OpenCharities

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

2022-08-31-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 2022

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 2022

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 12
Detailed Statement of Financial Activities 13

MERKY FOUNDATION LTD

Report of the Trustees for the Year Ended 31 August 2022

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 2022. 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,

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 £780,000 (2021 - £140,000) as part of the scholarship programme. 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 £20,000 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 no funds were in deficit (2021 - £8,342). The prior year deficit was caused by sundry costs of running the charity along with upfront consultancy and computer costs in relation to generating future donations. The deficit, and any future 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 will also continue 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.

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

Page 1

MERKY FOUNDATION LTD

Report of the Trustees for the Year Ended 31 August 2022

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 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 26 May 2023 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 2022.

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 member of the Institute of Chartered Accountants in England and Wales, 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

  2. 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

  3. 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

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 2022

31.8.22 31.8.21
Unrestricted Restricted Total Total
fund funds funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 76,904 739,500 816,404 760,958
EXPENDITURE ON
Raising funds
Raising donations and legacies 3 40,771 - 40,771 24,550
Other trading activities 4 - 39,500 39,500 -
40,771 39,500 80,271 24,550
Charitable activities 5
Cambridge University scholarship program
- 780,000 780,000 140,000
Black Heart Foundation
- - - 500,000
Other 540 - 540 2,086
Total 41,311 819,500 860,811 666,636
NET INCOME/(EXPENDITURE) 35,593 (80,000 ) (44,407 ) 94,322
RECONCILIATION OF FUNDS
Total funds brought forward (8,342 ) 100,000 91,658 (2,664)
TOTAL FUNDS CARRIED FORWARD 27,251 20,000 47,251 91,658

The notes form part of these financial statements

Page 4

MERKY FOUNDATION LTD

Balance Sheet
31 August 2022
Unrestricted
fund
Notes
£
CURRENT ASSETS
Debtors
10
-
Cash at bank
28,931
28,931
CREDITORS
Amounts falling due within one year
11
(1,680 )
NET CURRENT ASSETS
27,251
TOTAL ASSETS LESS CURRENT LIABILITIES
27,251
NET ASSETS/(LIABILITIES)
27,251
FUNDS
12
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
420,000
420,000
(400,000 )
20,000
20,000
20,000		 31.8.22
Total
funds
£
-
448,931
448,931
(401,680 )
47,251
47,251
47,251
27,251
20,000
47,251		 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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2023 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 2022
31.8.22
Notes
£
Cash flows from operating activities
Cash generated from operations
1
355,953
Net cash provided by operating activities
355,953
Change in cash and cash equivalents in the
reporting period
355,953
Cash and cash equivalents at the beginning of
the reporting period
92,978
Cash and cash equivalents at the end of the
reporting period
448,931		 31.8.21
£
92,474
92,474
92,474
504
92,978

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 2022

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

RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM
ACTIVITIES		 OPERATING
Net (expenditure)/income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operations		 31.8.22
£
(44,407 )
507,045
(106,685 )
355,953		 31.8.21
£
94,322
(507,045)
505,197
92,474

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.21 Cash flow At 31.8.22
£ £ £
Net cash
Cash at bank 92,978 355,953 448,931
92,978 355,953 448,931
Total 92,978 355,953 448,931

The notes form part of these financial statements

Page 7

MERKY FOUNDATION LTD

Notes to the Financial Statements for the Year Ended 31 August 2022

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
4.
OTHER TRADING ACTIVITIES
Direct costs		 31.8.22
£
816,404
31.8.22
£
40,771
31.8.22
£
39,500		 31.8.21
£
760,958
31.8.21
£
24,550
31.8.21
£
-

continued...

Page 8

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

5. CHARITABLE ACTIVITIES COSTS

Cambridge University scholarship program
6.
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
6)
£
780,000
31.8.22
31.8.21
£
£
780,000
140,000
-
500,000
780,000
640,000
31.8.22
31.8.21
£
£
-
500,000
380,000
140,000
380,000
640,000		 Grant
funding of
activities
(see note
6)
£
780,000
31.8.22
31.8.21
£
£
780,000
140,000
-
500,000
780,000
640,000
31.8.22
31.8.21
£
£
-
500,000
380,000
140,000
380,000
640,000
31.8.21
£
140,000
500,000
640,000
31.8.21
£
500,000
140,000
640,000

7. SUPPORT COSTS

Management
£
Raising donations and legacies
-
Other resources expended
45
45		 Information
Governance
Finance
technology
costs
£
£
£
-
15,209
25,562
495
-
-
495
15,209
25,562		 Totals
£
40,771
540
41,311

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
20,958
EXPENDITURE ON
Raising funds
Raising donations and legacies
24,550
24,550
Charitable activities
Cambridge University scholarship program
-		 Restricted
funds
£
740,000
-
-
140,000		 Total
funds
£
760,958
24,550
24,550
140,000

continued...

