**Charity registration number 1198352**
**Company registration number CE028676 (England and Wales)**
**MORTGAGE ADVICE BUREAU FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022**
## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr Peter Brodnicki|(Appointed 23 March 2022)|
|---|---|---|
||Mr Benjamin Thompson|(Appointed 23 March 2022)|
||Mrs Lucy Tilley|(Appointed 23 March 2022)|
||Mrs Alison Crossley-Mintern|(Appointed 20 April 2022)|
||Mrs Esther Dijksta|(Appointed 19 April 2022)|
||Mr Simon Frankish|(Appointed 23 March 2022)|
||Mr Fabien Holler|(Appointed 23 March 2022)|
|**Charity number**|1198352||
|**Company number**|CE028676||
|**Registered office**|Capital House||
||Pride Place||
||Pride Park||
||Derby||
||DE24 8QR||
|**Independent examiner**|PKF Smith Cooper Limited||
||Prospect House||
||1 Prospect Place||
||Pride Park||
||Derby||
||DE24 8HG||
## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 4|
|Independent examiner's report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Notes to the financial statements|8 - 12|
## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
The trustees present their annual report and financial statements for the period ended 31 December 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Foundation's constitution, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
## **Objectives and activities**
The Foundation’s charitable objectives are to advance such charitable purposes (according to the law of England and Wales) for the public benefit as the Trustees see fit from time to time, primarily by providing grants and volunteer support to charities and/or other organisations and with a particular focus on health and wellbeing, the prevention of poverty and combating the effects of climate change.
Our vision is to empower our staff, business partners and customers to come together to tackle issues of local importance by supporting the initiatives through grant funding to local charities and community groups. Our mission is to deliver £1m of grant funding over the next 5 years.
The Trustees confirm that they have complied with their duty to have regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.
The Foundation supports charities, and community interest companies across England, Scotland, and Wales principally through financial grants for specific projects. Grants from £500 to £5,000 are made on a rolling basis throughout the year. The Trustees have the ability to award larger grants should they see fit to do so.
Funding is limited to a maximum of £5,000 or 50% of the total project cost (whichever is the lesser). The charity or CIC will need to raise its share of the project cost for the grant to be released. Exceptions can be made at the Trustees discretion.
The Foundation has partnered with Crowdfunder to provide a platform for all our projects. They help assess the charitable status of the project and provide a clear audit trail of funds raised for money laundering purposes. The Foundation has entered into a 12-month contract with Crowdfunder to provide this service.
There are no income limits on organisations supported, but the focus is on supporting wherever possible smaller, local, grassroots organisations that are volunteer led.
The Foundation also works in partnership with Mortgage Advice Bureau and its network of business partners to support community projects through volunteering.
The Foundation helps coordinated group volunteering activities throughout the year and is supported by Mortgage Advice Bureau who provide all head office staff with 2 days of fully paid leave to work with these local charities.
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **Grant making policy**
The Trustees ensure proper governance of the Foundation’s grant-making in three ways.
a) Through grant-making principles which ensure that, even where there is donor or funding partner involvement, decisions are ultimately made by the Foundation's Trustees.
b) Through published grant-making criteria which set out the activities the Trustees wish to support in furtherance of the Foundation’s charitable objectives. The criteria also include activities which the trustees do not wish to support because they do not consider them to be in line with the Foundation’s purpose.
c) Through grant-making processes which set out how decisions are reached for awarding grants from different types of funds at the Foundation.
A committee made up of 8 independent individuals from Mortgage Advice Bureaus business partners and led by the Chief Executive has been designated responsibility for initial assessment of all grant applications. Each application is first scored using an assessment rubric, which assesses the application against four criteria:
- Focus (30%) - Impact (30%) - Risk (20%) - Organisation (20%)
Scores are tabulated, and applications further reviewed by the Trustees prior to a final funding decision.
The Foundation operates a transparent approach to grant making, and all grants made are listed on the Foundation's website.
The Foundation raises income by fundraising from Mortgage Advice Bureau and their employees, suppliers and business partners. It is committed to best practice in all fundraising activities, in line with the Code of Fundraising Practice and the Fundraising Promise. No complaints have been registered with the regulator against the Foundation in the year under review.
