2021-03-31-accounts - Project Possible

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ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Project Possible, 24 London Road West, Amersham HP7 0EZ 01494 433170 / www.projectpossible.org.uk / office@projectpossible.org.uk

Registered Charity: 1069608 / Project Possible is a company limited by guarantee Company No.:3524732 First registered at Companies House, Cardiff, March 1998

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

roject Possible – “Be the Spark” nnual Report and Financial Statements for the year ended 31 March 2021
Contents	Page
Introduction – Project Possible and “Be the spark”	3
Chair and CEO’s Welcome	4-5
Highlights of 2020/21	6
Introducing the change to Project Possible	7
Vision, mission and values	7
Compliance and public benefit	8
Activities and achievements	8-11
Fundraising	12-13
Future plans for 2021/22	14
Financial review and sustainability	14-16
Structure governance and management	17-19
Trustees’ responsibilities in relation to the financial statements	19-20
Statement as to disclosure to our auditors	20
Auditors re-appointment	20
Approval	20
Reference and administrative details	21
Independent auditor’s report	22-26
Statement of financial activities	27
Balance sheet	28
Statement of cash flows	29
Accounting Policies	30-32
Notes to the financial statements	33-40

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Introduction – Project Possible and “Be the spark”.

On 16[th] June 2021 Rope Charitable Trust officially became Project Possible and although this is an event that occurred after the end of the 2020/21 financial year, it is of such significance that it seems appropriate to commence our report and financial statements with an introduction to Project Possible. An explanation of why we chose not only to rebrand Rope but to rename it as well, seems a good place to start. Relief for Oppressed People Everywhere (ROPE) was an acronym that needed constant explanation and no longer described what the charity was doing – we long ago moved from bringing purely immediate relief/aid, to building communities and creating value and vocation for individuals. A very positive transition in recent years has been in responding to partners requests to work more closely with them, to mentor and train them in deepening the impact of their work (capacity building), and help in finding joint solutions to their challenges, not just sending out grants. Hence, we have taken time to consider how we portray ourselves to a new generation of supporters.

We wanted a name that captured our experience that big change often comes from small beginnings, clearly demonstrating we have a place in an overseas development arena that is more often characterised by big programmes. We were after a name that spoke to our pragmatism, as well as our faith in a God who transforms. Finally, we wanted a name that in some way said ‘small, relatable and tangible’, which is how we regard ourselves.

And so, Project Possible was born. Project ... because that is what we do – helping bite-sized, timebound and impact-focused projects get up and running. Possible ... because we focus on what is achievable, manageable and realistic – while always looking to the remarkable and unexpected, relying on a God with whom all things are possible.

In addition to the name, we have a short phrase that has become the strapline of the charity – “ Be the Spark ”. It helps us to keep a focus on the significant addition to our portfolio of work, namely Spark Projects. The sentiment behind this call to action is that big change comes from small beginnings - it just needs a spark to get started. As this annual report is being completed, we are delighted that our first round of 3 Spark projects have been fully funded and are getting underway. They are a logical extension to the longer term programmes (now called Next Generation Projects) that Rope has been running with our partners for some years.

The Belle Couture Dressmakers of Kinshasa

One of our first spark projects was created to support women facing sexual exploitation on the streets of Kinshasa, D R Congo. All choose to reject their former lives by joining our next generation projects, which offers up to 2 years on a residential training programme learning to sew and tailor.

Our spark project sought to provide 20 graduates with start-up capital and mentoring to launch 10 small sewing workshops. The spark project launched in June 2021 and was fully funded by August, releasing the monies to the women.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Sandra, pictured here, joined 2 other graduates and set up her own business. They are currently working hard to establish themselves and gain a loyal client base.

Chair and CEO’s Welcome

Welcome from Philip Derbyshire - Chair of Trustees

I want to welcome everyone who reads this report to a new and significant chapter for our charity. As explained above, we launched Project Possible in June 2021. However, a lot of the preparation was undertaken in the year we review here. This included a thorough analysis of what is distinctive about us. One major outcome has been to increase our focus, which has now been described as ‘laser like’, on sustainability in all that we do. It also led us to champion ‘small’ as an asset which enables us to be quick to act when necessary. So, as we learnt about the effects of Covid 19 on our partners’ work, generally much greater than we have experienced in the UK, we reacted immediately with the support they needed.

As Trustees we thank Andy Jong and all the staff team for their careful thought, prayer and sheer hard work this has involved. The changes were made alongside the normal work of the charity including liaison with our partners, fundraising and numerous administrative tasks. Furthermore, they were achieved despite the effects of Covid 19 on our UK operations. We also take this opportunity to thank Kathy Nussbaum, my predecessor as Chair of Trustees, for her 13 years’ service to the Board and charity. Shortly after the year end we formally welcomed Rev. John Bernard, Minister at Langley Free Church, to join us as a Trustee. His church has supported us for many years.

