SHINING LIFE CHILDREN’S TRUST
(A company limited by guarantee)
Report and financial statements for the year ended 31 October 2020
Charity number: 1068123 Company number: 03459486
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486
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Shining Life Children’s Trust
(A company limited by guarantee)
Annual Report & Financial statements for the year ended 31 October 2020
Contents
| Page | |
|---|---|
| Legal and administrative information | 3 |
| Trustees’ report | 4 |
| Reporting accountant’s report | 14 |
| Statement of financial activities | 15 |
| Balance sheet | 16 |
| Notes to the financial statements | 17 |
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486
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Shining Life Children’s Trust Report of the Trustees for the year ended 31 October 2020
The Trustees present their report and financial statements for the year ended 31 October 2020.
Legal and administrative information
Charity name: Shining Life Children’s Trust Charity registration number: 1068123 Company registration number: 03459486 Registered office: 1 Chestnut Lane Amersham Buckinghamshire HP6 6EN
Trustees
J Brown, Secretary J Dean J Newall, Treasurer B Rattigan (resigned January 2020) S Bayjoo
Bankers
CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ HSBC, 2 The Promenade, Cheltenham, Gloucestershire GL50 1LS
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486
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Trustee’s report
Objects and activities
The Charity’s objects as set out in the objects contained in the company’s memorandum of association are to relieve children in Sri Lanka who are in need by the provision of assistance and care in a family environment, education and training. The Charity’s activities are to help children in Sri Lanka who are disadvantaged by poverty and vulnerability, through working in partnership with small local non-governmental organisations and community-based organisations to promote childfocused development, education, health and training within a family and community context and to achieve sustainable development through encouraging self-help, self-reliance and empowerment.
The Trustees constantly review the Charity’s activities to ensure that they meet the Charity’s aims and objectives. The Trustees refer to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aim and objectives and in planning future activities.
The Charity’s operating model of a Field Director working directly with a few small projects means it is able to impart skills and expertise easily, developing its partners beyond that which a financial partnership offers. In addition the Charity ensures that the benefit of being a small, nimble charity is maximised by being able to review and refocus its resource to maximum benefit within the communities with which it is working.
In addition, the Trust’s low overheads means that a much higher percentage of its funds go directly to its work in Sri Lanka than it does for a large charity.
Since the Charity’s inception it 1997, it has raised a total of over £530,000.
This review looks at the achievements and outcomes of the Charity’s work in the year to 31 October 2020.
How the Charity’s activities deliver public benefit
The main activities and the charity’s beneficiaries are described below. All charitable activities focus on community development and empowerment and are undertaken to further our charitable purposes for the public benefit.
Achievements and performance
The Charity had three continuing projects during the period, in Kirimetiyawatte, Angunochchiya and Telwatte. The Charity delivers these projects in partnership with local organisations (the Human Development Foundation, HDF, for Angunochchiya and Telwatte, and the Women’s Development Centre, WDC, for Kirimetiyawatte). The Charity’s aim is for these projects to become selfsustaining through its contracts with the implementing organisations, so that the programmes can continue successfully without additional external support at the end of the project.
Impact of COVID-19
During the first half of 2020, COVID-19 affected the charity’s activities both in the UK and in Sri Lanka as Trustees risk assessed likely impact and put appropriate measures in place. There then followed a brief period where restrictions were lifted although a second wave led to restrictions being reimposed in spring 2021.
The Trustees considered the safety of the Field Director in Sri Lanka and offered to fly the Field Director back home to the UK. After weighing up all options, and bearing in mind that the Field Director was living in secure accommodation in Colombo, the Field Director elected to stay in Sri Lanka. The Trustees and Field Director review regular updates from International SOS and the Foreign and Commonwealth Office.
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The Trustees continued to meet, but in online meetings. After discussion between Trustees, this was felt to be an appropriate risk mitigation approach which enabled successful management of the Trust.
