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2024-03-31-accounts

Paper Boat Ltd. Charity no. 1006060, company no. 02661333 Accounts For Year Ended 31 March 2024

TRUSTEES’ WELCOME

Trustee’s Welcome and Introduction to the Annual Report 2023-24

This report highlights the voyage we have been on with the children we support and work with in 2023/24. As a charity we have continued to focus our support on our trusted local partners CEDAR and DACS, inspiring and enabling children to change their world. We hope you will enjoy reading about the activities and progress of Paper Boat and our partner organisations in this report.

Arun Chinnaraj

Our strategic focus this year has been firmly on long-term financial sustainability and income generation so that with our partners we can continue to deliver meaningful impact in line with our charitable objects in the years to come.

As a Board we revisited and recommitted to our Paper Boat Vision, Mission and Purpose (see p 2) Significantly, in line with our charitable purpose, we have committed to listening to the voices of the children we serve more regularly and effectively.

As a Board, we have remained committed to robust effective governance whilst being guided by our Paper Boat values of Courage, Creativity and Collaboration. Debbie Stenner resigned from her Trustee position in April of this year; our thanks go to Debbie for contributing her time and expertise so generously during her tenure on the Board.

We are pleased to share that Bert O’Donoghue was elected to the Board at our 2023 AGM and that in March Rich Proctor was co-opted to the Board. Both Rich and Bert bring valuable governance experience and specialist skills to the Board. The trustees would also like to extend their thanks to our Charity Manager Dave for his efforts and commitment to the charity over the last 12 months.

Bert O’Donoghue

Deborah Wetherall

Looking ahead, we continue to be deeply inspired by the creativity, courage and optimism of the children we serve, and as we look to the future our commitment to our beneficiaries remains steadfast.

We are hugely grateful to our regular supporters and donors. We remain confident that in collaboration with others we can continue our journey towards a world that unlocks the infinite potential of every child, and we look forward to sharing this exciting journey with you.

We thank you for your continued support,

Rich Proctor

Deborah Wetherall, Arun Chinnaraj, Bert O’Donoghue and Rich Proctor October 2024

OUR VISION

Inspiring and enabling children to change their world.

’ > REPORT

The year 2023-2024 has been a year of continued strengthening of our relationships with our partners CEDAR and DACS. We have worked upon what we see as our added value as a funding partner, that is, the work we do with our partners that goes beyond financial grants. This has involved staff coaching, training, support of projects. In January this year Trustee, Deborah Wetherall travelled to India and worked with our partners,nurturing partner relations and reinforcing the need for all organisations including Paper Boat to focus on long-term sustainability, listening to the voices of the children and staff on the ground and delivering capacity building to CEDAR staff around leadership and socio-emotional learning. This has proven to be hugely impactful in the months following.

During the course of the year, Dave Magill has spent many hours working closely with our India partners identifying innovative partnerships, mentoring their staff, providing guidance and being a critical friend.

Our strategic partnerships with CEDAR India and DACS continue to thrive, as detailed in the following sections. We have also been part of creating a partnership between The Chennai Children’s Photography Biennalle and CEDAR. We continue to speak to potential co-partners on our partner’s behalf.

PARTNERSHIPS

1. Community Ownership and Parental Engagement: Collective Action for Child Welfare

Parents across villages rallied for child safety, transportation, and environmental improvements. In Pungavarnatham, they took their concerns about transportation for school children directly to the district collector, and parents in Keela Eeral advocated for improved canal systems. Regular parent collective meetings witnessed increased participation from fathers, a promising sign of expanding parental involvement. Parents also supported exhibitions and child-centered events, including discussions on child safety in Kovilpatti.

2. Children’s Collectives, Civic Engagement, and Expression

Children of Keela Eeral raised their voices by petitioning for the removal of stagnant drainage, gathering community support and presenting their case to the District Collector. In preparation for the upcoming elections, CEDAR’s children crafted a Children’s Election Manifesto, advocating for better transportation and community certifications for tribal members of LKB Nagar. They also took on leadership roles in organizing parent meetings and engaged with the broader community on issues that mattered to them. Children’s creative expression soared through workshops on story writing and editorial skills. During the Kovilpatti floods, young participants transformed their experiences into powerful stories, essays, and artwork, channeling personal challenges into narratives of resilience.

