OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

Annual Report 2021-2022

2021-2022 has been a transitional year for Paper Boat Ltd. Primarily, it is the first year post-pandemic in which the charity’s activities can begin to consolidate towards a more normal operating model, but also due to changes in staff. As a Board, we have remained committed to robust effective governance whilst being guided by the Paper Boat values of Courage, Creativity and Collaboration. As a charity we have continued to focus our support on local partners, inspiring and enabling children to change their world.

Finances

Paper Boat, as with many charities across the sector, continues to face financial pressures, and in light of these, the Board took decisive action to lower costs in the UK in order to focus finances on the frontline work in India. These were as follows:

Subsequent to these decisions being made to secure the short to mid-term sustainability of the charity, in late September 2021 Paper Boat received a large legacy of €490,000. This legacy is helping secure the long-term future of the charity and enables us to invest to sustain and grow our reach and impact. The Board is continuing to keep income generation at the top of its agenda whilst being prudent with expenditure, in order to create a sustainable operating model.

The organisation continued to receive funds from The Lightfoot Foundation and also secured a grant from WA Cadbury Trust.

We continue to run our UK operations with thanks to our group of regular donors. We are so grateful for this financial investment in our work which enables us to create opportunities for children to change their communities.

Partnerships

We continue our strategic overseas partnerships with CEDAR India and DACS.

The Board continued to build relationships with potential new partners e.g. Reos Partners and Collective Development, but did not create any formal arrangements within this reporting period.

CEDAR INDIA

The provision in Tamil Nadu was severely impacted by the COVID-19 pandemic and much of the

innovative work of the Children’s Hubs had to be altered to work in line with local restrictions. Though schools were closed at the time, the Hubs were able to continue their work in a COVID-19 safe-way. The community fed back how important this was to them.

Highlights from this year’s programme, include the success of one of the children from the Children’s Hubs, Balavignesh, in a national photography competition and the short film, Little Dreams.

Safeguarding and Anti-Child Labour Work.

In the first quarter, in light of the strategy drawn up in the previous year in coordination with James Dyson, CEDAR implemented a number of changes to practice and personnel around safeguarding. This alongside their work with local child safety statutory bodies has led to an increased level of safety for the child and clear systems being in place have led to safeguarding issues being dealt with in systemised ways.

During the first quarter of the year, a lot of work was put in place to protect children from becoming involved in low-paid, child labour. By keeping the CRCs open, thus enabling the CEDAR staff to look after children whose parents were not around, 55 children and 218 family members were shielded from the impact of the pandemic on family life and child safety.

COVID Help Desk

As the second wave of the pandemic spread, Kemal raised concerns with CEDAR about the high level of vulnerability that the children of Kovilpatti faced and an idea was created to form a COVID help desk at CEDAR that could advise and assist those who contracted COVID and their close family. The Help Desk was run under the leadership of Dr Navamani, a CEDAR Trustee. The idea was to monitor, inform, advise treatment and quarantine/isolation in the event of mild disease and help with hospitalisation whenever necessary.

On commencing the work in May 2021. In about a fortnight, 752 individuals in 192 families were screened by the 7 facilitators from Kovilpatti and 4 facilitators from Madurai. Access to digital thermometers and oximeters were made available through funding from Paper Boat.

49 individuals including 12 children were detected with symptoms and treated for the same at home. The screening and monitoring went in cycles till the end of June. One person who went critical in Kovilpatti was treated in quarantine by Dr Navamani herself and got cured. Two other parents were

admitted to the hospital. One fully recovered and the second a parent of one of our children from Madurai unfortunately could not be saved. The facilitators trained online and supported by Dr Navamani daringly played the role of barefoot doctors.

Children’s COVID Art Manual

The idea of the Children’s Covid Manual was a sequel to the Help Desk work. ‘Let us Face Corona – Children’s Manual for Creative Problem Solving and Building Agency’ was developed. There were three considerations:

The children were at the centre of this public function. They staged a powerful theatre performance highlighting the need for Covid appropriate behaviour. Parents of the children, A few NGO

representatives and the public attended. The manual received positive attention from the Government functionaries. The uniqueness was well appreciated. This has helped CEDAR come close to the DCPU and the CWC. It was also very well received by the press.

