OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-12-31-accounts

Registered number: Charity number: 1175352

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO)) Trustees' Report and Financial Statements For the financial year ended 31 December 2022

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Contents

Page
Administrative Details 1
Trustees' Report 2 - 7
Trustees' Responsibilities Statement 8
Independent Auditors' Report 9 - 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 - 26

Mellon Educate (UK) (a foundation charitable incorporated organisation (CIO))

Administrative Detail For the year ended 31 December 2022

Trustees Andrew Brennan Mike Butler Jeremy Svejdar Julia Dixon Dominique Hainebach (Chair) Charity registration number 1175352 Registered office 26 Cadogan Square London SW1X 0JP Independent auditors BDO Statutory Audit Firm Block 3 Miesian Plaza 50-58 Baggot Street Lower Dublin 2 Bankers The Co-Operative Bank P.O.Box 250, Delf House Southway Skelmersdale WN8 6WT

Page 1

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Trustees' Report For the year ended 31 December 2022

Structure, Government 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.

Page 2

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Trustees' Report (continued) For the year ended 31 December 2022

Structure, Government and Management (continued)

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 the Administrative Details page 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 was extended until 31 July 2023.

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:

  1. the advancement of education by in particular, but not limited to (a) the construction of, or assisting in the construction of, schools and (b) the provision of, or assisting in the provision of, equipment, teaching and learning materials and the mentoring and training of school principals and teachers;

  2. the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage by in particular, but not limited to, the provision of, or assisting in the provision of (a) housing and related amenities, (b) food, clothing (including school uniforms) and other life essentials to ensure the well-being of children and young persons to enable them to engage fully with the educational process and (c) school transport;

  3. the advancement of health by in particular, but not limited to, the prevention or relief of sickness, disease or human suffering by the provision of, or assisting in the provision of, medical supplies; and

  4. the development of the capacity and skills of the members of the socially and economically disadvantaged community in such a way that they are better able to identify, and help meet, their needs and to participate more fully in society

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.”

Page 3

Mellon Educate (UK) (a foundation charitable incorporated organisation (CIO))

Trustees' Report (continued) For the year ended 31 December 2022

Structure, Government and Management (continued)

Activities

The Charity’s objectives are primarily Mellon Educate UK supports Mellon Educate Ireland by providing, amongst other things:- 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:-

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 2022

The annual Building Blitz to Cape Town in South Africa took place from 5[th] November to 11[th] November 2022. The Building Blitz took place in the Western Cape Township of Khayelitsha 28km out of Cape Town at the Injongo and Yomelela Primary Schools. Two Hundred and Thirty international volunteers were joined by several South African Volunteers to participate in this years building Blitz. The Volunteers help build twenty three classrooms, two kitchens, two ablution blocks, two covered shelters and improved sport facilities impacting the quality of education for over 2500 children attending the two schools. This has been made possible through our partnership with the Western Cape Education Department, our wonderful and generous volunteers, Donors and corporate sponsorships.

Page 4

(a foundation charitable incorporated organisation (CIO))

Mellon Educate (UK)

Trustees' Report (continued) For the year ended 31 December 2022

Achievements and performance & Future Developments (continued)

Education Programmes

Mellon Educate’s Community Literacy Support Programme for Primary schools, was launched in January 2022, replacing our previous Full School Programme which had supported 11 primary and secondary schools. The dedicated programme was developed over a 3 year period in response to the International PIRLS report of 2016, where South African children were assessed as the lowest performing participants with results indicating that 78% of learners were unable to read for meaning by Grade 4., (age 9-10 years)

The programme incorporates the Wordswork 4 step programme, (Ready Steady Read Write) delivered by trained Community Literacy tutors. In one hour once a week the programme offers support to children struggling with the basics of literacy and language in the foundation phase of their education and is delivered in 3 languages by trained youth from communities surrounding our partner schools. Our partner schools in 2022 consisted of 7 primary schools based in Khayelitsha, Mfuleni, The Delft, Wesbank and Wallacedene supporting 883 learners.

Western Cape Education Department

Mellon Educate continues to develop a strong and meaningful partnership with the Minister for Education in the Western Cape, MEC David Maynier and his department. The selection of schools where both the infrastructure 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 50% 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 to support various feeding kitchens in 2022

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 Volunteer Building Blitz for 2022 was opened up again after a two year ‘NO Travel’ restriction due to Covid.

The reaction of volunteers exceeded our expectations and were very pleased to welcome just over 220 volunteers on our 2022 trip to South Africa in support of our building Blitz.