We give thanks that our income held up well despite concerns that the pandemic would seriously affect that. Our strong reserves position is thanks to the generosity of our founder, Michael Wood and his wife, Jacqueline, together with others who have left significant legacies. We are committed to using this money and not ‘storing it up in barns’ so the Trustees have agreed to designate and release a significant proportion of our reserves for various purposes which are detailed later in this report. We continue to expend significantly more than our income (excluding legacies), as we have done in recent years.

It just remains for me to thank everyone who has contributed to the work of our charity as we look forward to sharing Christ’s love in the years to come.

Philip Derbyshire

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Welcome from Andy Jong - CEO

The strategic changes we are sharing in this Annual Report have had a long gestation period and when we embarked on the process, the prospect of a global pandemic was not featured in our planning. Therefore, to have delivered a large measure of the new strategy, in particular a new proposition, Spark Projects, a new name and fresh branding in the midst of dealing with the challenges of Covid-19, has been a remarkable achievement. We are delighted to be Project Possible, having taken the best of Rope, added so much of quality to it and secured a clear growth path for the future.

It is my job to look forward and as I contemplate 2021/22 and beyond, it is clear that Covid-19 will continue to create uncertainty and disruption to our work for some time, here in the UK and with our global partners. We have learnt a great deal about being agile and encouraging the innovative and flexible responses our partners have made to the situation, and this stands us in good stead as we roll out our new Spark projects together in a more volatile environment.

Our plans for the coming period include putting in place responses to the climate emergency we face, ensuring our work genuinely contributes to restoring equity and inclusion in the world through a series of workshops and measures agreed by the Board, being relentless in our focus on sustainability with our partners and taking the opportunity our new name and branding gives to invigorate our supporters and acquire new ones.

We are very appreciative of all our supporters and stakeholders who contribute, in whatever way, to our mission, adding their individual sparks to help big change come from small beginnings. I say a personal ‘Thank you’ and hope you are encouraged by this set of Annual Report and Accounts.

Andy Jong

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Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Introducing the change to Project Possible

The pandemic was not the only challenge Rope faced as we moved into 2020. We needed to halt the slow decline in our income and be much better at attracting new supporters to continue to succeed in a very competitive world. We also wanted to strengthen our international work to enable lasting impact for the marginalised and disadvantaged communities we work with and grow sustainable partnerships for the future.

Furthermore, our full strategic review needed to address the financial sustainability of the UK charity, its partners and to follow through to the individual beneficiaries themselves. Historically, some generous legacies have enabled Rope to maintain its pledge that 100% of donations will go to the work overseas, in effect significantly subsidising the Friends of Rope account. A much clearer focus was required and we believe that the new Project Possible proposition we have developed responds to these issues. In place of the 100% pledge we are now including all project related costs within the scope of any donation or grant made to the charity. Fundraising and administration costs are still being met from other income sources and we intend to review this policy in future years.

We share a desire with our partners to honour God in the way we do our work, ensuring high standards, for example in the safeguarding of children and in reporting transparently to stakeholders and supporters on the outcomes of how we have used their funds. Our partners recognise the need to be operating sustainably and to move away from any dependency in our relationship, to one of true partnership and equity. This rebalancing was needed to empower and refresh the long-term relationships we have established with visionary partners and when seeking out new ones.

We have been able to fund the changes to the UK charity from the legacy left by our founder Michael Wood. Our plan is to utilise more of our reserves (i) to help our 5 Brighter Futures Children’s homes to transition into different models of caring for young people and where possible to fit our new strategic proposition, (ii) to provide sustainability grants and incentives for partners to start their own income generating ventures, and (iii) to respond to the climate change crisis by targeting grants to partners for initiatives that will assist in reducing their carbon footprint.

Vision Mission and Values

One of the starting points for Rope’s Strategic review was to consider the fundamentals of the charity – our vision, mission and underlying values. This was a valuable and healthy exercise and below we set out our aspirations as Project Possible.

Our vision

To see lives lived in fullness and hope with lasting transformation in small and disadvantaged communities.

Our mission

We partner with Christian communities around the world to open up opportunities where doors have been closed due to social disadvantage. We join forces to make their projects possible, working to spark a lasting impact, which restores their sense of value and vocation.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Our values

We are committed to prayer
We are committed to transparency, integrity and accountability
We are committed to respect and dignity
We are committed to the whole person
We are committed to the poor
We are committed to relationships with compassion and generosity
We are committed to sustainable partnership

Compliance and Public Benefit

The board of trustees of Project Possible presents its report with the consolidated financial statements for the year ended 31 March 2021, which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out later in this report and comply with the Charities Act 2011, the Companies Act 2006, Project Possible’s Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice 2015, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) effective January 2019.