Other Highlights

The year also included:

Children Served at CRCs

hildren Served at CRCs
Name of the CRC Male Female TOTAL
Keela Eral I & II CRCs 21 38 59
Koosalipatti CRC 11 20 31
Manjanaickerpatti I & II CRCs 21 35 56
Pungavarnatham CRC 13 15 28
Thomas Nagar I & II CRCs 26 43 69
Katturamanpatti CRC 24 13 37
Lingampatti CRC 14 18 32
RURAL TOTAL 130 182 312
Ambedkar Colony CRC 10 17 27
Jawaharlalpuram CRC 13 13 26
Tallakulam CRC 16 21 37
UDA TOTAL 39 51 90
GRAND TOTAL 169 233 402

We are proud to continue our work in partnership with CEDAR who alongside what is listed here have worked tirelessly in service of the children at their families and are bringing transformation right across the region. We hope in the coming years to continue to see this work grow and develop with our support. Our thanks goes to the staff and trustees of CEDAR for the work they are doing.

DACS

The work of DACS is now in its 19[th] year. In their annual report for 2021-2022 DACS expressed their continued thankfulness for the long-standing relationship with Paper Boat.

They report that:

“The children are quite happy and peaceful. They are growing steadily in health, thought and deed. Wide breezy rooms, big hygienic kitchen, purified water, medical care section, entertainment, excessive attention to education and the spirit of service of the foster mothers are the stimulating factors. There are sufficient foster mothers, nurses and elders to look after the children with much care. Yet the needs of the Home are plenty. Dormitories, office room, kitchen, toilets and bathrooms have to be expanded. Typical staff have to be employed and maintained according to ICPS norms.”

At the start of the year there were 8 male and 22 female children in our home. Three male children and two female children have been newly enrolled in the year. Seven female children have been discharged from the Home.

Thailand

Trustees have taken the decision to exit from the partnership with KKBT. This decision was taken after extensive consultation with our Safeguarding advisor Jim Dyson and KKBT. KKBT consistently failed to demonstrate compliance with our safeguarding standards and processes. The Board explored many options to resolve the ongoing concerns and we were deeply mindful of the fact that any withdrawal of support could impact the children at KKBT, but we could not continue to partner with an organisation with inconsistent values and service delivery models. We are undergoing a Cy-Pres application with the Charity Commission to redirect funds (to the closest alternative beneficiaries) and we have contacted the 38 donors who continue to give via standing order for sponsorship to consult them and to request them to redirect their support.

Conclusion

The Board are satisfied that at the end of this financial year the charity is on a sound footing both financially and operationally. We are thankful for the regular, grant and legacy funding we have received that places us in a position to plan investments to benefit the lives of children in the future. We continue our commitment to our values and vision as we move into the coming year. We are thankful for our partnerships both with individuals and organisations that enable us to move this vision forward.

Company no. 02661333 Charity no. 1006060

Paper Boat Ltd

Report and Unaudited Financial Statements

31 March 2022

Paper Boat Ltd

Reference and administrative details

For the year ended 31 March 2022

Company number 02661333 Charity number 1006060 Registered office and 1 and 3 Kings Meadow operational address Osney Mead Oxford OX2 0DP Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Deborah Stenner Munton Thomas Wilkinson Deborah Wetherall Arun Chinnaraj Bankers Barclays Bank plc Virgin Money Church Street 5 Church Street Peterborough Peterborough PE1 1EZ PE1 1XB Independent Godfrey Wilson Limited examiners Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

1

Paper Boat Ltd

Report of the trustees

For the year ended 31 March 2022

The trustees present their report along with the financial statements of the charity for the year ended 31 March 2022.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Paper Boat Ltd. is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association. Charity number 1006060. Company number 02661333.

Objectives and activities

The objectives of the charity are the prevention or relief of poverty and inequality by advancing formal and informal education, as well as developing capacity and skills for children and communities. This is achieved through the following activities:

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grant making policy for the year.

Achievements and performance

2021-2022 has been a transitional year for Paper Boat Ltd. Primarily, it is the first year post-pandemic in which the charity’s activities can begin to consolidate towards a more normal operating model, but also due to changes in staff. As a board, we have remained committed to robust effective governance whilst being guided by the Paper Boat values of courage, creativity and collaboration. As a charity we have continued to focus our support on local partners, inspiring and enabling children to change their world.

Partnerships

We continue our strategic overseas partnerships with CEDAR India and DACS.

The board continued to build relationships with potential new partners e.g. Reos Partners and Collective Development, but did not create any formal arrangements within this reporting period.