Recognising that many supporters of Shining Life would be feeling unsettled and isolated, regular communication with stories of our work in Sri Lanka has been continued by email and social media.
The Charity’s projects have focused on supporting the education of the children and young people. Schools were closed from the middle of March 2020 to autumn 2020 and while the Sri Lankan government promoted distance and online learning this is not accessible to most children in our project areas due to lack of computers, smart phones and internet at home. Groups meetings and training programmes over 10 people were not permitted between March and August, briefly allowed again until mid-October, but again prohibited for remainder of the reporting period due to a second wave of COVID infections. Some activities have been permitted and partners are working with communities and authorities to ensure the community needs and project objectives are met with minimal risk to staff and community members. The Shining Life Field Director completed a thorough evaluation and context analysis of the impact of COVID-19 on the communities that we work with, with key points highlighted below:
Kandy: The WDC Project Officer set up WhatsApp groups to communicate with the Women’s Societies and Children’s Clubs and has been using these to share information and keep informed. The newly established Youth Groups were trained over WhatsApp on COVID-19 prevention practices and empowered to share this within their communities. While the preschool in Kirimetiyawatte is closed the teacher delivers activities and materials for the students to complete at home. The preschool building is being used as a space for peer-study support with an older youth from the community working with students studying for exams scheduled to take place this year. Funds which were allocated for transport to tuition classes are being used to fund materials and past papers for these study support groups as the tuition classes are not currently running. The Charity started working in Sriyagama and Amablamanam in November 2019 and there have been more difficulties there as relationships and trust are still being built with the communities. WDC are working through the WhatsApp groups and organised donations of dry rations through a donor from the UK. The future focus will be on building relationships with the new communities and capacity building with the Women’s Society and Youth Clubs to take a lead in organising activities.
Angunochchiya : This project was due to end in July 2020 but the final activities and end of project evaluations were not completed due to the lockdown. A three-month project extension was agreed to allow these activities to be completed. The Charity has agreed to extend the tuition classes (in English, Maths and Science) and educational stipends to further support the children’s learning while the schools are closed. A small-grant scheme started at the beginning of the lockdown and the first loans were issued in May. With these community members have started self-employment which allow them to earn from home (sewing face-masks, making bricks and agriculture projects). Some concerns were raised by the Welfare Society around increased alcohol consumption among youths in the area and HDF are working with the PHI and police to hold a training/awareness programme as soon as group meetings are approved.
Telwatte : The global downturn in travel and tourism has impacted this project greatly. The Women’s Society had secured a monthly contract with an international travel company to make tote bags for their guests and we were in the process of setting up community visits for their tour groups which were hoped to provide a sustainable, additional income to support the shop. The order is currently on-hold as the airports in Sri Lanka remain closed and many governments around the world are discouraging international travel. The Telwatte project was due to end in July but the Charity agreed an extension to allow final evaluations and ensure sustainability of the project. Part of this extension includes funding for the extended lease of the shop. A recent
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meeting with the Women’s Society highlighted a need to focus on engaging the local community and local market at the shop, identifying potential new contracts within Sri Lanka and reorienting the shop for the local market. . However, the way in which the programme has been working with the women has given them the skills to market their products in different ways and the women are beginning to see the positive impact of this for example a new batik contract with the big Sri Lankan department store Cargills.
Key achievements of the projects
Despite the difficulty of continuing to run the programmes through covid lockdowns and the uncertaintly that the communities have faced during this time, a significant amount has been achieved and the positive impact of the work of Shining Life continues. Key achievements are highlighted here.
Community Focused Child-Development, Kandy : In November 2019 Shining Life started a new 36month project with longstanding partner Women’s Development Centre. This is a continuation of the previous project in Kirimetiyawatte and aims to strengthen the existing structures already established and to incorporate two neighbouring villages, Sriyagama and Ambalamanam. The budget and agreement was signed for the initial 18 months and Shining Life and WDC intend to meet to discuss and agree the plans for the subsequent 18 months in April 2021.
