REGISTERED COMPANY NUMBER: 02936866 (England and Wales) REGISTERED CHARITY NUMBER: 2936866
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021
FOR
FOUNDATION RACHEL AND PAMELA SCHIELE
(A COMPANY LIMITED BY GUARANTEE)
Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
FOUNDATION RACHEL AND PAMELA SCHIELE
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 7 |
| Independent Examiner's Report | 8 | ||
| Statement of Financial Activities | 9 | ||
| Balance Sheet | 10 | to | 11 |
| Cash Flow Statement | 12 | ||
| Notes to the Cash Flow Statement | 13 | ||
| Notes to the Financial Statements | 14 | to | 21 |
| Detailed Statement of Financial Activities | 22 |
FOUNDATION RACHEL AND PAMELA SCHIELE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH JUNE 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, and are known as Managing Committee members, present their report with the financial statements of the charity for the year ended 30th June 2021. The Managing Committee have adopted the provisions of 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 Objectives and aims
The objects of the Foundation are:
-
the conservation and protection in Argentina of birds, animals and plants which are threatened or endangered and the conservation and protection of the soil and the environment generally for the benefit of the public;
-
the protection and preservation for the benefit of the public of that part of the estate of Las Dos Hermanas in the Province of Córdoba, Argentina, which is designated as a "Refugio de Vida Silvestre" by the Fundación Vida Silvestre Argentina as a reserve for the conservation of wildlife and flora;
-
the advancement of education in Argentina;
-
the relief of poverty in Argentina;
-
the relief of the aged in Argentina;
-
the promotion of education and research into organic and sustainable farming and the publication of the useful results of such research.
The immediate aims and activities of the Foundation are to carry on a sustainable organic farming business planned so as to conserve the soil, flora and fauna of the whole of its land; to promote organic farming research and development; to practise ever more profound conservation values and practices on our land; to exercise influence on surrounding areas which may affect conservation values and/or the organic viability of our land; and to demonstrate to the public how the Foundation's work towards these goals leads to current and future benefits for society as a whole.
During 2020-21 the Foundation entered the third year of the implementation of its Strategic Plan for developing the Charity's programmes with these main pillars:
a) Conservation of its land, including its rolling Conservation Management Plan;
b) Management and development of the Charity's farming activities including increasing production and production efficiencies and developing new routes to market;
c) Initiating the development of organic farm management development, involving devoting parts of the farm to hosting trialling and training activities for organic farming and environmental management best practice;
d) Outreach, involving work with the local community on understanding and controlling excessive pesticide use and understanding flora and fauna conservation.
Public benefit
In shaping our objectives and planning our activities for the year, the Managing Committee have given consideration to the duties set out in Section 17(5) of the Charities Act 2011 to have due regard to public benefit and to the Charity Commission Guidance on public benefit. In particular, the Managing Committee have considered how the planned activities will contribute to the overall aims and objectives that they have set.
The Managing Committee believe that the paragraphs on the "Objectives and Activities" and "Achievements and Performance" for the year, relate in detail the benefit that the Charity provides to the public.
Page 1
FOUNDATION RACHEL AND PAMELA SCHIELE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH JUNE 2021
OBJECTIVES AND ACTIVITIES
Operation of the Farm
The objects and principal activities of the Charity are carried out through the operation of the farm in Argentina. The Managing Committee also considers the costs of running the farm, in addition to grants made, to be the total cost of charitable activities.
The assets of the business are held and operated by the Foundation so as to protect the land, wildlife and surrounding area in accordance with the objectives of the Foundation.
The business is not run on a profit-maximising basis and any gains from operations are retained for use in support of the future of the land, buildings and business held by the Foundation.
