Annual Report and Financial Statement for the 1[st] January 2021-31[st] December 2021
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ADMINISTRATIVE INFORMATION
UK CHARITY NUMBER: 1061133
FINANCIAL PERIOD: 1 January 2021 - 31 December 2021
TRUSTEES: Rose Acock MBE Dr Emma Stone Richard Veal Derek Acock (retired) Barbara Acock Richard Anderson (appointed) REGISTERED ADDRESS: Apt 45, Llanthony Priory, St Ann Way Gloucester GL2 5GQ UK BANK: Lloyds, Tewkesbury Gloucestershire INDEPENDENT EXAMINER: Mr Paul Stafford APS Accounting 7 Grasmere Road Longlevens Gloucester GL2 0NQ
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TRUSTEES REPORT FOR THE YEAR ENDED 31 December 2021
DORS is governed by a constitution adopted on the 3 January 1997, and amended in 2004.
The objective of the Charity is to facilitate the development of rural communities in poor regions of Sichuan in an integrated manner that targets those most in need for long-term sustainable development.
DORS has a legally recognized representative office in Hanyuan County, Sichuan Province. UK support is provided by the Trustees who work on a voluntary basis. There are 7 staff in Sichuan, Vice Director, Finance Manager, 4 programme staff, and driver.
The charity supports village development projects in poor areas of rural Sichuan. DORS Representative Office in Sichuan presents its work plan and expected income from foreign sources to the Public Security Bureau for approval each January. Financial regulations include preparing annual accounts which are audited by a Chinese auditor. This was completed for the period 1[st] January 2021-31[st] December 2021 after some delays.
In addition to DORS Representative Office in Sichuan, DORS also has a small local registered Chinese NGO, which will be able to receive Chinese funding from Chinese foundations (the representative office cannot). This Chinese NGO is currently dormant.
There is no financial arrangement with the local government and project expenditure goes directly from DORS to the project villages.
PROJECT PROGRESS SUMMARY
Progress was again hindered by the Covid restrictions which resulted in no community visits being allowed during several months of the year. There is heightened security and reluctance by local officials to allow DORS staff visits to rural communities and visits between counties. Project donors have not been able to visit as a result.
During this year, one project was completed and a new one started up.
1. Livelihood for Yi Communities Project
This project improved livelihoods in 6 villages in Pianma Township Hanyuan County and – two villages in Xide County. It was a three-year project November 2016 October 2019, which was extended until March 2021, funded partly by Misereor (donation 605,000 Euro), and the total project cost were 810,000 Euros.
This project was successfully completed in March 2021 after some delays in implementation as a result of the covid restrictions.
The three specific objectives and outline results were:
- To increase villagers income in the communities through application of new agricultural methods, organization and cooperation, and improved marketing.
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By the project end there were functioning cooperatives in all 6 villages. Of the 25% of households which had low income, all had moved out of the low income bracket, exceeding our expectations. This included increased livestock income for 2 villages in Xide, and the household per capita income in Pianma 6 villages increased by 74%. At least 6 villages also had a better understanding and access to market for their key produce.
• Communities are better able to support the most vulnerable members By the end of the project women had diversified household income, and those with low incomes had increased them significantly. Yi women were increasingly participating in decision making at community level, and two meeting and activity areas were completed and used regularly for women’s events.
• To improve sanitation and general living conditions 305 fuel efficient stoves were built, 50 new toilets/showers and kitchens were in use, and there was improved hygiene in houses/courtyards and increased understanding of health protection. Handwashing habits were put in place and waste collection facilities were in use.
The following is a more detailed summary of the project achievements.
Objective 1 Through the application of new agricultural methods, organizational and cooperation forms as well as through improved marketing, the villagers’ income has increased.
The cooperative in Daying ‚Jianying Cooperative‘ is well established with 41 members and functioning with drying machines and cold storage for maximising income through selling outside the peak season. The sales of walnuts had increased and the income also grew significantly in the community. Several tens of tonnes of Pianma walnuts were sold through the e-commerce shop, Youle platform, Chengdu local promotion, improved packaging, marketing training, and resource links from various sources, all as a result of the project. The Jianping Cooperative was supported to gain trademark registration for their produce HeJiHe ( 核吉核 ), which is a significant step. An oil press for making walnut/huajiao oil is in use, adding value to the produce. A cold store has been purchased where fresh walnuts can be stored until prices increase, this is now in use. The cooperative was involved in the production of box packaging and labels for the produce. The cooperative and individuals in the communities have gained significant experience in expanding sales channels such as by postal distribution, using e- commerce and setting up an e-commerce shop, through social media and through increased contacts of family and friends, all experiences gained and supported through the project.