The three villages are extremely isolated, around an hour’s drive from Kandy over difficult terrain. There is a real lack of infrastructure, limited access to healthcare and education and very few job opportunities. Public transport serves only Sriyagama. Despite their close proximity, there are very few connections between the three communities. Community cohesion, participation and mobilisation is low in Sriyagama and Ambalamanam.
The project is focused on three outcomes:
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Ensure the sustainability of the existing structures in Kirimetiyawatte.
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Establish sustainable, lasting structures within Sriyagama and Ambalmanam to ensure children’s rights are protected and promoted.
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Build lasting relationships between the three communities.
In the period November 2019–October 2020 there were a number of key achievements: Sriyagama and Ambalamanam:
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Women’s Societies were established with 35 members in each. WhatsApp groups have been set up to share information and keep in touch while maintaining social distancing.
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Children’s Clubs were established with 25 and 55 members, respectively. Awareness sessions on the Value of Education and Importance of Reading were held for each club.
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Through the Women’s Society and Children’s Club in Ambalamanam four school drop-outs were identified and arrangements made to re-enrol these children.
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In January 2020 the Women’s Society in Ambalamanam organised a celebration for Thai Pongol. 35 women and children participated. Both the Tamil and Sinhalese community members came together to support one and other and celebrate together.
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During the lockdown period the O Level and A Level students were unable to attend tuition classes or easily access the distance learning from schools due to lack of technology and internet access. Shining Life provided 28 past paper books in various subjects for the children to study at home.
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The baseline survey has been started with details of an initial 54 families collected and plans made to collect data from a further 25.
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Preparations have begun to re-open a preschool in Sriyagama village. A teacher has been identified within the community who already holds a teaching diploma and arrangements have been made for the classes to be conducted in the temple hall. It is anticipated that the preschool should open in January 2021.
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Kirimetiya:
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In February 2020 the SuperKids Preschool in Kirimetiya moved into a purpose built, dedicated building funded by Shining Life. This is the only Tamil Medium preschool in the area and 75% of the children in the village attend. In May 2020 the Women’s Society and Children’s Club started work on the garden and outside space, planting trees and plants which will be maintained by the children. Learning continued throughout the lockdown with the preschool teacher delivering activities to the children’s homes.
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In March 2020 an awareness programme on Early Childhood Development was held and it has been noted by the community midwife that the weight of the infants and children has normalised compared with 2 years ago. The mothers have also taken responsibility for completing and maintaining the information cards for their children (detailing their weights etc.) themselves during the clinics demonstrating both increased capacity of the women and increased confidence from the midwife.
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A Youth Club was formed with 15 members. The group was established over WhatsApp during the lockdown period and were useful in sharing information on social distancing and COVID prevention techniques. After lockdown the group have started meeting and have elected a management committee.
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During the lockdown one of the Youth Club Members who is studying at university started a peer-study support group of the school children. 24 children in the village benefitted from his support and tuition which was gratefully received as most of the children had no access to online classes or activities when the schools were closed.
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An awareness programme on Value of Education and Leadership Qualities was held for 40 members of the Children’s Club. An initial meeting and training programme was held for parents and teachers at the Kirimetiyawatte School on how to monitor students’ progress. This will continue in the next year – with the aim of improving the relationships between the teachers and parents and a shared sense of responsibility towards the children’s learning.
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The Women’s Society received additional training in Home Management and Individual Family Development Plans. Improvements were noted in the group including increased savings among the group members, and members with home-based businesses, all of which increases the family income and independence. The society have also started a micro-credit programme offering low-interest loans for members and have established a Death Welfare Society with support of the men in the village.
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WDC have noted that during the lockdown period the community were able to sustain themselves with very limited material support from WDC or outside sources. With their own resources, home-gardening and their continued work in the village and with Pan Nippon (the estate management company) they were able to meet their needs. This demonstrates improved independence and capacity within the members.
