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2023-08-31-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 2023

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 2023

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 2023

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 2023. 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 (2022 - £780,000) as part of the scholarship programme. Further third party donations were welcomed on board along with a continuation of the support from HSBC. 100% of the funds collected as part of the programme have been remitted to the University.

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

No funds have been in deficit at the end of the current or previous financial year.

Future plans

Over the coming years, the charity intends to continue to pledge further funds into the Cambridge Scholarship programme, HSBC have entered into negotiations to extend their partnership with the foundation to pledge continued support to the programme, funding a further 30 scholarships in the coming years. 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.

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)

Page 1

MERKY FOUNDATION LTD

Report of the Trustees for the Year Ended 31 August 2023

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 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 17 May 2024 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 2023.

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 2023

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
53,652
EXPENDITURE ON
Raising funds
Raising donations and legacies
3
28,000
Other trading activities
4
11,429
39,429
Charitable activities
5
Cambridge University scholarship program
-
Other
-
Total
39,429
NET INCOME/(EXPENDITURE)
14,223
RECONCILIATION OF FUNDS
Total funds brought forward
27,251
TOTAL FUNDS CARRIED FORWARD
41,474		 Restricted
funds
£
915,000
-
155,000
155,000
780,000
-
935,000
(20,000)
20,000
-		 31.8.23
Total
funds
£
968,652
28,000
166,429
194,429
780,000
-
974,429
(5,777)
47,251
41,474		 31.8.22
Total
funds
£
816,404
40,771
39,500
80,271
780,000
540
860,811
(44,407)
91,658
47,251

The notes form part of these financial statements

Page 4

MERKY FOUNDATION LTD

Balance Sheet 31 August 2023

Unrestricted
fund
Notes
£
CURRENT ASSETS
Debtors
10
905
Cash at bank
44,049
44,954
CREDITORS
Amounts falling due within one year
11
(3,480)
NET CURRENT ASSETS
41,474
TOTAL ASSETS LESS CURRENT
LIABILITIES
41,474
NET ASSETS
41,474
FUNDS
12
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
-
-
-
-
-		 31.8.23
Total
funds
£
905
44,049
44,954
(3,480)
41,474
41,474
41,474
41,474
-
41,474		 31.8.22
Total
funds
£
-
448,931
448,931
(401,680)
47,251
47,251
47,251
27,251
20,000
47,251

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2023 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 17 May 2024 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 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/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		 31.8.23
£
(404,882)
(404,882)
(404,882)
448,931
44,049		 31.8.22
£
355,953
355,953
355,953
92,978
448,931

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 2023

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM
ACTIVITIES		 OPERATING
Net expenditure for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
(Increase)/decrease in debtors
Decrease in creditors
Net cash (used in)/provided by operations		 31.8.23
£
(5,777)
(905)
(398,200)
(404,882)		 31.8.22
£
(44,407)
507,045
(106,685)
355,953

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.22 Cash flow At 31.8.23
£ £ £
Net cash
Cash at bank 448,931 (404,882) 44,049
448,931 (404,882) 44,049
Total 448,931 (404,882) 44,049

The notes form part of these financial statements

Page 7

MERKY FOUNDATION LTD

Notes to the Financial Statements for the Year Ended 31 August 2023

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		 31.8.23
£
968,652
31.8.23
£
28,000		 31.8.22
£
816,404
31.8.22
£
40,771

continued...

Page 8

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2023

4.
OTHER TRADING ACTIVITIES
Direct costs
Support costs
5.
CHARITABLE ACTIVITIES COSTS
Cambridge University scholarship
program
6.
GRANTS PAYABLE
Cambridge University scholarship program
The total grants paid to institutions during the year wa
Cambridge Scholarship
7.
SUPPORT COSTS
Management
£
Raising donations and
legacies
-
Other trading activities
50
50		 31.8.23
31.8.22
£
£
155,000
39,500
11,429
-
166,429
39,500
Grant
funding of
activities
(see note
6)
£
780,000
31.8.23
31.8.22
£
£
780,000
780,000
s as follows:
31.8.23
31.8.22
£
£
780,000
380,000
Information
Governance
Finance
technology
costs
Totals
£
£
£
£
-
28,000
-
28,000
379
-
11,000
11,429
379
28,000
11,000
39,429		 31.8.22
£
39,500
-		 31.8.22
£
39,500
-
39,500
31.8.22
£
780,000
31.8.22
£
380,000
Totals
£
28,000
11,429
39,429

continued...

