**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
- (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 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