## **Merciful Hearts** ## **Charity No. 1189937** ## **Trustees' Report and Unaudited Accounts** **30 June 2022** Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Contents** ||Pages| |---|---| |Trustees' Annual Report|2 to 3| |Independent Examiner's Report|4| |Statement of Financial Activities|5| |Balance Sheet|6| |Notes to the Accounts|7 to 11| |Detailed Statement of Financial Activities|12 to 13| Page 1 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Trustees Annual Report** The trustees present their report with the unaudited financial statements of the charity for the period ended 30 June 2022. ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Charity No. 1189937** ## **Principal Office** Merciful Hearts 227a Alum Rock Road Birmingham B8 3BH ## **Trustees** The following trustees served during the year: U. Himdy I. Masoom O. Mukhtar ## **Accountants** Taxwise Accountancy 16 Titan Court Laporte Way Luton LU4 8EF ## **OBJECTIVES AND ACTIVITIES** Merciful Hearts main purpose is to relieve poverty and provide emergency assistance to those suffering around the globe from natural disasters, famine, water shortage and conflicts. Summary of the main activities include general charitable acts: the advancement of health or saving of lives and the prevention or relief of poverty. This is done through grants to individuals and organisations that in turn provide services such as equipment, food, clothing, infrastructure etc. Notable projects include medical aid, food, water and bread donation, as well as charitable payments of islamic zakat. All trustees are provided with access and guidance in terms of how to comply with the rules and laws of the Charity Commission, in various different aspects. The group regularly sit down to discuss policies, procedures and adherence to codes of conduct to make sure our aims in relieving poverty align with the edicts of the Charity Commission. Page 2 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Trustees Annual Report** ## **ACHIEVEMENTS AND PERFORMANCE** The charity has been pivotal in creating, disseminating and organising various projects to aid refugees in Turkey. Primarily amongst them were projects for food packs designed to help a family over a prolonged period of time and bread programmes designed to provide a steady supply of bread as a staple food source. There were also water projects providing clean water and clothing/blanket drives designed to tackle hostile weather conditions as Winter set in. The impact this has had on beneficiaries is evident and wide reaching, families have been provided with food and clothing, alongside bread and clean water that has allowed them to sustain themselves, despite harsh living conditions. The food and water have provided health, good nutrition and steady food for otherwise hungry individuals and families. ## **Statement of trustees' responsibilities in relation to the financial statements** The charity trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. Signed on behalf of the charity's trustees U. Himdy Trustee 31 July 2023 Page 3 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Independent Examiners Report** ## **Independent Examiner's Report to the trustees of Merciful Hearts** I report to the trustees on my examination of the financial statements of Merciful Hearts for the period ended 30 June 2022 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. ## **Responsibilities and basis of report** As the charity's trustees you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011('the Act'). The trustees consider that an audit is not required for this year under the Charities Act 2011, s.144(2) (the 2011 Act) and that an independent examination is needed. I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner's statement** I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in, any material respect: - the accounting records were not kept in respect of the charity as required by section 130 of the Act; or - the financial statements do not accord with those records; or - the financial statements do not comply with the applicable requirements concerning the form and content of the financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination. 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 financial statements to be reached. Mr Umber Khan, AFA, MIPA The Institute of Financial Accountants (IFA) Taxwise Accountancy 16 Titan Court Laporte Way Luton LU4 8EF 31 July 2023 Page 4 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts** ## **Statement of Financial Activities** ## **for the period ended 30 June 2022** |**Notes**
**Income and endowments**
**from:**
Donations and legacies