Whilst e-commence was challenging for Pianma people who had little experience of using a computer before, their skills have improved dramatically and their mindsets have changed. Training sessions were held on e-commerce platforms, and the on-line store was opened, and run by trained cooperative members, resulting in sales of 8290kg walnuts. The number of e-commerce sellers in Pianma Township has begun to increase. From the first few households to the present , almost everyone has sold agricultural products, especially walnuts, on the Internet. This is an amazing achievement of the project.
In particular, there are 10 villagers who have developed regular customers and sales channels in the e-commerce circle. The produce is also now sold in two national online
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platforms Lugu.com and Yimutian (绿谷网 and 一亩田). As the larger online stores do not have competitive prices, the main focus has been on developing postal orders through contacts, and increasing sales through contacts met during a variety of promotional events. They have learnt more about the market and what customers are looking for during sales and marketing trips to cities (Chengdu, Yibin) and trade fairs (Agric Expo in Chengdu), wholesale markets were visited in Chengdu but prices were too low due to Xinjiang walnut variety taking up the limited market. Pianma and Jianping cooperative members are now much clearer of the market, and the competition. A marketing advert film was produced to further brand recognition and posted on online platforms. A further 14 cooperatives in Pianma were supported during the project, most existed in name only, so were far from functioning coops, the representatives were trained and visited other cooperatives to increase their – understanding of how a cooperative should be run with visits to Shimian County Mandarin Coop, and cooperatives in Chongqing, - these cooperatives were then challenged to come up with their development plans for DORS to support through this project, only one plan was received and was not suitable for support, so DORS decided to focus on Jianping cooperative in Daying until later in the project when 10 cooperative groups were set up by the project in three villages in Pianma, each focusing on a different crop and two existing cooperatives were supported in marketing and agricultural machinery. These are progressing well. This press release posted on Hanyuan Gov website describes the development and success of the Jianping Cooperative and walnut business and refers to many of this projects achievements http://www.hanyuan.gov.cn/gongkai/show/20200306174101-27680-00-000.html During the final year of the project, Covid 19 negatively impacted the price of walnuts and huajiao and DORS was unable to visit the community the harvest season coincided with heavy rains washing out the road to Pianma . As they couldn’t transport the walnuts out, many households made the decision to sell their walnuts at lower prices to traders who came to the village, rather than selling through the cooperative. However, sales through e-commerce continued. It is expected the market for walnut and huajiao will recover once overproduction price decrease due to covid impact on hospitality sector recovers. The Pianma walnuts have gained wider recognition, through the marketing work of the project the e-commerce platforms and the promotional film that has had 16,000 views.
The income of individual households has increased through the community work
at village level. The overall income for households in the project areas have increased significantly over the project period. The income from livestock has increased significantly. Livestock has expanded significantly for approx. 290 households in the Xide Villages particularly pig raising due to the favorable pork prices in the last years, the project has supported the increased raising of livestock with training, and support to purchase breeding sows, training in keeping sties clean. Women were keen to expand their pig production by building larger standardized and healthy and more sanitary sties, this was part supported with a cash award after completion to compensate for part of the investment, 41 households were involved. This method ensures high levels of participation by the households to manage the construction according to the agreed standards, this has increased their capacity, and supports the idea of self-reliance by including significant inputs and labour, and project management by the household. Households raising a sow can generate at least 5000 RMB per year at current prices. This activity has also been welcomed by the village committee and county partners (Xide
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Count Poverty Alleviation and Development Bureau, Xide County Animal Husbandry Bureau etc. The impact on household income from this has yet to be felt.
