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2020-12-31-accounts

MOMARK CIO

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Registered Charity No. 1179620

AZETS AUDIT SERVICES Greytown House 221/227 High Street Orpington Kent BR6 0NZ

MOMARK CIO

CONTENTS

Page
Charity Information 2
Chair’s Forward 3
Report of the Trustees 4
Independent Examiner’s Report 7
Statement of Financial Activities 8
Balance sheet 9
Notes to the Financial Statements 10

MOMARK CIO

LEGAL AND ADMINISTRATIVE INFORMATION


Members / Trustees		 Cris Sowden (Chairman)
Elliot Napier (Treasurer)
Greenie Cheng
David Hopcroft
Jonathan Mumford
Susannah Seldon
Charity Number 1179620
Principal Office MOMARK CIO
86 – 90 Paul Street
London
EC2A 4NE
Key Management The Trustees
Independent Examiner M A Wilkes (FCA)
Azets Audit Services
Greytown House
221-227 High Street
Orpington
Kent
BR6 0NZ
Bankers Metro Bank
One Southampton Row
London
WC1B 5HA

2

MOMARK CIO

CHAIR’S FOREWARD

2020 was challenging not only for the people we help to support, but also for the people and organisations in Wandsworth. Those who are there day in, day out working tirelessly to improve the mental health of Wandsworth.

Responding to these challenges, MoMark has taken a flexible approach with our delivery partners. We worked openly and transparently to agree project adjustments to ensure projects continued to support service users during the pandemic. In some cases, pandemic restrictions resulted in community projects being paused with a view to relaunching in 2021. In other projects, services and support moved online or by phone. MoMark also identified and worked with delivery partners, including the local Council, to utilise in-year underspends. We funded the purchase of iPads for use in Springfield Hospital, and provided funding to modernise a community kitchen.

Whilst the pandemic prevented a review of MoMark’s first Mental health Community Fund which took place in 2019 (and delivered throughout 2020), the Board took the pragmatic view to, on an exceptional basis, continue to support a small number of projects from the 2019 funding round.

From an organisation's perspective, the delivery of our fully digital operational model enabled us to respond swiftly and smoothly to the challenges of the pandemic, having already moved our governance processes and ways of working online. The Board’s decisions to lower the charity’s investment risk profile also reduced our level of exposure to the worst of the financial effects of the pandemic.

For the year ahead, we will continue to support the NHS and community organisations. We will aim to commence the review of how our Mental Health Community Fund operates to identify improvements for future years. We also plan to launch the 2021 funding round and look for new opportunities to maximise our impact to improve mental health.

Cris Sowden Chairman

3

MOMARK CIO

REPORT OF THE TRUSTEES

The Trustees present their statutory report with the financial statements of MOMARK CIO for the year ended 31 December 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK published on 16 July 2014, as amended by bulletin 1 & 2.

The CIO was established on 21 August 2018 and began operation on 1 January 2019.

OBJECTIVES AND ACTIVITIES

The objects of the CIO are, for the public benefit, to advance the treatment and care of persons suffering from mental illness and to promote the mental health of patients and former patients of Springfield Hospital as well as residents of the area surrounding Springfield Hospital and residents of the London Borough of Wandsworth and surrounding areas in such ways as the charity trustees think fit, including but not limited to the provision of financial support, information, equipment, facilities and services.

ACHIEVEMENTS AND PERFORMANCE

  1. Supporting Springfield Hospital Service users

  2. Continued provision of social and entertainments grant and Alan Angus Fund (patients without recourse to public funds) - ongoing

  3. Peer support ward visits and community support - ongoing

  4. Gardening project - ongoing

  5. Supporting the mental health of Wandsworth

  6. Ongoing delivery of the MoMark Mental Health Community Fund

Financial Review of the year

Rental and investment income generated during the year was £117,583 (2019: £4,549,458) a significant decrease to 2019 as this included £4,391,248 transfer of assets on conversion to CIO. Total expenditure for the year was £130,983 (2019: £142,672). £49,255 (2019: £58,310) related to investment manager fees and costs of raising funds and £81,728 (2019: £84,362) related to charitable expenditure.

Unrealised gains and losses for the year totaled £89,785 (2019: £464,373). The deficit for the year before gains on investments was £13,400 (2019 : surplus £4,406,786).

Reserve Policy

The charity retains its investments and investment properties in order to provide income for the furtherance of its objects. The charity does have unrestricted reserves at the year-end; however, there are certain ongoing commitments which are paid from income generated by the investment portfolio.

4

MOMARK CIO

REPORT OF THE TRUSTEES

Investment Policy

Our investments are in three areas:

  1. Shares, Bonds and Invested Cash. The board sought advice from Azet’s Financial Planning Limited during the setup of the portfolio, which is split between two investment managers and adopts a low/medium risk strategy that also considers the ethics of the investments.

