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2023-12-31-accounts

MOMARK CIO

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Registered Charity No. 1179620

AZETS AUDIT SERVICES River House 1 Maidstone Road Sidcup Kent DA14 5RH

MOMARK CIO

CONTENTS

Page
Charity Information 1
Chair’s Forward 2
Report of the Trustees 3
Independent Examiner’s Report 6
Statement of Financial Activities 7
Balance sheet 8
Notes to the Financial Statements 9

MOMARK CIO

LEGAL AND ADMINISTRATIVE INFORMATION


Members / Trustees		 Cris Sowden (Chairman)
Elliot Napier (Treasurer)
Greenie Cheng
Michael Humann (Appointed 9 May 2024)
Jonathan Mumford (Resigned 28 July 2024)
Susannah Seldon (Resigned 28 July 2024)
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
River House
1 Maidstone Road
Sidcup
Kent
DA14 5RH
Bankers Metro Bank
One Southampton Row
London
WC1B 5HA

1

MOMARK CIO

CHAIR’S FOREWARD

Welcome to our annual accounts. MoMark is a Wandsworth mental health charity which strives to ensure individuals in Wandsworth have the time and space to achieve good mental health and wellbeing to live a fulfilling life.

We start by reflecting on the contribution of a former Trustee and volunteer, David Hopcroft, who sadly passed away in 2023. David was a guiding force during the creation of MoMark and our Mental Health Community Fund. He played an indispensable role in managing our administration and back-office functions and we are deeply grateful for David’s valuable contribution and dedication.

Throughout the year we continued our work supporting delivery partners in Wandsworth to make a tangible impact on the mental health across the borough. Our key deliverables throughout the year include:

As we referenced in our last year’s report, we started 2023 following a very challenging period for our managed investments, our primary source of income with which we fund projects, resulting from Russia’s invasion of Ukraine, UK inflation and of the cost of living crisis. These were significant impacts felt across the entire economy which had led to a selloff in the equity markets and volatility in the credit markets. These investment headwinds continued to remain strong throughout the year with markets relatively sanguine for a large portion of the year, and interest rate hikes continuing at pace, reaching a peak in the summer of 2023. As inflationary pressures began to ease towards the end of 2023, growing expectations for interest rate cuts have helped fuel a market rally, albeit we are advised that investor portfolios are not expected to fully recover until mid to late 2024. The Board have been reassured by the progress made this year.

We have also continued to progress our investment approach to deploy a small level of capital to higher risk investments including a small portfolio of digital assets. Our approach has had a small positive impact this year and our expectations are that volume, and potentially value, of these digital assets is likely to further increase over the coming year. We recognise the nature of this asset class are both higher risk and subject to stronger fluctuations. We have developed our risk and governance model for these assets which we keep under regular review.

Our operating costs have also increased largely in response to the loss of our volunteer resource. In response to this resource gap, we have utilised flexible, low commitment, administrative support through a virtual assistant. This has so far provided some efficiency and consistency benefits. But these are new additional costs to how we operate as a charity. We continue to keep how we operate under review to ensure these costs are as minimal as possible.

Our focus for the year ahead will be to maintain and potentially broaden our support with our delivery partners. To achieve this we made a number of small changes to the operation of the Mental Health Community Fund. The most significant change has been to utilise our virtual assistant resource so our Mental Health Community Fund can receive applications throughout the year rather than short application periods twice a year. We anticipate this will increase the number of applications we receive and, potentially, the number of projects which we support.

Cris Sowden Chairman Date: 30 July 2024

2

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 2023. 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 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 and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

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 mental health and wellbeing in the London Borough of Wandsworth and surrounding areas in 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.

  2. Ongoing delivery of the MoMark Mental Health Community Fund, funding the following organisations: o Begin2Sports

    • Wandsworth Youth for Christ

    • Katherine Low Settlement

    • Bounce Theatre

    • Jane Shore

    • Family Action

  3. Peer support ward visits and community support (provided through SoundMinds)

  4. Supporting Springfield Hospital Service users through the Social and entertainments grant and Forensics Grant (patients without recourse to public funds)

Financial Review of the year

Total income generated during the year was £172,553 (2022: £143,365). Total expenditure for the year was £212,179 (2022: £166,983), £66,511 (2022: £42,467) related to investment manager fees and costs of raising funds and £145,668 (2022: £124,516) related to charitable expenditure.