CEDAR INDIA

The provision in Tamil Nadu was severely impacted by the COVID-19 pandemic and much of the innovative work of the children’s hubs had to be altered to work in line with local restrictions. Though schools were closed at the time, the hubs were able to continue their work in a COVID-19 safe-way. The community fed back how important this was to them.

Highlights from this year’s programme, include the success of one of the children from the children’s hubs, Balavignesh, in a national photography competition and the short film, Little Dreams.

2

Paper Boat Ltd

Report of the trustees

For the year ended 31 March 2022

DACS

The work of DACS is now in its 19th year. In their annual report for 2021-2022 DACS expressed their continued thankfulness for the long-standing relationship with Paper Boat. They report that:

“The children are quite happy and peaceful. They are growing steadily in health, thought and deed. Wide breezy rooms, big hygienic kitchen, purified water, medical care section, entertainment, excessive attention to education and the spirit of service of the foster mothers are the stimulating factors. There are sufficient foster mothers, nurses and elders to look after the children with much care. Yet the needs of the home are plenty. Dormitories, office room, kitchen, toilets and bathrooms have to be expanded. Typical staff have to be employed and maintained according to ICPS norms.”

At the start of the year there were 8 male and 22 female children in our Home. Three male children and two female children have been newly enrolled in the year. Seven female children have been discharged from the Home.

Thailand

Trustees have taken the decision to exit from the partnership with KKBT. This decision was taken after extensive consultation with our safeguarding advisor Jim Dyson and KKBT. KKBT consistently failed to demonstrate compliance with our safeguarding standards and processes. The board explored many options to resolve the ongoing concerns and we were deeply mindful of the fact that any withdrawal of support could impact the children at KKBT, but we could not continue to partner with an organisation with inconsistent values and service delivery models. We are undergoing a CyPres application with the Charity Commission to redirect funds (to the closest alternative beneficiaries) and we have contacted the 38 donors who continue to give via standing order for sponsorship to consult them and to request them to redirect their support.

Financial review

Paper Boat, as with many charities across the sector, continues to face financial pressures, and in light of these, the board took decisive action to lower costs in the UK in order to focus finances on the frontline work in India. These were as follows:

3

Paper Boat Ltd

Report of the trustees

For the year ended 31 March 2022

Subsequent to these decisions being made to secure the short to mid-term sustainability of the charity, in late September 2021 Paper Boat received a large legacy of €490,000. This legacy is helping secure the long-term future of the charity and enables us to invest, to sustain and grow our reach and impact. The board is continuing to keep income generation at the top of its agenda whilst being prudent with expenditure, in order to create a sustainable operating model.

The organisation continued to receive funds from The Lightfoot Foundation and also secured a grant from WA Cadbury Trust.

We continue to run our UK operations with thanks to our group of regular donors. We are so grateful for this financial investment in our work which enables us to create opportunities for children to change their communities.

Income for the year was £496,267 (2021: £90,536) and expenditure £155,878 (2021: £208,796). The charity holds reserves of £863,866 at 31 March 2022. This includes £25,365 of free unrestricted reserves and £398,000 of endowment funds.

Reserves policy

The charity reserves refer to funds available and to be expended at the trustees discretion in furtherance of any of the charity’s objectives but which are not yet spent, committed or designated.

The charity needs reserves:

The trustees have considered the funds held in unrestricted reserves and have agreed that a policy should be in place whereby the charity should aim to maintain a reserves corridor of £70,000 - £90,000 that would cover 3 months expenditure. Unrestricted funds at 31 March 2022 were £353,724, in excess of this target. This is due to a large unrestricted legacy received during the year. The trustees are currently in development of a strategy to allocate these excess funds towards strengthening and developing our work in the coming years.

Plans for future periods

The board are satisfied that at the end of this financial year the charity is on a sound footing both financially and operationally. We are thankful for the regular, grant and legacy funding we have received that places us in a position to plan investments to benefit the lives of children in the future. We continue our commitment to our values and vision as we move into the coming year. We are thankful for our partnerships both with individuals and organisations that enable us to move this vision forward.

Structure, governance and management

The Council of Management

The directors of the charitable company (“the charity”) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The trustees in office during the period and at the date of this report are set out on Page 1. The Articles require that one third of the trustees retire in rotation and may offer themselves for re-election. The members of the charity attending the annual general meeting elect trustees annually.

4

Paper Boat Ltd

Report of the trustees

For the year ended 31 March 2022

Trustees are recruited to ensure the board is balanced and equipped to support the organisation. Most new trustees are already familiar with the practical work of the charity, they may be offered further induction. All trustees are given the opportunity of additional training where necessary.

