charities SORP (FRS102), the charities accounting policies and the terms and entitlement of this income, it was noted that this income should have been recognised on receipt. The prior year balances have been restated as follows to reflect proper recognition of income.

Balance As originally stated 2020 Adjustment As restated 2020
£ £ £
Income from donations
and legacies		 116,020 11,332 127,352
Funds carried forward 81,135 11,332 92,467
Deferred income 11,332 (11,332) -

19

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS - continued

3. Income from Donations and legacies

Notes
Volunteer Income (a)
Donations (b)
Donations in Kind (c)
Legacies (d)		 Restricted
Funds
Financial
year ended
31/12/2021
£
-
480,000
-
-
480,000		 Unrestricted
Funds
Financial
year ended
31/12/2021
£
11,774
162,206
-
5,476
179,456		 Total
Financial
year ended
31/12/2021
£
11,774
642,206
-
5,476
659,456		 Total
Financial
year ended
Restated*
31/12/2020
£**
11,332
100,520
15,500
-
127,352

4. Expenditure on Charitable Activities

Grant to Mellon Educate Ireland for
costs associated with building
schools
and
supporting
the
Education programmes in South
Africa
Grant to MHI		 Restricted
Funds
Financial
year ended
2021
£
-
477,000
477,000		 Unrestricted
Funds
Financial
year ended
2021
£
-
809
809		 Total
Financial
year
ended
2021
£
-
477,809
477,809		 Total
Financial
year
ended
2020
£
105,701
17,107
122,808

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 2021

NOTES TO THE FINANCIAL STATEMENTS - continued

5. Expenditure on Raising Funds

General expenses
Benefit in Kind		 Restricted
Funds
Financial
year ended
2021
£
-
-
-		 Unrestricted
Funds
Financial
year ended
2021
£
107,667
-
107,667		 Total
Financial
year
ended
2021
£
107,667
-
107,667		 Total
Financial
year
ended
2020
£
100,290
15,500
115,790

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 £107,667 (2020: £100,290) for salaries, hosting a fundraising Gala event of £22,283 (2020: £NIL) and general office expenses of £16,174 (2020: £24,272). 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.

6. Support Costs and Allocation of Expenditure

(a) Support Costs

Support 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
£
477,809
99,145
576,954		 Support
Costs
£
-
8,522
8,522		 Total
Expenditure
£
477,809
107,667
585,476

21

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS – continued

7. Employees and Staff Costs

(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		 2021
1
Financial
year ended
31/12/2021
£
60,000
7,062
2,166
69,228
2021
No.
1		 2020
1
Financial
year ended
31/12/2020
£
68,750
4,289
2,391
75,430
2020
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 2021

NOTES TO THE FINANCIAL STATEMENTS – continued

8. Net Income / Expenditure

Financial Financial
year ended year ended
31/12/2021 31/12/2020
£ £
Net Income is stated after charging
External Audit Fees
8,000		 8,874

External audit costs are borne by the Irish entity, Mellon Township Limited. In 2021, 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 2021 was £NIL (2020: £NIL).

9. Grant Expenditure

There were no grants paid to Mellon Township Limited (2020: £105,701) and there were grants paid to Mellon Housing Initiative £477,809 (2020: £17,107), a South African non for profit organisation, in 2021 to assist with the Building Blitz and Education Programmes in South Africa. The grant paid to Mellon Housing Initiative of £477,809, was funding received by Mellon Educate by a donor to fund the building of classrooms and funding literacy programme for a period of 3 years in South Africa.

23

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

10. Tangible Fixed Assets

Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
On disposal
At 31 December 2021
Net Book Value
At 31 December 2021
Net Book Value
At 31 December 2020		 Computer
Equipment
£
1,102
-
-
1,102
827
275
-
1,102
-
275		 Total
£
1,102
-
-
1,102
827
275
-
1,102
-
275

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

Other receivables

2021
£
549
549		 2020
£
-
-

All debtors are due within one year.

