Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**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 2024**
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**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 - 32|
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**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 2024**
|**Trustees**|Mohummed U H SAYED, Chair|
|---|---|
||Nadeem NAZ, Trustee|
||Abubaker SAYED, Trustee (resigned 30 September 2024)|
||Ahmad M H SAYED, Trustee (appointed 30 September 2024)|
|**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||
Page 1
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2024**
The Trustees present their annual report together with the audited financial statements of the Mercy To Humanity for the 1 September 2023 to 31 August 2024. 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 Guardianship program.”_ - **Nadeem Naz**
Page 2
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024**
## **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 blessings be 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 Muhammad (pbuh) would do! Our name is taken from the Prophet Muhammad (pbuh) too – ‘Mercy to Humanity’ is the title given to the Prophet Muhammad (pbuh) by God Himself.
The fact that the Prophet Muhammad (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 Muhammad (pbuh) represents an amazing humanitarian. Therefore, Mercy to Humanity has modelled all its humanitarian work on the teachings and recommendations of the Prophet Muhammad (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 Muhammad (pbuh) 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 Muhammad (pbuh) 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:
Page 3
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024**
## **Objectives and activities (continued)**
• **Food Packs** - Mercy to Humanity are distributing Food Packs to our fellow humans in Albania, Turkey, Lebanon, Pakistan, Palestinian refugees, Yemen, India, Jammu and Kashmir to allow these people to feed their families and survive. Our food packs include staple goods such as flour, oil, rice, and pasta. 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 provides 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 and Turkey 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 currently have 14 families under the Orphan Guardianship.
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 (pbuh) 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._
• **Education centre** – It will be one of our biggest accomplishments to establish an education centre in Albania, one of the poorest countries in Europe which has 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, play, rest and eat. Currently, we are using the donations we received during Ramadan to establish an education centre in Albania. We aim to provide these children with the best we can; from access to education to food. The orphanage has been designed and is currently under renovation. we are still awaiting additional funds to complete this project.
Page 4
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024**
## **Objectives and activities (continued)**
_The Prophet Muhammad (pbuh) 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)._
• **Turkey Ophanage** – We were approached by one of our Partners on the ground and given an opportunity to take over and increase the standards of a Girls orphanage in Turkey. Alhamdolillah 25 Orphaned Girls are living there. Our teams have been frequenting the orphanage and increased standards and made the orphanage a much safer place. Education being a core focus and based on investment in education we have managed to increase the academic performance of all of our girls at the orphanage. We aim to move to another location to accommodate the needs of our girls in the coming future.
• **Where we work:** Albania India Yemen Jammu & Kashmir Palestinian Refugees Turkey Lebanon Pakistan Bangladesh Uganda Tanzania Malawi
**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.
Page 5
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024**
## **Objectives and activities (continued)**
## **Our Partners**
**Orphans in Need:** Orphans in Need has a long history of serving and supporting widows and orphans in Jammu and 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 the 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 provides 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 has expanded their charity across the UK and now abroad.
**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.
**Charity Meals:** A food charity that will feed the hungry locally and globally. In a world that produces enough food for all, hunger need not exist for the millions of people afflicted with it at home and abroad. They support the most vulnerable communities in the UK. Behind every door, down every street, there are tens of thousands of old people, families, children, who are experiencing the indignity and desperation of empty fridges and emptier tummies. They also support the most vulnerable communities who are suffering in some of the poorest countries in the world, responding to the complex needs of all those they support.
**Erth al-Mustafa Foundation:** The Erth al-Mustafa Foundation is a Malaysia-based charity established on 22 December 2016. They are dedicated to humanitarian aid. Some of their projects include; food pack distributions, emergency aid to regions affected by crisis, building homes, refurbishments, providing clean water, sponsorship of orphans and family support to those in need..
