Mary's Meals International Organisation Trustees’ report ... · considerable obstacles to resume...

Directors’ report and financial statements

Chief Executive’s Report

1 | Mary's Meals International Organisation

Trustees’ report and financial statementsFor the period ended 31 December 2015

Mary's Meals International Organisation

Chief Executive’s Report

2 | Mary's Meals International Organisationi | Mary's Meals International Organisation Directors’ report and financial statements

Contents page

1

Legal and administrative information

18

Statement of trustees’ responsibilities

28

Balance sheets

2

Chair’s report

20

Independent auditors’ report to the members and trustees of Mary’s Meals International Organisation

29

Cash flow statement

4

Chief Executive’s report

24

Consolidated statement of financial activities

30

Notes to the cash flow statement

6

Trustees’ annual report (including the strategic report)

26

Charity statement of financial activities

31

Notes to the financial statements

AN IMPORTANT NOTE ON ORGANISATION NAMES

“Mary’s Meals International Organisation” is the legal name for the entity which co-ordinates and leads the global network of Mary’s Meals organisations. In practice, this is often referred to simply as Mary’s Meals International or MMI.

“Mary’s Meals” is the legal name for the entity which raises awareness and funds for the network’s programmes in the United Kingdom.

Since the term “Mary’s Meals” is reasonably used in practice to refer to the work of the entire Mary’s Meals movement around the world, we will – for the purposes of clarity – refer to the UK-focused organisation, in this document, as Mary’s Meals UK or MMUK.

Directors’ report and financial statements1 | Mary's Meals International Organisation

Legal and administrative information

DIRECTORS David Clayton (appointed 7 October 2014)

Peter Higgins (appointed 7 October 2014)

Jacob Allen (appointed 7 October2014)

Željka Markić (appointed 1 January 2015)

Christian Stelzer (appointed 1 January 2015)

Mark McGreevy (appointed 18 February 2015)

Ana Luisa Diez de Rivera-Laffont (appointed 17 March 2015)

SECRETARY Janet Haugh

CHIEF EXECUTIVE Magnus MacFarlane-Barrow

INDEPENDENT AUDITORS PricewaterhouseCoopers LLPChartered accountants and statutory auditors 141 Bothwell Street Glasgow G2 7EQ

CHARITY NUMBER SC045223

COMPANY REGISTRATION NUMBER SC488380

BUSINESS ADDRESS Craig Lodge Dalmally Argyll PA33 1AR

REGISTERED OFFICE Craig LodgeDalmallyArgyll PA33 1AR


Chair’s report

I am delighted to present the first annual report of Mary’s Meals International Organisation (MMI). It is with great pleasure we can report that the Mary’s Meals global family continued to grow and develop throughout the financial period ending 31 December 2015. As this is the first period of MMI’s operations, there are no prior period numbers in our report to give a direct comparison of income growth, but total income received across the global network reached an unprecedented level in 2015, which meant we were able to feed many more children every day at school.

On January 1 2015, the newly created MMI took responsibility for delivery of the feeding programmes, growing the global movement and international finance and operations. This has allowed the pre-existing Scottish registered charity, Mary’s Meals, to focus on fundraising activities across the UK. The Mary’s Meals mission, vision and values have not changed. MMI has assumed responsibility as a central

hub for collecting and managing funds from all geographies, including transfers from Mary’s Meals (MMUK), and for central direction and management of the feeding programmes. This has provided a great platform for growth and MMUK has achieved remarkable success in 2015, especially with the UK Aid Match campaign, which raised £5 million that will be matched by the UK government over the next three years. This endorsement from the UK government is testament to the significant developments and enhancements that have taken place within Mary’s Meals over recent years.

Thanks to the generosity of our supporters, and the dedication of our staff and volunteers, the charity’s income was almost £22 million during the period to 31 December 2015. This staggering amount enabled us to continue expanding our projects to reach many more of the world’s poorest children. Our approach hasn’t changed and we continue to do this working with and through the local communities in which the children live, thereby creating a greater sense of community ownership and responsibility rather than dependence.

At the end of 2015, we were feeding 1,101,206 children every school day in 12 countries across Africa, Asia, Latin America, and the Caribbean. This represents an increase of more than 111,390 children or more than 11% compared to 2014.

We remain firmly committed to the good stewardship of all resources entrusted to us. We overachieved on our commitment to apply 93% of expenditure to charitable activities, with 98% of our expenditure going towards charitable activities.


The global average cost of school feeding in 2015 was £11.47 per child, per year – significantly less than our budgeted 2015 figure of £12.20 – which clearly demonstrates our commitment to keeping our costs very low. 2015 was a year of achievements and milestones for so many reasons: feeding more than one million children, publishing the book ‘The Shed That Fed A Million Children’, completing the first year of our 5-year impact assessment, and working on a new film to show the longer-term impact of our work through a generation of young adults who have grown up receiving a daily meal from Mary’s Meals. We call them ‘Generation Hope’. We’re delighted that since the year-end we have been able to launch this new film, Generation Hope. The film shows the extraordinary impact that Mary’s Meals has had on the lives of the children we are reaching.

This is humbling as we consider the plight of an estimated 59 million other children worldwide who are out of school and an additional 66 million who go to school hungry and could benefit from

the daily meal in a place of education that Mary’s Meals can provide. We continue to be thrilled by, and thankful for, all of the people who support us as we continue pursuing our vision that every child receives one meal in a place of education every school day.

I would like to express my thanks to my fellow directors for their hard work and diligence. I would also like to thank all our staff and thousands of volunteers, without whom none of this work would be possible. Most of all, I would like to thank all our supporters throughout the world, who share some of what they have, with those who need it more than they do, thus enabling the work of the Mary’s Meals network to happen.

David Clayton Chair

1,101,206CHILDREN FEDEVERY SCHOOL DAY


Chief Executive’s report

2015 truly was a record year! In May 2015, we announced that we were reaching more than one million children through our school feeding programmes, and later in the year, the UK Government selected Mary’s Meals’ three-month Feed Our Future campaign to benefit from its Aid Match scheme, matching individual donations pound for pound.

The campaign aimed to raise £1.5 million but thanks to the determination and momentous kindness of the people of the UK, Feed Our Future brought in a staggering £5 million, which will be matched! Each gift was received with heartfelt gratitude, and is now being carefully used to feed more hungry children.

Thanks to the tremendous level of financial support received from our supporters around the world, the Mary’s Meals movement expanded to feed an additional 111,390 children during the year. This represents annual growth of 11%. By the end of December we were feeding 1,101,206 children every school day around the world, across Africa, Asia, Latin America and the Caribbean.

Greater mobilisation of thousands of partners, teachers, volunteers and community leaders facilitated the increase in the number of children fed. These people actively supported the delivery of the programmes in each country. Their involvement broadens and strengthens community participation and ownership of the initiative and increases local and national support for education.

The growth in the number of children fed this year was mainly due to several expansions of our programme in Malawi, particularly within the southern region, where Mary’s Meals is feeding around 500,000 children. Where possible, we adopt a “saturation” approach, supporting every school within a particular district or county, to ensure that children receive a good meal in a school nearest to their home. This helps to minimise the migration of children between schools, stabilises enrolment numbers and promotes daily school attendance.

In Zambia, our school feeding programme is now firmly established within the Chipata district in the eastern province of the country. We have more than doubled the number of children being fed in Zambia from 18,741 to 42,914 over the course of the year.