2
Charitable activities
3
**Total**
**Expenditure on:**
Charitable activities
4
Other
5
**Total**
Net gains on investments
**Net income**
Transfers between funds
**Net income before other**
**gains/(losses)**
**Other gains and losses**
**Net movement in funds**
**Reconciliation of funds:**
**Total funds carried forward**|**Unrestricted**
**funds**|**Restricted**
**funds**|**Total funds**|**Total funds**| |---|---|---|---|---| ||**2022**|**2022**|**2022**|**2021**| ||**£**|**£**|**£**|**£**| |||||| ||18,985|‐|18,985|‐| ||‐|26,420|26,420|‐| ||18,985|26,420|45,405|‐| |||||| ||‐|20,260|20,260|‐| ||2,471|‐|2,471|‐| ||2,471|20,260|22,731|‐| ||‐|‐|‐|‐| ||16,514|6,160|22,674|‐| ||‐|‐|‐|‐| ||16,514|6,160|22,674|‐| |||||| ||16,514|6,160|22,674|‐| |||||| ||16,514|6,160|22,674|‐| |||||| |||||| |||||| Page 5 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Balance Sheet** **at 30 June 2022** |**Charity No. 1189937**
**Current assets**
Cash at bank and in hand
**Creditors:**Amount falling due within one year
7
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension asset or liability**
**Total net assets**
**The funds of the charity**
**Restricted funds**
8
Restricted income funds
**Unrestricted funds**
8
Designated funds
**Reserves**
8
**Total funds**|**2022**
**£**
23,274
23,274
(600)
22,674
22,674
22,674
22,674
6,160
6,160
16,514
16,514
22,674|**2021**
**£**
‐| |---|---|---| |||‐
‐| |||‐
‐| |||‐| |||‐| |||‐| |||‐
‐| |||‐| |||‐| Approved by the trustees on 31 July 2023 And signed on their behalf by: U. Himdy Trustee 31 July 2023 Page 6 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Notes to the Accounts** ## **for the period ended 30 June 2022** - 1 **Accounting policies** ## **Basis of preparation** The financial statements have been prepared in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. ## **Change in basis of accounting or to previous accounts** There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years. ## **Fund accounting** - Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity. - Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. - Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal. ## **Income** - Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability. - Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income. Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material. Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets Page 7 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Notes to the Accounts** ## **Expenditure** - Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates. - Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs. - Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. - Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs. - Other expenditure These are support costs not allocated to a particular activity. ## **Taxation** The charity is exempt from tax on its charitable activities. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short‐term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. ## **Trade and other creditors** Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **Foreign currencies** Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred. All exchange differences are are taken into account in arriving at net income/expenditure. ## **Receipt of donated goods, facilities and services** All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity. Page 8 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts** ## **Notes to the Accounts** ## 2 **Income from donations and legacies** |Other Donations
Unrestricted
3
**Income from charitable activities**
Food Parcels Donations
Qurbani Donations
Sadaqah Donations
Zakat Donations
4
**Expenditure on charitable activities**
_Expenditure on charitable_
_activities_
Food Parcels Donations
Qurbani Donations
Zakat Donations
_Governance costs_
5
**Other expenditure**
General administrative costs
Legal and professional costs
6
**Staff costs**
No employee received emoluments in excess of £60,000.
7
**Creditors:**
amounts falling due within one year
Accruals|**Unrestricted**
**£**
18,985
18,985
**Restricted**
**£**
6,239
2,484
150
17,547
26,420
**Restricted**
**£**
5,756
2,435
12,069
20,260
**Unrestricted**
**£**
1,871
600
2,471
**2022**
**£**|**Total**
**2022**
**£**
18,985
18,985
