2020-12-31-accounts - Middle East Media

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REGISTERED CHARITY NUMBER: 271373

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31 December 2020

for

Middle East Media

A J Bennewith FCA, FCPA, FFA, FFTA, FIPA, DChA, FRSA 3 Wey Court Mary Road Guildford Surrey GU1 4QU

Middle East Media

Contents of the Financial Statements for the Year Ended 31 December 2020

		Page
Report of the Trustees	1	to 3
Independent Examiner's Report		4
Statement of Financial Activities		5
Balance Sheet		6
Cash Flow Statement		7
Notes to the Cash Flow Statement		8
Notes to the Financial Statements	9	to 15

Middle East Media

Report of the Trustees

for the Year Ended 31 December 2020

The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Object

The object of Middle East Media is:

" The advancement of education through media, inspired by the principles of the Christian faith, promoting human rights in all or any part of the world, in particular the Middle East and North Africa (MENA)."

Effect of Covid - 19 on Activities

Thankfully, the Coronavirus crisis has had little negative impact on our work in the UK. We give grateful thanks for the continued support and donations from all. The staff continue to work from home as they have done for many years and all our meetings are taking place virtually.

Since our staff team is small, switching all our activities and events from face-to-face to online has made our life in some ways much easier and less complicated, and brought some additional benefits. For instance, we celebrated our 45th anniversary online which enabled us to welcome those who otherwise would not have been able to join us. Secondly, we hired two new part-time staff members who are helping us improve and increase our digital communications. Thirdly, we have also started new prayer meetings online, which are helping us to reconnect with our supporters in a more convenient way than before the pandemic. Lastly, we have also prayerfully developed a new 5-year fundraising strategy for 2020-2024, which includes growing church partnerships, increasing unrestricted income, developing an advocacy scheme, improving our public image and internal systems. Although 2020 has been a hard year for us all, it has highlighted just how important media is to our lives and this is no less true for the work we support in the Middle East and North Africa (MENA).

Our beneficiary partners in the MENA have been more affected due to the pandemic, partly because they have much larger teams and also many of the media projects require special equipment and for the teams to be in one studio when creating videos. Unfortunately, they have delayed some recordings, training and workshops, and travel within the region. However, the production team were still able to continue working on many projects from home and altogether for a total of 4 months in between lockdowns. As a result, there is a delay in completing some of the projects.

Activities

Our partners in the MENA region have continued to develop the creative media programmes that have helped refugees, divorced and vulnerable women, traumatised children and young people across the region. The teams in the MENA were working on over 20 different projects and at least 180 videos of different types were produced in 2020. They also engaged with people more extensively on social media and through online magazines they produced. In 2020, nearly 2,000 refugee children benefitted from their programmes and they trained over 40 people in media, leadership and using the trauma material.

There are two major shifts in the future vision starting in 2021. We are supporting our ministry partners in the MENA to move from being primarily content producers to creating life transforming media teams; from being primarily trainers to becoming mentors in media. The practical implications of these changes will mean some of the programmes we currently support will be phased out, others might be altered and new projects will emerge, but most of the projects we currently support will continue.

Page 1

Middle East Media

Report of the Trustees

for the Year Ended 31 December 2020

ACHIEVEMENT AND PERFORMANCE

Middle East Media has continued its work of informing and envisioning the individuals and grant-making bodies in the UK about the needs of the population in the MENA. In deciding what to do in the year the Trustees have had due regard to the Charity Commission's public benefit guidance.

Middle East Media, registered in England, cooperates with a charity using the same name, registered in the USA, and both work with the Middle East Media International Board which provides oversight of and reports on the projects throughout the MENA. Middle East Media has representation on the Middle East Media International Board. Donations to Middle East Media are received from individuals, grant making bodies, those supporting our core costs and churches.The Trustees wish to express their gratitude to all of the donors for their generosity and to place on record their thanks for the donation of £20,760 from the Evangelical-Lutheran Church in Wurttemberg for projects in the MENA.

The financial statements give a fair representation of the assets of the charity.