Page 9

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Black Heart Foundation
Other
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
10.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accrued expenses
12.
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
Merky Christmas event
TOTAL FUNDS		 Unrestricted
fund
£
-
2,086
26,636
(5,678)
(2,664)
(8,342)
At 1.9.21
£
(8,342 )
100,000
91,658
Incoming
resources
£
76,904
700,000
39,500
739,500
816,404		 Restricted
Total
funds
funds
£
£
500,000
500,000
-
2,086
640,000
666,636
100,000
94,322
-
(2,664)
100,000
91,658
31.8.22
31.8.21
£
£
-
507,045
31.8.22
31.8.21
£
£
400,000
-
-
507,045
1,680
1,320
401,680
508,365
Net
movement
At
in funds
31.8.22
£
£
35,593
27,251
(80,000 )
20,000
(44,407 )
47,251
Resources
Movement
expended
in funds
£
£
(41,311 )
35,593
(780,000 )
(80,000 )
(39,500 )
-
(819,500 )
(80,000 )
(860,811 )
(44,407 )

continued...

Page 10

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

12. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement At
At 1.9.20 in funds 31.8.21
£ £ £
Unrestricted funds
General fund (2,664) (5,678) (8,342)
Restricted funds
Cambridge University Scholarship fund - 100,000 100,000
TOTAL FUNDS (2,664) 94,322 91,658

Comparative 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
£
20,958
240,000
500,000
740,000
760,958		 Resources
Movement
expended
in funds
£
£
(26,636)
(5,678)
(140,000)
100,000
(500,000)
-
(640,000)
100,000
(666,636)
94,322		 Resources
Movement
expended
in funds
£
£
(26,636)
(5,678)
(140,000)
100,000
(500,000)
-
(640,000)
100,000
(666,636)
94,322
100,000
94,322

A current year 12 months and prior year 12 months combined position is as follows:

m
At 1.9.20
£
Unrestricted funds
General fund
(2,664)
Restricted funds
Cambridge University Scholarship fund
-
TOTAL FUNDS
(2,664)		 Net
ovement
At
in funds
31.8.22
£
£
29,915
27,251
20,000
20,000
49,915
47,251		 Net
ovement
At
in funds
31.8.22
£
£
29,915
27,251
20,000
20,000
49,915
47,251
47,251

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

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 97,862 (67,947) 29,915
Restricted funds
Cambridge University Scholarship fund 940,000 (920,000) 20,000
Black Heart Foundation
500,000 (500,000) -
Merky Christmas event 39,500 (39,500) -
1,479,500 (1,459,500 ) 20,000
TOTAL FUNDS 1,577,362 (1,527,447 ) 49,915

continued...

Page 11

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

13. RELATED PARTY DISCLOSURES

M E K O Owuo Junior

During the year Stormzy Ltd donated £50,000 (2021 - £140,000) to the Cambridge University scholarship fund and a further £20,748 (2021 - £20,958) to the general fund.

During the year Stormzy Ltd paid the charity £400,000 in relation to the first instalment pledged to the Black Heart Foundation. The amount was included in the prior year accounts as a debtor.

There are no outstanding amounts due to or from Stormzy Ltd.

T A Onwuka

During the year Hashtag Merky Management Ltd, a company in which T A Onwuka is a director, paid £100,000 to the Black Heart Foundation fund, this was included in the prior year accounts as a debtor.

There are no outstanding amounts due to or from Hashtag Merky Management Ltd.

Page 12

MERKY FOUNDATION LTD

Detailed Statement of Financial Activities
for the Year Ended 31 August 2022
31.8.22 31.8.21
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 816,404 760,958
Total incoming resources 816,404 760,958
EXPENDITURE
Other trading activities
Charitable event costs 39,500 -
Charitable activities
Grants to institutions 780,000 640,000
Support costs
Management
Sundries 45 45
Finance
Bank charges 495 481
Information technology
Consultancy fees 12,750 23,300
Computer costs 2,459 1,250
15,209 24,550
Governance costs
Accountancy 1,560 1,560
Legal fees 24,002 -
25,562 1,560
Total resources expended 860,811 666,636
Net (expenditure)/income (44,407 ) 94,322

This page does not form part of the statutory financial statements

Page 13