Page 9

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2023

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
76,904
EXPENDITURE ON
Raising funds
Raising donations and legacies
40,771
Other trading activities
-
40,771
Charitable activities
Cambridge University scholarship program
-
Other
540
Total
41,311
NET INCOME/(EXPENDITURE)
35,593
RECONCILIATION OF FUNDS
Total funds brought forward
(8,342)
TOTAL FUNDS CARRIED FORWARD
27,251		 Restricted
funds
£
739,500
-
39,500
39,500
780,000
-
819,500
(80,000)
100,000
20,000		 Total
funds
£
816,404
40,771
39,500
80,271
780,000
540
860,811
(44,407)
91,658
47,251

continued...

Page 10

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2023

10.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Accrued expenses
12.
MOVEMENT IN FUNDS
At 1.9.22
£
Unrestricted funds
General fund
27,251
Restricted funds
Cambridge University Scholarship fund
20,000
TOTAL FUNDS
47,251
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
53,652
Restricted funds
Cambridge University Scholarship fund
760,000
Merky Christmas event
155,000
915,000
TOTAL FUNDS
968,652		 31.8.23
31.8.22
£
£
905
-
31.8.23
31.8.22
£
£
-
400,000
3,480
1,680
3,480
401,680
Net
movement
At
in funds
31.8.23
£
£
14,223
41,474
(20,000)
-
(5,777)
41,474
Resources
Movement
expended
in funds
£
£
(39,429)
14,223
(780,000)
(20,000)
(155,000)
-
(935,000)
(20,000)
(974,429)
(5,777)

continued...

Page 11

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2023

12. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.9.21
£
Unrestricted funds
General fund
(8,342)
Restricted funds
Cambridge University Scholarship fund
100,000
TOTAL FUNDS
91,658
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
76,904
Restricted funds
Cambridge University Scholarship fund
700,000
Merky Christmas event
39,500
739,500
TOTAL FUNDS
816,404
A current year 12 months and prior year 12 months combined position is as follows:
At 1.9.21
£
Unrestricted funds
General fund
(8,342)
Restricted funds
Cambridge University Scholarship fund
100,000
TOTAL FUNDS
91,658		 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)
Net
movement
At
in funds
31.8.23
£
£
49,816
41,474
(100,000)
-
(50,184)
41,474

continued...

Page 12

MERKY FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 August 2023

12. 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:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 130,556 (80,740) 49,816
Restricted funds
Cambridge University Scholarship fund 1,460,000 (1,560,000 ) (100,000)
Merky Christmas event 194,500 (194,500) -
1,654,500 (1,754,500 ) (100,000)
TOTAL FUNDS 1,785,056 (1,835,240 ) (50,184)

13. RELATED PARTY DISCLOSURES

M E K O Owuo Junior

During the year Stormzy Ltd donated £140,000 (2022 - £50,000) to the Cambridge University scholarship fund.

At the end of the financial year, Stormzy Ltd owed the foundation £905 (2022 - £nil), the balance was repaid in December 2023.

Page 13

MERKY FOUNDATION LTD

Detailed Statement of Financial Activities
for the Year Ended 31 August 2023
31.8.23 31.8.22
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 968,652 816,404
Total incoming resources 968,652 816,404
EXPENDITURE
Other trading activities
Charitable event costs 155,000 39,500
Charitable activities
Grants to institutions 780,000 780,000
Support costs
Management
Sundries 50 45
Finance
Bank charges 379 495
Information technology
Consultancy fees 28,000 12,750
Computer costs - 2,459
28,000 15,209
Governance costs
Accountancy 1,800 1,560
Legal fees 9,200 24,002
11,000 25,562
Total resources expended 974,429 860,811
Net expenditure (5,777) (44,407)

This page does not form part of the statutory financial statements

Page 14