In Xide 2 villages, four people have generated income through stove building and associated skills, others have opened small shops, grain mill etc. Trials of pumpkin and ‘bingfen’ in Siguojue and Machang were carried out, with technical training has led to some households continuing to grow pumpkin for sale in Machang where the climate is more suited. Through the process of trialling new crops the community have been introduced to the idea of experimenting on a small scale, learning about local markets and also a changing attitude to experimenting with new income generation activities. Konjac (a medicinal plant), which is a high value crop, but leads to soil toxicity, the experiments on Pianma led to improved soil and better opportunities for increasing production. The experience also has encouraged the local communities to try new methods. The average per capita income in Pianma communities showed an increase of 74% on the baseline. Not all this increase can be attributed to the project, labouring and livestock are also main sources of income, but the walnut, huajiao management and sales expertise is certainly a very significant factor. In addition, In Pianma the competitive entrepreneurship scheme for youth business development was successful with 120 youth trained in business development, and 26 people selected to follow their business plans to set up their successful businesses. The selection process also included people who would support others to develop and provide job opportunities and this has been an important part of the entrepreneurship programme, expanding the project impact further. For example, YGG of Wanping Village has planted over 100mu of achyranthes (medicinal plant), promoted the economic development of the village and provided job opportunities for others in the same village to increase their income. The QC family explored and developed in different products, and achieved a good demonstration and leading role. They planted and sold crisp red plums and sold for more than 10,000 yuan. One entrepreneur is producing honey and has 20,000 RMB of preorders, and over 100,000 followers on their sales platform (快手 Kuai shou and 抖音 Douyin). These schemes are encouraging young people to stay in the village rather than seek labouring work elsewhere.
Objective 2: Through increases cohesion in the communities, they are better able to support the most vulnerable groups.
Indicator At the end of the funding period, there is a 20- 30% increase of women’s participation in village life and income generating measures, compared to the start of the funding period. Through the implementation of the project activities, there has been a progressive increase women's participation in community public affairs and decision-making and in the management of family affairs, which has effectively promoted the implementation of the project activities and the independent development of the community. The women's group established by the project has independent project implementation ability and successfully completed the construction of the activity area.
The project organized two visiting and learning activities, with a total of 26 women participating. Through the sharing meeting, more than 100 women indirectly learned the inspection experience, and turned the inspection experience into practical action. They carried out livelihood activities such as breeding industry, canteen and mill. According to the activities, they increased family income, and participated in community management through public services. The women's group formed by the project
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enriching the activities of women's day, Torch Festival and year of Yi people in the
village.
Women’s self -generated incomes increased. Having your own income significantly increases the capacity of women to improve their status in the community. The project has led to 100% of women in Xide 2 villages with incomes increasing.
Before the implementation of the project, the main income source of the women in the two project villages was the crops they planted, and they waited in the village for people to come to buy them. Through the project activities, 80% of the women (310 women) participated in the project activities. A large number of women used their experience and specialty to develop breeding industry. By raising cattle, pigs and sheep, the per capita income increased. A small number of women began to try to open canteens and mills to increase income and improve public services in the village.
Women engaged in community affairs Women were initially reluctant to engage with DORS as they expected the men to have the interactions and project discussions. By starting with the stoves project, this involved the women and health training also encouraged them to meet in groups and be involved in the project decisions. This was a new experience for them, and slowly they gained the confidence and experience to become more active in community life. Women from 2 Xide villages visited Yingjing County previous DORS project site to learn from strength of the women’s’ groups there, income generation and diversified incomes, and hygiene and sanitation works. The women gained a lot of confidence and insight from the visit. In earlier visits to Pianma, the women were initially reluctant to sign up to join, by the second opportunity, many more women wanted to gain such experience. In selection of the beneficiaries of the income generation projects, women were prioritized and 80% of the household support went directly to women. Pig raising is primarily a women’s occupation, so the results of their involvement can be seen in the previous section.
– Financial literacy training sessions for women were held in each village, where women learnt some basic Han Chinese, reading writing and numeracy, including basics of understanding of insurance, savings and financial management. Sessions were well received and women gained confidence by being able to sign their names, use a calculator for business and purchases and have better understanding of household finances. This also significantly contributed to increased income generation of women. In total 4 classes were held for a total of 120 sessions, and 93 5 person times in Sigujue and 26 sessions 245 person times in Machang. Building of an activity area for and by women was achieved in Machang, the women learnt a lot from the venture, and meet regularly to socialize and dance after the days work. An activity area was also completed in Daying by the local government so it is achieved although the project did not fund it.
In the project some particularly vulnerable households were also targeted with tailored support. These were the elderly in 5 guarantee household (who receive living allowance from the social services) and 30 households in distress. The elderly households were supported with bedding and shoes, and 30 households were able to engage is specific project according to their individual situations.