In Liberia, the staff team overcame considerable obstacles to resume school feeding in all the schools we were supporting before the outbreak of Ebola virus disease. When schools re-opened in March we recorded an initial increase in enrolment numbers as the nutritious meals provided by Mary’s Meals continued to play a vital role as families began to rebuild their lives. Parents send their children to school safe in the knowledge that they will receive a good meal there, enabling them to participate and learn.


We also achieved notable success during the year in enhancing the delivery of our programme in other countries throughout the world, particularly in Haiti. Working together with our partners in the country, we have provided training and support to increase skills and capacity among partner staff teams and volunteers. This has standardised the delivery of our programme across all 114 schools currently supported in Haiti and in September, we successfully completed an expansion to include more than 4,900 additional children, representing further growth in our programme of 16%.

In 2015 we also saw the global movement that supports Mary’s Meals expand and develop in many parts of the world. We launched a suite of international websites, bringing new opportunities for fundraising across several languages and currencies. The new websites have allowed us to enhance our Sponsor A School campaign and promote our One More For Christmas digital campaign across nine countries.

Whilst UK and US support continues to grow and represents 85% of our total income, growth in other countries was strong this year, with major financial support from Austria, Canada, Croatia, Germany, Ireland and Italy. Collectively, donations from supporters in these countries totalled more than £3.3 million, almost 15% of our total income.

The majority of our income still comes through grassroots support from individuals, churches, community groups and schools. We also receive substantial and generous support from a number of foundations, trusts, businesses and public funds.

We are thankful that in this world where so much is broken and so many children suffer, our Mary’s Meals family continues to grow. So many of you are extending your hands to those little ones through this simple, effective mission of ours.

It’s these many little acts of love that enable children to flourish. And so I want to thank you, on behalf of the million children who will eat at school today, only because you shared with them what you have. You’re changing their lives. Really, you are. Thank you.

Magnus MacFarlane-Barrow Chief Executive


Trustees’ annual report Including the strategic report

Our purposes

The directors present their annual report together with the audited consolidated financial statements of the charity and group for the period ended 31 December 2015. Mary’s Meals International Organisation was incorporated on 7 October 2014 and has prepared accounts for the period 7 October 2014 to 31 December 2015. The directors of Mary’s Meals International Organisation – who are also the trustees – who served during the period and up to the date of this report are set out on page one.

OUR VISIONOur vision is that every child receives one daily meal in their place of education and that all those who have more than they need, share with those who lack even the most basic things.

OUR MISSION Mary’s Meals is a global movement supported by people from many walks of life and different backgrounds.

Our mission is to enable people to offer their money, goods, skills, time, or prayer, and through this involvement, provide the most effective help to those suffering the effects of extreme poverty in the world’s poorest communities.

We welcome all into the Mary’s Meals family and we believe everyone has something important to contribute to the realisation of our vision.

OUR CHARITABLE OBJECTS

a) To provide a daily meal, in a place of education, for children in the world’s poorest communities.

b) To provide relief for those suffering, in any part of the world, as a result of humanitarian crises or poverty, to help people escape poverty and to provide care for orphaned, abandoned and vulnerable children and to work for the prevention thereof.

c) To raise awareness worldwide of poverty issues through education.

d) To assist and support the work of other organisations, financially or otherwise, in particular members of the Mary’s Meals network throughout the world, the objects of which would be considered to be charitable purposes and similar in nature to these objects.


DIRECTOR/TRUSTEE RECRUITMENT AND INDUCTIONNew directors are thoroughly vetted prior to appointment. They are briefed on their legal responsibilities and supplied with a copy of the articles of association. They commit to uphold the aims and values of the charity defined in the Vision, Mission and Values Statement. A list of the directors who served during the financial year is included on page one of this report.

OUR STRATEGIC AIMS

1. To feed more children in a place of education and help those suffering the effects of extreme poverty in the world’s poorest communities.

2. To grow the global movement and enable more people to offer their money, goods, skills, time, or prayer to advance the work of Mary’s Meals.

3. To strengthen the organisation and Mary’s Meals’ global network in the furtherance of the vision, mission and values.

APPOINTMENTS

David Clayton (appointed 7 October 2014)

Peter Higgins (appointed 7 October 2014)

Jacob Allen (appointed 7 October 2014)

Željka Markić (appointed 1 January 2015)

Christian Stelzer (appointed 1 January 2015)

Mark McGreevy (appointed 18 February 2015)

Ana Luisa Diez de Rivera-Laffont (appointed 17 March 2015)


FEEDING MORE CHILDRENWe are delighted to report that we are now feeding 1,101,206 children every day they attend school in 12 countries. The great majority of the children we support are in Africa, but we also work in Asia, Latin America and the Caribbean.

CELEBRATING REMARKABLE GROWTH To mark the significant milestone of reaching more than one million children, great celebrations took place in May 2015 within our programme countries all around the world.

Reflecting on this great moment in the history of Mary’s Meals, our founder Magnus said: “The extraordinary ways in which all this work has grown and developed have continually surprised me and filled me with a sense of mystery and awe.

“I think that Mary’s Meals is just this beautiful simple thing that works. We provide one good meal every day in school for the world’s poorest children.”

We remain deeply grateful to our funders and supporters around the world who have helped us to make all this possible.

MALAWIMary’s Meals is now supporting 814,000 children in 635 primary schools and 45 under six centres every school day. The Mary’s Meals school feeding programme is reducing hunger and is giving children hope for a brighter future by drawing them into school to receive an education.

Mary’s Meals’ school feeding officers visit each school supported by our Malawi programme twice every week and they tell us that Mary’s Meals’ feeding is highly regarded among children, teachers and volunteers from the local communities. For example, Fauston Kalua is the head teacher at Chipake Primary School in the Karonga district of northern Malawi. He told us: “It is an undeniable fact that school enrolment, attendance and performance have greatly improved at this school and that this is greatly attributed to the Mary’s Meals porridge here.”

Strategic reportHow are we doing?

9 | Mary's Meals International Organisation

LIBERIAThe Mary’s Meals school feeding programme is established across four counties in western Liberia (Bomi, Grand Cape Mount, Gbarpolu and Montserrado) and is bringing hope by providing one nutritious, hot meal to 135,976 chronically hungry children every school day. Our programme draws children into the classroom to receive an education that will give them the chance of a brighter future.

As we entered 2015, our school feeding programme in Liberia remained suspended while all schools were closed during the devastating outbreak of Ebola. During this time, Mary’s Meals worked in partnership with local communities to provide take-home food rations that supported 100,000 children across 333 communities. Our dedicated team in Liberia continued to deliver vital food supplies to school communities throughout the outbreak.

ZAMBIA

Due to the implementation of planned expansions during 2015, our school feeding programme in Zambia has doubled in size. The Mary’s Meals programme is now feeding 42,914 children in 64 schools in Chipata district in the east of the country, where we are the only school feeding programme.

The Mary’s Meals school feeding programme is making a significant impact in Zambia. As we have observed in our other country programmes, enrolment numbers at the schools supported by Mary’s Meals in Zambia have increased significantly following the introduction of school feeding. In the 25 schools where feeding began in 2014, enrolment numbers had increased by an average of 18% by the end of 2015. Due to the commitment of our new team, feeding rates are currently very high at 98%, and attendance rates in schools have improved by 22%.

While we rejoice in being able to reach over 40,000 children in Zambia, we are always mindful that our work is not about the large numbers, but about the difference Mary’s Meals’ feeding is making to individual lives. While gathering

information for our impact assessment research in Zambia, we met with Justina Phiri who is 12 years old and is pictured here. Justina told us how much education means to her. “I live with my mother since my father passed away. My mother cannot walk and this prevents her from working and getting a proper job, so I help her by fetching water.