As a charity accountable to all our donors, we must meet the requirement that our resources are carefully managed, and our legal responsibilities met. We can only achieve our vision as an organisation through skilled and committed people.

Trustees hold ultimate legal responsibility for the charity and collectively ensure delivery of our objectives, set our strategic direction, and uphold our beliefs as an organisation. The key responsibilities of the trustees are:

Trustees receive regular reports on all aspects of the work and meet formally at least 4 times a year. They delegate the main day to day decisions to the charity director.

All trustees give of their time freely and no trustee remuneration was paid in the year.

Risk management

The trustees have overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. 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 and to provide reassurance that:

The trustees actively review the major risks associated with raising funds and supporting overseas projects, which the charity faces on a regular basis and believe that by designating funds to reserves they have sufficient resources to mitigate the significant risks.

This has been particularly important in these times of economic downturn and trustees are continually monitoring the effect on our charity and its activities. Our banking arrangements and investment policies have been reviewed and trustees consider them appropriate for current and future needs.

To conform with regulations the charity has in place effective policies. Due to the nature of the overseas projects the charity supports, trustees have encouraged those projects to put in place effective policies on child protection and its associated risks, which protect the children whom we support, and these requirements are captured by the due diligence checklist that all partners are assessed against on the commencement of partnership and annually thereafter.

5

Paper Boat Ltd

Report of the trustees

For the year ended 31 March 2022

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on 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.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiners

Godfrey Wilson Limited were appointed as independent examiners to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 10 December 2022 and signed on their behalf by

Arun Chinnaraj Deborah Wetherall Debbie Stenner
Arun Chinnaraj - Trustee Deborah Wetherall - Trustee Debbie Stenner - Trustee

6

Independent examiner's report

To the trustees of

Paper Boat Ltd

I report to the trustees on my examination of the accounts of Paper Boat Ltd (the charitable company) for the year ended 31 March 2022, which are set out on pages 8 to 25.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company's accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Alison Godfrey

Date: 10 December 2022 Alison Godfrey FCA Member of the ICAEW For and on behalf of: Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

7

Paper Boat Ltd

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

Note
£
Income and endowments from:
Donations and legacies
3
-
Charitable activities
4
-
Other trading activities
5
-
Investments
-
Total income and endowments
-
Expenditure on:
Raising funds
-
Charitable activities
-
Total expenditure
7
-
Net income / (expenditure)
-
Other recognised gains / (losses):
35,000
Net movement in funds
10
35,000
Reconciliation of funds:
Total funds brought forward
363,000
Total funds carried forward
398,000
Endowment
Gains / (losses) on revaluation of
investment property		 Unrestricted
£
£
22,345
442,742
15,000
-
-
13,000
-
3,180
37,345
458,922
(55,042)
105,471
94,797
10,652
39,755
116,123
(2,410)
342,799
-
-
(2,410)
342,799
114,552
10,925
112,142
353,724
Restricted		 2022
Total
£
465,087
15,000
13,000
3,180
496,267
50,429
105,449
155,878
340,389
35,000
375,389
488,477
863,866		 2021
Total
£
87,178
-
-
3,358
Restated
90,536
50,348
158,448
208,796
(118,260)
(15,000)
(133,260)
621,737
488,477

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 18 to the accounts.

Prior period other recognised gains / (losses) have been reclassified to reflect the requirements of the Charities SORP (FRS 102) and to be comparable with the current year. The restatements are disclosed in note 20 to the accounts.

8

Paper Boat Ltd

Balance sheet

As at 31 March 2022

Note
Fixed assets
Tangible assets
13
Investment property
14
Current assets
Debtors
15
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
16
Net current assets
Net assets
17
Funds
18
Endowment funds
Restricted funds
Unrestricted funds
General funds
Total charity funds		 £
6,580
473,580
480,160
(14,981)		 2022
£
687
398,000
398,687
465,179
863,866
398,000
112,142
353,724
863,866		 Restated
2021
£
981
363,000
363,981
7,780
123,416
131,196
(6,700)
124,496
488,477
363,000
114,552
10,925
488,477

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

9

Paper Boat Ltd

Balance sheet

As at 31 March 2022

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The 2021 comparatives have been restated, as disclosed in note 20 to the accounts.