  2. Property. We have one investment property under the management of Nightingale Chancellors. The property is let to tenants on a lease basis, generating rental income for the charity.

  3. The charity has an account with Metro Bank. There is no interest earned on this account, unless it is known that invoices are pending.

Plans for Future Years

Supporting Springfield Hospital Service users

Supporting the mental health of Wandsworth

Going Concern and COVID-19

The Trustees have considered the impact of the Covid-19 pandemic, which has arisen post year end, on the charity’s ability to continue as a going concern and provide grants to its beneficiaries.

The Trustees do not foresee any impact on the charity as a going concern and only minimal disruption to its ability to provide funding and grants delivery partners. The investments are low risk and whilst there has been a fall in the capital value post year end, in line with general trends in the investment market, they have been minimized and are not considered to be a permanent diminution in value.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

MOMARK CIO is a Charitable Incorporated Organisation registered on 21 August 2018.

Governance

Responsibility for the management of the charity is vested in the Trustees shown on page 1. The Trustees meet regularly to carry out their leadership role throughout the year.

Conflict of Interest and Risk Management

The new Board have adopted a new policy and approach to risk management and conflict of interests, which are reviewed regularly. The Board also continue to take a robust approach to identifying and managing conflict of interests.

The Trustees who served during the year to date of were as follows:

Cris Sowden (Chairman) Elliot Napier (Treasurer) Greenie Cheng David Hopcroft Jonathan Mumford Susannah Seldon

5

MOMARK CIO

REPORT OF THE TRUSTEES

Trustee Induction and Training

Trustees are appointed by an open recruitment process, during which time successful candidates are provided with guidance and information sources about their duties and responsibilities. The Chairman and trustees meet with new trustees to explain the work of the charity. In 2021, we intend to review what additional training may be beneficial to improve the operation of the charity and to further develop the trustees leadership of MoMark.

Each year all Trustees are asked to complete a “register of interests form”.

On appointment new Trustees are issued with the following: a copy of MoMark’s Constitution”, the latest Annual Accounts, a copy of the “Review by the Trustees of the Key Risk and Controls” and the Charity Commission publication “The Essential Trustee”.

Risk Management

The Board have implemented policies concerning conflict of interest, risk management and safeguarding and will continue to keep these under review throughout the course of the year.

Public Benefit Statement

The Trustees confirm that they have referred to the guidance as published by the Charity Commission on public benefit. All charitable activities, highlighted in this report are undertaken in furtherance of the stated charitable objects and for the public benefit.

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Independent Examiner

On 7 September 2020 Group Audit Service Limited trading as Wilkins Kennedy Audit Services changed its name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.

19 March

This report was approved by the Trustees on ……………………..……2021 and signed on their behalf by:

Cris Sowden Chairman

6

MOMARK CIO

INDEPENDENT EXAMINER’S REPORT

I report on the financial statements of MOMARK CIO for the year ended 31 December 2020, which are set out on pages 8 to 14.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

M A Wilkes (FCA)

For and on behalf of Azets Audit Services

Greytown House, 221/227 High Street Orpington, Kent, BR6 0NZ

Date: 21 April 2021

7

MOMARK CIO

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
funds
Notes 2019
2020
£ £
Income from:
Rental income 15,419 14,500
Investment income 102,164 143,710
Transfer from League of Friends of the Morris
Markowe Unit - 4,391,248
____ ____
Total income 117,583 4,549,458
____ ____
Expenditure on:
Raising funds 3 49,255 58,310
Charitable activities 4 81,728 84,362
____ ____
Total expenditure 2 130,983 142,672
____ ____
Net expenditure for theyear (13,400) 4,406,786
Other recognised gains and losses
Net gains/(losses) investments 9 89,785 464,373
____ ____
Net movement in funds 73,683 4,871,159
Balances at 01 January 2020 4,871,159 -
____ ____
Balances carried forward
at 31 December 2020 4,947,544 4,871,159
____ ____

All of the charity’s transactions are derived from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

8

MOMARK CIO

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
2020
£
FIXED ASSETS
Investment properties
8
Investments
9
CURRENT ASSETS
Debtors
10
-
Cash at bank and in hand
62,923
____
62,923
LIABILITIES: AMOUNTS
FALLING
DUE WITHIN ONE YEAR
11
(4,953)
____
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted funds		 2019
£
£
390,000
4,499,574
___
4,889,574
5,480
59,922
____
65,402
(6,763)
__
57,970
___
4,947,544
__
4,947,544
_
4,947,544
____		 £
390,000
4,422,520
___
4,812,520
58,639
_____
4,871,159
___
4,871,159
__
4,871,159
____

19 March

Approved by the Board of Trustees on ……………………….. and signed on its behalf by

Cris Sowden Chairman

Elliot Napier Treasurer

The notes on pages 10 to 14 form part of these financial statements.