Page 6
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024**
## **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. In addition, we have started community fundraising.
**We are a 100% donation-based charity, with operational costs covered through our Gift Aid and admin fund. Over 7,500 generous donors contribute small monthly amounts - ranging from £5 to £30 - which enables us to uphold our 100% donation policy. We are deeply grateful to our donors for making this possible.**
**How the charity obtains its funds:** We are extremely thankful to the public for their generous donations; this is where ALL of our charities funding comes from. We raise our funds primarily through advertising, from running Facebook and Google ads and using other platforms of social media. In addition working with volunteers who fundraise within the community.
**How we have spent our funds:** The distribution of funds is dependent on what project the donors would like to donate towards.
## **Conclusion**
This year was a challenge due to the Situation in Palestine. With donors abandoning ongoing projects and donating towards the emergency need. 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.
## **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.
Page 7
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024**
## **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.
28 June 2025
Approved by order of the members of the board of Trustees on ............................... and signed on their behalf by:
................................................
**Nadeem NAZ** (Trustee)
Page 8
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**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 2024 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 2024 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.
Page 9
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**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.
Page 10
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**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.
Page 11
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**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
30 June 2025 Date: **................................................**
Amex Associates Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 12
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024**
|**Note**
**Income from:**
Donations and legacies
2
**Total income**
**Expenditure on:**
Raising funds
3
Charitable activities
4
Governance costs
6
**Total expenditure**
**Net income/(expenditure)**
Transfers between funds
15
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2024**
**£**
**1,575,834**
**1,575,834**
**666,530**
**530,775**
**28,200**
**1,225,505**
**350,329**
**(277,582)**
**72,747**
**199,104**
**72,747**
**271,851**|**Restricted**
**funds**
**2024**
**£**
**3,697,079**
**3,697,079**
**548,517**
**3,179,416**
**-**
**3,727,933**
**(30,854)**
**277,582**
**246,728**
**98,616**
**246,728**
**345,344**|**Total**
**funds**
**2024**
**£**
**5,272,913**
**5,272,913**
**1,215,047**
**3,710,191**
**28,200**
**4,953,438**
**319,475**
**-**
**319,475**
**297,720**
**319,475**
**617,195**|_Total_
_funds_
_2023_
_£_
_2,789,923_|
|---|---|---|---|---|
|||||_2,789,923_|
|||||_449,154_
_1,795,429_
_407,217_|
|||||_2,651,800_|
|||||_138,123_
_-_|
|||||_138,123_|
|||||_159,597_
_138,123_|
|||||_297,720_|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 16 to 32 form part of these financial statements.
Page 13
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee) REGISTERED NUMBER: 12142286**
## **BALANCE SHEET AS AT 31 AUGUST 2024**
|**Note**
**Fixed assets**
Intangible assets
9
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**
**Total assets less current liabilities**
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
15
**Total funds**|**218,000**
**71,291**
**307,906**
**597,197**
**(85,298)**|**2024**
**£**
**60,143**
**45,153**
**105,296**
**511,899**
**617,195**
**617,195**
**617,195**
**345,344**
**271,851**
**617,195**|_100,000_
_15,000_
_172,889_
_287,889_
_(16,529)_|_2023_
_£_
_-_
_26,360_|
|---|---|---|---|---|
|||||_26,360_
_271,360_|
|||||_297,720_|
|||||_297,720_|
||||||
|||||_297,720_|
|||||_98,616_
_199,104_|
||||||
|||||_297,720_|
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.
Page 14
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee) REGISTERED NUMBER: 12142286**
## **BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2024**
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
28 June 2025
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 32 form part of these financial statements.
Page 15
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **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.
