DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**Registered number: 12142286 Charity number: 1195998**
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2022**
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1|
|**Trustees' Report**|2 - 8|
|**Independent Auditors' Report on the Financial Statements**|9 - 12|
|**Statement of Financial Activities**|13|
|**Balance Sheet**|14 - 15|
|**Notes to the Financial Statements**|16 - 30|
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022**
|**Trustees**|Mohummed U H SAYED, Chair|
|---|---|
||Nadeem NAZ, Trustee|
||Abubaker SAYED, Trustee (appointed 6 September 2022)|
||Emran AHMED, Trustee (resigned 6 September 2022)|
|**Company registered**
**number**
12142286
**Charity registered**
**number**
1195998
**Registered office**
Unit 16
Skyline Business Village
London
E14 9TS
**Independent auditors**
Amex Associates Limited
Chartered Certified Accountants
Statutory Auditors
1st Floor
144-146 East Barnet Road
Barnet
London
EN4 8RD
**Bankers**
Barclays Bank Plc||
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022**
The Trustees present their annual report together with the audited financial statements of the Mercy To Humanity for the 1 September 2021 to 31 August 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
_"Mercy to Humanity is a unique organisation established in September 2019, our ethos is to eliminate poverty through humanitarian work and disaster relief. This operational year we have increased the number of families we support on our flagship Ophan 'Care program.”_ - Nadeem Naz
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities**
**Mission Statement:** Around the world, millions of people start life off disadvantaged, simply because of who they are and where they’re from. It is our mission to empower these men, women, and children by working towards eliminating poverty through humanitarian work, disaster relief, medical aid, and empowerment projects.
Prophet Muhammed (peace and blessing upon him) said: _“Convey from me even if it is (only) one ayah.”_ Our fundamental mission is not only to convey the beautiful message of Islam whilst carrying out our work, but also to support new Muslims who have entered this amazing journey making sure they have a solid Islamic foundation which will allow them to please their Lord and earn His pleasure.
**Vision:** Our approach to humanitarian work is simple - we do everything as the Prophet Muhammed (pbuh) would do! Our name is taken from the Prophet Muhammed (pbuh) too – ‘Mercy to Humanity’ is the title given to the Prophet Muhammed (pbuh) by God Himself.
The fact that the Prophet Muhammed (pbuh) is ranked number one in Michael Hart’s “The 100: A Ranking of the Most Influential Persons in History”, is a testimony of his universal appeal and success, and reflects the deep care and compassion he showed to the vulnerable - irrespective of age, gender, race, culture, colour, or creed.
There is no doubt that the Prophet Muhammed (pbuh) represents an amazing humanitarian. Therefore, Mercy to Humanity has modelled all its humanitarian work on the teachings and recommendations of the Prophet Muhammed (pbuh) himself. We truly believe this approach is the best way of serving society - providing hope, health, and happiness to all of humanity!
To showcase to the world the love, compassion, and mercy of the Prophet Muhammed (peace and blessing upon him) who was the kindest and most selfless man to ever walk this earth. Being extremely kind-hearted, his eyes brimmed with tears at the slightest sign of inhumanity.
The Prophet Muhammed (peace and blessing upon him) life-mission was caring for those going through distress, whether they’re young, old, rich, poor, weak or strong. Our vision is to emulate his character in everything that we do and teach others how to follow his way of life, the ultimate pathway to eternal bliss: Paradise.
**Activities:** At Mercy to Humanity, we are passionate about; building wells, caring for orphans, delivering medical aid and healthcare, providing nutritious meals, opening schools, orphanages and mosques, caring for widows, the elderly, and the environment!
The trustees focus on activities which are in line with long-term aims of eradicating poverty in the areas where we work. It is vital for our charity to provide relief which in the foreseeable future, would enable these communities to become as self-sufficient and independent as possible. Adhering to our charitable objectives, our activities include, but are not limited to these channels:
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
• **Food Packs** - Mercy to Humanity are distributing Food Packs to our fellow humans in Albania, Palestinian refugees, Yemen, India, and Indian Administered Kashmir to allow these people to feed their families and survive. Our food packs include staple goods such as flour, oil, rice, and pasta. Over the past year, we have been able to distribute over 30,000 food parcels and each year, with the grace of God, we wish for this number to grow. We were also able to support the Covid-19 pandemic, providing vital aid to food banks. Many of us are given the luxury of having access to nutritious food but sometimes we forget that not everyone is blessed with the same. Mercy to Humanity provide the opportunity to take part in providing essentials for the less fortunate and struggling families for them to also enjoy the blessings.