Page 2
FOUNDATION RACHEL AND PAMELA SCHIELE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH JUNE 2021
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The Foundation's activities were hampered to some extent by Covid restrictions, but the Dos Hermanas community must be congratulated on weathering the storm and itself avoiding serious direct suffering, while continuing to deliver nutritious food to markets despite, at times, considerable adversity. During 2020-21 the Foundation once again faced very high inflation levels, this year just over 50% per annum, which again triggered partial inflation accounting affecting the statement of values in our accounts, as discussed elsewhere. Drought still affected the farm, with the driest April to September ever recorded in 2020. This meant that there was no winter crop harvest. This had implications for the ability of the farm to feed the extra cattle, which were not gaining enough weight for slaughter. On principle, of course, no cattle were sold into the conventional feedlot system. Because of the uncertainty over the amount of forage it was agreed that the breeding cows would be reduced in number, with organic weaners being bought in for fattening when forage is plentiful, with strict inspection to avoid importing disease.
This year the Foundation's cattle business performed quite well. But one month after we made our first shipment - Argentina's first ever shipment- of a planned regular series of NOP organic certified beef to the US, to Whole Foods, Argentina introduced a ban on meat exports. Though the ban was not at all thought through and was not very long in being rescinded, the damage was done and Whole Foods made a policy decision to purchase its organic beef anywhere but Argentina. Notwithstanding this disappointment after our significant investment in establishing NOP cattle, our cattle business in the domestic market was helped by high cattle prices.
The Argentinian market for organic beef has this year become better established in the top retail outlets, to some extent due to a switch to healthier consumption arising from Covid.
This year the Foundation's sales of soya and grains were much down, however, due mainly to a succession of severe droughts and floods. Our sales of both soya and wheat were badly hit, but we did reasonably well in maize and were able to sell reasonable quantities of sunflower for the first time for some years. This year we supported the first successful of organic groundnuts at the farm, by renting land to a well-known producer whom we helped solve the issues for successful organic production of this interesting crop.
Our plan to develop organic milk production at the farm has progressed, but not at a fast pace. The milk from a small group of cattle has been distributed free in the local village.
Various pieces of research activity into agriculture and cattle raising have taken place at the farm, e.g. direct drill sowing of rye and vetch; an electric weedkiller used by the peanut growers; diverse leys in the cattle praderas; and a comparison of weaner growth between NOP and non-NOP organic cattle. A 50-hectare field designated for farm trials. The Foundation is giving support for training of farmers in peri-urban environments across the pampa, where pesticides and herbicides is banned under municipal laws on fields near dwellings.
Several aspects of the conservation programme continued despite being hampered by Covid restrictions; the recruitment of a conservation officer, who will be based at the farm, is now being carried out. The creation of wildlife corridors across the farm north to south was discussed at a virtual Taller with the scientists who use the Foundation's land for research. The Management Committee then approved a corridor plan as part of the implementation of the farm's 2016 Conservation Management Plan. FVSA, the Argentinian arm of WWF, continues to support the Foundation in deepening understanding of the farm's key environmental values and establishing more baselines for monitoring change. The Foundation's tree planting programme was affected by the drought but a combination of a new water tanker and in-house seedling growing will, it is hoped, improve tree survival.
New farm investments were planned. Improvements have been made to the facilities on the farm with new solar hot water installations and a new deep well with a solar pump to improve drinking water. In a welcome development for the Dos Hermanas community, more houses are planned, required because of the new demand for housing among the work force. Construction of an interpretation centre at the farm is a future project when anticipated legacy funding becomes available.
Page 3
FOUNDATION RACHEL AND PAMELA SCHIELE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH JUNE 2021
FINANCIAL REVIEW
Reserves policy
Reserves: The Foundation maintains cash balances that are appropriate for the day-to-day running of the farm business. In addition to cash, the reserves of the Foundation are its cattle stock (and each year also its grain stocks), which are readily marketable, as well as its land.
Funding: The Foundation relies on revenue from farm operations in Argentina, and in this financial period did not seek grant funding for specific projects or activities.
Investments: The Foundation holds no investments apart from its shares in MOO, mentioned above.
FUTURE PLANS
The Foundation continues to capitalise the farm so as to improve its organic farming practices, while conserving its population of native grasslands, and to promote the marketing of organic products, as well as to demonstrate the benefits of its farming system to the public. The focus of the Foundation's research and education activities will continue to be hosting externally-funded research into flora and fauna and the new goal of developing onsite training activities at the farm for organic farming practitioners.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The Foundation is a charitable company limited by guarantee without a share capital, in the United Kingdom, incorporated on 8th June 1994 and registered as a Charity on 16th June 1994.