Objective 3 Sanitation and general living conditions of villagers have improved. The villagers have access to toilets and are able to store their food hygienically 305 fuel efficient stoves were completed, exceeding the planned number of 228. Health
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impact of smoky kitchens and rooms has drastically reduced, as has time spent collecting fuel wood, with additional environmental benefits. 4 local people were trained as stove technicians to build the stoves and significant incomes in doing so (contributing to objective 1b). Toilets and kitchens were constructed as part of match funding for 50 households, food can be stored hygienically in cupboards and not left on the floor in sacks, preventing infestation, and enabling food preparation on clean tiled surfaces. The spread of infectious diseases has for the most part been contained. Health – and sanitation training in 2 Xide Villages the sessions were well received and villages waste collection bins are in use. There is also a certain understanding of the impact of wastewater discharge on the environment, although a demonstration to improve waste water run off was not accepted by the selected household; women’s awareness o f hygiene and health has improved, but it does take a long process to change from not having any awareness of hygiene to having a certain level of awareness and then changing lifetime habits. The main changes observed are develop a good habit of not drinking unboiled water and not eating spoiled food.
2. Well-being and Resilience of Rural Women in Pianma, Hanyuan County. This project was started in May 2021 and will run for two years. The total budget for the project is £592,174 (681,000 euro) with a contribution from Misereor of up to £413,913 (476,000 euro).
The project will target 500 women and 150 elderly people from the more remote areas of Pianma Township, and help them to develop local support networks, improve livelihoods and improve mental health and resilience. The main objectives for this project are:
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Increase the personal development and livelihood opportunities of 400 women, enhancing resilience to shocks and stresses, and impacting 2000 people including family members.
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500 women and 150 elderly people take more care of their pyhsical and mental health, understand how to keep themselves healthy through diet lifestyle and when to seek medical advice and treatment for themselves and their families.
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500 women and 150 elderly are engaged in mutual support through groups and social activities enhancing their welfare and mental health, have access to and safe use of social media for access to useful information and entertainment, and on-going support from within the community.
During the first half year of the project baseline surveys were completed. Livelihood seminars were conduced to develop ideas on the best opportunities. One area of particular interest was rabbit breeding which can be carried out wothout the need for hard physical labour. Training in rabbit breeding was provided to help think through the provesses. The participants were also introduced to e-commerce, and representatives visited Chegndu to particpate in a 3 day training on live broadcasting skills for e- commerce development.
Health experts provided health checks and medical advice in the communities for elderly people who rarely have the opprotunity to visit health prfessionals. The womens and elderly people’s mutual aid groups have been establishe d and various activities carried out to promote the ideas of mutual support and self-help. Celebrations were held for local festivals.
This is the first project DORS has done that focuses on the welfare and well-being of elderly people.
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3. Xide Yi Wome n’s Livelihoods and Well -being Project
This project was started in March 2020 in Xide County of Liangshan Yi Minority Autonomous Prefecture. The total budget for the project is £543,266, which includes grant from Kadoorie Charitable Foundations of £448,370, and local and government contributions. The project aims to Improve the livelihoods and well-being of Yi people in 2 villages, particularly women. Specific Objectives:
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To increase and diversify household income
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To build the capacity of women to engage in livelihoods activities and community affairs
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To improve health and sanitation situation particularly to benefit women and children
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To develop and promote a model for Yi community development. Indicator: Model prepared and shared with over 20 organisations/departments
During the covid restrictions, the project start-up period was affected, and implementation has been slow during the first year. In addition, one of the communities originally selected was found to be not appropriate for DORS to work in, so an alternative was found, baseline surveys conducted and plans amended.
During the year, the household livelihoods activities were developed. Some planting of Chinese herbal medicine was trialed, and plans were made for livestock development. Technical training on goat breeding was provided to women to develop livestock. Groups of villagers also visited cooperatives nearby.
Women’s management groups were established and training provided, in addition, activities for women were supported so they could organize keep fit classes, and for Yi traditional singing and dancing.
Women’s hea lth training sessions were carried out as the covid restrictions allowed, with a focus on personal hygiene and health awareness, and treatment of common ailments, and training sessions on diet and nutrition. 25 households have completed construction of toilet and shower blocks at their houses, with installation of solar water heaters. The community water supply was rebuilt for a groups of 20 households, and a further area is having a new system designed. Kitchen improvements including sinks and work surfaces were completed for some demonstration households for future replication. 29 fuel efficient stoves have been constructed in houses with significant local contribution. Solar lights have also been demonstrated in 10 households, and there is significant further interest. These were funded as part of the project below.