Unrealised gains for the year totalled £197,333 (2022: losses of £583,479). The deficit for the year before gain on investments was £39,626 (2022: deficit of £23,618).

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.

3

MOMARK CIO

REPORT OF THE TRUSTEES

Investment Policy

Plans for Future Years

We will continue our work to improve mental health and wellbeing in Wandsworth. We will deliver this objective by supporting projects through our Mental Health Community Fund, our ongoing support of the peer support ward visits and community support (provided through SoundMinds) and the provision of two Springfield Hospital grants (Forensics and Entertainment Grants).

Going Concern

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 Board have Risk management and Conflict of Interest policies which are reviewed regularly.

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

Cris Sowden (Chairman) Elliot Napier (Treasurer) Greenie Cheng Michael Humann (Appointed 9 May 2024) Jonathan Mumford (Resigned 28 July 2024) Susannah Seldon (Resigned 28 July 2024) Theo Silberston

4

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.

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. These are kept under regular review.

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.

This report was approved by the Trustees on 30 July 2024 and signed on their behalf by:

Cris Sowden Chairman

5

MOMARK CIO

INDEPENDENT EXAMINER’S REPORT

I report on the financial statements of MOMARK CIO for the year ended 31 December 2023, which are set out on pages 7 to 15.

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 River House, 1 Maidstone Road Sidcup Kent, DA14 5RH

Date: 5 August 2024

6

MOMARK CIO

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023


Notes
Income from:
Rental income
Investment income – Income from portfolio
Investment income – Interest on loans
Investment income – Bitcoin mined
Other income
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
2
Net expenditure for theyear
Other recognised gains and losses
Net gains/(losses) investments
7, 10
Net movement in funds
Balances at 1 January 2023
Balances carried forward
at 31 December 2023
Unrestricted funds
2023
2022
£
£
28,000
28,000
108,192
96,535
14,484
15,208
21,210
3,617
667
5
_
_
172,553
143,365
_
_
66,511
42,467
145,668
124,516
_
_
212,179
166,983
_
_
(39,626)
(23,618)
197,333
(563,479)
_
_
157,707
(587,097)
4,663,361
5,250,458
___
__
4,821,068
4,663,361
_
____

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.

All the transactions in 2023 and 2022 are derived from unrestricted income.

7

MOMARK CIO

BALANCE SHEET AS AT 31 DECEMBER 2023

Note
2023
£
FIXED ASSETS
Intangible fixed assets
7
Tangible fixed assets
8
Investment properties
9
Investments
10
CURRENT ASSETS
Debtors
11
4,667
Cash at bank and in hand
56,308
____
60,975
LIABILITIES: AMOUNTS
FALLING
DUE WITHIN ONE YEAR
12
(65,183)
____
NET CURRENT
(LIABILITIES) / ASSETS
NET ASSETS
FUNDS
Unrestricted funds		 2022
£
£
26,023
38,503
390,000
4,370,750
___
4,825,276
189,875
27,822
____
217,697
(27,225)
__
(4,208)
___
4,821,068
__
4,821,068
_
4,821,068
____		 £
3,617
57,754
390,000
4,021,518
___
4,472,889
190,472
_____
4,663,361
___
4,663,361
__
4,663,361
____

Approved by the Board of Trustees on 30 July 2024 and signed on its behalf by

Cris Sowden Elliot Napier Chairman Treasurer

The notes on pages 11 to 17 form part of these financial statements.

8

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

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:

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.

9

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

e) Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

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 £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any impairment.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Bitcoin mining equipment – 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in net income/(expenditure) for the year.

h) Intangible fixed assets

The bitcoin cryptocurrency assets for Treasury are recorded as Intangible assets and can be measured at either cost or revaluation. The charity has elected to measure them at valuation, based on the value at the year end.

i) 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.

j) 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.

k) 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.

l) 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.

10

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

m) 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.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The key sources of estimation uncertainty are described in the accounting policies and are summarised below:

Valuation of Investment Properties

These are stated at their estimated fair values based on both a professional valuation and Trustee’s valuations as disclosed in note 9.