_The Prophet Muhammad (pbuh) said “the best of all charities is to feed a hungry person”._
• **Orphan Sponsorships** - Sadly, every 6 seconds a child is orphaned in this world. We are currently taking care of orphans in Albania only, providing all the essentials including food, water, shelter, medicine and education. Our desire is to provide these beautiful orphaned children with hope, confidence and the courage to pursue their dreams. The donations we receive via our orphan sponsorship fund have been dedicated to providing education, clothing, shelter, food and healthcare for these vulnerable children.
• **Orphan Guardianship Program Initiation** – Orphan Guardianship is a comprehensive programme that provides funding tailored to the needs of the orphan. Through this scheme, each child within the family is assessed case-by-case, looking at their circumstances and living conditions carefully to adequate the best care and support needed. Under the Orphan Guardianship programme the beneficiary receives funding for these categories: Food & Subsistence (includes financial assistance and food packages), Education (Including school fees, books, school supplies, and travel.), Health (Includes medical payments), Social Uplift (includes extracurricular and group activities, celebrations and events with the charity and outside), Rent, Electricity and Internet, Child Protection (Includes home visits to ensure the child’s safety and provide intervention when needed. We have started of with five families as a trial to see how this will impact their lives. If it is successful, our target is to increase to 25 families in the next financial year.
It is important to remember the hadith of our beloved prophet Muhammad s.a.w. who lost both of his parents by the age of 6.
_The Prophet Muhammad (s.a.w.) said: “The one who looks after an orphan and myself will be together in Jannah like this” and he held his two fingers together like this to illustrate!_
• **Hifz (term used by Muslims for someone who has completely memorized the Quran) Sponsorships** – Many children worldwide unfortunately have no access to Qu’ran classes nor are provided with the ability to memorise the Qu’ran. The best and most efficient way to get our children to memorise the Qur’an is by rewarding them and instilling the love of the book of Allah in their hearts! Hence, we offer our children the ability to learn and memorise the Qu’ran through our hifz sponsorship. It is with immense pleasure that we have seen first-hand the determination these children have to attend classes and learn the beautiful book of Allah. Even with the pandemic and lockdown, the children have carried on with online learning methods.
_“Teach your children Qu’ran and the Qu’ran will teach them everything”_
_The Messenger of Allah said (Sahih Muslim 2699): “Whoever takes a path upon which to obtain knowledge, Allah makes the path to Paradise easy for him._
• **Orphanage** – It will be one of our biggest accomplishments to establish an orphanage in Albania, one of the poorest countries in Europe which has of dozens of orphan children. This state-of-the-art facility will cater for their schooling needs, Islamic and Academic, and will also be a safe place where they can grow, excel, learn,
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
play, rest and eat. Currently, we are using the donations we received during Ramadan to establish an orphanage in Albania which will hold 20 orphan children and their mothers. We aim to provide these children with the best we can; from access to education to shelter to food. The orphanage has been designed and is awaiting permits for renovation.
• **Medical** – _“Whoever saves one life, it is as if he has saved the whole of mankind”_ (Holy Qu’ran 5:32). We are working on providing children who suffer with medical conditions such like; autism, down syndrome and scoliosis with specialised treatment plans and therapy to ensure they enjoy a better quality of life and live as close to a normal life as possible. We deliver health and social care services via our partner in Albania, Futures for You. In Partnership we have managed to expand the operation of the centre and accommodate 200% more children and regular services such as physio therapy, etc.
_The Prophet Muhammad s.a.w said – “When a man passes away, his worldly acts come to an end, but three acts; recurring charity, knowledge (by which others) benefit or a pious son who prays for him will bear continuous reward (for the deceased)”._
Where we work:
- Albania
- • India • Yemen
- Jammu & Kashmir
- Palestinian Refugees
- UK
**How we work:** The charity carries out its work in two main ways:
1. Through direct delivery – actively visiting our countries of work and carrying out the work first-hand. This is at least until we establish our own staff in these areas.
2. Delivering our charitable goals through our partner organisations. Currently, we work with nine partners, including Orphans in Need and One Ummah.