3. Children Making Documentaries: Environmental and

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Social Awareness
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Social Awareness

Children immersed themselves in documenting water bodies in their villages, aiming to spotlight issues like pollution. This initiative gained traction as they filmed a short documentary on the Kovilpatti floods, using their platform to advocate for flood relief. Driven by ecological concerns, these young filmmakers explored the Kallar River Basin, gathering materials for future educational documentaries.

4. Art Initiatives: Unleashing Creativity Through Visual Arts

Art workshops were abundant, with children honing their skills in glass painting, Warli, Mandala, and Gond art. Senior children guided younger peers, cultivating mentorship and

artistic growth. A December exhibition showcased over 100 works, celebrating their creativity. Later, 58 children participated in a sculpting workshop, adding new dimensions to their artistic skills.

5. Traditional Performing Arts: Connecting with Cultural Roots

Workshops on Parai drumming and Oyil dancing opened a new realm of expression for 100 children from Kovilpatti and Madurai. Swiss artists Christine and Heinz introduced Noa Theatre techniques, bridging cultural boundaries and fostering an enriching cross-cultural exchange.

6. Creative Photography: Documenting Community Challenges

Under the mentorship of Marikannan, children learned photography, capturing images that highlighted local environmental issues, particularly waste mismanagement. These photographs were exhibited in their communities, sparking discussions on civic responsibility.

7. School Collaborations: Showcasing Young Talent

Collaborations with local schools provided a platform for children’s artwork, including exhibitions at the Tamil Baptist School Annual Day and in Kovilpatti and Ettunayakanpatti schools. Parents and educators admired the depth of creativity displayed by these young artists.

8. Strengthening Foundational Skills: Focus on Tamil and Mathematics

CEDAR developed training manuals for Tamil and Math, equipping facilitators to reinforce these foundational skills. Impact assessments showed promising improvements in Tamil, though Math posed challenges, highlighting the need for ongoing support.

9. Sports for Strategic Thinking

The Mariyammal Memorial Chess Tournament in Madurai brought young minds together, fostering critical thinking skills. Plans are underway to expand chess activities to include parents, making it a family-oriented pursuit.

10. Environmental Awareness Exhibitions: Advocating for a Green Future

The “Children and Youth for Green Village” exhibition in Keela Eeral displayed artworks addressing environmental issues, sparking awareness among the local community. 11. Capacity Building for Educators: Empowering Through EnglishREPORT

Facilitators underwent English language training to improve their communication and teaching abilities, enhancing their effectiveness as community educators.

12. Research and Advocacy: Youth for the Environment

CEDAR’s research revealed an enthusiastic interest among children and youth in protection. While motivated, they require ongoing education and support to sustain these efforts. 13. LKB Nagar’s Community Transformation Through Traditional Drumming

LKB Nagar’s CRC embraced the cultural roots of Parai drumming, sparking enthusiastic participation from children and embedding traditional music into their daily routines. This training not only increased CRC engagement but also strengthened community ties.

CEDAR’s work over the past year reflects the transformative power of community-driven initiatives. By fostering children’s safety, education, creativity, and civic engagement, CEDAR is creating a foundation for sustainable change, empowering children and their communities to advocate for a brighter future. We continue to be delighted by our partnership.

DACS continues to deliver vital work for the most vulnerable children in Dinidgul. There is no way to overestimate the impact of this work on the individual lives of the children that Mr Thankachan and the team care for. This year DACS has cared for around 40 children, providing them with safety, education, healthcare, and life skills training.

Mr Thankachan reports that the children continue to thrive within the home and we have been delighted in recent months to begin to receive individual stories of children who are excelling in both academic and athletic endeavours with awards being won by at least two children whom DACS takes care of.

DACS continue to deliver key life skills to the children with reports of lessons ranging through things like anger management, child-safety, cooking and arts and creative expression.

DACS continue to host local healthcare teams and training colleges for training around caring for children affected by HIV/AIDS. This brings both income to DACS as well as raising the profile of the work they are doing.

We are committed to supporting this vital work as DACS continues to develop.

? IMPACT STATISTICS

CEDAR continue to reach a large number of children across a large geographical area. The work in new areas such as LKB Nagar has opened opportunity to offer their work to more children. This and the growing partnerships that CEDAR are delivering with local schools has led to CEDAR’s impact being much larger than one may expect from an organisation of their size. This, alongside their unique and excellent work is testament to why we are so committed to them.