## **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: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **1. Accounting policies (continued)**
## **1.4 Intangible assets and amortisation**
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
The estimated useful lives are as follows:
Computer software and website - 10 years development
## **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.
Page 17
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **1. Accounting policies (continued)**
## **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.
## **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**
|Donations
Donations|**Unrestricted**
**funds**
**2024**
**£**
1,575,834
_Unrestricted_
_funds_
_2023_
_£_
_1,353,175_|**Restricted**
**funds**
**2024**
**£**
3,697,079
_Restricted_
_funds_
_2023_
_£_
_1,436,748_|**Total**
**funds**
**2024**
**£**
**5,272,913**|
|---|---|---|---|
||||_Total_
_funds_
_2023_
_£_
_2,789,923_|
Page 18
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **3. Expenditure on raising funds**
## **Costs of raising voluntary income**
|**Unrestricted**
**funds**
**2024**
**£**
Fundraising and advertisement
495,836
Fundraising consultancy
110,894
Fundraising platform fee
59,800
**Total 2024**
666,530
_Unrestricted_
_funds_
_2023_
_£_
Fundraising and advertisement
_317,136_
Fundraising consultancy
_99,319_
_Total 2023_
_416,455_|**Restricted**
**funds**
**2024**
**£**
247,516
133,696
167,305
548,517
_Restricted_
_funds_
_2023_
_£_
_12,452_
_20,247_
_32,699_|**Total**
**funds**
**2024**
**£**
**743,352**
**244,590**
**227,105**|
|---|---|---|
|||**1,215,047**|
|||_Total_
_funds_
_2023_
_£_
_329,588_
_119,566_|
|||_449,154_|
Page 19
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **4. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Unrestricted
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
**Total 2024**
Unrestricted
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
_Total 2023_|**Unrestricted**
**funds**
**2024**
**£**
530,775
-
-
-
-
530,775
_Unrestricted_
_funds_
_2023_
_£_
_541,722_
_-_
_-_
_-_
_-_
_541,722_|**Restricted**
**funds**
**2024**
**£**
-
649,133
634,116
1,489,281
406,886
3,179,416
_Restricted_
_funds_
_2023_
_£_
_-_
_307,077_
_548,074_
_358,279_
_40,277_
_1,253,707_|**Total**
**2024**
**£**
**530,775**
**649,133**
**634,116**
**1,489,281**
**406,886**|
|---|---|---|---|
||||**3,710,191**|
||||_Total_
_2023_
_£_
_541,722_
_307,077_
_548,074_
_358,279_
_40,277_|
||||_1,795,429_|
Attributable to activities undertaken directly and support costs (see note 5).
Page 20
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **5. Analysis of expenditure by activities**
|Unrestricted
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
**Total 2024**|**Activities**
**undertaken**
**directly**
**2024**
**£**
66
479,192
565,728
1,039,635
204,714
2,289,335|**Support**
**costs**
**2024**
**£**
530,709
169,941
68,388
449,646
202,172
1,420,856|**Total**
**funds**
**2024**
**£**
**530,775**
**649,133**
**634,116**
**1,489,281**
**406,886**|
|---|---|---|---|
||||**3,710,191**|
|Unrestricted
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
_Total 2023_|_Activities_
_undertaken_
_directly_
_2023_
_£_
_24,811_
_63,868_
_115,472_
_271,381_
_22,619_
_498,151_|_Support_
_costs_
_2023_
_£_
_516,911_
_243,209_
_432,602_
_86,898_
_17,658_
_1,297,278_|_Total_
_funds_
_2023_
_£_
_541,722_
_307,077_
_548,074_
_358,279_
_40,277_|
|---|---|---|---|
||||_1,795,429_|
Page 21
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **5. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|**Unrestricted**
**2024**
**£**
Orphans Growth & Development
66
Health & Wellbeing
