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MERCY LOGISTICS
(A company limited by guarantee)
Financial review (continued)
Structure, governance and management
l Constitution
Mercy Logistics is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association dated 12 August 2009 and is a registered charity number 1152555.
The principal object of the company is (1) the relief of poverty, hardship, sickness and distress across the developing world by locating and receiving donated goods/resources/materials from donors primarily in the UK, but extending to worldwide and arranging transport of said items to enable local projects to respond to local needs. (2) the advancement of education in areas described above (3) other such charitable purposes to further the work as the directors may determine.
l Methods of appointment or election of Trustee
The management of the Charity is the responsibility of the Trustee who are elected and co-opted under the terms of the Memorandum of Association.
l Financial risk management
The Trustee have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Members' liability
The Members of the Charity guarantee to contribute an amount not exceeding £10 to the assets of the Charity in the event of winding up.
The Trustee (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustee's report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustee to prepare financial statements for each financial . Under company law, the Trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustee are required to:
∙select suitable accounting policies and then apply them consistently;
∙observe the methods and principles of the Charities SORP (FRS 102);
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustee are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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