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2021-08-31-accounts

REGISTERED COMPANY NUMBER: 11504129 (England and Wales) REGISTERED CHARITY NUMBER: 1186891

Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 August 2021

for

MERKY FOUNDATION LTD

Brown McLeod Limited Chartered Accountants The Old Workshop 1 Ecclesall Road South Sheffield South Yorkshire S11 9PA

MERKY FOUNDATION LTD

Contents of the Financial Statements for the Year Ended 31 August 2021

Page
Report of the Trustees 1 to 2
Independent Examiner's Report 3
Statement of Financial Activities 4
Balance Sheet 5
Cash Flow Statement 6
Notes to the Cash Flow Statement 7
Notes to the Financial Statements 8 to 13
Detailed Statement of Financial Activities 14

MERKY FOUNDATION LTD

Report of the Trustees for the Year Ended 31 August 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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 (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Merky Foundation is a project set up by UK musician, Stormzy, with the aim of giving back to the community he grew up in.

In 2018 a partnership was struck with Cambridge University to fund a scholarship programme for black UK students covering the full cost of tuition fees and provide a maintenance grant which will significantly reduce the need for awardees to take out government or commercial loans.

In 2020 the charity pledged to raise £10 million, over 10 years, for organisations, charities and movements that are committed to fighting racial inequality, justice reform and black empowerment within the UK. In 2021 the first payments for this project were made with £500,000 pledged to the Black Heart Foundation, the payments were made after the end of this financial period.

Stormzy and #Merky will forever remain devoted to improving and safeguarding the lives of those within the black community and this is just the beginning of our lifetime commitment to financially and wholeheartedly back these causes.

Significant activities

Cambridge University Scholarship

During the year the charity raised £240,000 (2020 - £140,000) as part of the scholarship programme. During 2021 a total of 13 students were granted places at Cambridge via the scholarship. We also welcomed our first pledges from third party donors and have signed a long term agreement with HSBC which will help further the objectives of the foundation. There is £100,000 held in the fund for distribution upon request from Cambridge.

Public benefit

The charity operates as a Public Benefit Entity.

STRATEGIC REPORT

Going concern

There are no material uncertainties about the charity's ability to continue as a going concern.

Funds in deficit

At the end of the financial period the general fund was in deficit £8,342 (2020 - £2,664). The deficit is caused by sundry costs of running the charity along with upfront consultancy and computer costs in relation to generating future donations. The deficit is covered by an interest-free loan from Stormzy Ltd, a company in which trustee Mr M E K O Owuo Jr is a director. The term of the loan is indefinite and raises no impact on the charity's going concern status.

Future plans

Over the coming years, the charity intends to continue to pledge further funds into the Cambridge Scholarship programme, HSBC have entered into a three year partnership with the foundation to pledge continued support to the programme. The growth of the scholarship programme remains the main objective in helping us achieve our goals for the foreseeable future. The charity also intends to begin supporting community based projects and events in line with its ultimate goals, the first of which was held in December 2021, A Very #Merky Christmas, was organised and hosted at Fairfield Halls, Croydon for the residents of the town.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 1

MERKY FOUNDATION LTD

Report of the Trustees for the Year Ended 31 August 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

11504129 (England and Wales)

Registered Charity number

1186891

Registered office

The Old Workshop 1 Ecclesall Road South Sheffield South Yorkshire S11 9PA

Trustees

M E K O Owuo Junior T A Onwuka J Roddison FCA

Independent Examiner

Kate Revell ACA Brown McLeod Limited Chartered Accountants The Old Workshop 1 Ecclesall Road South Sheffield South Yorkshire S11 9PA

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 30 April 2022 and signed on the board's behalf by:

J Roddison FCA - Trustee

Page 2

Independent Examiner's Report to the Trustees of Merky Foundation Ltd

Independent examiner's report to the trustees of Merky Foundation Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ACA which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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.

Kate Revell ACA Brown McLeod Limited Chartered Accountants The Old Workshop 1 Ecclesall Road South Sheffield South Yorkshire S11 9PA

Date: .............................................