-
Emergency
-
**Total 2024**
66
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
**Total 2024**|**Orphans**
**Growth &**
**Developme**
**nt**
**2024**
**£**
478,692
-
500
479,192|**Health &**
**Wellbeing**
**2024**
**£**
-
565,728
-
565,728
**Islamic**
**Education**
**2024**
**£**
-
-
-
204,714
204,714|**Emergency**
**2024**
**£**
-
-
1,039,635|
|---|---|---|---|
|||||
||||1,039,635|
||||**Total**
**funds**
**2024**
**£**
**478,758**
**565,728**
**1,040,135**
**204,714**|
||||**2,289,335**|
Page 22
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **5. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs (continued)**
|Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
_Total 2023_
Orphans Growth & Development
Health & Wellbeing
Emergency
Islamic Education
_Total 2023_|_Unrestricted_
_2023_
_Orphans_
_Growth &_
_Development_
_2023_
_£_
_£_
_-_
_63,868_
_320_
_-_
_-_
_-_
_24,491_
_-_
_24,811_
_63,868_|_Health &_
_Wellbeing_
_2023_
_£_
_-_
_115,472_
_-_
_-_
_115,472_
_Islamic_
_Education_
_2023_
_£_
_-_
_-_
_-_
_22,619_
_22,619_|_Emergency_
_2023_
_£_
_-_
_-_
_271,381_
_-_|
|---|---|---|---|
|||||
||||_271,381_|
||||_Total_
_funds_
_2023_
_£_
_63,868_
_115,792_
_271,381_
_47,110_|
||||_498,151_|
Page 23
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **5. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|**Unrestricted**
**2024**
**£**
Staff costs
105,287
Depreciation and amortisation
21,677
Rent and rates
144,721
Travel, subsistence and motor expenses
48,760
IT consumables, softwares and subscriptions
114,737
Printing, postage and stationery
18,844
Telephone and internet
16,997
Legal, professional and consultancy fee
50,641
Bank charges and other financial costs
3,214
Sundry expenses
5,831
**Total 2024**
530,709
Staff costs
Depreciation
Rent and rates
Travel, subsistence and motor expenses
IT consumables, softwares and subscriptions
Printing, postage and stationery
Telephone and internet
Legal, professional and consultancy fee
Bank charges and other financial costs
Sundry expenses
**Total 2024**|**Orphans**
**Growth &**
**Developme**
**nt**
**2024**
**£**
57,714
-
9
62,119
1,468
406
-
48,168
-
57
169,941|**Health &**
**Wellbeing**
**2024**
**£**
29,267
-
-
5,833
-
985
-
32,303
-
-
68,388
**Islamic**
**Education**
**2024**
**£**
-
-
67,719
499
80,073
15,189
-
33,958
-
4,734
202,172|**Emergency**
**2024**
**£**
105,432
-
627
249,209
7,642
147
44
86,545
-
-|
|---|---|---|---|
|||||
||||449,646|
||||**Total**
**funds**
**2024**
**£**
**297,700**
**21,677**
**213,076**
**366,420**
**203,920**
**35,571**
**17,041**
**251,615**
**3,214**
**10,622**|
||||**1,420,856**|
Page 24
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **5. 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 2023_
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 2023_|_Unrestricted_
_2023_
_Orphans_
_Growth &_
_Development_
_2023_
_£_
_£_
_165,873_
_-_
_73,096_
_24,900_
_24,801_
_500_
_7,852_
_960_
_7,639_
_-_
_180,365_
_1,899_
_57,285_
_214,950_
_516,911_
_243,209_|_Health &_
_Wellbeing_
_2023_
_£_
_65,116_
_63,550_
_-_
_1,124_
_-_
_38,391_
_264,421_
_432,602_
_Islamic_
_Education_
_2023_
_£_
_-_
_-_
_2,478_
_-_
_-_
_4,434_
_10,746_
_17,658_|_Emergency_
_2023_
_£_
_-_
_47,748_
_3,047_
_6,553_
_-_
_28,650_
_900_|
|---|---|---|---|
|||||
||||_86,898_|
||||_Total_
_funds_
_2023_
_£_
_230,989_
_209,294_
_30,826_
_16,489_
_7,639_
_253,739_
_548,302_|
||||_1,297,278_|
Page 25
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **6. Governance costs**
|Accountancy fee
Auditor's remuneration
Auditor's fee - non-audit services
**Total 2024**
Accountancy fee
Auditor's remuneration
Auditor's fee - non-audit services