4. Fuel efficient stoves Project
The two-year project (May 2020-April 2022) for £63,919 was to build 420 fuel efficient stoves in rural households. Part of the costs and materials are provided by the household.
Fuel efficient stoves were offered to all households in the villages where DORS is operating other projects. To date, 119 stoves have been built (Xide County 2 villages and Pianma Township). As it became clear that all the current project villages residents that wanted to upgrade to a fuel efficient stove had already done so, we were able to renegotiate the contract with the funder to change to other energy saving devices. These include solar lamps and enclosed stoves which are used for space heating and cooking. So far, the project has completed the distribution of 125 solar lamps for all 72
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households in Siguojue Village, and the distribution of 10 solar lamps for 10 households Machang Hamlet 3. Ovens have been distributed to 20 households.
5. Loan Scheme
The loan project remains suspended due to unclear regulations around NGO authorization to conduct loan schemes. The original donors no longer require follow up reports on the use of the funds. These funds can be designated for use as small business development grants when needed.
6. Education Projects
DORS provided 2000CNY towards school/college fees in 2021.
FINANCE
DORS received donations and grant income of £230,274 (last year £99,023). The total incoming funds were £238,886 (last year £101,751). The main donors this year were Kadoorie Foundation and Misereor.
Of t his year’s total income, £236,101 was restricted for specific projects and the remainder is unrestricted funds.
In total, the Charity expended £207,058 during the year (last year £126,954).
Of the total expenditure, project expenditure was £198,943 (last year £116,377). The admin costs were £1154 as most staff and office running costs are covered by project expenditure.
At the end of December 2021 DORS had total net assets amounting to £345,807 of which £4,265 were fixed assets (vehicle £1,519 purchased in 2017). The net assets are available for financing the two current projects, the temporarily suspended loan scheme, further projects and as a reserve. This is particularly high as we have a loan fund of £152,926 that we are not currently loaning as our legal status relating to loans is unlikely to be clarified in the near future, and the project progress has been slow due to ongoing Covid restrictions.
DORS has two Sterling bank accounts with Lloyds, and a Euro account for the Misereor projects.
We have one bank account in China in line with the International NGO law. Some cash is kept in a higher interest short term bond with the same bank. All accounts and cash are balanced on a monthly basis.
Trustees – Payment to trustees. There were no payments to trustees during this period.
Reserves
DORS has revised its reserves policy to take into account employment law in China. The minimum reserve will cover the costs of closing down the programme and related staff redundancy costs, and the costs of international staff repatriation in case on an emergency. The required sum will be kept under review by the Director to account for
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varying circumstances. Al the present time, it is set at £51,136. The actual unrestricted funds available are sufficient to cover this. Rose Acock On behalf of Trustees 13 October 2022 li
Development Organisation Of Rural Sichuan Statement of Financial Activities for the Period 1st January 2021 to 31st December 2021 Exchange rate 1 GBP = 8.8 RMB 1 GBP = 1.15 Euro Income and Expenditure
| Restricted | Unrestricted | Total Funds | 2020 | |||||
|---|---|---|---|---|---|---|---|---|
| GBP | CNY | GBP | CNY | GBP | CNY | GBP | ||
| 1 | Incoming resources | |||||||
| 1.1 | Charitable donations | 229,614 | 2,020,601 | 660 | 5,808 | 230,274 | 2,026,409 | 99,023 |