The Company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the Managing Committee are elected at the Annual General Meeting to serve for a period of three years.
Charity constitution
Foundation Rachel and Pamela Schiele, a registered Charity governed by Memorandum and Articles of Association, is a Company Limited by Guarantee, not having a share capital. Each of the members of the Company is liable to contribute £1 towards the liabilities of the Company in the event of liquidation.
Election of new members to Managing Committee
Any person who is to be elected to be a member of the Foundation under the provisions of Article 5(2) must be proposed for election by a member of the Managing Committee and fourteen days' notice shall be given to the members of the Managing Committee of the meeting at which it is intended to propose such person for election stating the object of the meeting, the name and address of the person to be proposed and the name of the member of the Managing Committee proposing such person. No new members were elected during this year.
Organisational structure
The farm continues to be managed by the Farm Director. He was supported during 2020-21 by two full-time managers and one part-time manager. The Director's authority is bound by a detailed manual called the Management Principles controlled by the Managing Committee, which sets out the basis on which the farm and all its activities should be managed and detailing which decisions should be made with the approval of the Managing Committee.
Induction and training of new trustees
The principal training for the members of the Managing Committee is in ensuring an awareness of organic farming practices and environmental issues. An important element in this is regular visits to the farm and meetings with stakeholders there. Though there is no formal training process, the trustees are encouraged to keep themselves familiar with their responsibilities under the Companies and Charities Acts before and after appointment. Trustees are also required to keep themselves abreast of issues affecting organic farming across the world in order to advise management appropriately.
Page 4
FOUNDATION RACHEL AND PAMELA SCHIELE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH JUNE 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Relationship with other Charities and Organisations
A substantial part of the Foundation's land was in 1989 registered as a Reserva of FVSA, the Argentinian branch of WWF, and managed under their guidance. As part of the Conservation Management Plan adopted by the Foundation's Managing Committee in 2017, FVSA now regards the whole of the farm as an FVSA reserve on the basis that it is managed as an integrated whole and under an agreed Management Plan. As part of its Plan, the Foundation hosts several teams of conservation researchers from Universidad Nacional de Río Cuarto. The Foundation is a leading participant in Argentina's national organic farming organisation, MAPO, and its regional group, Pampa Orgánica, which promotes practical organic farming methods in central Argentina. The Foundation continued working with its Pampa Orgánica partners in a series of practical organic farming research experiments which are coordinated with Instituto Nacional de Tecnología Agropecuaria - INTA, the Argentinian government's large national research organization.
Risk management
Because the environmental and charitable activities of the Foundation are solely supported by, and are integral to the farming business, the Foundation is subject to many of the normal risks associated with farming but is also dependent on the viability of organic farming in Argentina. The farm's cattle and crops businesses are essentially resilient against inflation as well as devaluation, but leads and lags can have significant short-term effects.
In addition to the weather risks inherent in farming, the two principal threats are from contamination by GMOs from neighbouring farms and from changes to the markets for its products, which are dependent in part on world commodity prices. The risk of crop failure is mitigated by the fact that the farm is situated at the edge of the wet pampa in a good zone for cropping. However, organic farming depends more critically on soil preparation and tillage, which can result in a loss of soil moisture and reduce crop yields, or conversely from excess weeds.
The farm management continues to conduct a number of trials involving cropping methods, such as no-till, pasture varieties and variations and animal health and welfare.
The threat from GMOs is countered by safeguards such as checking every batch of seed to be sown, and every batch of grain to be sold. This leads to extra costs, due to very specific and costly tests. The farm's harvest and mowing contractors' machinery and every lorry transporting grain are also carefully cleaned.
The world market for organic grain, soya and sunflower gives the farm a reasonable organic premium. The market for organic beef is showing signs of structural change but still affords only a small premium over the price of conventional beef when taking the whole animal into account. The Foundation has in recent years been able to develop a fairly widely diversified market for its beef products, while its grain continues to see demand on the world market.