Working with partners who share a common aim can aid with cutting costs, improving outcomes and offers a more economical approach. As we are a small entity, collaboration is beneficial for us to seek ways to create a sustainable long-term future. By working together, we have been able to improve awareness and increase our fundraising by doubling our reach and receiving greater exposure.
Equally as important is our method of direct delivery which enables staff members and volunteers to develop knowledge, witness their work and meet our beneficiaries. It allows them to see their work first-hand, providing them with a sense of accomplishment and continued motivation.
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
## **Our Partners**
**Future for You:** Located in the city of Elbasan, Albania, this center provides different types of therapy for children with special needs, including speech, educational and physiotherapy. Together, we will provide therapeutic services, along with emergency food and water aid and increasing awareness on disabilities via campaigns. Future for You have assessed 200 children who are in immense need of therapy. They also have 5,000 individuals who require economical support such as food packs monthly. This project will help continue to provide therapies and other services for special need children and their families. With this project the team will provide services to other children who live far from the city and are unable to pay for transport or therapists. Implementing this project will help the centre provide a high quality of services and have increased sustainability for the foreseeable future.
**Orphans in Need:** Orphans in Need has a long history of serving and supporting widows and orphans in Kashmir and other countries. For the holy month of Ramadan, on behalf of us, Orphans in Need will be feeding widows and orphans by providing them with the essentials. This project aims to provide relief and to share joy and happiness of Ramadan with deprived and underprivileged widows and orphans in Kashmir, India & Gaza.
**One Ummah:** An award-winning humanitarian and disaster relief aid organisation who are based in the UK. One Ummah provide aid across more than 15 countries. Their aim is to relieve suffering across the world. Their focus is to provide relief to those in need and to empower projects that will give beneficiaries the opportunity to change their own and their families lives for the better. One Ummah have expanded their charity across the UK and now abroad.
**Muslim Welfare Institute:** Formed in 1992, MWI is a charity based in Blackburn. Their aims and objectives are to establish both short and long-term projects in developing countries in the fields of Education, Medicine, Welfare and Relief, Rehabilitation amongst other projects to benefit people in need. MWI are currently working in 7 countries. They began working in Albania in 1993, Bangladesh and India in 2003, Macedonia and West Bengal in 2017 and Bosnia from 2019. They also carry out local projects within the UK.
**Mercy Relief:** Mercy Relief was founded in 2008 in Birmingham. The founders were actively involved in community work amongst the British-Yemeni community as well as other communities in Birmingham. The focus of their work is around orphans in Yemen and actively participating in relief programmes. Over the years the number of orphans that they support with their relief programmes in Yemen has increased. They also support those who are poor and needy. They are aiming to expand their activities to other parts of the Middle East, Asia and Africa over time.
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Financial review**
After weighing out our income, expenditure and other factors which may affect our ability to continue our work, the trustees have concluded that the charity has adequate resources to continue its operational existence for the foreseeable future.
**How the charity obtains its funds:** We are extremely thankful to the public for their generous donations; this is where most of our charities funding comes from. We raise our funds primarily through advertising, from running Facebook ads and using other platforms of social media.
**How we have spent our funds:** The distribution of funds is dependent on what project the donors would like to donate towards.
## **Structure, governance and management**
## **a. Constitution**
Mercy To Humanity is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
## **b. Methods of appointment or election of Trustees**
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
## **Conclusion**
This year was a challenge due to the Impact of COVID 19. With constant restrictions within the UK and abroad. Despite these restrictions, the charity was still able to achieve the goals we had set and projects were fulfilled and expanded. Overall, many people across the world were able to receive financial support and benefitted from the work carried out.
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
## **Auditors**
The auditors, Amex Associates Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
07 July 2023
Approved by order of the members of the board of Trustees on ............................... and signed on their behalf by:
................................................