| 1.2 | Other Income | 6,487 | 57,084 | 2,125 | 18,704 | 8,612 | 75,788 | 2,728 |
| Bank Interest CN | 0 | 0 | 2,119 | 18,645 | 2,119 | 18,645 | ||
| Bank Interest EN | 0 | 0 | 6 | 59 | 6 | 59 | ||
| Loan management fee | 0 | 0 | 0 | 0 | 0 | |||
| Exchange rate gain | 3,821 | 33,625 | 0 | 0 | 3,821 | 33,625 | ||
| DORS admin income | 0 | 0 | 0 | 0 | 0 | |||
| Assets 3 | 2,666 | 23,459 | 0 | 0 | 2,666 | 23,459 | ||
| Total Income | 236,101 | 2,077,685 | 2,785 | 24,512 | 238,885 | 2,102,197 | 101,751 | |
| 2 | Resources expended | |||||||
| 2.1 | Charitable Expenditure 4 | 198,550 | 1,747,238 | 393 | 3,461 | 198,943 | 1,750,698 | 116,377 |
| 2.2 | Admin Expenditure: 5 | 0 | 0 | 1,154 | 10,156 | 1,154 | 10,156 | 1,587 |
| Audit fee (UK) | 0 | 0 | 815 | 7,172 | 815 | 7,172 | ||
| Audit fee (China) | 0 | 0 | 0 | 0 | 0 | 0 | ||
| DORS project admin China | 0 | 0 | 339 | 2,984 | 339 | 2,984 | ||
| of which fundraising | 0 | 0 | 0 | 0 | 0 | 0 | ||
| 2.3 | Other Expenditure | 4,895 | 43,078 | 2,066 | 18,181 | 6,961 | 61,259 | 8,990 |
| Loan management | 1,466 | 12,904 | 1,466 | 12,904 | ||||
| Asset depreciation | 4,895 | 43,078 | 473 | 4,161 | 5,368 | 47,239 | ||
| Exchange rate loss 6 | 0 | 0 | 0 | |||||
| Bank fees CN | 0 | 0 | 103 | 905 | 103 | 905 | ||
| Bank fees EN | 0 | 0 | 24 | 211 | 24 | 211 | ||
| Total Expenditure | 203,445 | 1,790,316 | 3,613 | 31,797 | 207,058 | 1,822,113 | 126,954 | |
| 3 | Gross transfer between funds 7 | -16,548 | -145,622 | 16,548 | 145622 | |||
| Net Incoming Resources | 16,108 | 141,747 | 15,719 | 138,338 | 31,828 | 280,084 | -25,203 | |
| Total Funds Brought Forward (at ex rate of 8.8) | 216,222 | 1,900,790 | 97,757 | 859,879 | 313,979 | 2,760,669 | ||
| Total Funds Carried Forward (at ex rate of 8.8) | 232,330 | 2,042,537 | 113,476 | 998,217 | 345,807 | 3,040,753 |
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Development Organisation Of Rural Sichuan
| Development Organisation Of Rural Sichuan | Development Organisation Of Rural Sichuan | Development Organisation Of Rural Sichuan |
|---|---|---|
| Balance Sheet as at 31 December 2021 Exchange rate 1 GBP: 8.8 RMB Fixed Assets Restricted Vehicle Unrestricted Furniture and equipment Current Assets 7 Account balances Hanyuan CNY Account 1811 Hanyuan CNY Acc 1811 6 month bond UK Account 9580 UK Account 4774 UK Euro account (ex 1.15 31 Dec 2021) Cash balances Cash CNY Debtors(amount falling due within the year) Loan funds outstanding loans Staff advance Total Current Assets Creditors(amounts falling due within the year) Payments due Project liabilities Total assets less liabilities Net Assets Net Assets Represented by: 1. Restricted Funds: |
1,520 2,745 GBP 137,659 117,200 1,068 66,805 33,133 1,148 710 545 -6,428 -10,298 GBP |
Total GBP 4,265 CNY 355,865 1211396 1031362 291,569 1,148 10098.58 1,255 6,250 4800 358,268 -16,726 -56575.5 -90618 341,543 345,807 CNY 232,331 |
| Xide Yi Women Well-being (Kadoorie) Stoves Project (Hong Kong donor) Education Project |
41,299 | 363,434 104,826 25,024 |
| 11,912 | ||
| 2,845 | ||
| Well-being and Resilience Sichuan (Misereor) | 23348 | 205,463 |
| Loan scheme capital (MC and PAA) | 152,926 | 1,345,750 |
| 2.Unrestricted Income Funds Unrestricted funds Reserve funds Designated funds: Loan scheme management |
54,303 51,136 8,038 |
113,477 477,865 449,997 70,732 |
| 345,807 http://www.xe.com |
345,807
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http://www.xe.com
Development Organisation of Rural Sichuan
Notes to the Accounts for the Period 1 January 2021 to 31 December 2021
1. General
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated. The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014
As a condition of the Registration of a Representative Office in China, DORS Representative office in Sichuan has annual audits in China of all Chinese related transactions. Therefore, the UK accounts were prepared using the information in the audited accounts for the same period, with the addition of UK income and expenditure.