Page 3

MERKY FOUNDATION LTD

Statement of Financial Activities for the Year Ended 31 August 2021

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
20,958
EXPENDITURE ON
Raising funds
Raising donations and legacies
3
24,550
24,550
Charitable activities
4
Cambridge University scholarship program
-
Black Heart Foundation
-
Other
2,086
Total
26,636
NET INCOME/(EXPENDITURE)
(5,678 )
RECONCILIATION OF FUNDS
Total funds brought forward
(2,664 )
TOTAL FUNDS CARRIED FORWARD
(8,342 )		 Restricted
funds
£
740,000
-
-
140,000
500,000
-
640,000
100,000
-
100,000		 31.8.21
Total
funds
£
760,958
24,550
24,550
140,000
500,000
2,086
666,636
94,322
(2,664 )
91,658		 31.8.20
Total
funds
£
140,250
-
-
140,000
-
1,486
141,486
(1,236)
(1,428)
(2,664)

The notes form part of these financial statements

Page 4

MERKY FOUNDATION LTD

Balance Sheet 31 August 2021

Unrestricted
fund
Notes
£
CURRENT ASSETS
Debtors
9
-
Cash at bank
23
23
CREDITORS
Amounts falling due within one year
10
(8,365 )

NET CURRENT ASSETS/(LIABILITIES)
(8,342 )
TOTAL ASSETS LESS CURRENT
LIABILITIES
(8,342 )
NET ASSETS/(LIABILITIES)
(8,342 )
FUNDS
11
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
507,045
92,955
600,000
(500,000 )
100,000
100,000
100,000		 31.8.21
Total
funds
£
507,045
92,978
600,023
(508,365 )
91,658
91,658
91,658
(8,342 )
100,000
91,658		 31.8.20
Total
funds
£
-
504
504
(3,168)
(2,664)
(2,664)
(2,664)
(2,664)
-
(2,664)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The financial statements were approved by the Board of Trustees and authorised for issue on 30 April 2022 and were signed on its behalf by:

J Roddison FCA - Trustee

The notes form part of these financial statements

Page 5

MERKY FOUNDATION LTD

Cash Flow Statement for the Year Ended 31 August 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period		 31.8.21
£
92,474
92,474
92,474
504
92,978		 31.8.20
£
307
307
307
197
504

The notes form part of these financial statements

Page 6

MERKY FOUNDATION LTD

Notes to the Cash Flow Statement for the Year Ended 31 August 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net income/(expenditure) for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Increase in debtors
Increase in creditors
Net cash provided by operations		 31.8.21
£
94,322
(507,045 )
505,197
92,474		 31.8.20
£
(1,236)
-
1,543
307

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.20
Cash flow
At
£
£
Net cash
Cash at bank
504
92,474
504
92,474
Total
504
92,474		 31.8.21
£
92,978
92,978
92,978

The notes form part of these financial statements

Page 7

MERKY FOUNDATION LTD

Notes to the Financial Statements for the Year Ended 31 August 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2. DONATIONS AND LEGACIES

Donations
3.
RAISING DONATIONS AND LEGACIES
Support costs		 31.8.21
£
760,958
31.8.21
£
24,550		 31.8.20
£
140,250
31.8.20
£
-

continued...

Page 8

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2021

4. CHARITABLE ACTIVITIES COSTS

Cambridge University scholarship
program
Black Heart Foundation
5.
GRANTS PAYABLE
Cambridge University scholarship program
Black Heart Foundation
The total grants paid to institutions during the year was as follows:
Black Heart Foundation
Cambridge Scholarship		 Grant
funding of
activities
(see note
5)
£
140,000
500,000
640,000
31.8.21
31.8.20
£
£
140,000
140,000
500,000
-
640,000
140,000
31.8.21
31.8.20
£
£
500,000
-
140,000
-
640,000
-		 Grant
funding of
activities
(see note
5)
£
140,000
500,000
640,000
31.8.21
31.8.20
£
£
140,000
140,000
500,000
-
640,000
140,000
31.8.21
31.8.20
£
£
500,000
-
140,000
-
640,000
-
640,000
31.8.20
£
140,000
-
140,000
31.8.20
£
-
-
-

continued...

Page 9

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2021

6. SUPPORT COSTS

Management
£
Raising donations and
legacies
-
Other resources expended
45
45		 Information
Governance
Finance
technology
costs
£
£
£
-
24,550
-
481
-
1,560
481
24,550
1,560		 Totals
£
24,550
2,086
26,636

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

8.