**Nadeem NAZ** (Trustee)
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCY TO HUMANITY**
## **Opinion**
We have audited the financial statements of Mercy To Humanity (the 'charitable company') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCY TO HUMANITY (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCY TO HUMANITY (CONTINUED)**
## **Auditors' responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCY TO HUMANITY (CONTINUED)**
## **Use of our report**
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
**....................................................**
B Alvi (Senior Statutory Auditor)
## _for and on behalf of_ **Amex Associates Limited**
Chartered Certified Accountants Statutory Auditors
1st Floor 144-146 East Barnet Road Barnet London EN4 8RD
Date: **................................................** 7 July 2023
Amex Associates Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022**
|**Note**
**Income from:**
Donations and legacies
2
Charitable activities
3
**Total income**
**Expenditure on:**
Raising funds
4
Charitable activities
5
Governance costs
7
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**1,116,657**
**-**
**1,116,657**
**397,354**
**339,216**
**173,626**
**910,196**
**206,461**
**(40,243)**
**206,461**
**166,218**|**Restricted**
**funds**
**2022**
**£**
**-**
**1,367,980**
**1,367,980**
**3,250**
**1,374,234**
**113**
**1,377,597**
**(9,617)**
**2,996**
**(9,617)**
**(6,621)**|**Total**
**funds**
**2022**
**£**
**1,116,657**
**1,367,980**
**2,484,637**
**400,604**
**1,713,450**
**173,739**
**2,287,793**
**196,844**
**(37,247)**
**196,844**
**159,597**|_Total_
_funds_
_2021_
_£_
_327,948_
_2,129,619_
_2,457,567_
_518,951_
_2,599,541_
_109,138_
_3,227,630_
_(770,063)_
_732,816_
_(770,063)_
_(37,247)_|
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 16 to 30 form part of these financial statements.
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DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee) REGISTERED NUMBER: 12142286**
## **BALANCE SHEET AS AT 31 AUGUST 2022**
|**Note**
**Fixed assets**
Tangible assets
10
**Current assets**
Debtors: amounts falling due after more than
one year
11
Debtors: amounts falling due within one year
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
**Net current assets / liabilites**
**Total assets less current liabilities**
**Net assets / liabilites excluding pension**
**asset**
**Total net assets**
**Charity funds**
Restricted funds
14
Unrestricted funds
14
**Total funds**|**-**
**124,900**
**41,832**
**166,732**
**(17,044)**|**2022**
**£**
**9,909**
**9,909**
**149,688**
**159,597**
**159,597**
**159,597**
**(6,621)**
**166,218**
**159,597**|_19,900_
_100,100_
_33,084_
_153,084_
_(200,296)_|_2021_
_£_
_9,965_
_9,965_
_(47,212)_
_(37,247)_
_(37,247)_
_(37,247)_
_2,996_
_(40,243)_
_(37,247)_|
|---|---|---|---|---|
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
Page 14
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee) REGISTERED NUMBER: 12142286**
**BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2022**
07 July 2023
The financial statements were approved and authorised for issue by the Trustees on ..................................... and signed on their behalf by:
................................................
**Nadeem NAZ** (Trustee)
The notes on pages 16 to 30 form part of these financial statements.
Page 15
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. Accounting policies**
## **1.1 Basis of preparation of financial statements**
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Mercy To Humanity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows;
- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e),
- 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a),
- 12.29(b) and 12.29A
## **1.2 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
## **1.3 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
Page 16
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. Accounting policies (continued)**
## **1.4 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.
## **1.5 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
|Fixtures and fittings|-|20% on cost|
|---|---|---|
|Office equipment|-|20% on cost|
## **1.6 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **1.7 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.8 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
Page 17
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. Accounting policies (continued)**
## **1.9 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
General Funds, are funds that have been donated to our Admin Fund from our generous donors. These funds are used to run the charity, expand and also deliver new projects or fund deficits from existing projects.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **2. Income from donations and legacies**
|**Unrestricted**
**funds**
**2022**
**£**
Donations
1,116,657
_Unrestricted_
_funds_
_2021_
_£_
Donations
_316,273_
Government grants
_11,675_
_Total 2021_
_327,948_|**Total**
**funds**
**2022**
**£**
**1,116,657**|
|---|---|
||_Total_
_funds_
_2021_
_£_
_316,273_
_11,675_|
||_327,948_|
There were no government grants receivable during the year (2021 - £11,675).