“I am a grade 4 student at St Betty’s Primary School. I like to sit under a tree to study and I correct the questions I get wrong in class. It is important to practice reading and writing. Sometimes you are given something to write, but when you don’t understand, you might write something wrong. I think it is important to have an education. For those who are educated, it is easy to understand. I want to be a teacher when I grow up so I can go on to teach others.”

Directors’ report and financial statements9 | Marys Meals Mary's Meals International Organisation

Some boys and girls from the Islamic Model School enjoying their meal. Tete KN Pusah is a teacher at the school and told us that people from the local community there are very thankful for the vital support that Mary’s Meals is giving to the children. He said: “Mary’s Meals is always on time with the delivery of food for our children. Even during the Ebola outbreak, they were still feeding our children.”


ESTABLISHING MARY’S MEALS INTERNATIONAL ORGANISATIONMary’s Meals International began operating on 1 January 2015. The decision to create an international organisation to deliver programmes, support National Affiliates and provide strategic leadership, will provide the platform for continued growth across all areas of the Mary’s Meals network.

MARY’S MEALS NATIONAL AFFILIATESA significant amount of work took place during the period to strengthen and develop the work of Mary’s Meals National Affiliates in several countries around the world.

Each National Affiliate has been invited to enter into a formal covenant of participation in pursuit

of the vision and mission of Mary’s Meals. This work is ongoing and is promoting collaboration, improving learning and is accelerating the growth of the Mary’s Meals global movement.

During the year we employed and collaborated with core staff members from Mary’s Meals Italy and Mary’s Meals Germany to establish professional offices in central locations within Rome and Mainz respectively.

We also provided developmental support to our national affiliates in Spain and the Netherlands.

In partnership with our branch, Mary’s Meals Bosnia-Herzegovina, we began to further develop and enhance our information centre and general presence in the pilgrimage town of Medjugorje.

In order to rigorously examine the impact that the Mary’s Meals’ school feeding programme is making to the lives of vulnerable children and their communities, a five-year impact assessment research project began in 2014 and is currently underway.

The results from the first-year impact assessment in Malawi among a sample of schools demonstrates that Mary’s Meals’ school feeding programme is making a significant impact on decreasing levels of child hunger at school and increasing access, participation and progression within primary education.

Making a measurable difference

Growing the global movement

The key findings of the research.

• Reduced hunger among children at school.

• Increased school enrolment levels.

• Improved school attendance and the elimination of absences attributed to hunger.

• Reduced levels of children dropping out of school.

• Increased feelings of happiness at school and decreased levels of anxiety due to hunger.

• Increased support for education among vulnerable communities.


Additional developmental support was provided to emerging international fundraising groups around the world.

In March, we were delighted to launch a suite of new international Mary’s Meals websites featuring attractive content and useful information about our work and which support the work of our National Affiliates around the world in Canada, Croatia, France, Ireland, Germany, Italy, Netherlands, Spain, the UK and the USA, in addition to a website for Mary’s Meals International. Work to launch a website for Mary’s Meals Austria is currently underway.

SIGNIFICANT COLLABORATION WITH MARY’S MEALS UK (MMUK)We were pleased to provide support to MMUK during the year for a major bid to the Government’s Department for International Development Aid Match scheme. This involved a lengthy, rigorous and in-depth application process which was led by MMUK in close collaboration with all three directorates of Marys’ Meals International.

Funding was awarded for a project that will reach more than 100,000 additional children through the expansion of our school feeding programmes in Malawi and Zambia over the next three years.

As part of this opportunity, MMI provided additional support to MMUK throughout the Feed Our Future fundraising campaign during a three month period from 28 September 2015. Our heartfelt appreciation goes to the staff and volunteers of MMUK for all their hard work during this time and for the overwhelming success of the campaign. Due to the enthusiastic response from our generous supporters in the UK, we are

pleased to report that the campaign raised an astonishing £5.5million.

REACHING NEW AUDIENCESWe achieved huge success in reaching new audiences around the world this year in connection to our “first million” announcement, when key global media outlets shone a spotlight on our work as we surpassed the landmark of feeding one million children every school day.

The publication of a new book about our work, The Shed That Fed A Million Children, generated a great deal of publicity during the period too. The book describes the key events in the development of our movement. The book received five-star customer reviews on Amazon and was featured in the Sunday Times bestseller list. The book also received outstanding endorsements, including one from the Archbishop of New York, Cardinal Timothy Dolan, who described the book as: “A great testament to the wonderful things that can be accomplished when people work together.”

STRENGTHENING THE ORGANISATION A significant development took place in our organisational structure on 1 January 2015 with the creation of a separate legal entity, Mary’s Meals International Organisation. MMI now has responsibility for the delivery of our school feeding programmes and acts as the central organisation that co-ordinates, supports and leads the global movement. The main focus of our National Affiliate organisations is on fundraising activities and raising awareness within their countries, whilst our Programme Affiliates and partners deliver the school feeding programmes. The Mary’s Meals mission, vision and values remain unchanged.

12 | Mary's Meals International Organisation Directors’ report and financial statements

Plans for the future

FEEDING MORE CHILDREN

• Further expansions to reach 225,515 more children have been identified in Malawi, Zambia, Liberia, Kenya, Haiti and India, if funds allow.

• Conduct a pilot to support children who are fleeing by the civil war in Syria.

• Increase monitoring, evaluation, learning, impact assessments, policy development and partner capacity building to continue to improve our work.

GROWING THE GLOBAL MOVEMENT

• Spread the message of Mary’s Meals further with the launch of a new 30-minute documentary film about our work called Generation Hope.

• Further develop our innovative approach to digital communications.

• Support National Affiliates by enhancing and developing our Sponsor A School and One More For Christmas fundraising products, launching new global campaigns, and supporting the creation of country-specific fundraising strategies.

STRENGTHENING THE ORGANISATION

• Refresh our strategy for 2017-2020.

• Find new ways to reinforce the vision, mission and values.

• Continue to work with National and Programme Affiliates to develop our systems and processes.

13 | Mary's Meals International Organisation Directors’ report and financial statements13 | Marys Meals


National Affiliate in the UK, 11% coming from the National Affiliate in the US and the remaining funds being generated in National Affiliates and international fundraising groups and individuals in another 67 countries around the world.

Total expenditure for the same period was £14,870,510. We spent £14,611,586, or 98%, on charitable activities. Once again, this is in line with our long-term commitment to spend at least 93p of every £1 on our charitable activities.

As outlined in note seven to the Financial Statements, it cost £11,971,123 to provide school feeding in all the countries in which we work. The number of children fed during the period rose

Financial review The work of Mary’s Meals is entirely reliant on the generosity of the thousands of supporters who work tirelessly and selflessly to carry out the work. We work extremely hard to keep our running costs low and to ensure that at least 93% of our expenditure is spent directly on our charitable activities. This is only possible because most of our work is done by an army of dedicated volunteers who carry out lots of little acts of love on behalf of Mary’s Meals.

For the period to 31 December 2015, the total income of MMI was £21.870 million. Virtually all (99%) of this income was generated by the many Mary’s Meals national fundraising affiliates across the world, with 74% coming from the

Other15%

MMUSA11%

MMUK74%

MMI income received in 2015


from 989,816 at the start of the year to 1,101,206 on 31 December 2015, an increase of almost 111,390. The actual cost of feeding a child for our financial period 2015 was £11.47. This is lower than the budgeted level of £12.20.