9

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

MOMARK CIO

1. ACCOUNTING POLICIES

a) Basis of preparation

MOMARK CIO is governed under its Memorandum and Articles of Association. The address of the principal office is given in the information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are set out on page 4.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102), the Charities Act 2011, UK Generally Accepted Practice as it applies from 1 January 2015 and the Charity SORP (FRS102) Update Bulletin 1 & 2.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

b) Income

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

c) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:

.

d) Support cost allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

The analysis of these costs is included in note 5.

10

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

MOMARK CIO

e) Investment properties

Investment properties are stated at historic cost.

f) Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably.

g) Tangible fixed assets

All assets costing more than £1,000 have been capitalised and are depreciated on a straight line basis from the financial year after acquisition.

h) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

i) Taxation

The company is a registered charity and is therefore entitled to the exemptions from corporation tax afforded by section 505 of the Income and Corporation Taxes Act 1988. Accordingly, there is no corporation tax charge in these financial statements.

j) Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern.

The Trustees have considered the impact of the Covid-19 pandemic which arose during the year. They do not consider it will have an effect on the charity’s ability to continue as a going concern.

k) Financial instruments

Financial instruments Basic financial instruments are recognised at amortised cost, except for investments in nonconvertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

l) Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

11

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

2. ANALYSIS OF EXPENDITURE

Direct
costs
£
Raising funds
43,381
Charitable activities
71,981
_
115,362
_
3.
RAISING FUNDS
Property agent’s fees
Investment manager’s fees and custody charges
Support costs
4.
CHARITABLE ACTIVITIES
Grants payable
Community activities
NHS grants
Befriending services
Support costs
Full details regarding grants payable are available on the charity’s website:
https://momark.org.uk/YE-Dec20-Charitable-activies-disclosure/
5.
SUPPORT COSTS
Consultancy
Office
Insurance
IT
Other
Legal fees
Governance (note 6)		 Support
costs
£
5,874
9,747
_
15,621
_		 Total
2020
£
49,255
81,728
_
130,983
_
2020
£
2,520
40,861
5,874
_____
_
49,255
_____
_
2020
£
33,494
19,932
18,555
9,747
____
81,728
____
2020
£
-
504
363
168
482
11,060
3,044
_____

15,621
_____		 Total
2019
£
58,310
84,362
_
142,672
_
2019
£
870
51,152
6,288
____
58,310
____
2019
£
16,085
31,303
27,877
9,097
____
84,362
____
2019
£
8,100
445
1,350
200
709
-
4,581
_____
15,385
____

Support costs are allocated in proportion to direct costs.

12

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

6. GOVERNANCE COSTS

Independent examiner’s fee
Board Meetings
Legal fees		 2020
£
2,060
54
930
_
3,044
_		 2019
£
2,000
266
2,315
_
4,581
_

7. STAFF COSTS & TRUSTEE REMUNERATION

Trustees received no remuneration or expenses in the year.

The total amount of employee benefits received by key management personnel is £Nil. The charity considers its key management personnel to compromise those individuals listed on page 2.

MOMARK CIO has no employees.

8. INVESTMENT PROPERTIES

NVESTMENT PROPERTIES
Freehold
properties
Valuation
At 01 January 2020 and 31 December 2020 390,000
_____

The property was valued by an external valuer Nightingale Chancellors on 7[th] December 2018.

9. INVESTMENTS

NVESTMENTS
Market value at 01 January 2020
Additions at cost
Disposals at market value
Net unrealised gain / (loss) in year
Market value at 31 December 2020
Historical cost at 31 December 2020
Market value of investments comprise:
UK listed investments
Overseas listed investments
Cash on UK deposit		 2020
£
4,422,520
801,228
(813,959)
89,785
__
4,499,574
_
3,934,304
_
3,082,761
1,261,892
154,821
______
4,442,574
____		 2019
£
3,932,791
553,339
(527,983)
464,373
__
4,422,520
_
3,932,791
____
3,366,310
870,346
185,864
______
4,422,520
_______

No investments represent over 5% of the total portfolio.

13

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

10. DEBTORS

Other debtors
11.
CREDITORS : amounts falling due within one year
Accruals & prepayments
12.
GRANT COMMITMENTS
Grants committed
Grants paid		 _
 2020
£
-
_
-
_
2020
£
4,953
_
4,953
_
2020
£
71,981
(71,981)
__
-
__		 2019
£
5,480
__
5,480
_
2019
£
6,763
__
6,763
_
2019
£
11,565
(11,565)
__
-
__


_

13. RELATED PARTY TRANSACTIONS

No related party transactions took place during the year.

14. MEMBERS

The members are the trustees of the CIO. If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

14