Page 18
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **3. Income from charitable activities**
|Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
**Total 2022**
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education|**Restricted**
**funds**
**2022**
**£**
391,170
488,505
443,225
45,080
1,367,980
_Restricted_
_funds_
_2021_
_£_
_466,500_
_590,296_
_1,026,153_
_46,670_
_2,129,619_|**Total**
**funds**
**2022**
**£**
**391,170**
**488,505**
**443,225**
**45,080**|
|---|---|---|
|||**1,367,980**|
|||_Total_
_funds_
_2021_
_£_
_466,500_
_590,296_
_1,026,153_
_46,670_|
|||_2,129,619_|
Page 19
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **4. Expenditure on raising funds**
## **Costs of raising voluntary income**
|**Unrestricted**
**funds**
**2022**
**£**
Fundraising and advertisement
323,591
Fundraising consultancy
73,763
**Total 2022**
397,354
_Unrestricted_
_funds_
_2021_
_£_
Fundraising and advertisement
_443,638_
Fundraising consultancy
_68,150_
Fundraising platform fee
_2,796_
_Total 2021_
_514,584_|**Restricted**
**funds**
**2022**
**£**
-
3,250
3,250
_Restricted_
_funds_
_2021_
_£_
_-_
_2,000_
_2,367_
_4,367_|**Total**
**funds**
**2022**
**£**
**323,591**
**77,013**|
|---|---|---|
|||**400,604**|
|||_Total_
_funds_
_2021_
_£_
_443,638_
_70,150_
_5,163_|
|||_518,951_|
Page 20
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **5. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2022**
**£**
Unrestricted
339,216
Orphans Growth & Development
-
Health & Wellbeing
-
Emergency
-
Islamic Education
-
**Total 2022**
339,216
_Unrestricted_
_funds_
_2021_
_£_
Unrestricted
_494,849_
Orphans Growth & Development
_-_
Health & Wellbeing
_-_
Emergency
_-_
Islamic Education
_-_
_Total 2021_
_494,849_|**Restricted**
**funds**
**2022**
**£**
-
537,217
501,747
274,270
61,000
1,374,234
_Restricted_
_funds_
_2021_
_£_
_-_
_476,941_
_579,889_
_997,526_
_50,336_
_2,104,692_|**Total**
**2022**
**£**
**339,216**
**537,217**
**501,747**
**274,270**
**61,000**|
|---|---|---|
|||**1,713,450**|
|||_Total_
_2021_
_£_
_494,849_
_476,941_
_579,889_
_997,526_
_50,336_|
|||_2,599,541_|
Attributable to activities undertaken directly and support costs (see note 6).
Page 21
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **6. Analysis of expenditure by activities**
|Unrestricted
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
**Total 2022**|**Activities**
**undertaken**
**directly**
**2022**
**£**
958
-
31,900
-
21,000
53,858|**Support**
**costs**
**2022**
**£**
338,258
537,217
469,847
274,270
40,000
1,659,592|**Total**
**funds**
**2022**
**£**
**339,216**
**537,217**
**501,747**
**274,270**
**61,000**|
|---|---|---|---|
||||**1,713,450**|
|Unrestricted
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
_Total 2021_|_Activities_
_undertaken_
_directly_
_2021_
_£_
_1,750_
_9,000_
_42,299_
_-_
_7,000_
_60,049_|_Support_
_costs_
_2021_
_£_
_493,099_
_467,941_
_537,590_
_997,526_
_43,336_
_2,539,492_|_Total_
_funds_
_2021_
_£_
_494,849_
_476,941_
_579,889_
_997,526_
_50,336_|
|---|---|---|---|
||||_2,599,541_|
Page 22
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **6. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|**Unrestricted**
**2022**
**£**
Orphans Growth & Development
-
Health & Wellbeing
958
**Total 2022**
958
_Unrestricted_
_2021_
_£_
Orphans Growth & Development
_-_
Health & Wellbeing
_-_
Emergency
_-_
Islamic Education
_1,750_
_Total 2021_
_1,750_|**Orphans**
**Growth &**
**Development**
**2022**
**£**
-
-
-
_Orphans_
_Growth &_
_Development_
_2021_
_£_
_9,000_
_-_
_-_
_-_
_9,000_|**Health &**
**Wellbeing**
**2022**
**£**
-
31,900
31,900
_Health &_
_Wellbeing_
_2021_
_£_
_-_
_42,299_
_-_
_-_
_42,299_|**Islamic**
**Education**
**2022**
**£**
21,000
-
21,000
_Islamic_
_Education_
_2021_
_£_
_-_
_-_
_7,000_
_-_
_7,000_|**Total**
**funds**
**2022**
**£**
**21,000**
**32,858**|
|---|---|---|---|---|