12. Cash & Cash Equivalents

Cash and cash equivalents 2021
£
175,923
175,923		 2020
£
99,349
99,349

24

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS – continued

13. Creditors (amounts falling due within one year)

Trade creditors
PAYE/NI
Related party payables
17
Other payables		 2021
£
7,841
1,984
200
-
10,025		 2020
Restated
£
760
3,920
2,000
477
7,157

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.

14. 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.

25

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS - continued

15. 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
2021
£
-
92,467
92,467
At Start
of Year
2020
£
-
203,713
203,713
Restricted
Funds
2021
£
-
3,000
-
3,000		 Incoming
Resource
£
480,000
179,456
659,456
Incoming
Resource
Restated
£
27,808
99,544
127,352
Unrestricted
Funds
2021
£
-
173,472
(10,025)
163,447		 Outgoing
Resource
£

(477,000)
(108,476)
(585,476)
Outgoing
Resource
£
(27,808)
(210,790)
(238,598)
Designated
Funds
2021
£
-
-
-
-		 Transfers
between
funds
£
-
-
-
Transfers
between
funds
£
-
-
-

At end of
year
2021
£
-
176,472

(10,025)
166,447		 Transfers
between
funds
£
-
-
-
Transfers
between
funds
£
-
-
-

At end of
year
2021
£
-
176,472

(10,025)
166,447		 At End of
Year
£
3,000
163,447
163,447
At End of
Period
Restated
£
-
92,467
92,467
At end of
year
Restated
2020
£
275
99,349
(7,157)
92,467		 At End of
Year
£
3,000
163,447
163,447
At End of
Period
Restated
£
-
92,467
92,467
At end of
year
Restated
2020
£
275
99,349
(7,157)
92,467

16. 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		 2021
£
2020
£
176,472
99,349
8,041
3,237

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

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

26

Mellon Educate (UK) Financial Statements for the financial year ending 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS - continued

17. Related Party Transactions

Mellon Township Limited

Mellon Township Limited is a related party by virtue of a Director of Mellon Township Limited also being a Trustee of Mellon Educate (UK). During the year the Charity paid no grants £NIL (2020: £122,808) to Mellon Township Limited. There is balance owed to Mellon Township Limited of £200 at year end ( 2020: £2,000 ).

Mellon Housing Initiative

Mellon Housing Initiative is a related party by virtue of a Director of Mellon Housing Initiative also being a Director of Mellon Educate (UK). During the year the Charity paid grants of £477,809 (2020: £NIL) to Mellon Housing Initiative. There is balance owed to Mellon Housing Initiative of £NIL at year end ( 2020: £NIL ).

18. Capital Commitments

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

19. Post Balance Sheet Events

The Covid restrictions on Travel have been lifted and there has been significant success with the vaccine roll out, which has supported our decision to go ahead with the 2022 volunteer building trip to South Africa. We have over 220 volunteers signed up and we are excited to resume the wonderful work we do in south Africa, helping to uplift communities through education support and building safe facilities in which to learn.

Our Generous Donor, who committed £200 000 to the 2022 annual building Blitz, has paid over 80% of the funds to our charity account with the balance to follow in the coming weeks.

We have also signed the partnership agreement with the Western Cape Education Department which confirms their commitment to fund 40% of the building cost of this years annual building Blitz in November 2022.

The reaction of volunteers to the news of restarting the volunteer fundraising initiative and travelling to South Africa in 2022 to help build 14 new classrooms has exceeded our expectations. The two schools who will benefit from the Volunteer fund raising Programme, our corporate friends, and Private Donor Partners, will be Yomelela Primary School and Injongo Secondary School situated in the Khayelitsha area in the outskirts of Cape Town.

20. Contingent Liabilities

At 31 December 2021, the Charity had no contingent liabilities.

21. Approval of financial statements

The financial statements were approved and authorised for issue by the Trustees on . 19 October 2022

27