Children’s Hubs Statistics.

As these statistics show the number of children committing regularly to the programme remains high and this shows again the outcomes of CEDAR’s longterm comittment to the communities they serve. On the following page you can see CEDAR’s schools work statistics which illustrates the importance of this work.

IMPACT TATISTICé Madurai Curporaiioll Primary sch{￿1. Pd[ansanath￿. Madurai Col]aborntin8 with Sclyy)Is in Tr￿h1n8 Alternative Go￿. Primary sch￿]. Poigaik8rnTP81ti. Madurni KamarAj High S¢hool, Ch07thapuram, Th￿thukUdI 75 Tallakulam Corkx)ration Primary sch￿1. Madurni laboration with SLh(M)Is in Pmvidin8 Awareness lo Sc Children ollaborntion with Schools ID Or8aaisi08 Art Exhibitio Go￿. Girls Hi8Jw Secondary School. Kovilpatti. Th(x)thukudi Tamil Bapiist Schwl. Thom&s Nagar. Kovilpatti. Th￿thUk￿dI 250 Ameen Higlv Secondary School, Madurai labor&ting with Schools in Screening (*Jr Children's Fi Kamaraj High kh￿1. Ch07thapuram. Th￿thUk￿dI 240 Mcenakshi Matriculation Children'5 NSS camp Kattunaickers Community Chiltheo in Madurai LKB Nagar G￿. Panchayai Union Middle School Number of Children Rexhed Throu8h Outreach Programmes d Total- Number of Cblldren RexlKd Through CRCS aod Sth(KJl Olltrea¢h Progr￿¢$ frnm April lo Lkttmber 2,159 466p2J5ts 2ffj25

REPORT

Safeguarding

A deep commitment to safeguarding children and young people remains at the heart of Paper Boat. We are committed to an ongoing learning process and we have every confidence that our partners share our values and priorities.

Our thanks go to our Safeguarding advisor Jim Dyson, who we are continuing to work closely with to support us with our legal responsibilities and adhering to and going beyond ‘best practice’.

Conclusion

The Board is confident that Paper Boat is in a strong financial and operational position at the close of this financial year. We are grateful for the donations, grants, and legacies that have allowed us to invest in our future and continue making a difference in the lives of children. Our commitment to our values and vision remains steadfast, and we look forward to continuing this important work with our dedicated partners.

Thank you for your ongoing support as we move into the coming year.

FINANCES

Paper Boat continues to feel the financial pressures of the current charity landscape. We have applied to many grant funding foundations but have unfortunately been unsuccessful, often due to the highly competitive landscape but also due to the very specific work that we do. We are fortunate to be able to continue to support the work on the ground through the generous support of our donors and those who have left us legacies in the past.

Renting out the flat in Bromley has enabled us to have a stronger financial base, yet we remain focused on diversifying income through a variety of fundraising efforts. Our initiatives include attracting individual, regular donors, hosting community events, partnering with local businesses, showcasing our work to high-net-worth individuals to attract their support, and utilising online crowdfunding platforms. By tapping into these multiple channels, we aim to build a robust and sustainable financial foundation.

Our financial stability has also allowed us to engage with the Charity Commission regarding funds previously withheld from our former partners in India due to safeguarding and financial due diligence concerns. We are pleased this complex process has been resolved and we are now able to legally repurpose those funds. We intend to repeat this process with a smaller amount of money that is currently ringfenced for Khon Kaen Boys Thailand Thailand As reported previously this partnership was terminated by Paper Boat in 2022 despite significant efforts on our part, due to KKBT’s reluctance to work with us to raise Safeguarding standards to International standards.

In this past year trustees have made better use of the cash that we have to ensure that we get a good return from it. Our cash has been deposited in higher interest bearing accounts which have provided a much better return.

In particular due to legacies, we can continue to provide support to our partners for a number of years, but we currently have more expenditure than income. Our single most critical issue at present is how we can increase our income streams.

Recently, outside the reporting period, the trustees have approved the recruitment of a fundraising specialist who will work with us 2 days a week to develop and execute fundraising strategies. Trustees will carefully monitor progress on this.

Paper Boat Ltd

Annual Report

For the year ended 31 March 2024

Key information

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.