At the balance sheet date the exchange rates are as follows:
1 Pound Sterling (GBP) = 8.8 Renminbi (RMB) / Chinese Yuan (CYN) 1 Pound Sterling (GBP) = 1.15 Euro
2. Income
Restricted Donations
| Xide Yi Women’s Livelihood and Well-being Project | £77,293 |
|---|---|
| (Kadoorie Charitable Foundations) | |
| Integrated Rural Development and Sustainable Livelihoods Project | |
| (Misereor) | £90,478 |
| Well-being and Resilience of Rural Women in Sichuan (Pianma) | |
| (Misereor) | £61,243 |
| Education | £600 |
| (Private donors) |
Unrestricted Donations
Misc. donors £660
Most of the donations received by the charity are for use on specific projects. Each project has a restricted fund. The fund title refers to the project name and major donor. Some of the project’s income comes from local contributions, so the amounts do not always exactly match that which is donated by the donor.
Villager contributions are included in project accounts along with the donor donations.
3. Assets
One computer was purchased. No other assets were purchased in 2021.
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4. Charitable Expenditure
Restricted
Xide Yi Women’s Livelihood and Well-being Project (Kadoorie) £70,890 CNY623,831 Private Donor Stoves Project £14,806 CNY130,292 Integrated Rural Development and Livelihoods Project (Misereor) £74,959 CNY659,640 Well-being and Resilience of Rural Women in Sichuan (Misereor) £37,895 CNY333,474
Unrestricted Small projects £63 CNY555 Education £227 CNY2000
5. Admin expenditure:
The project office running costs are mostly covered as part of the charitable expenditure above. The Sichuan Representative Office is audited by a Chinese Auditor in China in compliance with the INGO law. Two years of UK Independent Examination fee was not paid during this 12-month period.
6. Exchange rate loss/gain
These gains are due to fluctuations in the exchange rate over the year, especially related to the transfer from Kadoorie Charitable Foundations.
7. Gross transfer between funds
There was a transfer of £16,548 from restricted to unrestricted to account for the late funds from Misereor project.
8. Current Assets & Liabilities
Creditors – DORS is holding £6,412 (CNY56,576) in staff salary as performance pay that is not yet due, these funds were reported as spent in project accounts. DORS has made advance payments on two project £10,298 (CNY90,618)
Assets –
Loan funds outstanding £710 (CNY6,250) Staff loans and deposit for apartment £545 (CNY4,800)
Loan Scheme Funds:
DORS runs a loan project where business loans are made to beneficiaries in project villages to develop their businesses. This loan fund consists of CNY100,000 from Sichuan Poverty Alleviation Association (PAA) and CNY1,252,000 from Mercy Corps both received in previous years. No loans were made in 2021 due to the unclear policy environment as to the legality of DORS making loans.
The loan fund total £152,926 CNY 1,345,749
| GBP | CNY | |
|---|---|---|
| During the year loans made were | 0 | 0 |
| Loan capital repayments were | 0 | 0 |
| Balance of loan fund: | £152,926 | 1,345,750 |
| Balance of management fees (unrestricted) | £8,038 | 70,732 |
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Report to the Irustees of DORS I report on the accounts of DORS for the year ended 31 December 2021. Respective responsibilities of trustees and examiner As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of Ihe Charities Act 2011 ("the Act"}. I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5}{b) of the Act. An independent examination does not involve gathering all the evidence thal would be required in an audit and consequently does nol cover all the matters that an auditor considers in giving their opinion on the accounls. The planning and conduct of an audit goes beyond the limited assurance Ihat an independent examination can provide. Consequently l express no opinion as to whether the accounts present a 'true and fair, view and my report is limited lo those specific matters set out in the independent examiner's stalement. Independent Examiner's statement I have completed my examination. I confirm Ihat no material matters have come to my attention in connection with the examination which gives me cause to believe Ihat in, any material respect.. the accounting records were not kept in accordance with section 130 of the Charities Act., or the accounts did not accord with the accounting records., or the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports} Regulations 2008 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. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in Ihis report in order to enable a proper understanding of the accounts to be reached Name.. Paul Stafford FCCA Address.. 7 Grasmere Road, Longlevens, Gloucester Date.. 21 16