With the success of the 2022 building Blitz behind us we are looking forward to the 2023 building trip where we are well on track to welcoming 300+ volunteers to help us build 20 classrooms, 2 kitchens, 2 ablution facilities, covered eating and play areas and playground/sport areas. The 2023 Blitz will be held across two schools, Isiphiwo Primary School and Chuma Primary school, located in the township of Khayelitsha about 26 km out of Cape Town.

Page 5

Mellon Educate (UK) (a foundation charitable incorporated organisation (CIO))

Trustees' Report (continued) For the year ended 31 December 2022

Achievements and performance & Future Developments (continued)

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 £45,413 (2021 - £73,980) . The unrestricted funds carried forward amounted to £207,725. 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.

Going concern

The trustees believe that the charity 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 charity'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 charity'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. The trustees have satisfied themselves that the charity 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 trustees 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 charity.

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 2022 £461,097). 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:

Post Balance Sheet Events

The Trustees are not aware of any significant matter or circumstance arising since the end of the financial year, not otherwise dealt with in this report or the financial statements, which significantly affect the financial position of the charity or the results of its operation to the date of these annual financial statements.

Page 6

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Trustees' Report (continued) For the year ended 31 December 2022

Auditors

The auditors, BDO, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

_________ Dominique Hainebach Chair of Trustees Date: 11 October 2023

_________ Andrew Brennan Trustee

Page 7

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Statement of Trustees' responsibilities For the year ended 31 December 2022

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, of the charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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. They 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.

Approved by order of the members of the board of Trustees and signed on its behalf by:

_____ _______ Dominique Hainebach Andrew Brennan Chair of Trustees Trustee

Date: 11 October 2023

Page 8

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Independent Auditors' Report to the Members of Mellon Educate (UK)

Opinion

We have audited the financial statements of Mellon Educate (UK) (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Financial Reporting Standard 102 'United Kingdom Generally Accepted Accounting Practice'.

In our opinion the financial statements:

Independence

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 9

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Independent Auditors' Report to the Members of Mellon Educate (UK) (continued)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' 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.

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.

Opinion on other matters prescribed by the Charities Act 2011

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the trustees of the charitable company for the purposes of charity law) 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Page 10

(a foundation charitable incorporated organisation (CIO))

Mellon Educate (UK)

Independent Auditors' Report to the Members of Mellon Educate (UK) (continued)

Auditors' responsibilities for the audit of the financial statements

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an Auditors' 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.

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 Auditors' 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 noncompliance with laws and regulations. We design procedures in line with our responsibilities 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:

 Assessing the design and operating effectiveness of controls and procedures relevant to the preparation of the financial statements and the detection and prevention of irregularities and fraud, including changes to supplier bank details;

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 non-compliance 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

Page 11

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Independent Auditors' Report to the Members of Mellon Educate (UK) (continued)

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Simon Carbery Senior Statutory Auditor for and on behalf of BDO Statutory Audit Firm AI223876

11 October 2023

Page 12

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Statement of financial activities (incorporating income and expenditure account) For the year ended 31 December 2022

Note
Income from:
Donations and legacies
4
Total income
Expenditure on:
Charitable activities
5
Raising funds
6
Total expenditure
Net surplus
Reconciliation of funds:
Total funds brought forward
16
Total funds carried forward		 Restricted
funds
2022
£
667,330
667,330
666,146
-
666,146
1,184
3,000
4,184		 Unrestricted
funds
2022
£
342,102
342,102
141,400
156,473
297,873
44,229
163,447
207,676		 Total
funds
2022
£
1,009,432
1,009,432
807,546
156,473
964,019
45,413
166,447
211,860		 Total
funds
2021
£
659,456
659,456
477,809
107,667
585,476
73,980
92,467
166,447

All activities relate to continuing activities.

There are no recognised gains and losses other than stated above.

The notes on pages 16 to 26 form part of these financial statements.

Signed on behalf of the trustees:

_____ _______ Dominique Hainebach Andrew Brennan Chair of Trustees Trustee Date 11/10/2023

Page 13

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO)) Registered number:

Balance Sheet
As at 31 December 2022
Note
Fixed assets
Tangible fixed assets
11
Current assets
Other debtors
12
21,084
Cash at bank and in hand
461,097
482,181
Creditors: amounts falling due within one
year
14
(270,321)
Net current assets
Total net assets
Charity funds
Unrestricted funds
16
Restricted funds
16
Total funds		 2022
£
-
-
211,860
211,860
207,676
4,184
211,860		 549
175,923
176,472
(10,025)		 2021
£
-
-
166,447
166,447
163,447
3,000
166,447

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

_____ _______ Dominique Hainebach Andrew Brennan (Chair) Chair of Trustees Trustee Date: 11 October 2023

The notes on pages 16 to 26 form part of these financial statements.