We have referred to the Charity Commission’s guidance on reporting on public benefit as we prepared this Annual Report. Project Possible and its partners work with forgotten communities of vulnerable and marginalised people around the world, and our public benefit is delivered through our focus on these needs, regardless of race, religion, ethnicity, ability, age, gender, sexuality or nationality. The Trustees ensure that the activities undertaken contribute to the aims and objectives of the charity and are therefore confident that Project Possible meets the public benefit requirements.

Activities and achievements

Our Strategic Priorities

1. Investing in the innovators and the journey

Recognising that transformational change takes time, Project Possible’s commitment is to local initiatives that have a vision to bring change and are designed to grow lasting impact over time.

Case study 1. Covid 19 response

This reporting period has proved to be a challenging time as the Covid-19 pandemic spread globally and both Project Possible’s UK operation and all of our international partners found themselves in lockdown situations. Most partners had the very difficult decision to put their programmes on hold for at least a few months and a few for a considerable time. Project Possible remained committed to

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

supporting our partners through these difficult times so they could continue to pay their staff teams and keep paying their bills.

Where relevant, we encouraged our partners to be proactive in responding to local changes and agreed that some of our funds could be diverted away from regular programme activity to support local needs in their community: community health awareness and case-finding, delivering food parcels and sanitising packs for families who were without work (India) or sanitising packs for local pastors without income as their church was not meeting (Chad). We supported some of them to purchase IT equipment so they could begin to deliver some training programmes online or allow children to access schooling (DRC and Nepal). Our partners in Bolivia, Word Made Flesh, who support the children of women who are trapped in sexual exploitation in El Alto, used Project Possible support to make very creative use of Zoom and WhatsApp and as a result delivered a more personalised care and support (therapeutic and educational) for the children and young people who participate in the programme. They arranged food parcels and vouchers to support families, and where needed provided data bundles and in certain cases phones to ensure they kept in contact with these very vulnerable families who were severely affected by the Bolivian restrictions. As a result, they saw many children continuing to develop skills such as reading (they held an online ‘readathon’) and supported them in confinement by teaching them mindfulness and relaxation while they couldn’t leave their homes. During the period they saw increasing numbers of women attending local church services online and beginning to feel part of the community.

One of our partners whose work has been most starkly impacted by Covid-19 has been Dreamland Mission Hospital and their eye clinic provision, which with our support provides sight restoring surgery to around 500 people annually. A high proportion of people coming to the clinic are elderly people who are losing or have lost their sight due to cataracts. Over the last few years, with support of Project Possible, Dreamland has been seeking to gain more in-country funding through the government insurance scheme and at the end of 2019, they had succeeded in increasing funding from the insurance scheme for a third of all surgeries. When Covid-19 began to spread through Kenya, the government curtailed its funding of all but emergency surgeries through the insurance scheme. Dreamland were able to take necessary measures to protect staff and patients from Covid with the support of Project Possible, assisting them to purchase PPE and equipment for their staff and helping build a second floor to their self-isolation ward, so doubling the bed space at the hospital. This means any Covid-19 patients can be treated completely separately. We are grateful to God that we have been able to send additional funds to support Dreamland during the pandemic and are able to maintain our support for the eye clinic so they could continue to provide this vital service during this very uncertain time.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Dreamland Mission Hospital – Eye Clinic:

2. Outcome-focused agenda leading to transformed lives and communities

Over the past 3 years Project Possible has been working with partners to transition from reporting on activities to an outcome-focus, where desired outcomes are clearly identified at the start of each programme year in the workplan. Practical measures or indicators are put in place to measure impact and a simple reporting framework is used to help us assess progress and also to provide transparent accountability for our supporters.

Case study 2 Youth Action Uganda Tithe to thrive Programme

In 2017 YAU and Project Possible carried out a survey of 757 people that YAU had worked with over the previous 7 years. The survey sought to understand the profile of the beneficiaries and the results of the groundnut programme. The survey showed that many farmers had benefited from the groundnut project but were still at subsistence level.

The YAU Tithe to Thrive Programme was designed to take the participants from subsistence level to a level of self-sustainability, where they would be able to provide for basic needs for their families and build a strong and stable livelihood. This programme worked with 280 farmers across four districts, Katakwi, Soroti, Napak and Amuria. YAU worked diligently to run a programme of training, monitoring and reporting across several disciplines that covered agricultural extension, basic rights, health and sanitation, evangelism and discipleship.