Rent and rates
Bank charges and other financial expenses
Sundry expenses
Depreciation
_Total 2023_|_Unrestricted_
_funds_
_2023_
_£_
_33,519_
_7,200_
_2,400_
_167,036_
_101,046_
_42,674_
_8,237_
_362,112_|**Unrestricted**
**funds**
**2024**
**£**
18,000
7,200
3,000
28,200
_Restricted_
_funds_
_2023_
_£_
_-_
_-_
_-_
_9,873_
_-_
_35,232_
_-_
_45,105_|**Total**
**funds**
**2024**
**£**
**18,000**
**7,200**
**3,000**|
|---|---|---|---|
||||**28,200**|
||||_Total_
_funds_
_2023_
_£_
_33,519_
_7,200_
_2,400_
_176,909_
_101,046_
_77,906_
_8,237_|
||||_407,217_|
Page 26
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **7. Staff costs**
|Wages and salaries
Social security costs
Employer pension contributions|**2024**
**£**
**278,247**
**20,350**
**(897)**
**297,700**|_2023_
_£_
_214,652_
_14,272_
_2,065_|
|---|---|---|
||||
|||_230,989_|
The average number of persons employed by the Charity during the year was as follows:
||**2024**|_2023_|
|---|---|---|
||**No.**|_No._|
|Staff|**10**|_13_|
No employee received remuneration amounting to more than £60,000 in either year.
## **8. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2023 - £NIL)_ .
During the year ended 31 August 2024, no Trustee expenses have been incurred _(2023 - £NIL)_ .
Page 27
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2024**||
|---|---|
|**9.**
**Intangible assets**
**Cost**
Additions
At 31 August 2024
**Amortisation**
Charge for the year
At 31 August 2024
**Net book value**
At 31 August 2024
_At 31 August 2023_|**Computer**
**software and**
**Website**
**development**
**£**
**66,826**
**66,826**
**6,683**
**6,683**
**60,143**
_-_|
Page 28
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **10. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2023
Additions
At 31 August 2024
**Depreciation**
At 1 September 2023
Charge for the year
At 31 August 2024
**Net book value**
At 31 August 2024
_At 31 August 2023_|**Fixtures and**
**fittings**
**£**
**13,487**
**4,383**
**17,870**
**3,403**
**3,574**
**6,977**
**10,893**
_10,084_|**Office**
**equipment**
**£**
**27,698**
**29,404**
**57,102**
**11,422**
**11,420**
**22,842**
**34,260**
_16,276_|**Total**
**£**
**41,185**
**33,787**|
|---|---|---|---|
||||**74,972**|
||||**14,825**
**14,994**|
||||**29,819**|
||||**45,153**|
||||_26,360_|
Page 29
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **11. Debtors**
|**Due after more than one year**
Other debtors
**Due within one year**
Other debtors
Prepayments and accrued income|**2024**
**£**
**218,000**
**2024**
**£**
**50,458**
**20,833**
**71,291**|_2023_
_£_
_100,000_|
|---|---|---|
|||_2023_
_£_
_15,000_
_-_|
||||
|||_15,000_|
Included in other debtors is the interest free loan of £100,000 provided to, Hadhrat Shaykh Muhammad Zakariyya Foundation (charity number 1200619) in 2023, a registered charity under charities commission. In exchange for interest, Hadhrat Shaykh Mohammad Zakariyya Foundation has agreed to project Mercy To Humanity work amongst potential donors by way of providing assistance with Kids for Orphan Campaign and potential collaboration as delivery partner in Albania. The outstanding balance on the loan as at year end was £100,000 (2023 - £100,000).
Included in other debtors is the interest free loan of £150,000 provided to, Azhar Academy (charity number 1080849) in 2024, a registered charity under charities commission. In exchange for interest, Azhar Academy has agreed to project Mercy To Humanity work amongst potential donors by way of providing assistance with long term fundraising activities with all students under Azhar Academy. The outstanding balance on the loan as at year end was £150,000.