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **Achievements and performance**
The Foundation was awarded charitable status in March 2022 but did not start issuing grants until September 2022. The initial months of the charity were focused around embedding the required governance and policies to enable the Foundation to operate effectively. The achievements during this time included:
- Initial policies created, reviewed, and approved for use
- Governance structure created, and board meetings formalised
- Development and launch of the Foundation website
- Agreement reached with Crowdfunder to provide funding platform for successful applications
- Development of a strategic plan and grant making focus
- Registration with the Charity Commission
- Social media channels established, and online presence developed
- Google AdWords grant secured and implemented
- Foundation successfully launched internally to Mortgage Advice Bureau employees
- Grant making framework established
## Fundraising
Total income for the year was £29,764. Key achievements relating to fundraising included:
- Golf Day at the Forest of Arden Golf Club
- Raffle at Mortgage Advice Bureau’s National Sales Conference
- Generated donations from several corporate partners through the 500 Club
- Funding donated from Mortgage Advice Bureau
The Trustees would like to thank everyone who supported the foundation throughout the year for their kindness and generosity.
## Grant making
The Foundation officially launched its grant making policy in September 2022. In the period to 31 December 2022 the Foundation issued its first grants totalling £6,140 which involved us working with 3 different charities. Although these grants were comparably small, the feedback from the organisations receiving them has demonstrated that they have had a discernible positive impact on service users.
## **Financial review**
The Foundation received a total income of £29,843 during the financial year and ended the year with £20,055 cash at bank. Total operating costs for the year were £6,599 with an event expenditure of £6,139.
The Trustees have agreed on building a reserves policy of three month's operating costs. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Foundation's current activities. Additional funds held over this at year end will be allocated to the next round of grant awards.
The Trustees consider there to be no material concerns for the Foundation’s ability to continue as a going concern. With the initial phase of the Foundation’s regulatory and operational framework now completed, Trustees are optimistic that the next financial year should see increased financial performance and a higher level of grant making in relation to other expenditure.
There are no funds or subsidiary undertakings in deficit.
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **Structure, governance and management**
The Foundation is registered as a Charitable Incorporated Organisation (CIO) in England and Wales. The governing document is its constitution, dated 15 December 2021, which sets out the Foundation’s charitable objectives.
The Trustees who were all appointed on the setting up of the Foundation are set out on page 1.
Apart from the first Foundation Trustees, every Trustee must be appointed by a resolution passed at a properly convened meeting of the Foundation Trustees. New Trustees are selected for appointment by the existing Trustees, with due regard to the skills, experience, and knowledge needed for the effective administration of the Foundation. Appointment of Trustees wherever possible must provide for at least two members of the board (or one third, whichever is greater) to be external of Mortgage Advice Bureau and its subsidiaries. The current board is comprised of five Trustees from Mortgage Advice Bureau and two external members.
The Trustees meet quarterly and set the strategic goals for the Foundation, including the selection of grantees, strategic charity partnerships, and any external promotion. The Trustees retain responsibility for all policy and decision making. Daily management of the Foundation is undertaken by the Foundation CEO.
No Trustee received any remuneration, benefits, or expenses in the financial year.
Mortgage Advice Bureau Ltd is a related party of the Foundation and provided goods and services of nominal value without charge, along with the use of office space, IT equipment, and other sundry items. The Trustees would like to extend their gratitude for this support in kind.
The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:
Mr Peter Brodnicki (Appointed 23 March 2022) Mr Benjamin Thompson (Appointed 23 March 2022) Mrs Lucy Tilley (Appointed 23 March 2022) Mrs Alison Crossley-Mintern (Appointed 20 April 2022) Mrs Esther Dijksta (Appointed 19 April 2022) Mr Simon Frankish (Appointed 23 March 2022) Mr Fabien Holler (Appointed 23 March 2022)
**----- Start of picture text -----**
The Trustees report was approved by the Board of Trustees.
..............................
Mrs Lucy Tilley
Chair of the Trustees
Date: .............................................
**----- End of picture text -----**
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF MORTGAGE ADVICE BUREAU FOUNDATION**
I report to the trustees on my examination of the financial statements of Mortgage Advice Bureau Foundation (the Foundation) for the period ended 31 December 2022.
## **Responsibilities and basis of report**
As the trustees of the Foundation (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Foundation are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Foundation’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the Foundation as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **PKF Smith Cooper Limited**
Prospect House 1 Prospect Place Pride Park Derby DE24 8HG
30/10/2023 Dated: .........................