Approved by the trustees on 10 December 2022 and signed on their behalf by

Arun Chinnaraj Deborah Wetherall Debbie Stenner Arun Chinnaraj - Trustee Deborah Wetherall - Trustee Debbie Stenner - Trustee

10

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Paper Boat Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

11

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

Donations required to be retained as capital in accordance with the donor's wishes are accounted for as endowments - permanent or expendable according to the nature of the restriction. Endowments and the subsequent increases and decreases in value are shown in the Statement of Financial Activities as part of those funds.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the proportion of staff time as follows:

2022 2021
Raising funds 39.0% 22.0%
Charitable activities 61.0% 78.0%

i) Grants payable

Grants payable are charged in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached have been fulfilled. Grants offered subject to conditions at the year end are noted as commitment but are not accrued as expenditure.

12

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

j) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer equipment

5 years

Items of equipment are capitalised where the purchase price exceeds £500.

k) Investment property

Investment properties are included in the balance sheet at their fair value (note 14). Investment properties are informally re-valued every year. The aggregate surplus or deficit is included as an unrealised gain or loss within the appropriate fund.

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

n) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

p) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

q) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

13

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

q) Accounting estimates and key judgements (continued)

2. Prior period comparatives: statement of financial activities

£
Income from:
Donations and legacies
-
Investments
-
Total income
-
Expenditure on:
Raising funds
-
Charitable activities
-
Total expenditure
-
Net income / (expenditure)
-
Other recognised gains / (losses):
(15,000)
Net movement in funds
(15,000)
Gains / (losses) on revaluation of
investment property
Endowment		 Restricted
£
£
31,765
55,413
-
3,358
31,765
58,771
-
50,348
13,934
144,514
13,934
194,862
17,831
(136,091)
-
-
17,831
(136,091)
Unrestricted		 Restated
2021
Total
£
87,178
3,358
90,536
50,348
158,448
208,796
(118,260)
(15,000)
(133,260)

14

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

3. Income from donations and legacies

Restricted
£
£
Donations
22,095
26,834
Legacies
-
415,728
Membership income
250
180
Total income from donations and legacies
22,345
442,742
Prior period comparative:
Restricted
£
£
Donations
31,765
44,753
Legacies
-
10,000
Membership income
-
660
Total income from donations and legacies
31,765
55,413
4.
Income from charitable activities
2022
Restricted
Total
£
£
£
Grants
15,000
-
15,000
5.
Income from other trading activities
2022
Restricted
Total
£
£
£
Secondment income
-
13,000
13,000
Unrestricted
Unrestricted
Unrestricted
Unrestricted		 2022
Total
£
48,929
415,728
430
465,087
2021
Total
£
76,518
10,000
660
87,178
2021
Total
£
-
2021
Total
£
-

6. Government grants

The charitable company did not receive any government grants in the current or prior year.

15

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

7. Total expenditure

Total expenditure
Staff costs (note 11)
Grants payable (note 8)
Depreciation
Rent and insurance
Repairs
Postage and telephone
Travel and subsistence
Office costs
Independent examination fees
Other accountancy services
Legal and professional
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising funds
£
40,570
-
-
-
-
-
-
-
-
-
-
40,570
9,859
50,429		 Charitable
activities
£
20,899
68,819
-
-
-
-
-
-
-
-
-
89,718
15,731
105,449		 Support and
governance
costs
£
6,830
-
294
1,290
2,445
843
116
3,120
2,640
5,407
2,605
25,590
(25,590)
-		 2022 Total
£
68,299
68,819
294
1,290
2,445
843
116
3,120
2,640
5,407
2,605
155,878
-
155,878

Total governance costs were £5,245 (2021 restated: £25,260)

16

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

7. Total expenditure Prior period comparative

Total expenditure
Prior period comparative
Staff costs (note 11)
Grants payable (note 8)
Depreciation
Rent and insurance
Postage and telephone
Travel and subsistence
Office costs
Independent examination fees
Other accountancy services
Legal and professional
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising funds
£
39,100
-
-
-
-
-
-
-
-
-
39,100
11,248
50,348		 Charitable
activities
£
20,142
98,611
-
-
-
-
-
-
-
-
118,753
39,695
158,448		 Support and
governance
costs
£
6,583
-
294
4,968
1,899
259
3,040
3,240
8,640
22,020
50,943
(50,943)
-		 Restated
2021 Total
£
65,825
98,611
294
4,968
1,899
259
3,040
3,240
8,640
22,020
208,796
-
208,796