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 £146,366 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 £45,000 that would cover 3 months expenditure. Unrestricted funds at 31 March 2024 were in excess of this target. This is due to a remainder of a large unrestricted legacy received during the previous year. The trustees have made a choice to invest these reserves so as to maximise their return.

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 14. 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.

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.

11

Paper Boat Ltd

Annual Report

For the year ended 31 March 2024

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.

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).

12

Paper Boat Ltd

Annual Report

For the year ended 31 March 2024

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 re-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 16 November 2024 and signed on their behalf by

Bert O'Donoghue

Bert O'Donoghue - Trustee

13

Paper Boat Ltd

Reference and administrative details

For the year ended 31 March 2024 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: Arun Chinnaraj Bert O'Donoghue (appointed 19 November 2023) Deborah Stenner Munton (resigned 26 April 2024) Deborah Wetherall Richard Proctor (appointed 26 April 2024) 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

14

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 2024, which are set out on pages 16 to 30.

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

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: 18 November 2024 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

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Paper Boat Ltd

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

For the year ended 31 March 2024

Note
£
Income and endowments from:
Donations and legacies
3
-
Other trading activities
4
-
Investments
-
Other income
-
Total income and endowments
-
Expenditure on:
Raising funds
-
Charitable activities
-
Total expenditure
6
-
Net income / (expenditure)
-
Transfers between funds
Net movement in funds
9
-
Reconciliation of funds:
Total funds brought forward
398,000
Total funds carried forward
398,000
Endowment		 Unrestricted
£
£
9,874
21,704
-
12,080
-
5
-
-
9,874
33,789
-
42,813
2,205
116,549
2,205
159,362
7,669
(125,573)
-
-
7,669
(125,573)
103,597
271,939
111,266
146,366
Restricted		 2024
Total
£
31,578
12,080
5
-
43,663
42,813
118,754
161,567
(117,904)
-
(117,904)
773,536
655,632		 2023
Total
£
66,797
11,267
512
12,968
91,544
49,170
132,704
181,874
(90,330)
-
(90,330)
863,866
773,536

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 17 to the accounts.

16

Paper Boat Ltd

Balance sheet

As at 31 March 2024

Note
Fixed assets
Tangible assets
12
Investment property
13
Current assets
Debtors
14
Current asset investment
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
15
Net current assets
Net assets
16
Funds
17
Endowment funds
Restricted funds
Unrestricted funds
General funds
Total charity funds		 £
14,988
139,600
111,246
265,834
(8,301)		 2024
£
99
398,000
398,099
257,533
655,632
398,000
111,266
146,366
655,632		 2023
£
393
398,000
398,393
12,468
-
382,413
394,881
(19,738)
375,143
773,536
398,000
103,597
271,939
773,536

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, and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

17

Paper Boat Ltd

Balance sheet

As at 31 March 2024

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

Approved by the trustees on 16 November 2024 and signed on their behalf by

Bert O'Donoghue

Bert O'Donoghue - Trustee

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Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies

a) General information and basis of preparation

Paper Boat is a charitable company limited by guarantee registered in England and Wales. The registered office address is 1 and 3 Kings Meadow, Osney Mead, Oxford, OX2 0DP.

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.

19

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies (continued)

d) Donated services and facilities (continued)

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.

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:

2024 2023
Raising funds 35% 36%
Charitable activities 65% 64%

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.

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Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

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 13). Investment properties are informally re-valued every year. Any 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.

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Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies (continued)

q) Accounting estimates and key judgements (continued)

2. Prior period comparatives: statement of financial activities

£
Income from:
Donations and legacies
-
Other trading activities
-
Investments
-
Other income
-
Total income
-
Expenditure on:
Raising funds
-
Charitable activities
-
Total expenditure
-
-
Income from donations and legacies
Donations
Legacies
Membership income
Total income from donations and legacies
Endowment
Net expenditure and net movement in
funds		 Restricted
£
£
14,397
52,400
-
11,267
-
512
-
12,968
14,397
77,147
-
49,170
22,942
109,762
22,942
158,932
(8,545)
(81,785)
Restricted
£
£
9,874
19,664
-
2,000
-
40
9,874
21,704
Unrestricted
Unrestricted		 2023
Total
£
66,797
11,267
512
12,968
91,544
49,170
132,704
181,874
(90,330)
2024
Total
£
29,538
2,000
40
31,578

3. Income from donations and legacies

22

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

3. Income from donations and legacies (continued) Prior period comparative:

Income from donations and legacies (continued)
Prior period comparative:
Donations
Legacies
Membership income
Total income from donations and legacies		 Restricted
£
£
14,397
21,350
-
30,970
-
80
14,397
52,400
Unrestricted		 2023
Total
£
35,747
30,970
80
66,797

4. Income from other trading activities

Secondment income 2024
Total
£
12,080		 2023
Total
£
11,267

All income from other trading activities in the current and prior year was unrestricted.