Robust tendering processes have ensured food prices for most of our programmes were fixed during 2015 to protect the programmes from fluctuations in food costs, and the financial impact of foreign currency exchange volatility was overall in our favour.

The reserves policy is reviewed annually. As of 31 December 2015, the policy was to retain sufficient funds required to meet three months’ running

costs in respect of salaries, premises costs, etc. and between 1.5-2 months of committed project expenditure. On this basis, the charity would expect to hold £2.117 million minimum unrestricted reserves. At 31 December 2015, the charity’s unrestricted reserves were £6.187 million.

In accordance with the articles of association, the charity has the power to invest as they see fit. Surplus funds are held in a mixture of current and investment accounts to minimise bank charges, optimise interest earned and accessibility, and minimise risk.

Fundraising2%

Charitable 98%

Charitable expenditure


Structure, governance and management Mary’s Meals International Organisation is a company limited by guarantee governed by its memorandum and articles of association dated 3 October 2014. It is registered as a charity with the Office of the Scottish Charity Regulator. There are 12 founder members and the directors are also obliged to appoint members from National Affiliates, each of whom agrees to contribute £1 in the event of the charity winding up.

The charity is governed by the board of trustees, which meets on a quarterly basis. The composition of the board is monitored on a regular basis to ensure that the trustees have the necessary skills and expertise required to govern the charity. A budget is set annually in advance and submitted to the directors for approval.

New trustees are thoroughly vetted prior to appointment. They are briefed on their legal responsibilities and supplied with copies of the governing documents. They commit to a code of conduct, including upholding the aims and values of the charity. A list of the trustees who served during the financial period is included on page one of this report.

During the financial period to 31 December 2015, the day-to-day running of the charity was managed by the chief executive, reporting to the board of trustees, and supported by the chief operating officer and directors leading

communications and fundraising, programmes and finance and operations.

In 2015 a pay and grading structure was introduced for all staff and this was benchmarked against similar organisations. The benchmarking showed that Mary’s Meals International Organisation pays significantly less than the benchmark to those in senior roles. The ratio between the lowest and highest paid staff at Mary’s Meals International Organisation is 1:3. The pay of the senior staff, and all staff, is reviewed annually and normally increased in accordance with inflation.

The trustees have overall responsibility for ensuring that the charity has assessed the major risks to which it is exposed and has a risk management strategy which comprises:

• An annual review of the principal risks and uncertainties that the charity faces.

• The establishment of policies, systems and procedures to mitigate those risks identified in the annual review.

• The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

The trustees have identified the following most important potential risks:


Potential risks Mitigation strategies

Economic, political, or environmental deterioration in programme countries.

Select programme countries with stable environments; monitor local conditions.

Growth of the global movement is insufficient to sustain programme growth.

Continue investment in global movement.

Inadequate integration of global organisation.

Covenant of participation for all participants in the global organisation; annual international conference for participants in the global organisation.

Programme model fails to deliver expected results.

Monitoring, evaluation and learning systems to enable improvement over time.

Lack of controls undermine our success and credibility.

Continue to develop strong controls that are already in place.

Inability to recruit and retain the right people .

Continue to strengthen culture and offer non-financial benefits.

In so far as the directors are aware:

• There is no relevant audit information of which the charitable company’s auditors are unaware.

• The directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.


Statement of trustees’ responsibilitiesThe trustees (who are also directors of Mary’s Meals International Organisation for the purposes of company law) are responsible for preparing the trustees’ annual report (including the strategic report) and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom generally accepted accounting practice (United Kingdom accounting standards and applicable law). 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 the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group 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 in the Charities’ SORP.

• Make judgments and estimates that are reasonable and prudent.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements

comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities’ Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the trustees are aware:

• There is no relevant audit information of which the company’s auditors are unaware.

• The trustees have taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

• The trustees approve the trustees’ annual report (including the strategic report) in their capacity as trustees.

Independent auditors

The audit committee has considered guidance in relation to the rotation of auditors and has decided to undertake a formal tender process during 2016.

On behalf of the board,

David Clayton Chair


Independent auditors’ report to the members and trustees of Mary’s Meals International Organisation

Report on the financial statementsOUR OPINIONIn our opinion, Mary’s Meals International Organisation’s group financial statements and parent charitable company financial statements (the “financial statements”):

• Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2015 and of the group’s and parent charitable company’s incoming resources and application of resources, including its income and expenditure and of the group’s and parent charitable company’s cash flows for the 64 weeks then ended.

• Have been properly prepared in accordance with United Kingdom generally accepted accounting practice.

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations six and eight of the Charities Accounts (Scotland) Regulations 2006 (as amended).


WHAT WE HAVE AUDITEDThe financial statements, included within the trustees’ report and financial statements (the “annual report”), comprise:

• The group and parent charitable company balance sheets as at 31 December 2015.

• The group and parent charitable company statements of financial activities (including income and expenditure account) for the 64 weeks then ended.

• The group and parent charitable company cash flow statements for the 64 weeks then ended.

• The notes to the financial statements, which include a summary of significant accounting policies and other explanatory information.

The financial reporting framework that has been applied in the preparation of the financial statements is United Kingdom accounting standards, comprising FRS 102 “The financial reporting standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom generally accepted accounting practice).

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.


Responsibilities for the financial statements and the audit

OUR RESPONSIBILITIES AND THOSE OF THE TRUSTEESAs explained more fully in the statement of trustees’ responsibilities set out [on page 18], the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and international standards on auditing (UK and Ireland) (“ISAs (UK & Ireland)”). Those standards require us to comply with the Auditing Practices Board’s ethical standards for auditors.

This report, including the opinions, has been prepared for and only for the company’s members and trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006 and regulations made under those Acts (regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and Chapter 3 of Part 16 of the Companies Act 2006) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

WHAT AN AUDIT OF FINANCIAL STATEMENTS INVOLVESWe conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement,

Other matters on which we are required to report by exception

ADEQUACY OF ACCOUNTING RECORDS AND INFORMATION AND EXPLANATIONS RECEIVEDUnder the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion:

• We have not received all the information and explanations we require for our audit.

• Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us.

• The parent charitable company financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

TRUSTEES’ REMUNERATIONUnder the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of trustees’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

Opinion on other matters prescribed by the Companies Act 2006In our opinion the information given in the trustees’ annual report, including the strategic report, for the financial period for which the financial statements are prepared is consistent with the financial statements.


whether caused by fraud or error. This includes an assessment of:

• Whether the accounting policies are appropriate to the group’s and the charitable company’s circumstances and have been consistently applied and adequately disclosed.

• The reasonableness of significant accounting estimates made by the trustees.

• The overall presentation of the financial statements.

We primarily focus our work in these areas by assessing the trustees’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements.

We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both.