Page 14

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Statement of Cash Flows For the year ended 31 December 2022

Cash flows from operating activities
Net incoming resources
Depreciation
Increase in debtors
Increase in creditors
Net cash provided by operating activities
Change in cash and cash equivalents in the year
Cash & cash equivalents at beginning of the financial year
Cash & cash equivalents at the end of the financial year
The notes on pages 16 to 26 form part of these financial statements		 2022
£
45,413
-
(20,535)
260,296
285,174
285,174
175,923
461,097		 2021
£
73,980
275
(549)
2,868
76,574
76,574
99,349
175,923

Page 15

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

1. General information

The registered office of the charity is 26 Cadogan Square, London, England, United Kingdom the charity number is 1175352. The principal activities of the charity are set out in the Trustees' Report. The charity is a public benefit entity.

2. Accounting policies

2.1 Basis of preparation of financial statements

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:

2.2 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.

2.3 Going Concern

The Trustees believe that the charity 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 charity'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 charity'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. The trustees have satisfied themselves that the charity 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 trustees are also not aware of any material noncompliance with statutory or regulatory requirements or of any pending changes to legislation, which may affect the charity.

2.4 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.

2.5 Unrestricted Funds

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

Page 16

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

2. Accounting policies (continued)

2.6 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:

Donations: Fundraising income is credited to the Statement of Financial Activities in the year in which it is receivable by the Charity.

Volunteer Income: Donations raised by volunteers are taken into account at the time of receipt.

Properties: Properties donated for use by the Charity are recognised in the Charity’s financial statements as income and expenditure. This is in line with the Statements of Recommended Practice, Accounting and Reporting by Charities.

Legacies: Income from legacies is recognised when receipt is probable. Legacy income is recognised when there has been a grant of probate, the executors have established that there are sufficient assets in the estate, after paying liabilities to pay the legacy, and any conditions attached to the legacy have been met.

2.7 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.

All expenditure is inclusive of irrecoverable VAT.

2.8 Tangible fixed assets and depreciation

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:

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

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.

Page 17

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

2. Accounting policies (continued)

2.9 Debtors

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

2.10 Cash at bank and in hand

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.

2.11 Creditors

Short term creditors are measured at the transaction price.

2.12 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.

3. Judgments 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.

Page 18

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

4. Income from Donations and charitable activities

Volunteer income (a)
Donations (b)
Volunteer income (a)
Donations (b)
Legacies (c)		 Restricted
funds
2022
£
-
667,330
667,330
Restricted
funds
2021
£
-
480,000
-
480,000		 Unrestricted
funds
2022
£
189,515
152,587
342,102
Unrestricted
funds
2021
£
11,774
162,206
5,476
179,456		 Total
funds
2022
£
189,515
819,917
1,009,432
Total
funds
2021
£
11,774
642,206
5,476
659,456

Page 19

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

5. Expenditure on Charitable Activities

Grant to MHI
Grant to MHI		 Restricted
funds
2022
£
666,146
666,146
Restricted
funds
2021
£
477,000
477,000		 Unrestricted
funds
2022
£
141,400
141,400
Unrestricted
funds
2021
£
809
809		 Total
funds
2022
£
807,546
807,546
Total
funds
2021
£
477,809
477,809

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

6. Expenditure on Raising Funds

General expenses
General expenses		 Unrestricted
funds
2022
£
156,473
156,473
Unrestricted
funds
2021
£
107,667
107,667		 Total
funds
2022
£
156,473
156,473
Total
funds
2021
£
107,667
107,667

Expenditure on raising funds includes the cost of; materials for campaigns and events; plus allocated support costs. Included in general expense is salaries, hosting a fundraising Golf Day event of £53,856 (2021 - £22,283) and general office expenses of £26,121 (2021 - £16,174) . Other office costs include professional fees, audit fees, insurance and telephone.

Page 20

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

7. Support Costs and Allocation of Expenditure

Support costs

Total costs have been allocated in full to the costs of raising funds below.

Direct costs
2022
£
Allocation of expenditure
Charitable expenditure
807,546
Cost of generating funds
147,429
Total resources expended
954,975
Direct costs
2021
£
Charitable expenditure
477,809
Cost of generating funds
99,145
576,954
8.
Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
The average number of persons employed by the charity during the year was
Average number of people employed		 Support
costs
2022
£
-
9,044
9,044
Support
costs
2021
£
-
8,522
8,522
2022
£
60,000
7,468
2,166
69,634
as follows:
2022
No.
1		 Total
funds
2022
£
807,546
156,473
964,019
Total
funds
2021
£
477,809
107,667
585,476
2021
£
60,000
7,062
2,166
69,228
2021
No.
1

Page 21

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

8. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £60,000 - £70,000 1 1

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

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 2022 was £NIL (2021 - £NIL) .