|||||**53,858**|
|||||_Total_
_funds_
_2021_
_£_
_9,000_
_42,299_
_7,000_
_1,750_|
|||||_60,049_|
Page 23
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **6. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|**Unrestricted**
**2022**
**£**
Staff costs
82,734
Travel, subsistence and motor expenses
58,572
IT consumables, softwares and subscriptions
21,006
Printing, postage and stationery
4,549
Telephone and internet
1,037
Legal, professional and consultancy fee
101,875
Project costs
68,485
**Total 2022**
338,258
Staff costs
Travel, subsistence and motor expenses
IT consumables, softwares and subscriptions
Printing, postage and stationery
Telephone and internet
Legal, professional and consultancy fee
Project costs
**Total 2022**|**Orphans**
**Growth &**
**Development**
**2022**
**£**
27,430
16,743
-
-
-
1,100
491,944||**Health &**
**Wellbeing**
**2022**
**£**
-
21,531
-
-
-
-
448,316||**Emergency**
**2022**
**£**
-
4,479
-
-
-
-
269,791|
|---|---|---|---|---|---|
|||||||
||537,217||469,847||274,270|
||||**Islamic**
**Education**
**2022**
**£**
-
-
-
-
-
-
40,000
40,000||**Total**
**funds**
**2022**
**£**
**110,164**
**101,325**
**21,006**
**4,549**
**1,037**
**102,975**
**1,318,536**
**1,659,592**|
|||||||
|||||||
Page 24
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **6. Analysis of expenditure by activities (continued)**
## **Analysis of support costs (continued)**
|Staff costs
Travel, subsistence and motor expenses
IT consumables, softwares and subscriptions
Printing, postage and stationery
Telephone and internet
Legal, professional and consultancy fee
Project costs
_Total 2021_
Staff costs
Travel, subsistence and motor expenses
IT consumables, softwares and subscriptions
Printing, postage and stationery
Telephone and internet
Legal, professional and consultancy fee
Project costs
_Total 2021_|_Unrestricted_
_2021_
_Orphans_
_Growth &_
_Development_
_2021_
_£_
_£_
_130,142_
_-_
_940_
_(198)_
_11,360_
_-_
_2,499_
_-_
_6,943_
_-_
_83,754_
_-_
_257,461_
_468,139_
_493,099_
_467,941_|_Health &_
_Wellbeing_
_2021_
_£_
_-_
_-_
_-_
_-_
_-_
_22,227_
_515,363_
_537,590_
_Islamic_
_Education_
_2021_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_43,336_
_43,336_|_Emergency_
_2021_
_£_
_-_
_1,938_
_-_
_-_
_-_
_-_
_995,588_|
|---|---|---|---|
|||||
||||_997,526_|
||||_Total_
_funds_
_2021_
_£_
_130,142_
_2,680_
_11,360_
_2,499_
_6,943_
_105,981_
_2,279,887_|
||||_2,539,492_|
Page 25
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **7. Governance costs**
|**Unrestricted**
**funds**
**2022**
**£**
Accountancy fee
20,625
Auditor's remuneration
7,200
Auditor's fee - non-audit services
2,400
Rent and rates
44,242
Bank charges and other financial expenses
83,112
Sundry expenses
12,747
Depreciation
3,300
**Total 2022**
173,626
_Unrestricted_
_funds_
_2021_
_£_
Accountancy fee
_5,230_
Auditor's remuneration
_7,200_
Auditor's fee - non-audit services
_2,400_
Rent and rates
_19,113_
Bank charges and other financial expenses
_25,771_
Sundry expenses
_3,934_
Depreciation
_2,651_
_Total 2021_
_66,299_|**Restricted**
**funds**
**2022**
**£**
-
-
-
-
-
113
-
113
_Restricted_
_funds_
_2021_
_£_
_-_
_-_
_-_
_1,560_
_41,279_
_-_
_-_
_42,839_|**Total**
**funds**
**2022**
**£**
**20,625**
**7,200**
**2,400**
**44,242**
**83,112**
**12,860**
**3,300**|
|---|---|---|
|||**173,739**|
|||_Total_
_funds_
_2021_
_£_
_5,230_
_7,200_
_2,400_
_20,673_
_67,050_
_3,934_
_2,651_|
|||_109,138_|
Page 26
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **8. Staff costs**
|Wages and salaries
Social security costs|**2022**
**£**
**103,461**
**6,703**
**110,164**|_2021_
_£_
_127,363_
_2,779_|
|---|---|---|
||||
|||_130,142_|
The average number of persons employed by the Charity during the year was as follows:
||**2022**|_2021_|
|---|---|---|
||**No.**|_No._|
|Staff|**6**|_7_|
No employee received remuneration amounting to more than £60,000 in either year.