In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Lindsey Paterson Senior Statutory Auditor For and on behalf of PricewaterhouseCoopers LLP Chartered accountants and statutory auditors Glasgow June 2016

a) The maintenance and integrity of the Mary’s Meals International Organisation website is the responsibility of the trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

24 | Mary's Meals International Organisation24 | Mary's Meals International Organisation Directors’ report and financial statements

Consolidated statement of financial activities(including the income and expenditure account)

For the period ended 31 December 2015

MARY’S MEALS INTERNATIONAL ORGANISATION (A COMPANY LIMITED BY GUARANTEE)


NotesUnrestricted

funds £

Restricted funds

£

2015 total

£

Incoming resources

Donations and legacies 4 13,825,580 7,990,733 21,816,313

Income from other trading activities:

Other trading activities 5 5,982 - 5,982

Income from charitable activities:

Income from charitable activities - 46,747 46,747

Investment income 1,267 869 2,136

Total income and endowments 13,832,829 8,038,349 21,871,178

Resources expended

Expenditure on raising funds

Costs of generating funds 6 258,924 – 258,924

Expenditure on charitable activities

Charitable activities 7,8 2,479,983 11,877,411 14,357,394

Governance costs 9 250,618 3,574 254,192

Total expenditure 2,989,525 11,880,985 14,870,510

Net income/(expenditure) and net movement in funds for the period 10,843,304 (3,842,636) 7,000,668

Transfers between funds (4,681,605) 4,681,605 -

Other recognised gains:

Currency gain on revaluation 44,408 77,250 121,658

Net movement in funds 6,206,107 916,219 7,122,326

Reconciliation of funds

Total funds brought forward - - -

Transfer on demerger 868 298,262 299,130

Total funds carried forward 6,206,975 1,214,481 7,421,456

All amounts relate to continuing operations. There is no material difference between the surplus on ordinary activities before taxation and the surplus/deficit for the financial period stated above and their historical costs equivalents.

All gains and losses recognised in the period are included in the statement of financial activities.

The notes on pages 31-47 form an integral part of these financial statements.

Consolidated statement of financial activities (including consolidated income and expenditure account) for the period ended 31 December 2015


Charity statement of financial activities (including income and expenditure account)

For the period ended 31 December 2015


NotesUnrestricted

funds £

Restricted funds

£

2015 total

£Incoming resources

Donations and legacies 4 13,825,580 7,975,178 21,800,758

Income from other trading activities:

Other trading activities 5 5,982 – 5,982

Income from charitable activities:

Income from charitable activities – 5,159 5,159

Investments income 1,267 - 1,267

Total income and endowments 13,832,829 7,980,337 21,813,166

Resources expended

Expenditure on raising funds

Costs of generating funds 6 258,924 – 258,924

Expenditure on charitable activities

Charitable activities 7,8 2,479,983 12,355,987 14,835,970

Governance costs 9 250,618 – 250,618

Total resources expended 2,989,525 12,355,987 15,345,512

Net income/(expenditure) and net movement in funds for the period 10,843,304 (4,375,650) 6,467,654

Transfers between funds (4,681,605) 4,681,605 -

Other recognised gains

Currency gain on revaluation 44,408 19,574 63,982Net movement in funds 6,206,107 325,529 6,531,636Reconciliation of funds

Total funds brought forward - - -Transfer on demerger 868 487,138 488,006Total funds carried forward 6,206,975 812,667 7,019,642

All amounts relate to continuing operations. There is no material difference between the surplus on ordinary activities before taxation and the surplus for the financial period stated above and their historical costs equivalents.

All gains and losses recognised in the period are included in the statement of financial activities.

The notes on pages 31-47 form an integral part of these financial statements.

Charity statement of financial activities (including income and expenditure account) for the period ended 31 December 2015


NotesGroup 2015

£

Charity 2015

£Fixed assets

Tangible assets 15 559,249 237,500

Current assets

Stocks 16 870,651 376,108

Debtors 17 2,957,409 2,917,885

Cash at bank and in hand 3,883,134 3,685,048

Total current assets 7,711,194 6,979,041

Liabilities

Creditors: amounts falling due within one year 18 848,987 196,899

Net current assets 6,862,207 6,782,142

Total assets less current liabilities 7,421,456 7,019,642

The funds of the charity:

Unrestricted income funds 20 6,206,975 6,206,975

Restricted income funds 21 1,214,481 812,667

Total charity funds 7,421,456 7,019,642

Balance sheets As at 31 December 2015

The financial statements on pages 16-37 were approved by the board of directors on 13 June 2016 and signed on its behalf by:

David Clayton Chair

Charity Number SC045223Company Number SC488380


Group 2015

£

Charity 2015

£Cash provided by operating activities 4,065,610 3,782,942

Cash flows from investing activities

Purchase of tangible assets (409,260) (172,646)

Cash aquired on demerger 110,112 58,445

Proceeds from disposal of fixed assets 34,207 -

Interest income 2,136 1,267

Net cash change in investing activities (262,805) (112,934)

Cash flows from financing activities

Effect of foreign exchange differences 80,329 15,040

Net cash (used in)/provided by capital expenditure and financial investment 80,329 15,040

Increase in net cash 3,883,134 3,685,048

Reconciliation to net cash

Balances at 1 January 2015 - -

Increase in net cash 3,883,134 3,685,048

Balances at 31 December 2015 3,883,134 3,685,048

Cash flow statementFor the period ended 31 December 2015


Notes to the cash flow statement

Group 2015

£

Charity 2015

£Net incoming resources before revaluations 7,000,668 6,467,654

Increase in debtors (2,950,524) (2,917,885)

Interest income (2,136) (1,267)

Depreciation charge 190,859 129,631

Gain on disposal of fixed assets (30,202) -

Increase in stocks (578,023) (83,480)

Increase in creditors/accruals 434,968 188,242

Net cash inflow 4,065,610 3,782,942

Reconciliation of net incoming resources to net cash inflow from operating activities.


1. GENERAL INFORMATIONMary’s Meals International Organisation is an incorporated charity and a company limited by guarantee.

2. STATEMENT OF COMPLIANCEThe financial statements have been prepared in accordance with, Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their financial statements in accordance with the financial reporting standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102), the Companies Act 2006, the Charity Accounts (Scotland) Regulations 2006 and the Charities and Trustee Investment (Scotland) Act 2005.

This is the first set of accounts produced by Mary’s Meals International Organisation and therefore the first set prepared under FRS 102.

3. ACCOUNTING POLICIESThe principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.

3.1 BASIS OF PREPARATIONThe financial statements have been prepared on the going concern assumption and accruals concept and provide information that is relevant, reliable, comparable and understandable.

3.2 BASIS OF CONSOLIDATIONThe financial statements consolidate the results of the organisation on a line-by-line basis. The charity consists of Mary’s Meals International Organisation, a UK registered company, plus

the branches in Bosnia, Kenya and Liberia. The Group comprises the charity plus its subsidiaries Scottish International Relief Malawi and Mary’s Meals Zambia.

Scottish International Relief Malawi and Mary’s Meals Zambia: These entities are closely associated with Mary’s Meals International Organisation and implements its projects in Malawi and Zambia respectively. In accordance with best practice, the financial statements of Scottish International Relief Malawi and Mary’s Meals Zambia have been consolidated in the group financial statements. This is based on the guidelines in the statement of recommended practice for charities, that where there is dominant influence due to control the financial statements should be consolidated.

3.3 INCOMING RESOURCESAll incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Donations and legacies are received by way of donations and gifts and are included in full in the statement of financial activities when receivable. Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Income from investments is included in the year in which it is receivable.

Notes to the financial statementsFor the period ended 31 December 2015


Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

3.4 RESOURCES EXPENDEDAll expenditure is included on an accruals basis and is recognised where there is a legal or constructive obligation to pay. Any costs directly attributable to specific categories have been included in those cost categories in the statement of financial activities. Other costs, which are attributable to more than one activity, are apportioned across categories on the basis of an estimate of the proportion attributable.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Costs of generating funds comprise the costs associated with attracting donations and legacies.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management.

Governance costs are those incurred directly in connection with compliance with constitutional and statutory requirements, together with a proportion of salary costs relating solely to the strategic management of the charity.