9. Net Income / Expenditure

2022 2021
£ £
Net Income is Stated after charging
External Audit Fees 8,511 8,000

External audit costs are borne by the Irish entity, Mellon Township Limited. In 2022, 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).

10. Grant Expenditure

There were no grants paid to Mellon Township Limited (2021 - £NIL) and there were grants paid to Mellon Housing Initiative amounting to £807,546, (2021 - £477,809) a South African non for profit organisation, in 2022 to assist with the Building Blitz and Education Programmes in South Africa. The grant paid to Mellon Housing Initiative amounting to £807,546, 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.

Page 22

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

11. Tangible fixed assets

Cost or valuation
At 1 January 2022
At 31 December 2022
Depreciation
At 1 January 2022
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
Debtors: Amounts falling due within one year
Other debtors
Deferred expenses
All debtors are due within one year.
Cash & Cash Equivalents
Cash and cash equivalents		 Computer
equipment
£
1,102
1,102
1,102
1,102
-
-
2022
£
3,624
17,460		 Total
£
1,102
1,102
1,102
1,102
-
-
2021
£
549
-
21,084 549
2022
£
461,097		 2021
£
175,923
461,097 175,923

12. Debtors: Amounts falling due within one year

13. Cash & Cash Equivalents

Page 23

(a foundation charitable incorporated organisation (CIO))

Mellon Educate (UK)

Notes to the Financial Statements For the year ended 31 December 2022

14. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to related parties
18
Other taxation and social security
Other creditors
Accruals		 2022
£
3,525
2,386
1,931
253,146
9,333
270,321		 2021
£
7,841
200
1,984
-
-
10,025

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.

15. 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.

Page 24

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

16. Movement in Funds

Restricted Funds
Unrestricted Funds
Total 2022
Restricted Funds
Unrestricted Funds
Total 2021
Analysis of Net Assets		 At start of
year
2022
£
3,000
163,447
166,447
At start of
year
2021
£
-
92,467
92,467		 Incoming
resources
2022
£
667,330
342,102
1,009,432
Incoming
Resource
2021
£
480,000
179,456
659,456		 Outgoing
resources
2022
£
(666,146)
(297,873)
(964,019)
Outgoing
Resource
2021
£
(477,000)
(108,476)
(585,476)		 Total
funds
2022
£
4,184
207,676
211,860
Total
funds
2021
£
3,000
163,447
166,447
Fixed assets
Current assets
Creditors: Amounts falling due within one financial year
Total 2022
Fixed assets
Current assets
Creditors: Amounts falling due within one financial year
Total 2021		 Restricted
funds
2022
£
-
4,135
-
4,135
Restricted
funds
2021
£
-
3,000
-
3,000		 Unrestricted
funds
2022
£
-
478,046
(270,321)
207,725
Unrestricted
funds
2021
£
-
173,472
(10,025)
163,447		 Total
funds
2022
£
-
482,181
(270,321)
211,860
Total
funds
2021
£
-
176,472
(10,025)
166,447

Page 25

Mellon Educate (UK)

(a foundation charitable incorporated organisation (CIO))

Notes to the Financial Statements For the year ended 31 December 2022

17. Financial instruments

Financial assets
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost		 2022
£
464,721
2022
£
255,532		 2021
£
176,472
2021
£
8,041

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

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

18. Related party transactions

Mellon Township Limited

Mellon Township Limited is a related party by virtue of a Trustee of Mellon Township Limited also being a Trustee of Mellon Educate (UK). During the year the Charity paid no grants £NIL (2021 - £NIL) to Mellon Township Limited. There is balance owed to Mellon Township Limited of £2,386 at year end (2021 - £200) .

Mellon Housing Initiative

Mellon Housing Initiative is a related party by virtue of a Trustee of Mellon Housing Initiative also being a Trustee of Mellon Educate (UK). During the year the Charity paid grants of £807,546 (2021 - £477,809) to Mellon Housing Initiative. There is balance owed to Mellon Housing Initiative of £NIL at year end (2021 - £NIL) .

19. Capital Commitments

The Charity had no capital commitments at the financial year end (2021 - £NIL) .

20. Contingent Liabilities

The Charity had no contingent liabilities at the financial year end (2021 - £NIL) .

21. Approval of financial statements

The financial statements were approved and authorised for issue by the Trustees on 11/10/2023

Page 26