17

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

8. Grants payable

9.
**10. **		 Institutions
CEDAR
DACS
KKBT
Boys Town Society
ISS
Total grants payable
Grant commitments
Grants payable:
Grant commitments brought forward
Grants committed during the period
Grants paid during the period
Grant commitments carried forward
Net movement in funds
This is stated after charging:
Depreciation
Trustees' remuneration
Trustees' reimbursed expenses
Independent examiner's remuneration:
Independent examination (including VAT)		 2022
£
34,671
24,148
10,000
-
-
68,819
2022
£
-
10,000
-
10,000
2022
£
294
Nil
Nil
2,640		 2021
£
65,722
13,371
13,536
5,435
547
98,611
Restated
2021
£
-
-
-
-
2021
£
294
Nil
Nil
3,240

18

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

11. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2022
£
64,351
2,400
1,548
68,299		 2021
£
62,388
1,983
1,454
65,825

No employee earned more than £60,000 during the year.

The key management personnel of the charitable company comprise the Trustees, and the Director. The total employee benefits of the key management personnel were £47,725 (2021: £46,980).

Average head count 2022
No.
2.0		 2021
No.
2.0

12. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

13. Tangible fixed assets

Cost
At 6 April 2021
Disposals
At 31 March 2022
Depreciation
At 6 April 2021
Charge for the year
On disposals
At 31 March 2022
Net book value
At 31 March 2022
At 5 April 2021		 Restated
Total
£
2,302
(832)
1,470
1,321
294
(832)
783
687
981

19

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

14. Investment property

Fair value value at 6 April 2021
Unrealised gains / (losses)
Fair value at 31 March 2022
15. Debtors
Prepayments
Gift aid
16. Creditors : amounts due within 1 year
Accruals
Grants payable < 1 year (note 9)
Other taxation and social security
Other creditors		 2022
£
363,000
35,000
398,000
2022
£
-
6,580
6,580
2022
£
2,640
10,000
1,994
347
14,981		 Restated
2021
£
378,000
(15,000)
363,000
2021
£
300
7,480
7,780
2021
£
5,161
-
1,539
-
6,700

20

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

17. Analysis of net assets between funds

£
Tangible fixed assets
-
Investment property
398,000
Current assets
-
Current liabilities
-
Net assets at 31 March 2022
398,000
Prior period comparative
£
Tangible fixed assets
-
Investment property
363,000
Current assets
-
Current liabilities
-
Net assets at 5 April 2021
363,000
Endowment
funds
Endowment
funds		 £
-
-
112,142
-
112,142
£
-
-
114,552
-
114,552
Restricted
funds
Restricted
funds		 £
687
-
368,018
(14,981)
353,724
£
981
-
16,644
(6,700)
10,925
General
funds
General
funds		 Total
funds
£
687
398,000
480,160
(14,981)
863,866
Total
funds
£
981
363,000
131,196
(6,700)
488,477

21

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds

Endowment funds
Endowment property
Total endowment funds
Restricted funds
Boys Town Society
Inba Seva Sangam
CEDAR - Nodal office
SPPD
MSGH
DACS
Thailand
COVID Response
Restricted legacy fund
Total restricted funds
General funds
Total unrestricted funds
Total funds
CEDAR hubs - Kovilpatti
and Madurai
Unrestricted funds*		 At 6 April
2021
£
363,000
363,000
57,460
13,926
-
-
63
8,103
-
-
-
35,000
114,552
10,925
10,925
488,477		 Income
£
£
£
-
-
35,000
-
-
35,000
8,709
-
-
2,870
-
-
15,827
(15,827)
-
2,126
(9,656)
-
-
(63)
-
2,354
-
-
2,429
(11,179)
-
2,252
(2,252)
-
778
(778)
-
-
-
-
37,345
(39,755)
-
458,922
(116,123)
-
458,922
(116,123)
-
496,267
(155,878)
35,000
Expenditure
Investment
Gains /
(losses)		 £
-
-
-
-
-
26,250
-
-
8,750
-
-
(35,000)
-
-
-
-
Transfers
between
funds		 £
398,000
At 31
March
2022
398,000
66,169
16,796
-
18,720
-
10,457
-
-
-
-
112,142
353,724
353,724
863,866

*Expenditure on two restricted funds have been paused due to safeguarding concerns. The charity has informed the Charity Commission and at the date of signing is awaiting confirmation on how the funds may be distributed.