FINANCIAL REVIEW

Financial position

The result of the year was net expenditure of £ 117,259 (2019 net income of £539,857) after sending surplus funds of £43,000 to our beneficiaries in the MENA (2019: £43,000) in addition to £267,577 (2019: £219,085) specific restricted donations. Middle East Media plans to continue current fundraising activities and, if funds allow, they will undertake fundraising in new areas.

We have not seen any substantial decrease in our income, but we have considered potential risks and have established a risk management plan. We are increasing our general reserves from 3 months to 6 months of operational costs. We have not cut back on any project support nor furloughed any staff. No government aid or incentives have been required. We are working to increase our unrestricted funding. The example was our investment in a large campaign with Premier Christianity that attracted new supporters.

The large legacy that we received from a European supporter in 2019 has enabled us to dedicate more funds for development, marketing, and capacity building. The legacy is giving us a great opportunity to develop new supporters and help streamline all our processes.

Despite the challenges around us, we and our staff feel more excited than ever about the new opportunities ahead. Coronavirus has proved that media and technology are vital for every sector in the world today, and no less so than in mission.

Reserves policy

As noted above, the Trustees' aim is to maintain a reserve the equivalent of operational costs for a six month period. Reserves were above this level for both 2019 and 2020 and they plan to maintain this level in the future.

Staff and Volunteers

We need to give special thanks to our dedicated staff who have given above and beyond any expectations, to complete what has proven to be a successful and fruitful year. We also thank our supporters who have given their time and energy to promote our work and also raise funds for the projects.

Page 2

Ml t Mla Rt tht Tru forthe Year Ended 3 StRucfvRE, GOVERNANCE AND MANAGEMEP Governing document The chanty is controlled by its governing dLKumeDt, the constitution, and constitutes an unincorwrated charity- Mernbers of the charity are admitted by Board from am0 persons whose inspiraTh"on to meMbehIp is authenticated by the Board's SatfaCtiOn and who havE also indir2ted in writing their acceptance of the prinaples sét out in the Charity's Statement of Values. Membership of the charity shall terminate rf the member resigns by written notice to the Board or if the member shall be removed tythe Board after due PToce55. The affair5 of the charity are managed by 3 Board of not less than four or more than ten persons bEing Trustees ol the £harity. The 803rd invite5 eligible indiwduals to become Trustees of the charity. The Board rnay remove any member from Brd but any res011¢n to move such a member shall require io be Zpproved by not less than 75% of the Board rnembers. The Board provides strategic oversight ol Mhldle East Media which delegates as appropriatè to the UK Administration. REFERENCE AND ADMINISTRATfvE DEfAIts Registered Chaiitynumber 271373 Principal address Unit 142 23 King street Cambr1d8e Cambridgeshire CBI IA Tru5tee5 Ms F Holmef J Morris Taylor Mrs H-R Perkln Mlss R Summerfield D Hodgso W Larson (resigned 31.7.201 Independent Éxaminer AJ Bennewith FCA, FCPK FFA. FFfA, FIPA, DChA, FR Institute ol Chartered Accountants of Engkqnd and Wales A J BÈnnewiih FC& FCPA, FF& FFTA, FIPA, DChA, FRSA 3 Wey Court Mary Boad Guildford Surrev GU14QU 27" Approved by OTderof the board ottrustee3 ori..... .......-.. . and signed Dn its behalf by.. l Morn5- Trustee Page 3