3.5 TANGIBLE FIXED ASSETS AND DEPRECIATIONTangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life. The rates of depreciation provided on some classes of assets of our operations in

Liberia, Kenya, Zambia and Malawi vary from the UK rates. This reflects the expected useful lives on the ground in these countries. Rates are as follows:

3.6 STOCKStock is valued at the lower of cost or net realisable value.

3.7 DEFINED CONTRIBUTION PENSION SCHEMESThe charity has in place a group pension scheme to make available pension provision to all eligible UK national employees who have been continuously employed for three months. Contributions in respect of the company’s defined contribution pension scheme are charged to the income and expenditure account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the period are shown as either accruals or prepayments at the period end.

Mary’s Meals International Organisation’s assets

Plant and machinery 15% - 33% straight line

Fixtures, fittings and equipment

15% - 33% straight line

Motor vehicles 25% - 33% straight line

Computer Equipment 25% - 33% straight line


3.8 FOREIGN CURRENCIESMonetary assets and liabilities denominated in foreign currencies are translated into sterling at an appropriate rate of exchange. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the statement of financial activities.

3.9 VALUE OF DISTRIBUTED GOODSAll donated goods which the charity sends abroad are evaluated to establish how it can maximise the value of the gift, except where appeals are made specifically for items to send overseas i.e. school backpacks.

A wide variety of goods are donated to the charity and sent overseas. In placing a value on these items, the following factors are taken into account:

a) The purchase price or market value for new/unused items.

b) The price of an equivalent substitute in the recipient area.

c) The income which could be generated if the goods were sold in the UK.

d) The depreciation of second hand goods, or value added through reconditioning or checking by volunteers.

3.10 TRANSFERS BETWEEN FUNDS Transfers from unrestricted to restricted funds enable Mary’s Meals International Organisation to continue to fund projects furthering their charitable activities in different countries using donations to the general fund. Restricted funds are held for each country where Mary’s Meals International Organisation performs its charitable activities.


4. DONATIONS AND LEGACIESSummary financial performance of the group

DonationsUnrestricted

funds £

Restrictedfunds

£

2015total

£

Unrestricted donations 13,825,580 – 13,825,580

Mary’s Meals International Organisation – 889,823 889,823

Scottish International Relief Malawi – 3,615,712 3,615,712

Mary's Meals Kenya – 174,098 174,098

Mary’s Meals Liberia – 1,391,758 1,391,758

Mary’s Meals Zambia – 32,036 32,036

Mary’s Meals Bosnia – 406 406

Mary’s Meals Uganda – 66 66

Mary’s Meals Haiti – 19,159 19,159

Mary’s Meals India – 6,866 6,866

Mary's Meals Sudan – 14,851 14,851

Mary’s Meals Ecuador – 20,588 20,588

Mary’s Meals Benin – 78,151 78,151

Romania houses – 20,312 20,312

Middle East – 100,000 100,000

Legacies received – – –

Total 13,825,580 6,363,826 20,189,406

Total donations and legacies Unrestricted

funds £

Restrictedfunds

£

2015total

£

Donations 13,825,580 6,363,826 20,189,406

Value of donated aid - 1,626,907 1,626,907

Total 13,825,580 7,990,733 21,816,313


4. DONATIONS AND LEGACIES (CONTINUED)Summary financial performance of the charity

DonationsUnrestricted

funds £

Restrictedfunds

£

2015total

£

Unrestricted donations 13,825,580 – 13,825,580

Mary’s Meals International Organisation – 889,823 889,823

Scottish International Relief Malawi – 3,600,157 3,600,157

Mary's Meals Kenya – 174,098 174,098

Mary’s Meals Liberia – 1,391,758 1,391,758

Mary’s Meals Zambia – 32,036 32,036

Mary’s Meals Bosnia – 406 406

Mary’s Meals Uganda – 66 66

Mary’s Meals Haiti – 19,159 19,159

Mary’s Meals India – 6,866 6,866

Mary's Meals Sudan – 14,851 14,851

Mary’s Meals Ecuador – 20,588 20,588

Mary’s Meals Benin – 78,151 78,151

Romania houses – 20,312 20,312

Middle East – 100,000 100,000

Legacies received – – –

Total 13,825,580 6,348,271 20,173,851

Total donations and legacies Unrestricted

funds £

Restrictedfunds

£

2015total

£

Donations 13,825,580 6,348,271 20,173,851

Value of donated did - 1,626,907 1,626,907

Total 13,825,580 7,975,178 21,800,758


4. DONATIONS AND LEGACIES (CONTINUED)Analysis of turnover by geography.

5. OTHER TRADING ACTIVITIES

6. COSTS OF GENERATING FUNDS

Group2015

£

Charity2015

£

Mary’s Meals Australia 9,743 9,743

Mary’s Meals Austria 451,746 451,746

Mary’s Meals Bosnia 99,183 99,183

Mary’s Meals Canada 109,744 109,744

Mary’s Meals Croatia 121,760 121,760

Mary’s Meals France 2,437 2,437

Mary’s Meals Germany 536,464 536,464

Mary’s Meals Italy 56,584 56,584

Mary's Meals Malawi 15,555 -

Mary’s Meals Netherlands 36,289 36,289

Mary’s Meals Slovenia 4,620 4,620

Mary’s Meals Spain 41,900 41,900Mary’s Meals UK 16,130,744 16,130,744

Mary’s Meals USA 2,415,043 2,415,043

Other 157,592 157,592

Total 20,189,406 20,173,851

Group and charityUnrestricted

funds £

Restrictedfunds

£

2015total

£

Royalties 5,982 - 5,982

Total 5,982 - 5,982

Group and charityUnrestricted

funds £

Restrictedfunds

£

2015total

£

Donations and grants 258,924 - 258,924

Analysis by cost

Employee costs 156,239

Property costs 14,414

Office services 72,525

Publicity and website 1,254

Transport and travel 12,901

Depreciation 1,591

Total 258,924


7. CHARITABLE ACTIVITIES – BY FUND TYPE

GroupUnrestricted

funds £

Restrictedfunds

£

2015total

£

Mary’s Meals feeding 1,720,619 10,250,504 11,971,123

Romania houses 65,283 - 65,283

Backpacks and shipped aid - 1,626,907 1,626,907

Raising awareness 533,690 - 533,690

Network support 160,391 - 160,391

Total 2,479,983 11,877,411 14,357,394

CharityUnrestricted

funds £

Restrictedfunds

£

2015total

£

Mary’s Meals feeding 1,720,619 10,729,080 12,449,699

Romania houses 65,283 - 65,283

Backpacks and shipped aid - 1,626,907 1,626,907

Raising awareness 533,690 - 533,690

Network support 160,391 - 160,391

Total 2,479,983 12,355,987 14,835,970


8. CHARITABLE ACTIVITIES – BY ACTIVITY

Group

Activities undertaken

directly£

Grant funding

activities £

Support

costs £

2015total

£

Mary’s Meals feeding 9,564,943 1,651,685 754,495 11,971,123

Romania houses - 65,283 - 65,283Backpacks and shipped aid 1,626,907 - - 1,626,907Raising awareness 26,181 - 507,509 533,690Network support - - 160,391 160,391Total 11,218,031 1,716,968 1,422,395 14,357,394

Charity

Activities undertaken

directly£

Grant funding

activities £

Support

costs £

2015total

£

Mary’s Meals feeding 10,043,519 1,651,685 754,495 12,449,699

Romania houses - 65,283 - 65,283Backpacks and shipped aid 1,626,907 - - 1,626,907Raising awareness 26,181 - 507,509 533,690Network support - - 160,391 160,391Total 11,696,607 1,716,968 1,422,395 14,835,970