Angunochchiya : A full 30-month project Angunochchiya Gram Sevaka Division (AGSD) was established in February 2018 after a successful 6-month pilot project the previous year. This project is being implemented with partner organisation Human Development Foundation across three villages in Medawachchiya. Initial research and the 6-month pilot project highlighted many issues with child development, access to safe drinking water, health and well-being and mobilization of the community. Community members are additionally at high risk of chronic kidney disease as a result of poor quality drinking water and over-use of pesticides and fertilisers.
The project has the following objectives:
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Improved rights of children through supportive structures that enable child development, protection and participation.
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Improved capacity of the community to protect and promote their own health and wellbeing.
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Improved economic status and security for the community.
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The project has continued to be implemented successfully throughout the year with significant positive impact in Medawachchiya. The project was due to end in July 2020 but was extended to October 2020 to allow the final evaluations and activities to be completed.
During the period, key achievements included:
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Renovations were completed on two rooms in the temple buildings. These rooms have been set up for community use with the project donated computer, library facilities and sports equipment available for community members to use.
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IT and tuition classes continued throughout the reporting period and continued beyond the financial support of project with parents contributing to continue these. The teacher in Maligasewewa village received an additional 15 computers from a donor in Colombo and has set these up in a room in the temple grounds. The monk has established a small IT school and continues to offer low-cost tuition to the children.
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In May 2020 a small grant scheme was started with 18 initial loans granted for Welfare Society members. Loans have been taken to start home-based businesses in dress-making, brickmaking, agriculture, snack-production and coir. The loans are being well managed by the societies demonstrating their increased capacities and confidence. Already these loan holders are making money from their businesses which is supplementing their household incomes.
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Awareness programmes on Sexual and Reproductive Health and Rights were conducted in August 2020 with 60 youths and 40 adults participating. The training was well received with requests from the Society members to repeat the training at a later date for those who had not attended.
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An awareness programme on Alcohol and Drug Prevention was held in August 2020 for 64 adults. Further programmes were scheduled for the youths and adults in Angunichchiya village but have been postponed as group meetings are again prohibited due to COVID prevention measures.
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Follow-up dress-making training was conducted for 15 participants who were trained in making bras and mosquito nets. One participant of this training is using the training and a small-grant received from the project to start a home-business making nets and another is planning to make bras to sell to the shops in the nearby town.
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HDF and the Welfare Societies have noted improved relationships between the communities and government departments and officers from whom they can seek support to address community issues. Community members are actively participating in a number of societies (farming, water management, community health, and Samurdhi) and feel confident and capable raising issues and working with these groups to address issues. These improved relationships are key to the sustainability of the project.
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From August 2020 the final evaluations of the project were completed. This information was used, with the evidence and data gathered from the baseline and on-going monitoring to produce the End of Project Evaluation and Sustainability Report (October 2020).
Telwatte: In July 2019 Shining Life and HDF agreed a new project in Telwatte, Galle District. Shining Life first worked in Telwatte in the aftermath of the 2004 Boxing Day tsunami, working with the community for 3 years giving direct aid to support immediate recovery and undertaking a wide range of activities to help the community rebuild e.g. vocational training, establishing savings societies, supporting education, establishing a youth club.
In Summer 2018 the Shining Life founder visited the community on her trip to Sri Lanka. During her visit community members asked if Shining Life would be able to offer more support. There was a desire for more vocational training. It was also identified that the village is now close to major tourist attractions and with some support they could establish a shop and market their handicrafts, potentially greatly increasing their income.
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A new 12-month project was designed to offer vocational training and the establishment of a shop within the community through which the society members could sell their products. The agreement was signed with HDF and the project started in July 2019.
The project has the following objectives:
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To improve capacity of women to promote long-term social and economic wellbeing of their families as well as communities.
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To establish a Women’s Society shop where the women can sell their products.
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To equip the Women’s Society with the entrepreneurship, business and financial management skills and knowledge to effectively manage the shop.