**Total**
**2022**
**£**
6,239
2,484
150
17,547
26,420
**Total**
**2022**
**£**
5,756
2,435
12,069
20,260
**Total**
**2022**
**£**
1,871
600
2,471|**Total**
**2021**
**£**
‐| |---|---|---|---| ||||‐| ||||**Total**
**2021**
**£**
‐
‐
‐
‐| ||||‐| ||||**Total**
**2021**
**£**
‐
‐
‐| ||||‐| ||||**Total**
**2021**
**£**
‐
‐| ||||‐| ||||**2021**
**£**| ||600||‐| ||600||‐| Page 9 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Notes to the Accounts** ## 8 **Movement in funds** |**Restricted funds:**
**Restricted income funds:**
Food Parcels Donations
Qurbani Donations
Sadaqah Donations
Zakat Donations
_Total_
**Unrestricted funds:**
**Designated funds:**
Other Donations
Unrestricted
_Total_
**Total funds**
Purposes and restrictions in relation to the funds:|**Incoming**
**resources**
**(including**
**other**
**gains/losses**
**)**
**£**
6,239
2,484
150
17,547
26,420
18,985
18,985
45,405|**Resources**
**expended**
**£**
(5,756)
(2,435)
‐
(12,069)
(20,260)
(2,471)
(2,471)
(22,731)|**At 30 June**
**2022**
**£**
483
49
150
5,478| |---|---|---|---| ||||6,160| ||||16,514| ||||16,514| ||||| ||||22,674| ||||| |Restricted funds:|||| |Food Parcels Donations|||| |Qurbani Donations|||| |Sadaqah Donations|||| |Zakat Donations|||| |Designated funds:|||| |Other Donations
Unrestricted|||| ## 9 **Analysis of net assets between funds** |Net current assets|**Unrestricted**
**funds**
**£**
22,674
22,674|**Total**
**£**
22,674| |---|---|---| |||22,674| Page 10 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Notes to the Accounts** ## 10 **Reconciliation of net debt** |Cash and cash equivalents
Net debt|**Cash flows**
**£**|**At 30 June**
**2022**
**£**| |---|---|---| ||23,274|23,274| ||23,274
23,274|23,274| |||23,274| Page 11 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Detailed Statement of Financial Activities** ## **for the period ended 30 June 2022** |**Income and endowments from:**
Donations and legacies
Other Donations Unrestricted
Charitable activities
Food Parcels Donations
Qurbani Donations
Sadaqah Donations
Zakat Donations
**Total income and endowments**
**Expenditure on:**
Charitable activities
Food Parcels Donations
Qurbani Donations
Zakat Donations
**Total of expenditure on charitable**
**activities**
General administrative costs,
including depreciation and
amortisation
Information and publications
Legal and professional costs
Accountancy and bookkeeping
**Total of expenditure of other costs**
**Total expenditure**
Net gains on investments
**Net income**
**Net income before other**
**gains/(losses)**
Other Gains
**Net movement in funds**|**Unrestricte**
**d funds**
**2022**
**£**
18,985
18,985
‐
‐
‐
‐
‐
18,985
‐
‐
‐
‐
‐
1,871
1,871
600
600
2,471
2,471
‐
16,514
16,514
‐
16,514|**Restricted**
**funds**
**2022**
**£**
‐
‐
6,239
2,484
150
17,547
26,420
26,420
5,756
2,435
12,069
20,260
20,260
‐
‐
‐
‐
‐
20,260
‐
6,160
6,160
‐
6,160|**Total funds**
**2022**
**£**
18,985
18,985
6,239
2,484
150
17,547
26,420
45,405
5,756
2,435
12,069
20,260
20,260
1,871
1,871
600
600
2,471
22,731
‐
22,674
22,674
‐
22,674|**Total funds**
**2021**
**£**
‐| |---|---|---|---|---| |||||‐| |||||‐
‐
‐
‐| |||||‐| |||||‐
‐
‐
‐| |||||‐| |||||‐
‐| |||||‐| |||||‐| |||||‐| |||||| |||||‐| |||||‐
‐| |||||‐| |||||‐
‐| |||||‐| Page 12 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb **Merciful Hearts Detailed Statement of Financial Activities** ## **Reconciliation of funds:** |**Reconciliation of funds:**||||| |---|---|---|---|---| |Total funds brought forward
**Total funds carried forward**|‐
16,514|‐
6,160|‐
22,674|‐| |||||‐| Page 13 Doc ID: 9d7011d4570ff3c054f41654eb48ff9d3e6356bb Audit trail Sign Please sign from Taxwise Accountancy Merciful Hearts... Title Merciful Hearts T...ited Accounts.pdf File name Document ID 9d7011d4570ff3c054f41654eb48ff9d3e6356bb Audit trail date format MM / DD / YYYY Status Signed **07 / 31 / 2023** Sent for signature to Usamah HIMDY (usama09@hotmail.co.uk) 11:56:31 UTC+1 and Mr Umber Khan (u.khan@tax-wise.co.uk) from info@tax-wise.co.uk IP: 46.33.1.238 **08 / 31 / 2023** Viewed by Usamah HIMDY (usama09@hotmail.co.uk) 11:27:22 UTC+1 IP: 31.94.14.167 **08 / 31 / 2023** Signed by Usamah HIMDY (usama09@hotmail.co.uk) 11:29:46 UTC+1 IP: 31.94.14.167 **09 / 10 / 2023** Viewed by Mr Umber Khan (u.khan@tax-wise.co.uk) 20:28:41 UTC+1 IP: 86.4.204.130 **09 / 10 / 2023** Signed by Mr Umber Khan (u.khan@tax-wise.co.uk) 20:30:06 UTC+1 IP: 86.4.204.130 **09 / 10 / 2023** The document has been completed. 20:30:06 UTC+1 Sign Powered by