As regards health and safety risk and employees, trustees instigate and participate in a health and safety review at the farm every 18 months. The last onsite review by the Managing Committee was carried out during 2019; the farm machinery and the farm's working practices were inspected and steps were taken to ensure that recommendations were implemented. Subsequent monitoring has been able to be carried out remotely.
As regards wider risks in this area, procedures are in place for managing visits by young people, and the farm takes care to ensure that the various scientific researchers who do work at the farm are covered by their own insurance.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
02936866 (England and Wales)
Registered Charity number
2936866
Page 5
FOUNDATION RACHEL AND PAMELA SCHIELE
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 30TH JUNE 2021
Registered office Crofts Woodside Road Chiddingfold Godalming Surrey GU8 4RF
Managing Committee
P Landa M Measures Mrs J G M Murray K G D Murray D M Peck Mrs L V Peck Mrs M Harteneck
Company Secretary
Mrs J G M Murray
Independent Examiner
John Thacker FCA DChA Institute of Chartered Accountants in England and Wales Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Banks
Banco de la Nación Argentina Arias Provincia de Córdoba Argentina
Banco de Galicia y Buenos Aires San Martín 601 2600 Venado Tuerto Provincia de Santa Fe Argentina Lloyds TSB Bank plc PO Box 1000 Andover BX1 1LT
Page 6
FOUNDATION RACHEL AND PAMELA SCHIELE
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 30TH JUNE 2021
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity Number in Argentina
IGJ00059
Working Name in Argentina
Las Dos Hermanas
Farm Director (in Argentina)
Dr (Vet) Marcelo A Frías
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The Managing Committee (who are also the directors of Foundation Rachel and Pamela Schiele for the purposes of company law, and Trustees for the purposes of charity law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charity SORP;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Managing Committee are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of Managing Committee on 19[th] March 2022 and signed on its behalf by:
D M Peck - Trustee
Page 7
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FOUNDATION RACHEL AND PAMELA SCHIELE
Independent examiner's report to the trustees of Foundation Rachel and Pamela Schiele ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 30th June 2021.
Responsibilities and basis of report
As the charity's trustees of the 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 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 your charity'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 your charity's gross income exceeded $250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.
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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
-
the accounts 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
-
the accounts 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 accounts to be reached.
John Thacker FCA DChA Institute of Chartered Accountants in England and Wales Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Date: 25[th] March 2022
Page 8
FOUNDATION RACHEL AND PAMELA SCHIELE
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30TH JUNE 2021
| Notes INCOME AND ENDOWMENTS FROM Charitable activities 2 Farm Operations Other income Total EXPENDITURE ON Charitable activities 3 Farm Operations Grant-making and education Support costs Exceptional item 7 Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2021 Unrestricted fund A$ 104,801,032 1,088,639 105,889,671 94,071,151 6,767,813 242,682 3,593,214 104,674,860 1,214,811 231,023,140 232,237,951 |
2020 Unrestricted funds as restated A$ 76,055,882 362,292 76,418,174 63,917,438 3,525,241 118,291 (1,740,295) 65,820,675 10,597,499 220,425,641 231,023,140 |
|---|---|---|
The notes form part of these financial statements
Page 9
FOUNDATION RACHEL AND PAMELA SCHIELE (REGISTERED NUMBER: 02936866)
BALANCE SHEET 30TH JUNE 2021
| Notes FIXED ASSETS Tangible assets 8 Investments 9 CURRENT ASSETS Stocks 10 Debtors 11 Cash at bank CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 13 Unrestricted funds TOTAL FUNDS |
2021 Unrestricted fund A$ 192,369,471 2,047,793 194,417,264 59,255,964 13,590,812 1,075,713 73,922,489 (36,101,802) 37,820,687 232,237,951 232,237,951 232,237,951 232,237,951 |
2020 Unrestricted funds as restated A$ 190,752,845 3,082,049 193,834,894 50,167,284 9,537,442 4,542,731 64,247,457 (27,059,211) 37,188,246 231,023,140 231,023,140 231,023,140 231,023,140 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th June 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 30th June 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