During the period, key achievements included:
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In December 2019 the group received an order from Embark (a nationwide department shop and animal welfare charity) to make 150 Batik and printed tote-bags which were sold in the Embark shops and online. This was a massive achievement for the group who were proud to see their products which a huge retailer and this brought additional income to help support the women and the shop.
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The group also secured a contract with a Sri Lankan company who promote environmentally conscious living. The group are making a few different products including Batik food covers and vegetable bags. These orders are ongoing.
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Screen-printing training was given for 10 members in February 2020 and equipment provided. Previously printing had to be done in Colombo which increased costs and wasted time. Now the group have capacity to print from the shop.
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In early 2020 Shining Life, HDF, the society members and Intrepid (an international travel company) were in discussion to start community visits where Intrepid tour groups would visit the village and shop and meet the society members. Trial visits were due to start in late-March but unfortunately due to the COVID-19 pandemic Intrepid have cancelled all tours in Sri Lanka. The group are hopeful to reconnect with Intrepid once international travel is safe and the groups return.
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Shining Life and HDF agreed a project extension to extend funding of the shop lease for a further 6 months while sustainability evaluations and plans are established. Due to some difficulties with the landlord the group moved to new premises. The new shop was opened with a small ceremony in August 2020. The new shop is also geared towards a local market with snacks, clothes, small toys and household items available.
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At a focus group discussion in August 2020, the society members identified a need to focus more on the local market. Case studies with members who participated in different activities were completed and the information, together with the focus group discussions is being used to complete the Sustainability Report for the project.
Plans for future periods
For the AGSD and Telwatte projects the focus will be on the long-term sustainability of the project outcomes and the communities. Both projects were due to finish in 2020 but due to difficulties implementing activities and additional needs of communities due to COVID-19 this has not been achieved. There are a few outstanding activities for the AGSD project which need to be completed and Shining Life is working with the community to identify any immediate concerns with the second wave of COVID infections in Sri Lanka. For the Telwatte project alternative sources of income for the shop need to be identified and links with Sri Lankan partners strengthened to ensure the shop can survive without reliance on tourism.
The project in Kandy will continue in 2021 with plans to open a new preschool in January 2021 in Sriyagama and activities to improve access to education highlighted as key. Funding for library
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facilities in all villages has been agreed and Shining Life and WDC are working to identify how best to support the children’s education during the on-going school closures.
Financial review
At 31 October 2020 the Charity had funds of £22,516 (2019: £16,828), an increase of £5,688 (2019: net outflow of £5,398), reflecting both a decrease in expenditure of £6,305 and an increase in income of £4,781. Total incoming resources were £28,210 (2019: £23,429).
Regular donations are the preferred form of fundraising as they facilitate forward planning. The donations were up significantly to £13,071 (2019: £9,389). This was due to an increase in regular monthly donations during the course of the year. However, one of the regular donations (£500 per month) is for a fixed period until April 2021.
The Charity had an increase in income from fundraising events (£6,835; 2019: £5,223), from running a major fundraising event this year.
Total expenses were lower at £22,522 (2019: £28,827), mainly due to a planned decrease in payments to the Charity’s project partners. Total payments were £13,735 (2019: £17,499). Volunteer travel and expenses decreased to £7,869 (2019: £9,797), mainly because of travel restrictions due to COVID-19.
The exchange rate continued to vary throughout the year. On 1 November 2019, it was £1 = Lkr 234. The rate briefly reached a low of £1 = Lkr 215 in mid-March. It reached a high of £1 = Lkr 249 at the end of August and had dropped back to £1 = Lkr 234 by the end of October 2020. The charity is benefiting from the increase in the exchange rate which helps to mitigate the fact that the inflation rate in Sri Lanka continues to be much higher than in the UK. Inflation risk is managed by holding funds in Sterling.
Fundraising
The Charity organised a series of socially distanced events in September 2020. There was a cycle ride around Buckinghamshire and Hertfordshire starting from Amersham. Other people cycled elsewhere in the UK to raise money for the charity, and there was a walk in Epping Forest in northeast London. The events raised just under £5,000.