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
|||**Unrestricted**|
|---|---|---|
|||**funds**|
|||**2022**|
||**Notes**|**£**|
|**Income from:**|||
|Donations and legacies|**3**|29,843|
|**Expenditure on:**|||
|Charitable activities|**4**|12,738|
|**Net income for the period/**|||
|**Net movement in funds**||17,105|
|Fund balances at 23 March 2022||-|
|**Fund balances at 31 December 2022**||17,105|
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2022**_
|**2022**
**Notes**
**£**
**Fixed assets**
Intangible assets
**9**
Tangible assets
**10**
**Current assets**
Debtors
**11**
3,613
Cash at bank and in hand
20,055
23,668
**Creditors: amounts falling due within one year**
**12**
(28,226)
Net current liabilities
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**£**
21,600
63
21,663
(4,558)
17,105
17,105
17,105|
|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 31 December 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................
.............................. Mr Simon Frankish **Trustee**
## **Company registration number CE028676**
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **Charity information**
Mortgage Advice Bureau Foundation is a public benefit entity and a registered charity incorporated in England and Wales. The registered office is Capital House, Pride Place, Pride Park, Derby, DE24 8QR.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Foundation's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 Foundation is a Public Benefit Entity as defined by FRS 102.
The Foundation has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
## **1.4 Income**
Income is recognised when the Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount.
## **1.5 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 are allocated on the portion of the asset’s use.
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
**(Continued)**
## **1.6 Intangible fixed assets other than goodwill**
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software over 5 years
## **1.7 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment 20% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **2 Critical accounting estimates and judgements**
In the application of the Foundation’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted**|
|---|---|
||**funds**|
||**2022**|
||**£**|
|Donations and gifts|29,843|
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **4 Charitable activities**
||**Grant**|
|---|---|
||**making**|
||**2022**|
||**£**|
|Pledges|6,139|
|Share of support costs (see note 5)|4,088|
|Share of governance costs (see note 5)|2,511|
||12,738|
## **5 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Depreciation
2,416
-
Website costs
1,348
-
Bank charges
1
-
Printing and postage
263
-
General expenses
60
-
Audit fees
-
1,920
Legal and professional
-
591
4,088
2,511
Analysed between
Charitable activities
4,088
2,511|**2022**
**£**
2,416
1,348
1
263
60
1,920
591|
|---|---|
||6,599|
||6,599|
Governance costs includes payments to the auditors of £1,920 for audit fees.
## **6 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Foundation during the period.
## **7 Employees**
The average monthly number of employees during the period was:
Total -
**2022 Number**
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **7 Employees**
## **(Continued)**
There were no employees whose annual remuneration was more than £60,000.
## **8 Taxation**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## **9 Intangible fixed assets**
|**9**|**Intangible fixed assets**||
|---|---|---|
|||**Software**|
|||**£**|
||**Cost**||
||At 23 March 2022|-|
||Additions - separately acquired|24,000|
||At 31 December 2022|24,000|
||**Amortisation and impairment**||
||At 23 March 2022|-|
||Amortisation charged for the period|2,400|
||At 31 December 2022|2,400|
||**Carrying amount**||
||At 31 December 2022|21,600|
|**10**|**Tangible fixed assets**||
|||**Plant and equipment**|
|||**£**|
||**Cost**||
||Additions|79|
||At 31 December 2022|79|
||**Depreciation and impairment**||
||Depreciation charged in the period|16|
||At 31 December 2022|16|
||**Carrying amount**||
||At 31 December 2022|63|
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## **MORTGAGE ADVICE BUREAU FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2022**_
## **11 Debtors**
|**Debtors**||
|---|---|
|**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**Creditors: amounts falling due within one year**
Other creditors
Accruals and deferred income|**2022**
**£**
3,468
145|
||3,613|
||**2022**
**£**
26,306
1,920|
||28,226|
## **12 Creditors: amounts falling due within one year**
## **13 Related party transactions**
At the year end, the foundation had a debtor owing from Mortgage Advice Bureau Limited, a company in which the Trustees are also Directors, totalling £3,468. The foundation also owed Mortgage Advice Bureau Limited £26,306 in respect of expenses incurred on their behalf during the year.
The foundation received £28,468 in donations from Mortgage Advice Bureau Limited during the year.
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