2. ANALYSIS OF EXPENDITURE

Raising funds
Charitable activities
RAISING FUNDS
Property agent’s fees
Investment manager’s fees and custody charges
Bitcoin mining fees
Allocation of support costs
HARITABLE ACTIVITIES
Grants payable
Community activities
NHS grants
Befriending services
Allocation of support costs		 Direct
costs
£
42,254
133,987
_
176,241
_		 Support
costs
£
24,257
11,681
_
35,938
_

 Total
2023
£
66,511
145,668
_
212,179
_
2023
£
1,680
32,006
8,568
24,257
_____
_
66,511
_____
_
2023
£
70,710
20,000
43,277
11,681
____
145,668
____		 Total
2022
£
42,467
124,516
_
166,983
_
2022
£
1,680
33,507
4,145
3,135
____
42,467
____
2022
£
68,396
23,302
25,427
7,391
____
124,516
____

3. RAISING FUNDS

4. CHARITABLE ACTIVITIES

Full details regarding grants payable are available on the charity’s website: https://momark.org.uk/YE-Dec23-Charitable-activies-disclosure/ [momark.org.uk]

11

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

5. SUPPORT COSTS

Depreciation
Office
Insurance
IT
Other
virtual assistant
Professional fees
Governance costs:
Independent Examiner’s fee – current year
Independent Examiner’s fee – over provision in prior year
Board meetings
Legal fees		 2023
£
19,251
546
1,310
337
1,236
7,488
2,820
3,060
(475)
365
-
_____
35,938
_____		 2022
£
-
504
1,895
319
1,333
-
-
2,850
-
-
3,624
_____
10,525
_____

Support costs are allocated in proportion to direct costs.

6. STAFF COSTS & TRUSTEE REMUNERATION

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, and the charity has no employees.

During the year the charity re-imbursed £15,724 to 2 Trustees (2022: £7,437) for expenses paid on the charity's behalf in respect of Virtual assistant costs, Insurance, Bitcoin mining fees and IT subscriptions. In 2022 the charity re-imbursed 1 Trustee for the Bitcoin mining equipment, Tangible Fixed Asset, for £57,754.

7. INTANGIBLE FIXED ASSETS

£
Bitcoin crypto currency
At 1 January 2023 3,617
Additions – Cryptocurrency mined 21,210
Unrealised gain 1,196
_____
At 31 December 2023 26,023
_____

12

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

8. TANGIBLE FIXED ASSETS

Bitcoin
Mining
equipment
£
Cost
At 1 January 2023 and 31 December 2023 57,754
_____
Depreciation
At 1 January 2022 -
Charge for the year 19,251
_____
19,251
_____
Net book value
At 31 December 2023 38,503
_____
At 31 December 2022 57,754
_____
9. INVESTMENT PROPERTIES
Freehold
properties
Valuation
At 1 January 2023 and 31 December 2023 390,000
_____

The property was valued by the trustees at 31 December 2023.

13

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

10. INVESTMENTS

NVESTMENTS
Market value at 1 January 2023
Additions at cost
Disposals at market value
Net unrealised gain / (loss) in year
Market value at 31 December 2023
Historical cost at 31 December 2023
Market value of investments comprise:
UK fixed income
Overseas fixed income
UK equities
Overseas equities
Alternatives
Property
Structured return
Cash on UK deposit
No investments represent over 5% of the total portfolio.
EBTORS
Other debtors
Accrued income
Loans		 2023
£
4,021,518
759,828
(606,733)
196,137
__
4,370,750
_
4,122,846
_
1,061,829
220,145
711,905
1,386,320
437,487
135,422
185,132
232,510
______
4,370,750
_
2023
£
4,667
-
-
__
4,667
_____		 2022
£
4,714,301
750,728
(880,032)
(563,479)
__
4,021,518
_
3,928,518
____
1,034,645
212,737
745,173
1,258,465
543,600
138,685
238,649
86,281
______
4,021,518
_______
2022
£
4,667
10,208
175,000
__
189,875
__

11. DEBTORS

12. CREDITORS : amounts falling due within one year

Accruals
Other creditors
Grants payable		 2023
£
3,060
42
62,081
__
65,183
__		 2022
£
2,850
-
24,375
__
27,225
__

14

MOMARK CIO

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023

13. GRANT COMMITMENTS

Grants payable at 1 January 2023
Grants committed
Grants paid
Grants payable at 31 December 2023		 2023
£
24,375
65,183
(24,375)
__
65,183
__		 2022
£
7,607
117,125
(100,357)
__
24,375
__

14. RELATED PARTY TRANSACTIONS

No related party transactions took place during the year.

15. 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.

15