to the Trustees of Independent eKarniner's rewt to ttruStee$ of Middle East Media I report to the charily trustees on my examinatlon of the accounts of Middle East Media Ithe Trust) for the year ended 31 December 2020. Re5pon5ibilitiesanrt bast5 Df rert A5 the charity trustees of the Trust you are spOnSIble for the preparation of thè accounts in arcordance with the requirements of the Charities Att 2011 Ilhe Act'l. I report in respect of my examinatsor of the Trust's accounts camed out under section 145 of the Art and in carrying out my examination I have folkjwed all applicable Directions given by the Charity Commission under sethon 14515llbl gf the Act. Independent examiner'5StatemeTht Since your chariiy's grosg income exceedÈd £250,1)tKJ your examiner must bé a member of a listed body. I can confirrn that l am qualified to undertake the e%aminalion bEcause l am a TIstered member of Institute of Chartered Accountants of England and Wblts which Is one of the listed dieS. I havÈ completed my examination. I confirm that no material matters ha¥è corne to my attenbon in connection with the ex3wnination giving me cause to believe that in any m*erial respett- accounting record5 were not kept in respect oftheTrust as reqUId by section 130 91 the Act.. or the atcounts do nDt¥iord wtth those record5'. Dr the accounts do not compty with the appIlble requirement5 conceming the and content uf accounts set out in the Charities {AcCntS and Reports? Regulat10115 2tNJ8 otner than any requirement that the accounts Ei¥e a true and fair ¥iew which is noi a matterconsidered a5 Part of an independent examination. I h3ve no concern5 and have corne a£ros5 no other m3ttef5 11 conTrertK)n with the examination to which attention should be drawn In this report in order ro enable a proper under5taDding of the accounts to be reathed. AJ Bennewith FCA, FCPA. FFA, FFf4 FIPA DChA, FRSA Institute ol Chartered Accountants ol Enand £ndWales AJ Bennewith FCA, FCPA FFA FFfA, FIPA, Dchl FRSA 3 Wey Courr Mary Road Guildford Surrev GU14QU Date.. oij Page4

Middle East Media

Statement of Financial Activities

for the Year Ended 31 December 2020

Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 181,754 Investment income 3 102 Other income 120 Total 181,976 EXPENDITURE ON Raising funds 72,598 Charitable activities Grants & Costs re MENA projects 43,385 Project Co-ordination and Support Costs 51,407 Total 167,390 NET INCOME/(EXPENDITURE) 14,586 Transfers between funds 12 18,291 Net movement in funds 32,877 RECONCILIATION OF FUNDS Total funds brought forward 58,368 TOTAL FUNDS CARRIED FORWARD 91,245	Restricted funds £ 142,476 - - 142,476 6,744 267,577 - 274,321 (131,845) (18,291) (150,136) 568,972 418,836	31.12.20 31.12.19 Total Total funds funds £ £ 324,230 935,033 102 66 120 - 324,452 935,099 79,342 70,767 310,962 263,038 51,407 61,437 441,711 395,242 (117,259) 539,857 - - (117,259) 539,857 627,340 87,483 510,081 627,340	31.12.20 31.12.19 Total Total funds funds £ £ 324,230 935,033 102 66 120 - 324,452 935,099 79,342 70,767 310,962 263,038 51,407 61,437 441,711 395,242 (117,259) 539,857 - - (117,259) 539,857 627,340 87,483 510,081 627,340
			935,099 70,767 263,038 61,437
			395,242
			539,857 -
			539,857 87,483
			627,340

The notes form part of these financial statements

Page 5

Middle East Media

Balance Sheet

31 December 2020

Unrestricted fund Notes £ FIXED ASSETS Tangible assets 9 - CURRENT ASSETS Debtors 10 569 Cash at bank and in hand 95,054 95,623 CREDITORS Amounts falling due within one year 11 (4,377) NET CURRENT ASSETS 91,246 TOTAL ASSETS LESS CURRENT LIABILITIES 91,246 NET ASSETS 91,246 FUNDS 12 Unrestricted funds Restricted funds TOTAL FUNDS	Restricted funds £ - 15,000 403,835 418,835 - 418,835 418,835 418,835	31.12.20 Total funds £ - 15,569 498,889 514,458 (4,377) 510,081 510,081 510,081 91,246 418,835 510,081	31.12.19 Total funds £ 287 990 630,110 631,100 (4,047) 627,053 627,340 627,340 58,368 568,972 627,340

The financial statements were approved by the Board of Trustees and authorised for issue on 27 April 2021 and were signed on its behalf by:

J Morris - Trustee

The notes form part of these financial statements

Page 6

Middle East Media

Cash Flow Statement

for the Year Ended 31 December 2020

Notes Cash flows from operating activities Cash generated from operations 1 Net cash (used in)/provided by operating activities Cash flows from investing activities Sale of tangible fixed assets Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	31.12.20 £ (131,443) (131,443) 120 102 222 (131,221) 630,110 498,889	31.12.19 £ 553,728
		553,728
		- 66
		66

		553,794 76,316
		630,110

The notes form part of these financial statements

Page 7

Middle East Media

Notes to the Cash Flow Statement

for the Year Ended 31 December 2020

1.	RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH	FLOW FROM	OPERATING ACTIVITIES	OPERATING ACTIVITIES
			31.12.20	31.12.19
			£	£
	Net (expenditure)/income for the reporting period (as per the
	Statement of Financial Activities)		(117,259)	539,857
	Adjustments for:
	Depreciation charges		287	383
	Profit on disposal of fixed assets		(120)	-
	Interest received		(102)	(66)
	(Increase)/decrease in debtors		(14,579)	13,131
	Increase in creditors		330	423
	Net cash (used in)/provided by operations		(131,443)	553,728
2.	ANALYSIS OF CHANGES IN NET FUNDS
		At 1.1.20	Cash flow	At 31.12.20
		£	£	£
	Net cash
	Cash at bank and in hand	630,110	(131,221)	498,889
		630,110	(131,221)	498,889
	Total	630,110	(131,221)	498,889

The notes form part of these financial statements

Page 8

Middle East Media

Notes to the Financial Statements

for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment - Straight line over 3 years

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

All grant applications include an administration levy for the UK office support costs and are represented in the accounts as a transfer between funds.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

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Middle East Media

Notes to the Financial Statements - continued

for the Year Ended 31 December 2020

2. DONATIONS AND LEGACIES

Donations to General Funds comprise a number of regular and irregular donations from many supporters, as well as some donations from Trusts and other entities. Donations to Restricted Funds are largely grants received from Trusts and Foundations. The Trustees are grateful to all their UK donors for their continued support throughout the year.

Included in donations and legacies is one legacy of £15,000 (2019: one legacy of £645,786).

3. INVESTMENT INCOME

3.	INVESTMENT INCOME
			31.12.20	31.12.19
			£	£
	Deposit account interest		102	66
4.	SUPPORT COSTS
			Governance
		Management	costs	Totals
		£	£	£
	Project Co-ordination and Support Costs	47,543	3,864	51,407
5.	TRUSTEES' REMUNERATION AND BENEFITS
	There were no trustees' remuneration or other benefits for the year ended 31 December 2020			nor for the
	year ended 31 December 2019.

Trustees' expenses

Trustee expenses of £35 were approved in respect of training for one trustee. (2019:Expenses totalling £660 were approved and budgeted for one board member to represent MEM (UK) at the International Board Meeting for member organisations).

6. STAFF COSTS

STAFF COSTS
Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Fundraising & publicity Project co-ordination and support	31.12.20 £ 101,328 4,513 3,025 108,866 31.12.20 2 2 4	31.12.19 £ 88,524 4,501 2,558
		95,583
		31.12.19 2 2 4

No employees received emoluments in excess of £60,000.

The average number of full-time equivalent employees was 4.1 (2019: 3.1).

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Middle East Media

Notes to the Financial Statements - continued

for the Year Ended 31 December 2020

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted Total fund funds funds £ £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 132,647 802,386 935,033 Investment income 66 - 66 Total 132,713 802,386 935,099 EXPENDITURE ON Raising funds 70,767 - 70,767 Charitable activities Grants & Costs re MENA projects 43,953 219,085 263,038 Project Co-ordination and Support Costs 61,437 - 61,437 Total 176,157 219,085 395,242 NET INCOME/(EXPENDITURE) (43,444) 583,301 539,857 Transfers between funds 20,558 (20,558) - Net movement in funds (22,886) 562,743 539,857 RECONCILIATION OF FUNDS Total funds brought forward 81,254 6,229 87,483 TOTAL FUNDS CARRIED FORWARD 58,368 568,972 627,340 8. NET MOVEMENT IN FUNDS The net movement in funds is stated after charging the following: 31.12.20 31.12.19 £ £ Independent Examiner's Remuneration 3,720 3,600	Restricted funds £ 802,386 - 802,386 - 219,085 - 219,085 583,301 (20,558) 562,743 6,229 568,972	Total funds £ 935,033 66
		935,099 70,767 263,038 61,437
		395,242
		539,857 -
		539,857 87,483
		627,340