All other loans were paid off during the year.
Page 30
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **12. Creditors: Amounts falling due within one year**
|Bank overdrafts
Trade creditors
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income|**2024**
**£**
**1,251**
**(148)**
**5,715**
**453**
**67,827**
**10,200**
**85,298**|_2023_
_£_
_279_
_-_
_4,275_
_-_
_-_
_11,975_|
|---|---|---|
||||
|||_16,529_|
Mercy to Humanity works in close partnership with Miresi per Boten, a charity operating in Albania (registration number/ Nipt: M036223371) with aligned charitable objectives and offices in Lagja "Syrja Dylgjeri", Rruga "25 Nentori", Pall 436, Elbasaan, Albania. The two organisations are separate legal entities, but collaborate under a Memorandum of Agreement dated 5 January 2021, which formalises their operational relationship.
Included in other creditors is the amount of £67,827 held on behalf of Miresi per Boten. The balance relates to funds held at year end, designated for use by Miresi per Boten in furtherance of shared charitable objectives. As Miresi per Boten does not currently operate its own bank account in the UK, Mercy to Humanity temporarily holds these funds on its behalf.
The arrangement is interest free and has been entered into solely to support the operational needs of Miresi per Boten. The full amount remains payable as at year end.
## **13. Operating lease commitments**
At 31 August 2024 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**2024**
**£**
**102,042**
**272,643**
**374,685**|_2023_
_£_
_89,158_
_374,685_|
|---|---|---|
||||
|||_463,843_|
## **14. 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 31
Docusign Envelope ID: C78D69D9-FEED-41F6-AF8A-3B81EA930063
**MERCY TO HUMANITY (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024**
## **15. Statement of funds**
## **Statement of funds - current year**
||**Balance at 1**||||**Balance at**|
|---|---|---|---|---|---|
||**September**|||**Transfers**|**31 August**|
||**2023**|**Income**
**Expenditure**||**in/out**|**2024**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||
|General Funds - all funds|**199,104**|**1,575,834**|**(1,225,505)**|**(277,582)**|**271,851**|
|**Restricted funds**||||||
|Orphans Growth &||||||
|Development|**2,339**|**836,401**|**(806,718)**|**-**|**32,022**|
|Health & Wellbeing|**(7,626)**|**435,074**|**(705,030)**|**277,582**|**-**|
|Emergency|**81,179**|**1,826,795**|**(1,653,441)**|**-**|**254,533**|
|Islamic Education|**22,724**|**598,809**|**(562,744)**|**-**|**58,789**|
||**98,616**|**3,697,079**|**(3,727,933)**|**277,582**|**345,344**|
|**Total of funds**|**297,720**|**5,272,913**|**(4,953,438)**|**-**|**617,195**|
|**Statement of funds - prior**|**year**|||||
|||_Balance at_|||_Balance at_|
|||_1 September_|||_31 August_|
|||_2022_|_Income_|_Expenditure_|_2023_|
|||_£_|_£_|_£_|_£_|
|**Unrestricted funds**||||||
|General Funds - all funds||_166,218_|_1,353,175_|_(1,320,289)_|_199,104_|
|**Restricted funds**||||||
|Orphans Growth & Development||_(170,297)_|_489,252_|_(316,616)_|_2,339_|
|Health & Wellbeing||_(13,355)_|_565,878_|_(560,149)_|_(7,626)_|
|Emergency||_170,013_|_269,639_|_(358,473)_|_81,179_|
|Islamic Education||_7,018_|_111,979_|_(96,273)_|_22,724_|
|||_(6,621)_|_1,436,748_|_(1,331,511)_|_98,616_|
|**Total of funds**||_159,597_|_2,789,923_|_(2,651,800)_|_297,720_|
Page 32