5. Government grants

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

23

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

6. Total expenditure

Total expenditure
Raising
funds
Charitable
activities
£
£
Grants payable (note 7)
-
80,546
Staff costs (note 10)
30,148
15,074
Depreciation
-
-
Rent and insurance
-
-
Repairs
-
-
Postage and telephone
-
-
Travel and subsistence
-
-
Office costs
-
-
Independent examination fees
-
-
Other accountancy services
-
-
Legal and professional
-
-
Exchange loss
-
-
Sub-total
30,148
95,620
12,665
23,134
Total expenditure
42,813
118,754
Total governance costs were £3,120 (2023 : £2,940).
Allocation of support and
governance costs		 Support and
governance
costs
£
-
5,025
294
2,041
720
577
1,552
3,128
3,120
2,124
6,299
10,919
35,799
(35,799)
-		 2024 Total
£
80,546
50,247
294
2,041
720
577
1,552
3,128
3,120
2,124
6,299
10,919
161,567
-
161,567
Prior period comparative
Grants payable (note 7)
Staff costs (note 10)
Depreciation
Rent and insurance
Repairs
Postage and telephone
Travel and subsistence
Office costs
Independent examination fees
Other accountancy services
Legal and professional
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
-
35,430
-
-
-
-
-
-
-
-
-
35,430
13,740
49,170		 Charitable
activities
£
90,465
17,715
-
-
-
-
-
-
-
-
-
108,180
24,524
132,704		 Support and
governance
costs
£
-
5,905
294
1,301
5,693
537
2,418
4,671
2,940
1,296
13,209
38,264
(38,264)
-		 2023 Total
£
90,465
59,050
294
1,301
5,693
537
2,418
4,671
2,940
1,296
13,209
181,874
-
181,874

24

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

7. Grants payable

Grants payable
Grants payable to institutions:
CEDAR
DACS
KKBT
Total grants payable		 2024
£
78,823
11,723
(10,000)
80,546		 2023
£
77,770
12,695
-
90,465

The charity ceased its working relationship with KKBT and no longer consider there to be an obligation to pay the grant committed in the prior year.

8. Grant commitments

Grants payable:
Grant commitments brought forward
Grants committed during the period
Grants paid during the period
Grants written back 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 (excluding VAT)		 2024
£
10,000
90,546
(90,546)
(10,000)
-
2024
£
294
Nil
212
2,600		 2023
£
10,000
90,465
(90,465)
-
10,000
2023
£
294
Nil
104
2,450

9. Net movement in funds

During the year 2 trustees were reimbursed for travel expenses (2023: 1).

25

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2024
£
44,255
4,852
1,140
50,247		 2023
£
51,945
5,816
1,289
59,050

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 £50,247 (2023: £47,725).

Average head count 2024
No.
1.0		 2023
No.
1.3

11. Taxation

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

12. Tangible fixed assets

Cost
At 1 April 2023 At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Total
£
1,470
1,077
294
1,371
99
393

26

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

13. Investment property

13. Investment property
Fair value at 1 April 2023 and 2024
14. Debtors
Gift aid
15. Creditors : amounts due within 1 year
Accruals
Grants payable < 1 year (note 8)
Other taxation and social security
Other creditors		 2024
£
398,000
2024
£
14,988
2024
£
3,120
-
4,954
227
8,301		 2023
£
398,000
2023
£
12,468
2023
£
2,940
10,000
6,584
214
19,738