9. GOVERNANCE COSTS

GroupUnrestricted

funds £

Restrictedfunds

£

2015total

£

Auditors’ remuneration 13,600 3,574 17,174

Employee costs 173,923 - 173,923

Transport and travel 27,151 - 27,151

Offices expenses 17,946 - 17,946

Legal and governance expenses 17,998 - 17,998

Total 250,618 3,574 254,192

CharityUnrestricted

funds £

Restrictedfunds

£

2015total

£

Auditors’ remuneration 13,600 - 13,600

Employee costs 173,923 - 173,923

Transport and travel 27,151 - 27,151

Offices expenses 17,946 - 17,946

Legal and governance expenses 17,998 - 17,998

Total 250,618 - 250,618


10. ANALYSIS OF SUPPORT COSTS

Group and charityMary’sMeals

£

Raising awareness

£

Networksupport

£

2015total

£

Employee costs 502,758 251,759 118,273 872,790

Property costs 42,682 15,013 8,059 65,754

Office services 154,263 66,742 33,631 254,636

Publicity and website - 116,917 - 116,917

Transport and travel 53,200 56,726 429 110,355

Depreciation 1,591 352 - 1,943

Total 754,494 507,509 160,392 1,422,395

11. NET INCOMING RESOURCES OF THE PERIOD

Group2015

£

Charity2015

£Depreciation and other amounts written off tangible fixed assets 159,621 127,554

Auditors’ remuneration 17,174 13,600

Loss on foreign currencies 91,061 81,742


12. EMPLOYEES

Employment costsGroup2015

£

Charity 2015

£

Wages and salaries 1,857,297 1,631,784

Social security costs 129,253 127,419

Pension costs 84,841 62,241

Total 2,071,391 1,821,444

Number of employees monthly average

Group2015

Charity 2015

Direct delivery 255 162

Support 16 16

Fundraising 9 9

Material aid and raising awareness 11 11

Governance 2 2

Total 293 200

No employee received total employee benefits of more than £60,000.

KEY MANAGEMENT COMPENSATIONThe key management personnel of Mary’s Meals International Organisation comprise the members of the senior leadership team. The total remuneration paid or payable to key management for their employment services during the period totalled £186,706.

13. PENSION COSTSThe organisation operates a defined contribution pension scheme in respect of staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £61,295. At 31 December 2015, no amounts were accrued in the financial statements.

Mary’s Meals International Organisation contributes 7.5% of each employee’s salary.

Employers are required under the Act to remit aggregated contributions to any of the licensed pension administrators. The charge in 2015 was £20,913. Scottish International Relief Malawi contributes on behalf of its local employees, a mandatory and defined contribution pension scheme prescribed by the Government of Malawi under the Pension Act of 2010 which came into effect on 1 June 2011.

Pension expenses and liabilities are allocated from restricted or unrestricted funds based on the staff member's place of operations.

14. TAXATIONThe charity’s activities fall within the exemptions afforded by the provisions of the Corporation Tax Act 2010. Accordingly, there is no taxation charge in these financial statements.


15. TANGIBLE ASSETS

Group Plant andmachinery

£

Fixturesfittings andequipment

£

Motorvehicles

£

Computerequipment

£Total

£

Cost

At 1 January 2015 - - - - -

Exchange variance - 465 (49,945) (838) (50,318)Additions – on demerger * - 19,573 764,948 3,476 787,997

Additions – purchased in the period 7,330 14,250 377,318 10,397 409,295

Disposals - (1,354) (54,232) (406) (55,992)

At 31 December 2015 7,330 32,934 1,038,089 12,629 1,090,982

Accumulated depreciation

At 1 January 2015 - - - - -

Exchange variance - 208 (19,142) (752) (19,686)

Charge brought forward on demerger * - 10,111 398,831 3,118 412,060

Charge for the period 855 6,996 180,458 2,549 190,858

Released on disposals - (113) (51,031) (355) (51,499)

At 31 December 2015 855 17,202 509,116 4,560 531,733

Net book values

At 31 December 2015 6,475 15,732 528,973 8,069 559,249

CharityPlant andmachinery

£

Fixturesfittings andequipment

£

Motorvehicles

£

Computerequipment

£Total

£

Cost

At 1 January 2015 - - - - -

Exchange variance - 735 17,380 - 18,115

Additions – on demerger * - 18,454 450,820 - 469,274

Additions – purchased in the period 7,330 14,250 139,512 8,054 169,146

Disposals - (1,354) (22,226) - (23,580)

At 31 December 2015 7,330 32,085 585,486 8,054 632,955

Accumulated depreciation

At 1 January 2015 - - - - -

Exchange variance - 423 12,278 - 12,701

Charge brought forward on demerger * - 9,221 266,241 - 275,462

Charge for the period 855 6,897 119,821 2,058 129,631

Released on disposals - (113) (22,226) - (22,339)

At 31 December 2015 855 16,429 376,114 2,058 395,455

Net book values

At 31 December 2015 6,475 15,657 209,372 5,996 237,500

*These additions relate to assets held by branches and subsidiaries brought into MMI. The total net book values brought into the charity and group were £195,309 and £358,548 respectively.


16. STOCK

17. DEBTORS

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

19. ANALYSIS OF NET ASSETS BETWEEN FUNDSGroup

unrestricted funds

£

Grouprestricted

funds £

Grouptotalfunds

£

Charityunrestricted

funds £

Charityrestricted

funds £

Charitytotalfunds

£

Fund balances at 31 December 2015 as represented by:

Tangible assets 13,273 545,976 559,249 13,273 224,227 237,500

Current assets 6,367,273 1,343,921 7,711,194 6,367,273 611,768 6,979,041

Current liabilities (173,571) (675,416) (848,987) (173,571) (23,328) (196,899)

Total 6,206,975 1,214,481 7,421,456 6,169,994 812,667 7,019,642

Group2015

£

Charity 2015

£

Backpacks 494,543 –

Food 376,108 376,108

Total 870,651 376,108

Group2015

£

Charity 2015

£

Trade debtors 31,961 31,961

Other debtors 58,869 19,345

Accrued income 2,866,579 2,866,579

Total 2,957,409 2,917,885

Group2015

£

Charity 2015

£

Trade creditors 85,074 85,074

Accruals and deferred income 728,208 76,120

Taxation and social security 35,705 35,705

Total 848,987 196,899


20. UNRESTRICTED AND RESTRICTED FUNDS

21. RESTRICTED FUNDS

Group At 1 Jan

2015 £

Transfer ondemerger*

£

Incoming resources

£

Outgoing resources

£Transfers

£

Gain oncurrency

revaluation £

At 31 Dec2015

£

Unrestricted funds: – general – 868 13,832,829 (2,989,525) (4,681,605) 44,408 6,206,975

Restricted funds – 298,262 8,038,349 (11,880,985) 4,681,605 77,250 1,214,481

Total – 299,130 21,871,178 (14,870,510) – 121,658 7,421,456

CharityAt 1 Jan

2015 £


£

Incoming resources

£

Outgoing resources

£Transfers

£

Gain oncurrency

revaluation £

At 31 Dec2015

£

Unrestricted funds: – general – 868 13,832,829 (2,989,525) (4,681,605) 44,408 6,206,975