Page 10
FOUNDATION RACHEL AND PAMELA SCHIELE (REGISTERED NUMBER: 02936866)
BALANCE SHEET - continued 30TH JUNE 2021
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 19[th] March 2022 and were signed on its behalf by:
D M Peck - Trustee
The notes form part of these financial statements
Page 11
FOUNDATION RACHEL AND PAMELA SCHIELE
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2021 A$ 1,422,474 1,422,474 (6,302,075) 1,412,583 (4,889,492) (3,467,018) 4,542,731 1,075,713 |
2020 as restated A$ 2,448,358 2,448,358 (1,404,502) 544,163 (860,339) 1,588,019 2,954,712 4,542,731 |
|---|---|---|
The notes form part of these financial statements
Page 12
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH JUNE 2021
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Profit on disposal of fixed assets Arising as a result of restatement Investment revaluation Fixed Asset revaluation Increase in stocks Increase in debtors Increase in creditors Net cash provided by operations |
2021 2020 as restated A$ A$ 1,214,811 10,597,499 4,198,728 4,984,599 (1,088,639) (544,163) - 8,458,151 1,034,256 (602,603) 162,777 - (9,088,680) (24,683,589) (4,053,370) (3,183,443) 9,042,591 7,421,907 1,422,474 2,448,358 |
|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
| Net cash Cash at bank Total |
At 1/7/20 A$ 4,542,731 4,542,731 4,542,731 |
Cash flow A$ (3,467,018) (3,467,018) (3,467,018) |
At 30/6/21 A$ 1,075,713 1,075,713 1,075,713 |
|---|---|---|---|
The notes form part of these financial statements
Page 13
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
In accordance with IAS 29, Financial reporting in hyper-inflationary economies, the accounts have been prepared in terms of a a measuring unit current at the period end, and the comparatives have been restated in terms of the measuring unit current at the end of the latest reporting period, including restatement of non-monetary assets from the date of acquisition,
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, including taking into account any potential impact of the Covid-19 pandemic, and on that basis the charity is considered to be a going concern.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Incoming resources are recognised on an accruals basis, accounted for in relation to the period that they relate and comprise the value of goods supplied to third parties.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Charitable expenditure comprises direct expenditure attributable to activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources.
Expenditure on grants is recorded once the Charity has made an unconditional commitment to pay the grant and this is communicated to the beneficiary or the grant has been paid, whichever is the earlier.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery
- at varying rates on cost
The Charity does not have a minimum value for the capitalisation of fixed assets.
Recognition and measurement
Fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.
continued...
Page 14
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH JUNE 2021
1. ACCOUNTING POLICIES - continued
Stocks
Livestock is valued at probable realisable value at the year end. Other stocks are stated at the lower of cost and net realisable value.
Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities in sterling are translated into Argentinian Pesos at the rate of exchange ruling at the balance sheet date, which was A$132.157 to £1. Transactions in sterling are translated into Argentinian Pesos at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
These financial statements are presented in Argentinian Pesos (A$). The exchange rate to sterling at the date of accounts approval was 144.47.
2. INCOME FROM CHARITABLE ACTIVITIES
| Activity Farm operations Farm Operations |
2021 A$ 104,801,032 |
2020 as restated A$ 76,055,882 |
|---|---|---|
continued...
Page 15
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH JUNE 2021
3. CHARITABLE ACTIVITIES COSTS
| Farm Operations Grant-making and education Support costs |
Direct Costs A$ 94,071,151 6,767,813 242,682 101,081,646 |
|---|---|
4. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| Depreciation - owned assets Surplus on disposal of fixed assets Independent Examiner's fee |
2021 A$ 4,198,728 (1,088,639) 244,492 |
2020 as restated A$ 3,318,640 (362,292) 267,708 |
|---|---|---|
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30th June 2021 nor for the year ended 30th June 2020.
Trustees' expenses
There was no reimbursement of expenses to the Managing Committee in this or last year.
6. STAFF COSTS
| Wages and salaries | 2021 A$ 18,693,327 18,693,327 |
2020 as restated A$ 17,610,118 17,610,118 |
|---|---|---|
Key management personnel remuneration amounted to A$8,155,569 (2020: A$3,482,768)
continued...