Endowment funds

In April 2004 a leasehold property was donated to the charity when its market value was £165,000. In the financial year ended 5 April 2014 a further £16,000 was invested in order to acquire the freehold to the property. Title to the property is held by a separate company, Forest Lawns Management Limited, on behalf of the property owners. Mr K Shaheen, the Charity Manager, is a Director of the company, and the charity holds 5% of the shares in that company, which equates to one of the twenty properties in the company. One of the conditions of the donation was that the donor continues to live in the property for the duration of her life, after which the Trustees are able to deal with the property in any manner. The Trustees have re-classified this as an expendable endowment fund which they consider to be more appropriate than restricted funds as they are unable to use the fund at the current time.

22

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds (continued) Purposes of restricted funds

Boys Town Society*

The purpose of the fund is to work with Boys Town Society, an Indian NGO providing residential care for young people. This fund has been paused.

Inba Seva Sangam*

The purpose of the fund is to work with Inba Seva Sangam, an Indian NGO providing residential care for young people. This fund has been paused.

CEDAR - Nodal office

The purpose of the fund is to work with CEDAR, an Indian NGO, to provide programme management and monitoring of our work in India.

CEDAR hubs - Kovilpatti and Madurai

The purpose of the fund is to support community based creative learning programmes in India.

SPPD

The purpose of the fund is to work with SPPD, an Indian NGO, to support community based informal learning programmes in India.

MSGH*

The purpose of the fund is to work with MSGH, an Indian NGO, providing residential care for young people. This fund has been paused.

DACS

The purpose of the fund is to work with DACS, an Indian NGO, to provide 'last resort' residential care for children and young people living with HIV/AIDS.

Thailand

The purpose of the fund is to work with Khon Kaen Boys Town, a Thai NGO providing residential care for young people. Paper Boat has now exited from this partnership.

COVID Response

The purpose of the fund is to provide immediate humanitarian relief to communities in India impacted by the pandemic.

Restricted legacy fund

The original purpose of the fund was legacy income restricted to a specific partner in India (Boys Town Society).

Transfers

To reallocate restricted funds to other restricted projects, as confirmed by the Charity Commission.

23

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds (continued)
Prior period comparative
Restated
At 6 April
2020
£
Endowment funds
Endowment property
378,000
Total endowment funds
378,000
Restricted funds
Boys Town Society
47,289
Inba Seva Sangam
9,561
-
SPPD
-
MSGH
4,871
DACS
-
Thailand
-
COVID Response
-
Restricted legacy fund
35,000
Total restricted funds
96,721
Designated funds:
Funds projects
90,000
Total designated funds
90,000
General funds
57,016
Total unrestricted funds
147,016
Total funds
621,737
CEDAR hubs - Kovilpatti
and Madurai
Unrestricted funds		 Income
£
£
£
-
-
(15,000)
-
-
(15,000)
15,606
(5,435)
-
4,912
(547)
-
1,317
(1,317)
-
63
-
-
3,232
-
-
3,463
(3,463)
-
2,305
(2,305)
-
867
(867)
-
-
-
-
31,765
(13,934)
-
-
-
-
-
-
-
58,771
(194,862)
-
58,771
(194,862)
-
90,536
(208,796)
(15,000)
Expenditure
Investment
Gains /
(losses)		 £
-
-
-
-
-
-
-
-
-
-
-
-
(90,000)
(90,000)
90,000
-
-
Transfers
between
funds		 At 5 April
2021
£
363,000
363,000
57,460
13,926
-
63
8,103
-
-
-
35,000
114,552
-
-
10,925
10,925
488,477

19. Related party transactions

There were no related party transactions in the current or prior period.

24

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2022

20. Prior period restatement

The prior period comparatives have been restated to recognise the endowment property as an investment property rather than a tangible fixed asset.

This has impacted prior period tangible fixed assets, prior period investment property and total funds brought forward to 6 April 2021 as follows:

Tangible fixed assets

Tangible fixed assets
Original net book value as at 5 April 2021
Removal of investment property at cost
Net book value as at 5 April 2021, restated		 2021
£
181,981
(181,000)
981

Investment property

A revaluation was completed on 5 April 2020 to bring ensure the property is held at fair value at that date.

Investment property at cost
Revaluation gain as at 5 April 2020
Fair value at 5 April 2020		 2020
£
181,000
197,000
378,000

The investment property was subsequently subject to an annual revaluation review during the year ended 5 April 2021.