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
250
EXPENDITURE ON
Charitable activities
Cambridge University scholarship program
-
Other
1,486
Total
1,486
NET INCOME/(EXPENDITURE)
(1,236)
RECONCILIATION OF FUNDS
Total funds brought forward
(1,428)
TOTAL FUNDS CARRIED FORWARD
(2,664)		 Restricted
funds
£
140,000
140,000
-
140,000
-
-
-		 Total
funds
£
140,250
140,000
1,486
141,486
(1,236)
(1,428)
(2,664)

continued...

Page 10

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2021

9.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
10.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
Accrued expenses
11.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Cambridge University Scholarship fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Cambridge University Scholarship fund
Black Heart Foundation
TOTAL FUNDS		 At 1.9.20
£
(2,664 )
-
(2,664 )
Incoming
resources
£
20,958
240,000
500,000
740,000
760,958		 31.8.21
31.8.20
£
£
507,045
-
31.8.21
31.8.20
£
£
507,045
2,208
1,320
960
508,365
3,168
Net
movement
At
in funds
31.8.21
£
£
(5,678 )
(8,342 )
100,000
100,000
94,322
91,658
Resources
Movement
expended
in funds
£
£
(26,636 )
(5,678 )
(140,000 )
100,000
(500,000 )
-
(640,000 )
100,000
(666,636 )
94,322

continued...

Page 11

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2021

11. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.9.19
£
Unrestricted funds
General fund
(1,428)
TOTAL FUNDS
(1,428)
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
250
Restricted funds
Cambridge University Scholarship fund
140,000
TOTAL FUNDS
140,250
A current year 12 months and prior year 12 months combined position is as follows:
At 1.9.19
£
Unrestricted funds
General fund
(1,428)
Restricted funds
Cambridge University Scholarship fund
-
TOTAL FUNDS
(1,428)		 Net
movement
At
in funds
31.8.20
£
£
(1,236)
(2,664)
(1,236)
(2,664)
Resources
Movement
expended
in funds
£
£
(1,486)
(1,236)
(140,000)
-
(141,486)
(1,236)
Net
movement
At
in funds
31.8.21
£
£
(6,914)
(8,342)
100,000
100,000
93,086
91,658

continued...

Page 12

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2021

11. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Cambridge University Scholarship fund
Black Heart Foundation
TOTAL FUNDS		 Incoming
resources
£
21,208
380,000
500,000
880,000
901,208		 Resources
Movement
expended
in funds
£
£
(28,122)
(6,914)
(280,000)
100,000
(500,000)
-
(780,000)
100,000
(808,122)
93,086

12. RELATED PARTY DISCLOSURES

M E K O Owuo Junior

At the year ended 31/08/2021 the general fund of the charity owed £7,045 (2020 - £3,168) to Stormzy Ltd, a company in which M E K O Owuo Junior is a director. The loan is interest free and has an indefinite term, Stormzy Ltd has pledged to continue offering cash flow support to the charity. Stormzy Ltd owes £7,045 (2020 - £Nil) to the Cambridge Scholarship fund, the net effect of the loans is £Nil.

During the year Stormzy Ltd donated £140,000 (2020 - £140,000) to the Cambridge University scholarship fund, £400,000 (2020 - £Nil) to the Black Heart Foundation fund and a further £20,958 (2020 - £Nil) to the general fund.

At the end of the year Stormzy Ltd owed the charity £400,000 (2020 - £Nil) in relation to the first instalment pledged to the Black Heart Foundation. The amount is shown in other debtors and was received after the end of the financial year.

T A Onwuka

During the year Hashtag Merky Management Ltd, a company in which T A Onwuka is a director, donated £100,000 (2020 - £Nil) to the Black Heart Foundation fund.

At the end of the year Hashtag Merky Management Ltd owed the charity £100,000 (2020 - £Nil) in relation to the first instalment pledged to the Black Heart Foundation. The amount is shown in other debtors and was received after the end of the financial year.

Page 13

MERKY FOUNDATION LTD

Detailed Statement of Financial Activities
for the Year Ended 31 August 2021
31.8.21 31.8.20
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 760,958 140,250
Total incoming resources 760,958 140,250
EXPENDITURE
Charitable activities
Grants to institutions 640,000 140,000
Support costs
Management
Sundries 45 45
Finance
Bank charges 481 481
Information technology
Consultancy fees 23,300 -
Computer costs 1,250 -
24,550 -
Governance costs
Accountancy and legal fees 1,560 960
Total resources expended 666,636 141,486
Net income/(expenditure) 94,322 (1,236)

This page does not form part of the statutory financial statements

Page 14