Page 16
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH JUNE 2021
6. STAFF COSTS - continued
The average monthly number of employees during the year was as follows:
| Management and Office Staff Farm and Other Staff |
2021 4 12 16 |
2020 4 13 17 |
|---|---|---|
One employee received emoluments in excess of A$7,929,420 (£60,000), 2020 no employees.
7. PRIOR YEAR ADJUSTMENT
As required by IAS 29, Financial reporting in hyper-inflationary economies, the accounts have been prepared in terms of a a measuring unit current at the period end, and the comparatives have been restated in terms of the measuring unit current at the end of the latest reporting period, including restatement of non-monetary assets from the date of acquisition.
8. TANGIBLE FIXED ASSETS
| COST OR VALUATION At 1st July 2020 Additions Disposals Revaluations At 30th June 2021 DEPRECIATION At 1st July 2020 Charge for year Eliminated on disposal At 30th June 2021 NET BOOK VALUE At 30th June 2021 At 30th June 2020 |
Freehold property A$ 178,115,491 - - - 178,115,491 - - - - 178,115,491 178,115,491 |
Plant and machinery A$ 68,232,209 6,302,075 (1,466,693) (162,777) 72,904,814 55,594,855 4,198,728 (1,142,749) 58,650,834 14,253,980 12,637,354 |
Totals A$ 246,347,700 6,302,075 (1,466,693) (162,777) 251,020,305 55,594,855 4,198,728 (1,142,749) 58,650,834 192,369,471 190,752,845 |
|---|---|---|---|
continued...
Page 17
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH JUNE 2021
9. INVESTMENT IN ASSOCIATE
| MARKET VALUE At 1st July 2020 Revaluations At 30th June 2021 NET BOOK VALUE At 30th June 2021 At 30th June 2020 |
Unlisted investments A$ 3,082,049 (1,034,256) 2,047,793 2,047,793 3,082,049 |
|---|---|
The investment is a 25% shareholding in Meat Organic Organisation (MOO), officially known as Bos Denaris SA. MOO is a limited company developing a brand and processing and marketing operations for organic meat in Argentina.
In the directors' opinion, the market value at 30.6.21 exceeds the cost price.
continued...
Page 18
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH JUNE 2021
| 10. STOCKS Stocks 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors |
2021 A$ 59,255,964 2021 A$ 2,470,244 11,120,568 13,590,812 |
2020 as restated A$ 50,167,284 2020 as restated A$ 4,287,964 5,249,478 9,537,442 |
|---|---|---|
continued...
Page 19
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH JUNE 2021
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Social security and other taxes Other creditors Accrued expenses |
2021 A$ 13,003,781 21,822,798 1,030,731 244,492 36,101,802 |
2020 as restated A$ 10,736,804 14,290,929 1,747,182 284,296 |
|---|---|---|
| 27,059,211 |
13. MOVEMENT IN FUNDS
| Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS |
At 1/7/20 A$ 231,023,140 231,023,140 Incoming resources A$ 105,889,671 105,889,671 |
Net movement in funds A$ 1,214,811 1,214,811 Resources expended A$ (104,674,860) (104,674,860) |
At 30/6/21 A$ 232,237,951 |
|---|---|---|---|
| 232,237,951 | |||
Movement in funds A$ 1,214,811 |
|||
| 1,214,811 |
Comparatives for movement in funds
| Unrestricted funds General fund TOTAL FUNDS |
At 1/7/19 A$ 220,425,641 220,425,641 |
Net movement in funds A$ 10,597,499 10,597,499 |
At 30/6/20 A$ 231,023,140 |
|---|---|---|---|
| 231,023,140 |
continued...
Page 20
FOUNDATION RACHEL AND PAMELA SCHIELE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH JUNE 2021
13. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources A$ 76,418,174 76,418,174 |
Resources expended A$ (65,820,675) (65,820,675) |
Movement in funds A$ 10,597,499 10,597,499 |
|---|---|---|---|
14. CAPITAL COMMITMENTS
At the year-end, the charity had no commitments.
15. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30th June 2021.
Page 21