The Charity continued the sale of Christmas cards and gifts for Christmas 2019. Sales of Christmas gifts were up on 2018, but sales of Christmas cards have remained buoyant, despite recent trends for a reduction of Christmas cards sent in the UK. The Charity also benefitted from being able to buy cards more cheaply, so generating a higher profit per pack sold. The sale of Christmas cards also leads to additional donations from purchasers. Donations received as a result of selling Christmas cards and gifts are also included in this figure. The sale of gifts is especially profitable for the Charity.
Gift aid
The amount of tax reclaimed directly from HMRC by the Charity continues to decline as more of the Charity’s income is received via fundraising websites such as Virgin Money Giving and the Charities Trust which reclaim tax on donations made through them on the Charity’s behalf. This reclaimed Gift Aid is therefore included in the fundraising totals.
Investment policy
The Charity’s cash balances continue to be invested in the CAFCash Gold Account, keeping sufficient funds in the current account for immediate requirements. UK interest rates have been low since March 2009, but decreased this financial year to 0.01%. The income received on the cash balances is now significantly less than £1 per quarter.
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Bank charges
The Charity’s main banker, CAF Bank continues to impose a monthly charge (£5) because of the continuing low interest rates. The Trustees have considered whether it is worth moving the account. The Trustees decided that it was not worth moving the account because of potential disruption and also because competitor banks do not offer such a secure system for online banking where two signatories are required.
Reserves policy
The Trustees have established the level of reserves that the Charity should have. The Charity commits to work with each project for 36 months. Trustees ensure there are sufficient projected funds (based on a prudent projection) for the entire project in advance of starting a partnership. Regular donations to the Charity have remained relatively stable over recent years and the financial risk of reduced donations is lower than originally anticipated. The Trustees agreed that the reserves policy should be the total of the last three years’ expenditure divided by 6 (i.e. an average of 6 months’ expenditure). This gives a reserves figure of £13,040 (2019: £14,047). The actual reserves at 31 October 2020 were £22,516 (2019: £16,828).
Field Director
The Field Director continued to work in Sri Lanka for the full year. The Field Director is a volunteer, with living expenses paid. The Field Director works directly with the project partners and communities, imparting their skills and experience to advance the work of the project as well as managing and monitoring progress. These expenses are therefore classified as direct, project expenditure.
Structure, governance and management
Governing document
The Charity is a Charitable Company limited by Guarantee, incorporated on 3 November 1997 and registered as a Charity on 13 February 1998. 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. In the event of the company being wound up, members are required to contribute an amount not exceeding £10.
Recruitment and appointment of Trustees
The Trustees are also directors and members of the Charity for the purpose of the Companies Act. Under the requirements of the Memorandum of Association, one third of the Trustees are required to retire at each Annual General Meeting and seek re-election. As a new Trustee was appointed during the year, the Trustees agreed that only one Trustee needs to retire by rotation to meet the above requirement. S Bayjoo retires by rotation and, being eligible, offers herself for re-election.
The Trustees aim to maintain a broad mix of skills on the board, so that the project delivery, fundraising and governance needs of the Charity are met. When a vacancy arises, skills of a new Trustee are sought to complement the other Trustees. New Trustees are usually already known to the Charity.
In addition to general responsibilities towards the Charity each Trustee has their own area of responsibility – this ensures that all areas are covered and work is not duplicated.
Trustee induction and training
Potential new Trustees are invited to attend several Trustee meetings to see how the Charity operates. Responsibilities are explained, and information sheets from the Charities Commission and Companies House setting out legal responsibilities are given to the new Trustee. After this the potential recruit decides whether they are willing to accept the responsibilities and if they are they are proposed and voted on as a potential Trustee.
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Organisation
The board of Trustees administers the Charity. The board meets approximately eight times per year. A volunteer field director is appointed by the Trustees to manage the day-to-day operations of the Charity in Sri Lanka.
