**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
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
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