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2021-07-31-accounts

Charity Registration No. 1013340

Company Registration No. 02728600 (England and Wales)

HEAL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

HEAL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr A Aggarwal (Appointed 24 April 2021)
Mr K P Jones
Dr K S Prasad
Mr M Church
Mr C Charlton
Mrs M Renton Chairman
Mrs E A Bane
Dr P Gandamaneni
Mrs J Constance
Mr V G Gidney Treasurer
Charity number 1013340
Company number 02728600
Registered office 1a Church Street
Alwalton
Peterborough
United Kingdom
PE7 3UU
Independent examiner Azets
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
United Kingdom
PE1 2SP

HEAL

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 11

HEAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2021

The trustees present their report and financial statements for the year ended 31 July 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

a) Objectives

The objects of the charity are to relieve the sickness, and to aid the preservation and protection of health and advancement of education in this country and any other country in the world.

b) Aims, objectives, strategies and activities for the year

During the year we have continued with our objective of raising funds to assist in covering the running costs of the Paradise Village residential school in conjunction with Heal India and other funding partners. We also cover the full running costs of the original three projects in India (Guntar, Bhadrachalam and Vijayawada Kanuru) from funds raised.

In considering, reviewing and planning our future objectives, aims and activities of the charity, we have referred to the guidance contained in the Charity Commission's general guidance on public benefit and the trustees have considered how they will contribute to the aims and objectives they have set.

c) Financial review

The trustees are satisfied with the financial performance during the year.

d) Reserves policy

The Trustees have agreed that the policy of the charity is to establish unrestricted funds at a level that equates to cover 6 months fund i ng of the residential children in Paradise and Gunt u r.

e) Future plans

The charity intends to continue raising funds to cover the projects in India.

Achievements and performance

Financial review

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

HEAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Structure, governance and management

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mr K Jones Dr K Prasad Mr M Church Mr C Charlton Mrs M Renton Mrs E A Bane Dr P Gandamaneni Mrs J Constance Mr V G Gidney Dr A Aggarwal (Appointed 24 April 2021)

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

a) Governing document

HEAL was incorporated as a company limited by guarantee on 3 July 1992 and is registered with the Charity Commissioners.

The charity is a company limited by guarantee, its governing document being the Memorandum of Articles of Association.

b) Recruitment, Appointment and Induction of Trustees

We seek to bring new trustees onto the board who can complement the skills base of the existing members of the board. Invitation is made at the Annual General Meeting and at other times throughout the year. Interested parties are invited to meet with the Chairperson and other trustees to obtain an understanding of the charity, its aims and objectives and how they may be able to further the development of the charity.

The chairperson formally proposes any new trustee to the full board and, if approved, the new trustee is invited to join the board of trustees.

c) Organisational Structure

The trustees meet on a regular basis, normally bi-monthly to consider and decide the strategic direction and policy of the charity. The board also take the opportunity to consider issues such as legal, premises, planning and staffing matters which have arisen between meetings.

The trustees also meet regularly with representatives from those responsible for the operational management of the charity on a day to day basis, ensuring that the charity delivers the services specified and that progress is made in achieving the charity's objectives.

d) Risk management

The trustees have examined the major strategic, business and operational risks which the charitable company faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

The trustees' r eport was approved by the Board of Trustees.

Mr V G Gidney

Director Dated: 1 April 2022

HEAL

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HEAL

I report on the financial statements of the charity for the year ended 31 July 2021, which are set out on pages 4 to 11.

Respective responsibilities of trustees and examiner

The charity’s trustees, who are also the directors of HEAL for the purposes of company law, are responsible for the preparation of the financial statements. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

K P Craig FCCA CTA Azets Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire PE1 2SP United Kingdom

Dated: 1 April 2022

HEAL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Incoming resources
from charitable
activities
3
43,630
164,164
Investments
4
110
-
Total income
43,740
164,164
Expenditure on:
Charitable activities
5
11,327
198,124
Net incoming/
(outgoing) resources
before transfers
32,413
(33,960)
Gross transfers
between funds
(35,000)
35,000
Net (expenditure)/income
for the year/
Net movement in funds
(2,587)
1,040
Fund balances at 1
August 2020
193,212
1,247
Fund balances at 31
July 2021
190,625
2,287		 TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
207,794
90,134
128,802
110
269
-
207,904
90,403
128,802
209,451
22,511
143,500
(1,547)
67,892
(14,698)
-
(14,000)
14,000
(1,547)
53,892
(698)
194,459
139,320
1,945
192,912
193,212
1,247		 Total
2020
£
218,936
269
219,205
166,011
53,194
-
53,194
141,265
194,459

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

HEAL

BALANCE SHEET

AS AT 31 JULY 2021

Notes
Current assets
Debtors
9
Cash at bank and in hand
Net current assets
Income funds
Restricted funds
10
Unrestricted funds		 2021
£
21,876
171,036
192,912		 £
192,912
2,287
190,625
192,912		 2020
£
26,995
167,464
194,459		 £
194,459
1,247
193,212
194,459

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2021.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 1 April 2022

Mr V G Gidney

Trustee

Company Registration No. 02728600

HEAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

Charity information

HEAL is a private company limited by guarantee incorporated in England and Wales. The registered office is 1a Church Street, Alwalton, Peterborough, PE7 3UU, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

HEAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

(Continued)

1.6 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

HEAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

3 Incoming resources from charitable activities

Child sponsorship
Covenants
Credit card and cash donations
Taxation refund - gift aid
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 July 2020
Unrestricted funds
Restricted funds		 2021
£
68,923
7,830
109,164
21,877
207,794
43,630
164,164
207,794		 2020
£
67,949
7,716
116,291
26,980
218,936
90,134
128,802
218,936

4 Investments

Unrestricted
funds
2021 2020
£ £
Interest receivable 110 269

HEAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

5 Charitable activities

Unrestricted
funds
Restricted
funds
£
£
HEAL India Poverty Trap running costs
78,426
HEAL India Paradise Village running costs
-
45,800
HEAL India Eloh project
-
15,474
Endowment Fund
-
43,000
Distance Education faculty
-
20,000
HEAL Canada
-
4,100
-
206,800
Share of governance costs (see note 6)
2,651
-
11,327
198,124
Support costs
Governance
costs
£
Insurance
687
Bank charges
150
Online donation costs and other fees
1,526
Accountancy
288
2,651
Analysed between
Charitable activities
2,651		 Total
2021
£
78,426
45,800
15,474
43,000
20,000
4,100
206,800
2,651
209,451
2021
£
687
150
1,526
288
2,651
2,651		 Total
2020
£
55,325
105,150
-
3,000
-
-
163,475
2,536
166,011
2020
£
687
100
1,749
-
2,536
2,536

6 Support costs

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Total - -

HEAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

9 Debtors
2021 2020
Amounts falling due within one year: £ £
Trade debtors 21,876 26,995

HEAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

10 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers
Balance at		 Incoming Resources Transfers Balance at
1 August 2019 resources expended 1 August 2020 resources expended 31 July 2021
£ £ £ £
£		 £ £ £ £
HEAL India Poverty Trap 1,945 128,802 (143,500) 14,000
1,247		 164,164 (198,124) 35,000 2,287