Risk management
Where appropriate, systems and procedures have been established to mitigate the risks the Charity faces. A risk log has been compiled and is reviewed at each Trustee meeting. To reduce financial risks, funds are maintained in sterling bank accounts based in the UK that require two registered signatories to withdraw or transfer funds or effect any changes.
The security policy for the Charity’s volunteer Field Director continued to be a standing item on the Board meeting agenda because of the heightened security situation in Sri Lanka, which can be volatile at times. The current security policy includes guidance provided by the FCO. The Trustees continue to monitor this advice and discuss the implications of it at each Trustee meeting. The security policy is also formally reviewed annually.
During the COVID-19 outbreak, the Trustees acted on the security policy. The Trustees maintained regular communication with the Field Director and ensured that the Field Director’s safety was paramount.
Statement of Trustees' responsibilities
Company law requires the Trustees to prepare financial statements that give a true and fair view of the state of affairs of the Charity at the end of the financial year. In preparing these statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently
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make judgements and estimates that are reasonable and prudent
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state whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enables them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In approving these financial statements as Trustees of the company we hereby confirm:
For the year ending 31 October 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
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the members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476
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the directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts
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these accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
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Independent Examiner
John Meadowcroft was appointed as the Independent Examiner during the course of the year.
Approved by the Trustees on 29 July 2021 and signed on their behalf by
J Newall Trustee
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Shining Life Children’s Trust
Independent examiner’s report to the Trustees on the unaudited financial statements of SHINING LIFE CHILDREN'S TRUST for the year ended 31 October 2020 which are set out on pages 15 to 19
Respective responsibilities of the Trustees and Independent Examiner
The Trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act). As gross income for the financial year was greater than £25,000, an independent examination is mandatory.
Having satisfied myself that the Charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of independent examiner’s statement
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements
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to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
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have not been met or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
John Meadowcroft
Member of the Institute of Chartered Accountants in England and Wales
2 Bailey Close High Wycombe Buckinghamshire, HP13 6QA
29 July 2021
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486 Page
Page 14
Shining Life Children’s Trust
Statement of financial activities including Income and Expenditure Account (unrestricted funds) for the year ended 31 October 2020
| Notes Incoming resources Donations 2 Fundraising events 3 Sale of gifts and Christmas cards 4 Income from investments 5 Total incoming resources Resources expended Grants payable 6 Rent, rates and service charge Volunteer travel and expenses UK governance Fundraising expenditure 7 Interest and bank charges Total resources expended Net movement in funds Total funds brought forward Total funds carried forward |
2020 £ 20,328 6,835 1,039 8 28,210 (13,735) (3,169) (4,700) (13) (647) (258) (22,522) 5,688 16,828 22,516 |
2019 £ 17,263 5,223 926 17 |
|---|---|---|
| 23,429 (17,499) (2,839) (6,958) (13) (1,280) (238) |
||
| (28,827) | ||
| (5,398) 22,226 |
||
| 16,828 |
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486 Page
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Shining Life Children’s Trust
Balance sheet as at 31 October 2020
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Current assets | |||||
| Stock | 50 | 100 | |||
| Debtors | 10 | 3,631 | 3,322 | ||
| Cash at bank and in hand | 22,262 | 14,119 | |||
| 25,943 | 17,541 | ||||
| Creditors: amounts | |||||
| falling due | |||||
| within one year: | 11 | (3,427) | (713) | ||
| Net assets | 22,516 | 16,828 | |||
| Unrestricted Funds | 22,516 | 16,828 |
There are no restricted funds. The purpose of the unrestricted fund is to provide relief to children in Sri Lanka in line with the Charity's objects.
The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31 October 2020:
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the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies, and
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the members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
Directors’ responsibilities:
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the directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
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these accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
The notes on pages 17 to 19 form an integral part of these financial statements.
