Charity registration number 1013340
Company registration number 02728600 (England and Wales)
HEAL
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
HEAL
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Dr K S Prasad |
|---|---|
| Mr M Church | |
| Mrs M Renton (Chairman) | |
| Mrs E A Bane | |
| Dr P Gandamaneni | |
| Mrs J Constance | |
| Mr V G Gidney (Treasurer) | |
| Dr A Aggarwal | |
| Charity number | 1013340 |
| Company number | 02728600 |
| Registered office | 1a Church Street |
| Alwalton | |
| Peterborough | |
| United Kingdom | |
| PE7 3UU | |
| Independent examiner | Mr Mark Jackson FCA DChA |
| 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 2022
The trustees present their annual report and financial statements for the year ended 31 July 2022.
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) 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 that have not been designated for a specific use should be maintained at a minimum of £50,000. The trustees consider 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 have 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.
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HEAL
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
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 P Jones (Resigned 17 July 2022) Dr K S Prasad Mr M Church Mr C Charlton (Resigned 17 July 2022) Mrs M Renton (Chairman) Mrs E A Bane Dr P Gandamaneni Mrs J Constance Mr V G Gidney (Treasurer) Dr A Aggarwal
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' report was approved by the Board of Trustees.
Mr V G Gidney (Treasurer)
Director Dated: 22 May 2023
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HEAL
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HEAL
I report to the trustees on my examination of the financial statements of HEAL (the charity) for the year ended 31 July 2022.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable 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 matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
Mr Mark Jackson FCA DChA
Azets Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire PE1 2SP United Kingdom
Dated: 22 May 2023
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HEAL
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Incoming resources from charitable activities 3 22,528 141,019 Investments 4 46 - Total income 22,574 141,019 Expenditure on: Charitable activities 5 2,997 176,755 Net incoming/(outgoing) resources before transfers 19,577 (35,736) Gross transfers between funds (33,449) 33,449 Net expenditure for the year/ Net movement in funds (13,872) (2,287) Fund balances at 1 August 2021 190,625 2,287 Fund balances at 31 July 2022 176,753 - |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 163,547 43,630 164,164 46 110 - 163,593 43,740 164,164 179,752 11,327 198,124 (16,159) 32,413 (33,960) - (35,000) 35,000 (16,159) (2,587) 1,040 192,912 193,212 1,247 176,753 190,625 2,287 |
Total 2021 £ 207,794 110 207,904 209,451 (1,547) - (1,547) 194,459 192,912 |
|---|---|---|
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.
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HEAL
BALANCE SHEET
AS AT 31 JULY 2022
| Notes Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Income funds Restricted funds 11 Unrestricted funds |
2022 £ 79,637 97,966 177,603 (850) |
£ 176,753 - 176,753 176,753 |
2021 £ 21,876 171,036 192,912 - |
£ 192,912 |
|---|---|---|---|---|
| 2,287 190,625 |
||||
| 192,912 |
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 2022.
The directors acknowledge their 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 22 May 2023
Mr V G Gidney (Treasurer)
Trustee
Company registration number 02728600
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HEAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022
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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. 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.
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HEAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
1 Accounting policies
(Continued)
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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.
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 payments 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.
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HEAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
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.
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 2021 Unrestricted funds Restricted funds |
2022 £ 59,590 7,740 76,277 19,940 163,547 22,528 141,019 163,547 |
2021 £ 68,923 7,830 109,164 21,877 |
|---|---|---|
| 207,794 | ||
| 43,630 164,164 |
||
| 207,794 |
4 Investments
| Unrestricted | ||
|---|---|---|
| funds | ||
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 46 | 110 |
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HEAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
5 Charitable activities
| HEAL India Paradise Village running costs HEAL India Eloh project Endowment Fund HEAL India Poverty Trap running costs Distance Education faculty HEAL Canada Share of governance costs (see note 6) Analysis by fund Unrestricted funds Restricted funds Support costs Governance costs £ Insurance 239 Bank charges 125 Online donation costs and other fees 725 Accountancy 712 1,801 Analysed between Charitable activities 1,801 |
2022 £ 135,506 - - 42,445 - - 177,951 1,801 179,752 2,997 176,755 179,752 2022 £ 239 125 725 712 1,801 1,801 |
2021 £ 45,800 15,474 43,000 78,426 20,000 4,100 |
|---|---|---|
| 206,800 2,651 |
||
| 209,451 | ||
| 11,327 198,124 |
||
| 209,451 | ||
| 2021 £ 687 150 1,526 288 |
||
| 2,651 | ||
| 2,651 |
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.
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HEAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
8 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | |||
|---|---|---|---|
| 2022 | 2021 | ||
| Number | Number | ||
| Total | - | - | |
| There were no employees whose annual remuneration was more than £60,000. | |||
| 9 | Debtors | ||
| 2022 | 2021 | ||
| Amounts falling due within one year: | £ | £ | |
| Other debtors | 19,637 | 21,876 | |
| Prepayments and accrued income | 60,000 | - | |
| 79,637 | 21,876 | ||
| 10 | Creditors: amounts falling due within one year | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Accruals and deferred income | 850 | - |
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HEAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
11 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 2020 | resources | expended | 1 August 2021 | resources | expended | 31 July 2022 | |||
| £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
| HEAL India Poverty Trap | 1,247 | 164,164 | (198,124) | 35,000 | 2,287 | 141,019 | (176,755) | 33,449 | - |
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