16. Analysis of net assets between funds

£
Tangible fixed assets
-
Investment property
398,000
Current assets
-
Current liabilities
-
Net assets at 31 March 2024
398,000
Prior period comparative
£
Tangible fixed assets
-
Investment property
398,000
Current assets
-
Current liabilities
-
Net assets at 31 March 2023
398,000
Endowment
funds
Endowment
funds		 £
-
-
111,266
-
111,266
£
-
-
103,597
-
103,597
Restricted
funds
Restricted
funds		 £
99
-
154,568
(8,301)
146,366
£
393
-
291,284
(19,738)
271,939
General
funds
General
funds		 Total
funds
£
99
398,000
265,834
(8,301)
655,632
Total
funds
£
393
398,000
394,881
(19,738)
773,536

27

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

17. Movements in funds

Endowment funds
Endowment property
Total endowment funds
Restricted funds
Tamil Nadu
Boys Town Society
Inba Seva Sangam
CEDAR
MSGH
DACS
Thailand
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds*		 At 1 April
2023
£
398,000
398,000
-
72,892
18,582
-
12,123
-
-
103,597
271,939
271,939
773,536		 Income
£
£
-
-
-
-
4,829
-
1,823
-
365
-
225
(225)
652
-
900
(900)
1,080
(1,080)
9,874
(2,205)
33,789
(159,362)
33,789
(159,362)
43,663
(161,567)
Expenditure		 £
-
Transfers
between
funds		 £
398,000
398,000
111,266
-
-
-
-
-
-
111,266
146,366
146,366
655,632
At 31
March
2024
-
106,437
(74,715)
(18,947)
-
(12,775)
-
-
-
-
-
-

*Expenditure on three restricted funds was paused in a prior year due to safeguarding concerns. The charty has been liaising with the Charity Commission about this, and in the year ended 31 March 2024, the Charity Commission agreed that these funds could be released towards alternative charitable purposes. A new Tamil Nadu restricted fund was created.

Endowment funds

In April 2004 a leasehold property was donated to the charity. 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 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.

Purposes of restricted funds

Tamil Nadu

For the support of projects in Tamil Nadu, India for the prevention or relief of poverty and inequality by advancing formal and informal education for children as well as developing capacity and skills for children in need in Tamil Nadu, India, in such a way that they are better able to identify, and help meet, their needs and participate more fully in society for the public benefit.

28

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

17. Movements in funds (continued) Purposes of restricted funds (continued) Boys Town Society*

The original purpose of the fund was to work with Boys Town Society an Indian NGO providing residential care for young people.

Inba Seva Sangam*

The original purpose of the fund was to work with Inba Seva Sangam an Indian NGO providing residential care for young people.

CEDAR

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

MSGH*

The original purpose of the fund was to work with MSGH an Indian NGO providing residential care for young people.

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 original purpose of the fund was to work with Khon Kaen Boys Town a Thai NGO providing residential care for young people.

Transfers

Restricted funds totalling £111,266 were transferred out of three existing restricted funds into a new restricted fund, Tamil Nadu, as noted above and agreed with the Charity Commission.

29

Paper Boat Ltd

Notes to the financial statements

For the year ended 31 March 2024

17. Movements in funds (continued)
Prior period comparative
Endowment funds
Endowment property
Total endowment funds
Restricted funds
Boys Town Society
Inba Seva Sangam
CEDAR - Nodal office
MSGH
DACS
Thailand
Total restricted funds
General funds
Total unrestricted funds
Total funds
CEDAR hubs - Kovilpatti
and Madurai
Unrestricted funds		 At 6 April
2022
£
398,000
398,000
66,169
16,796
-
18,720
10,457
-
-
112,142
353,724
353,724
863,866		 Income
£
£
-
-
-
-
6,723
-
1,786
-
678
(678)
500
(19,220)
1,666
-
1,880
(1,880)
1,164
(1,164)
14,397
(22,942)
77,147
(158,932)
77,147
(158,932)
91,544
(181,874)
Expenditure		 Income
£
£
-
-
-
-
6,723
-
1,786
-
678
(678)
500
(19,220)
1,666
-
1,880
(1,880)
1,164
(1,164)
14,397
(22,942)
77,147
(158,932)
77,147
(158,932)
91,544
(181,874)
Expenditure		 At 31
March
2023
£
398,000
- 398,000
-
-
(678)
(19,220)
-
(1,880)
(1,164)		 72,892
18,582
-
-
12,123
-
-
(22,942) 103,597
(158,932) 271,939
(158,932) 271,939
(181,874) 773,536

18. Related party transactions

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

30