## **MOMARK CIO**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
**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||
||Theo Silberston||
|**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**
2021 continued to be challenging not only for the people we help to support, but also for people and organisations in Wandsworth. Recognising these challenges, MoMark continued to work flexibly with our delivery partners. We worked openly and transparently to agree ongoing project adjustments to ensure projects could support service users during the pandemic.
From an organisational perspective, we will continue to look at ways to maximise our support to local organisations, utilising our efficiencies to maximum benefit. In 2021, this resulted in funding three projects with existing partners. Our strategy in how we manage our investment risks has also meant that we have weathered the worst of the financial effects of the pandemic, in a reasonably good position.
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 will also continue to keep our investments under reviews identifying further opportunities to maximise our financial position and position MoMark to support look for new opportunities to benefits to help improve the mental health of Wandsworth.
## **Cris Sowden Chairman**
Date:10 May 2022
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 2021. 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 the mental health of Wandsworth.
- Ongoing delivery of the MoMark Mental Health Community Fund, funding the following organisations: `o` Aurora;
- Family Action;
- KLS;
- Begin2Sport;
- `o` Free2B.
2. Peer support ward visits and community support (provided through SoundMinds)
3. Supporting Springfield Hospital Service users
- Social and entertainments grant and Alan Angus Fund (patients without recourse to public funds) - ongoing
## **Financial Review of the year**
Total income generated during the year was £135,966 (2020: £117,583). Total expenditure for the year was £145,800 (2020: £130,983). £40,391 (2020: £49,255) related to investment manager fees and costs of raising funds and £105,409 (2020: £81,728) related to charitable expenditure.
Unrealised gains and losses for the year totalled £312,748 (2020: £89,785). The deficit for the year before gains on investments was £9,834 (2020 : deficit of £13,400).
## **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 Azets Financial Planning Limited during the setup of the portfolio, which is split between two investment managers and adopts a 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.
## **Plans for Future Years**
Supporting the mental health of Wandsworth through our continued support of MoMark’s annual Mental Health Community Fund
Supporting peer support ward visits and community support (provided through SoundMinds)
Supporting South West London & St George’s Mental Health Trust (Springfield Hospital) service users through a new social and entertainments grant (replacing our current approach) and Alan Angus Grant (patients without recourse to public funds)
## **Going Concern**
The Trustees have considered the impact of the Covid-19 pandemic, 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 in a balanced portfolio that is medium risk and the investment managers hold a sufficient amount of the investments in cash to allow the charity to continue to operate regardless of market conditions.
## **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 policies 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 Theo Silberston (Appointed 1 May 2021)
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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.
This report was approved by the Trustees on 10 May 2022 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 2021, 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
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
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:23 May 2022
7
## **MOMARK CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|||**Unrestricted**|
**funds**|
|---|---|---|---|
||**Notes**|||
|||**2021**|**2020**|
|||**£**|**£**|
|**Income from:**||||
|Rental income||28,000|15,419|
|Investment income – Income from portfolio||102,776|102,154|
|Investment income – Interest on loans||5,000|-|
|Other income||190|10|
|||__________|__________|
|**Total income**||135,966|117,583|
|||__________|__________|
|**Expenditure on:**||||
|Raising funds|3|40,391|49,255|
|Charitable activities|4|105,409|81,728|
|||__________|__________|
|**Total expenditure**|2|145,800|130,983|
|||__________|__________|
|**Net expenditure for the**year||(9,834)|(13,400)|
|**Other recognised gains and losses**||||
|Net gains/(losses) investments|9|312,748|89,785|
|||__________|__________|
|**Net movement in funds**||302,914|73,683|
|Balances at 1 January 2021||4,947,544|4,871,159|
|||__________|__________|
|**Balances carried forward**||||
|**at 31 December 2021**||5,250,458|4,947,544|
|||__________|__________|
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 2021**
|**Note**
**2021**
**£**
**FIXED ASSETS**
Investment properties
**8**
Investments
**9**
**CURRENT ASSETS**
Debtors
**10**
109,667
Cash at bank and in hand
46,157
**__________**
155,824
**LIABILITIES: AMOUNTS**
**FALLING**
**DUE WITHIN ONE YEAR**
**11**
(9,667)
__________
**NET CURRENT ASSETS**
**NET ASSETS**
**FUNDS**
Unrestricted funds|**2020**
**£**
**£**
390,000
4,714,301
_____________
-
62,923
**__________**
62,923
(4,953)
__________
146,157
_____________
5,250,458
_____________
5,250,458
_____________
5,250,458
_____________|**£**
390,000
4,499,574
_____________
4,889,574
57,970
_____________
4,947,544
|
|---|---|---|
|||_____________
4,947,544
_____________
4,947,544
_____________|
Approved by the Board of Trustees on 10 May 2022 and signed on its behalf by
**Cris Sowden Elliot Napier Chairman 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 2021**
## **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 and by making loans. 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:
- Raising funds are those costs incurred in attracting voluntary income.
- Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.
All expenditure is inclusive of irrecoverable VAT.
## 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 2021**
## **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 2021**
## 2. **ANALYSIS OF EXPENDITURE**
|**Direct**
**costs**
**£**
Raising funds
36,184
Charitable activities
98,398
__________
134,582
__________
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**
Office
Insurance
IT
Other
Legal fees
Governance (note 6)|**Support**
**costs**
**£**
4,207
7,011
__________
11,218
__________|**Total**
**2021**
**£**
40,391
105,409
__________
145,800
__________
**2021**
**£**
1,400
34,784
4,207
**___________**
40,391
**___________**
**2021**
**£**
58,908
19,364
20,126
7,011
**__________**
105,409
**__________**
**2021**
**£**
504
1,837
310
172
6,355
2,060
**___________**
11,218
**___________**|**_**
**_**
|**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
**__________**|
|---|---|---|---|---|
Support costs are allocated in proportion to direct costs.
12
## **MOMARK CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021**
## 6. **GOVERNANCE COSTS**
|Independent examiner’s fee
Board Meetings
Legal fees|**2021**
**£**
2,060
-
-
__________
2,060
__________|**2020**
**£**
2,060
54
930
__________
3,044
__________|
|---|---|---|
## 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 2021 and 31 December 2021|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 2021
Additions at cost
Disposals at market value
Net unrealised gain / (loss) in year
Market value at 31 December 2021
Historical cost at 31 December 2021
Market value of investments comprise:
UK listed investments
Overseas listed investments
Cash on UK deposit|**2021**
**£**
4,499,574
708,544
(806,565)
312,748
____________
4,714,301
____________
3,972,929
_____________
1,713,619
2,640,126
360,556
**____________**
4,714,301
_____________|**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
_____________|
No investments represent over 5% of the total portfolio.
13
## **MOMARK CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021**
## 10. **DEBTORS**
|Other debtors
Accrued income
Loans|**2021**
**£**
4,667
5,000
100,000
___________
109,667
___________|**2020**
**£**
-
-
-
___________
-
___________|
|---|---|---|
Two loans were provided in the year. One loan for £200,000 for 12 months with interest payable of 20% conditional on the success of a real estate development. The other loan was for £100,000 for 12 months with interest payable at 10%. The conditional loan was hedged with the guaranteed interest so that the minimum return was equal to the return on investment provided by the Investment Portfolio.
## 11. **CREDITORS : amounts falling due within one year**
|Accruals
Grants payable|**2021**
**£**
2,060
7,607
___________
9,667
___________|**2020**
**£**
2,060
2,893
___________
4,953
___________|
|---|---|---|
## 12. **GRANT COMMITMENTS**
|**2021**
**£**
Grants committed
98,398
Grants paid
(90,791)
___________
7,607
___________|**2020**
**£**
71,981
(68,998)
___________
2,893
___________|
|---|---|
## 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