Investment property fair value at 6 April 2020
Annual revaluation gain / (loss)
Fair value at 5 April 2021		 2021
£
378,000
(15,000)
363,000

21. Change in accounting period

The current period comprises a period of slightly less (5 days) than a full year, from 6 April to 31 March 2021. The prior period comprises a full year between 6 April 2020 and 5 April 2021.

This has not been notated for each note to the financial statements, as the periods are deemed to be materially comparable.

The accounting period was changed to simplify accounting processes only.

25

Paper Boat 1 & 3 Kings Meadow Osney Mead Oxford OX2 0DP

Alison Godfrey FCA Godfrey Wilson Limited Chartered Accountants & Statutory Auditors 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD

10 December 2022

Dear Alison

Letter of Representations on the Financial Statements for the Year Ended 31 March 2022

We confirm that the following representations are made on the basis of enquiries of the trustees, management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you:

  1. We have fulfilled our responsibilities as trustees, as set out in the terms of your engagement letter dated 6 June 2022, under the Companies Act 2006 for preparing financial statements, in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We confirm that in our opinion the financial statements give a true and fair view and in particular that where any additional information must be disclosed in order to give a true and fair view that information has in fact been disclosed. We confirm that the selection and application of the accounting policies used in the preparation of the financial statements are appropriate, and we approve these accounts for the year ended 31 March 2022.

  1. We confirm that all accounting records have been made available to you for the purpose of your examination, in accordance with your terms of engagement, and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management, trustees’ and members’ meetings, have been made available to you. We have given you unrestricted access to persons within the charity in order to obtain evidence and have provided any additional information that you have requested for the purposes of your examination.

  2. We confirm the charity has satisfactory title to all assets and there are no liens or encumbrances on the assets, except for those disclosed in the financial statements.

  3. We confirm that significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. We confirm that we have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

Registered Charity No. 1006060 | Company Number: 02661333

  1. We confirm that the charity has no liabilities or contingent liabilities other than those disclosed in the financial statements.

  2. We confirm that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the applicable financial reporting framework.

  3. We confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the financial statements, other than those already disclosed or included in the financial statements.

  4. We confirm that we are aware that a related party of the charity is a person or organisation which either (directly or indirectly) controls, has joint control of, or significantly influences the charity or vice versa and as a result will include: trustees/directors, other key management, close family and other business interests of the previous. We confirm that all related party relationships and transactions have been accounted for and disclosed in accordance with the applicable financial reporting framework.

  5. We confirm that the charity neither had, at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including advances and credits granted by the charity) for trustees, nor provided guarantees of any kind on behalf of the trustees except as disclosed in the financial statements.

  6. We confirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial statements.

  7. We confirm that the charity has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.

  8. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its activities and which are central to the charity’s ability to conduct its activities, except as explained to you and as disclosed in the financial statements.

  9. We acknowledge our responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud. We confirm that we have disclosed to you the results of our risk assessment of the risk of fraud in the organisation.

  10. We confirm that there have been no actual or suspected instances of fraud involving trustees, management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by trustees, former trustees, employees, former employees, regulators or others.

  11. We confirm that, in our opinion, the charity’s financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity’s needs. In reaching this conclusion, we have taken into account all relevant matters of which we are aware, and have considered a period of at least one year from the date on which the financial statements will be approved.

  12. We confirm that in our opinion the effects of uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole.

  13. We confirm that, in respect of the restatement to correct a material misstatement in prior period financial statements that affects the comparative information (and any other period covered by your work), the adjustment relates to the correction of a fundamental error which has no bearing on the results of the current period, and accordingly, should be accounted for by restating prior periods.

Registered Charity No. 1006060 | Company Number: 02661333

  1. We confirm that we are not aware of any matters of material significance that should be reported to regulators. We confirm that all correspondence with the Charity Commission has been made available to you.

  2. We confirm that all grants, donations and other income, including those subject to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income.

  3. We confirm the following specific representations made to you during the course of the independent examination:

  4. (a) We consider the valuation of the investment property to be accurate and reasonable as at 5 April 2020, 5 April 2021 and 31 March 2022.

Yours sincerely

Arun Chinnaraj

Arun Chinnaraj - Trustee For and on behalf of the trustees of Paper Boat Ltd

Deborah Wetherall

Deborah Wetherall - Trustee For and on behalf of the trustees of Paper Boat Ltd

Debbie Stenner

Debbie Stenner - Trustee

For and on behalf of the trustees of Paper Boat Ltd

Registered Charity No. 1006060 | Company Number: 02661333