The financial statements were approved by the Board on 29 July 2021 and signed on its behalf by
J Newall Trustee
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486 Page
Page 16
Notes to the financial statements for the year ended 31 October 2020
(unrestricted funds)
1. Accounting policies
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.
1.1. Accounting convention
The financial statements have been prepared on an accruals basis under the historical cost convention, as modified by the inclusion of fixed assets at market value, in accordance with the Companies Act 2006 and follow the recommendations in 'Accounting and Reporting by Charities: Statement of Recommended Practice' issued in April 2005. The Charity has taken advantage of the exemption in FRS1 from the requirement to produce a cash flow statement because it is a small charity.
1.2. Incoming resources
All incoming resources are included in the Statement of Financial Activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.
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Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when received.
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Gifts donated for resale are included as income when they are sold.
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Donated assets are included at the value to the Charity where this can be quantified and a third party is bearing the cost.
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The value of services provided by volunteers has not been included.
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Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
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Income from investments is included in the year in which it is receivable.
1.3. Resources expended
Resources expended are recognised on an accrual basis in the year in which they are incurred. Expenditure included any VAT which cannot be recovered and is reported as part of the expenditure to which it relates.
Fundraising costs are those incurred in getting regular donors and one-off donations. It also includes the cost of Christmas cards and of running the website.
Direct charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
UK governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
2. Donations
| Income – one-off donations Income – regular donations |
2020 £ 7,257 13,071 20,328 |
2019 £ 7,874 9,389 |
|---|---|---|
| 17,263 |
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486 Page
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| 3. Fundraising events Fundraising events, September 2020 Dorset cycle ride, June 2019 Capital Ring walk, November 2017–October 2018 Other fundraising events 4. Sale of gifts and Christmas cards Gifts Christmas cards 5. Investment income Income – Interest receivable 6. Direct charitable expenditure Grants payable Kirimetiyawatte Angunochchiya Telwatte 7. Fundraising expenditure Events Printing, postage and stationery Christmas cards for resale etc. General expenses |
2020 £ 4,962 785 – 1,088 6,835 2020 £ 100 939 1,039 2020 £ 8 8 2020 £ 7,826 5,909 – 13,735 2020 £ – 10 403 234 647 |
2019 £ – 4,510 88 625 |
||
|---|---|---|---|---|
| 5,223 2019 £ – 926 |
||||
| 926 2019 £ 17 |
||||
| 17 2019 £ 4,984 9,833 2,682 |
||||
| 17,499 2019 £ 639 60 400 181 |
||||
| 1,280 |
8. Trustees' emoluments
The Charity had no employees during the year. The Trustees received no emoluments.
9. Taxation
As a charity, Shining Life Children’s Trust is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 236 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486 Page
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10. Other debtors and prepayments
| 10. Other debtors and prepayments | ||
|---|---|---|
| Three month’s deposit on flat in Colombo Advance to Field Director Gift Aid receivable direct from HMRC Donations Fundraising events Other income 11. Creditors: amounts falling due within one year Project expenditure WDC Fundraising expenditure Fundraising event Governance |
2020 £ 882 500 1,858 379 12 3,631 2020 £ 2,457 632 299 39 3,427 |
2019 £ 750 500 1,804 256 12 |
| 3,322 2019 £ – 388 299 26 |
||
| 713 |
12. Share capital
The Company is limited by guarantee and therefore has no share capital. However every member of the company undertakes to contribute to the assets of the Charity in the event of the same being wound up whilst he is a member, or within one year after he ceases to be a member. This contribution is in respect of payment of debts and liabilities of the Charity contracted before he ceases to be a member. The liability should extend to the costs, charges and expenses of winding up, and for the adjustment of rights of the contributories amongst themselves. The amount of contribution that may be required will not exceed £10. The company has six members.
Shining Life Children’s Trust: Annual Report and Financial Statements for the year ended 31 October 2020 Charity number: 1068123 Company number: 03459486 Page
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