Restricted funds – 487,138 7,980,337 (12,355,987) 4,681,605 19,574 812,667

Total – 488,006 21,813,166 (15,345,512) – 63,982 7,019,642

GroupAt 1 Jan

2015 £


£

Incoming resources

£

Outgoing resources

£Transfers

£

Gain oncurrency

revaluation £

At 31 Dec2015

£

Mary’s Meals Malawi - (231,507) 5,284,622 (7,209,462) 2,415,325 57,676 316,654

Mary's Meals Liberia - 457,717 1,396,863 (2,939,979) 1,656,912 21,649 593,162

Mary’s Meals Zambia - 42,631 32,490 (498,304) 508,343 - 85,160

Mary’s Meals Kenya - 29,421 174,152 (547,302) 383,225 (2,075) 37,421

Mary’s Meals Other Regions - - 1,150,222 (751,222) (261,916) - 182,084

Total - 298,262 8,038,349 11,946,269 4,746,889 77,250 1,214,481

CharityAt 1 Jan

2015 £

Transfer on

demerger* £

Incoming resources

£

Outgoing resources

£Transfers

£

Gain oncurrency

revaluation £

At 31 Dec2015

£

Mary’s Meals Malawi - - 5,227,064 (7,642,389) 2,415,325 - -

Mary's Meals Liberia - 457,717 1,396,863 (2,939,979) 1,656,912 21,649 593,162

Mary’s Meals Zambia - - 32,036 (540,379) 508,343 - -

Mary’s Meals Kenya - 29,421 174,152 (547,302) 383,225 (2,075) 37,421

Mary’s Meals Other Regions - - 1,150,222 (751,222) (216,916) - 182,084

Total - 487,138 7,980,337 12,421,271 4,746,889 19,574 812,667

* Transfers on demerger relate to brought forward reserves held by branches and subsidiaries brought into MMI

* Transfers on demerger relate to brought forward reserves held by branches and subsidiaries brought into MMI


21. RESTRICTED FUNDS (CONTINUED)

Group and charityAt 1 Jan

2015 £

Incoming resources

£

Outgoing resources

£Transfers

£At 31 Dec

2015 £

Benin – 78,151 (35,739) – 42,412

Bosnia – 406 – – 406

Burma – – (12,135) 12,135 –

Ecuador – 20,588 (97) – 20,491

Haiti – 19,159 (703) 319 18,775

India – 6,866 (178,593) 171,727 –

Middle East – 100,000 – – 100,000

Romanian houses – 20,312 (65,283) – 20,312

South Sudan – 14,851 (281,079) 266,228 –

Thailand – – (14,957) 14,957 –

Uganda – 66 (162,635) 162,569 –

Growth plan – 889,823 – (889,823) –

Total – 1,150,222 751,222 (216,916) 182,084

Mary’s Meals International Organisation Funds – Other Regions includes the following specific areas for both group and charity:


22. GROUP STRUCTUREThis is the first year of accounts for Mary’s Meals International Organisation. The charity consists of Mary’s Meals International Organisation, a UK registered company, plus the branches in Bosnia, Kenya and Liberia. The group comprises the charity plus its subsidiaries Scottish International Relief Malawi and Mary’s Meals Zambia.

All three branches and both subsidiaries were transferred to Mary’s Meals International Organisation on 1 January 2015. Details of the subsidiaries are included below.

Scottish International Relief Malawi

Mary’s Meals Zambia

Company number 122443

Charity registration number NGO/R/07/18

Net assets £506,445 £85,160

Income for the period £7,730,037 £493,662

Expenditure for the period £6,868,025 £451,133

Surplus for the period £862,012 £42,529

23. FINANCIAL COMMITMENTSAt 31 December neither the group or the charity had commitments under non-cancellable operating leases.

24. GENERAL COMMITMENTSMary’s Meals International Organisation and Scottish International Relief Malawi have a continued commitment to their respective pension schemes. The charges for the period to 31 December 2015 were £61,295 and £20,913 respectively. Neither had amounts accrued in the financial statements.

25. COMMITTED RESOURCESMary’s Meals International Organisation has a reserves policy such that three months’ operating expenses and between 1.5-2 months of committed project expenditure are maintained within reserves. Based on the approved budget for the 2016 financial year, budgeted reserves are

£2,117,000. Over the 12 months to 31 December 2016, Mary’s Meals International Organisation is planning a grant aid programme of £15,195,695.

Planned programmes will be funded through continued support from donors and National Affiliates of Mary’s Meals International Organisation.

26. TRANSACTIONS WITH DIRECTORSIn accordance with the memorandum and articles of association, directors may only receive remuneration for services undertaken in the administration of the charity provided that it is authorised by the board, is within the limits laid down, and as long as a majority of the board members are acting without remuneration. No directors received remuneration for services from the group or charity in the period ended 31 December 2015.

No reimbursement of travel expenses were paid during the period.

During the period, no other transactions were made by the company with businesses in which board members had a direct interest.

Conflicts of Interest

The company operates a policy to deal with potential conflicts of interest. This includes maintaining a register of board members’/directors’ interests, which details any contractual or financial relationship or position of authority with outside companies, firms or organisations. Whenever a board member/director has an interest in any item discussed by the board, he/she takes no part in the discussions or decision making process.

27. RELATED PARTY TRANSACTIONSCraig Lodge Trust

Craig Lodge Trust is owned by the parents of the Chief Executive Officer, Magnus MacFarlane-Barrow. During the period, Craig Lodge Trust provided goods and services i.e. accommodation, meals, and overheads as stated above, amounting to £5,205. These were provided on an arm’s length basis.


Partner organisations

Mary’s Meals International Organisation works with various organisations to enable it to best achieve its objectives; the main entities are as follows:

Country Partner

Benin Soeurs de Marie Medaille Miraculeuse

Burma Episcopal Commision for Education

Ecuador Fundacion Cristo Misionero Orante

Haiti, Hinche Caritas

Haiti, Gonaives Hands Together

Haita, Port-Au-Prince Hands Together

IndiaBoard for Research Education and Development (BREAD)

Kenya Diocese of Lodwar

Romania Rhema Foundation

South Sudan Diocese of Rumbek

Thailand Living Water Centre

Uganda Emmaus Foundation

Mary’s Meals overseas

Scottish International Relief Malawi is an independently constituted body whose main function is to implement Mary’s Meals projects in Malawi, but it is free to fundraise from other sources. Mary’s Meals International Organisation is represented on the board of this organisation. Mary’s Meals Zambia is also an independently constituted body whose main function is to implement Mary’s Meals projects in Zambia. Mary’s Meals International Organisation is represented on the board of this organisation. Mary’s Meals is registered in Liberia and Kenya, as an overseas organisation working in the country.

Supporters of Mary’s Meals in Austria, Canada, Croatia, Germany, Ireland, Italy, Netherlands,

Spain, the United Kingdom and the USA have set up groups for the sole purpose of fundraising for and supporting Mary’s Meals. Supporters of Mary’s Meals in countries such as Australia, France and Slovenia have groups that, as part of their purpose, raise funds for and support Mary’s Meals International Organisation. Mary’s Meals International Organisation has registered branches in Bosnia and Herzegovina, Kenya and Liberia.

28. COMPANY LIMITED BY GUARANTEEMary’s Meals International Organisation is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

29. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTYThe ultimate parent undertaking is Mary’s Meals International Organisation, a company incorporated in Scotland.

The consolidated financial statements of Mary’s Meals International Organisation can be obtained from:

Mary’s Meals International Organisation Craig Lodge Dalmally Argyll PA33 1AR

30. EVENTS AFTER THE BALANCE SHEET DATEThere have been no significant events since the balance sheet date.


Mary’s Meals (A company limited by guarantee) Charity number: SC045223 Company number: SC488380

www.marysmeals.org

Mary's Meals International Organisation Trustees’ report ... · considerable obstacles to resume...

Documents

Transcript of Mary's Meals International Organisation Trustees’ report ... · considerable obstacles to resume...