## **9. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2021 - £NIL)_ .
During the year ended 31 August 2022, no Trustee expenses have been incurred _(2021 - £NIL)_ .
Page 27
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **10. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2021
Additions
At 31 August 2022
**Depreciation**
At 1 September 2021
Charge for the year
At 31 August 2022
**Net book value**
At 31 August 2022
_At 31 August 2021_|**Fixtures and**
**fittings**
**£**
**1,110**
**599**
**1,709**
**364**
**342**
**706**
**1,003**
_746_|**Office**
**equipment**
**£**
**12,143**
**2,645**
**14,788**
**2,924**
**2,958**
**5,882**
**8,906**
_9,219_|**Total**
**£**
**13,253**
**3,244**|
|---|---|---|---|
||||**16,497**|
||||**3,288**
**3,300**|
||||**6,588**|
||||**9,909**|
||||_9,965_|
Page 28
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **11. Debtors**
|**Due after more than one year**
Other debtors
**Due within one year**
Other debtors|**2022**
**£**
**-**
**2022**
**£**
**124,900**|_2021_
_£_
_19,900_|
|---|---|---|
|||_2021_
_£_
_100,100_|
Included in debtors is the interest free loan of £120,000 provided to, The Lighthouse Initiative (charity number 1193251) in 2021, a registered charity under charities commission. In exchange for interest, The Lighthouse Initiative has agreed to project Mercy To Humanity work amongst potential donors by way of providing its platform for the purpose of fundraising. The outstanding balance on the loan as at year end was £19,900 (2021 - £120,000).
Also included in debtors are the short term interest free loans of £100,000 provided to, Tafseer Raheemi (charity number 1169648) and £5,000 provided to, Bedford Islaamic Centre (charity number 1145127), both of which are registered charities under charities commission. The outstanding balance as at year end was £105,000.
## **12. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**2022**
**£**
**-**
**1,444**
**-**
**15,600**
**17,044**|_2021_
_£_
_48_
_22,801_
_165,447_
_12,000_|
|---|---|---|
||||
|||_200,296_|
## **13. Members' liability**
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 or the debts and liabilities contracted before he/she ceases to be a member.
Page 29
DocuSign Envelope ID: C841E4F9-ABDE-488A-9EE0-C113ADBA4048
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **14. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
**Total of funds**|
_Balance at_
_1 September_
_2020_
_£_
_732,816_
_-_
_-_
_-_
_-_
-
_732,816_|**Balance at 1**
**September**
**2021**
**£**
**(40,243)**
**-**
**-**
**1,058**
**1,938**
**2,996**
**(37,247)**
_Income_
_£_
_327,948_
_466,500_
_590,296_
_1,026,153_
_46,670_
2,129,619
_2,457,567_|**Income**
**£**
**1,116,657**
**391,170**
**488,505**
**443,225**
**45,080**
**1,367,980**
**2,484,637**
_Expenditure_
_£_
_(1,075,732)_
_(490,322)_
_(591,749)_
_(1,025,095)_
_(44,732)_
(2,151,898)
_(3,227,630)_|**Expenditure**
**£**
**(910,196)**
**(561,467)**
**(501,860)**
**(274,270)**
**(40,000)**
**(1,377,597)**
**(2,287,793)**
_Transfers_
_in/out_
_£_
_(25,275)_
_23,822_
_1,453_
_-_
_-_
_25,275_
_-_|**Balance at**
**31 August**
**2022**
**£**
**166,218**
**(170,297)**
**(13,355)**
**170,013**
**7,018**
**(6,621)**
**159,597**
_Balance at_
_31 August_
_2021_
_£_
_(40,243)_
_-_
_-_
_1,058_
_1,938_
_2,996_
_(37,247)_|
|---|---|---|---|---|---|
|**Statement of funds - prior year**||||||
|**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
**Total of funds**||||||
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