31.12.20	31.12.19
£	£
3,720	3,600

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Middle East Media

Notes to the Financial Statements - continued

for the Year Ended 31 December 2020

9. TANGIBLE FIXED ASSETS COST At 1 January 2020 Disposals At 31 December 2020 DEPRECIATION At 1 January 2020 Charge for year Eliminated on disposal At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors Prepayments Accrued income 11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors 12. MOVEMENT IN FUNDS At 1.1.20 £ Unrestricted funds General fund 58,368 Restricted funds Restricted Fund for MENA Projects (133) Large Legacy Fund 569,105 568,972 TOTAL FUNDS 627,340	Net movement in funds £ 14,587 23,002 (154,848) (131,846) (117,259)	31.12.20 £ 34 535 15,000 15,569 31.12.20 £ 4,377 Transfers between funds £ 18,291 (18,291) - (18,291) -	Computer equipment £ 1,882 (733) 1,149 1,595 287 (733) 1,149 - 287 31.12.19 £ 260 730 - 990 31.12.19 £ 4,047 At 31.12.20 £ 91,246 4,578 414,257 418,835 510,081

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Middle East Media

Notes to the Financial Statements - continued

for the Year Ended 31 December 2020

12. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Incoming
resources
£
Unrestricted funds
General fund
181,976
Restricted funds
Restricted Fund for MENA Projects
142,476
Large Legacy Fund
-
142,476
TOTAL FUNDS
324,452
Comparatives for movement in funds
Net
movement
At 1.1.19
in funds
£
£
Unrestricted funds
General fund
81,254
(43,444)
Restricted funds
Restricted Fund for MENA Projects
6,229
14,196
Large Legacy Fund
-
569,105
6,229
583,301
TOTAL FUNDS
87,483
539,857
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
132,713
Restricted funds
Restricted Fund for MENA Projects
156,600
Large Legacy Fund
645,786
802,386
TOTAL FUNDS
935,099

Resources
Movement
expended
in funds
£
£
(167,389)
14,587
(119,474)
23,002
(154,848)
(154,848)
(274,322)
(131,846)
(441,711)
(117,259)
Transfers
between
At
funds
31.12.19
£
£
20,558
58,368
(20,558)
(133)
-
569,105
(20,558)
568,972
-
627,340
Resources
Movement
expended
in funds
£
£
(176,157)
(43,444)
(142,404)
14,196
(76,681)
569,105
(219,085)
583,301
(395,242)
539,857

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Middle East Media

Notes to the Financial Statements - continued

for the Year Ended 31 December 2020

12. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds General fund Restricted funds Restricted Fund for MENA Projects Large Legacy Fund TOTAL FUNDS	At 1.1.19 £ 81,254 6,229 - 6,229 87,483	Net movement in funds £ (28,857) 37,198 414,257 451,455 422,598	Transfers between funds £ 38,849 (38,849) - (38,849) -	At 31.12.20 £ 91,246 4,578 414,257
				418,835
				510,081

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming resources £ Unrestricted funds General fund 314,689 Restricted funds Restricted Fund for MENA Projects 299,076 Large Legacy Fund 645,786 944,862 TOTAL FUNDS 1,259,551	Resources Movement expended in funds £ £ (343,546) (28,857) (261,878) 37,198 (231,529) 414,257 (493,407) 451,455 (836,953) 422,598

The Restricted Fund for Middle East Projects includes all restricted income and expenditure for projects in the Middle East set up in accordance with the charity's objectives.

The Large Legacy Fund relates to a generous legacy gift which will be used mainly for development, marketing and capacity building in the UK and with our partners in MENA.

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Middle East Media

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

RELATED PARTY DISCLOSURES

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