The programme ran from April 2018 to March 2021 (3 years) and focused on economic empowerment of the beneficiaries. The goal was to increase income generation from the sale of the surplus of a range of crops, all of which were also suitable for home consumption i.e. not solely cash crops.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Key lessons learned from the Tithe to Thrive (T2T) Programme

i/ Although some excelled and reached the target (around 10%) and many (around 70%) realised an increase in production many farmers couldn’t realise the intended level of success. The target set was ambitious (all farmers to gain an income of UGX 4M) and was not reached by the majority, not because of a lack of knowledge or hard work but because of other challenges including lack of access to capital and therefore inputs such as labour to help them weed in a timely way, as well as the normal challenges which were out of their control such as flooding, drought, pest infestations. A majority of the participant farmers are still on the road to self-sustainability and continue to experience vulnerability to economic shocks.

ii/ T2T involved large numbers of participants, large areas to cover and standardised plans. YAU were very well organised to manage such a lot of activities, but it made it hard for them to tailor the support for different farmer’s needs. For some farmers the training approach was not appropriate, and a simpler approach is needed.

iii/ Furthermore, lessons were also learned about issues of dependency, how to measure outcomes, approach to farmer contributions, and the need for YAU to build its own sustainability as an organisation. iv/ YAU were diligent in the collection of results and based on these results and through many meetings discussing and reflecting on what was happening this learning has been possible.

Two projects for 2021-2022 to bring YAU in line with the new Project Possible proposition have now begun with 40 to 50 farmers in each and a third income generating project to grow YAU’s sustainability is to be developed. All these projects will run in Soroti for one year while new approaches are developed.

Uganda – YAU Tithe to Thrive:

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

3. Capacity building and Sustainability

This year we developed a Project Possible concept of sustainability with six outcomes we will focus on as keys to lasting impact (see diagram).

We planned a programme of capacity building webinars and workshops to be rolled out to our partners as we moved to being Project Possible. Two webinars were delivered during the period in French and English. The first webinar was a discussion on ‘Youth Unemployment’ and how to support programme participants into productive work as they graduate. This was with our partners in DRC and Chad. The second webinar was on report writing, focusing on precise impact focused reporting and introducing a new approach to creating a narrative which was delivered to a majority of our partners. Following a face-to-face workshop with Asha Kiran Society (AKS), India, on programme sustainability, AKS prepared their ‘Road to sustainability’ concept for the multi-lingual education (MLE) programme and undertook a baseline study of their village education committees.

Fundraising

No one knew how the impact of Covid-19 would play out on people’s giving to charities. As we review this year we are greatly heartened by how our supporters have continued to show commitment to our work during this difficult time. So much had to be put on hold and we were not able to get out into churches and share updates in-person, so to end the year seeing income at similar levels to the previous year is very humbling. It was a very busy year for the Fundraising and Marketing staff team, even though much of it was spent living life on Zoom. Here are some of the highlights:

1. Covid-19

As the global pandemic began in Spring 2020, we launched an appeal asking people to give to our Emergency Fund. This Fund had been in existence for many years as it is used to support partners

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

and communities in times of emergency. Our initial appeal was then extended into a Harvest Appeal in Autumn 2020 and when combined, we raised a total of £15,270 to support partners through urgent actions in response to Covid. We also were able to continue to support many of our partners on-the-ground staff team even as they had to stay at home through lockdowns. This was our furlough scheme and ensured that when restrictions were lifted key staff team members, with experience of the work, were able to resume their duties quickly.

2. Project Possible – Be the Spark

On top of running fundraising campaigns, the staff team contributed to the charity as lots of effort was directed this year preparing to become Project Possible. Much time and thought went into developing our new name and creating a three-year Fundraising and Marketing Plan to support these developments. At the heart of this plan is a focus on encouraging supporters to choose to support Project Possible through a regular gift. Alongside this, we will look to gain new supporters with the same intentions. We will use the newly created spark projects to introduce people to our approach to international development. Through these projects we will show the lasting impact that we deliver to forgotten people and communities and having seen that spark projects succeed, they will be inspired to take out a regular commitment to one of our next generation projects.

3. WW4W 2020

Even though we were facing endless restrictions we still wanted to run our very popular Women Walking 4 Women event. Our normal event format was not going to be possible, so a reformatted event was launched, encouraging 50 women to walk 10 miles on their own or in a small socially distanced group from home. Over 50 women walked and collectively raised £15,255 for our work with women in Kinshasa, DR Congo.

4. Andy Hounsell – London Marathon 2020:

Long-standing supporter, Andy Hounsell, agreed to run the London Marathon for us in October 2019. He chose to support our next generation project near Kimilili, Kenya, providing corrective surgery for children with club foot condition. London Marathon 2020 became a virtual event and Andy ran a personal route, from Buckingham Palace to his company offices in Beaconsfield – 30 miles in total. He also raised an astonishing £33,673 providing 80 children with life changing surgery.

5. Lifeline Christmas Gifts

Our alternative gift range was aimed at keeping people healthy, children and young people learning and people working as they faced the pandemic. We provided students with internet to continue their studies, children gained regular health checks and elderly people received cataract surgery. Once again supporters responded and we raised £16,691, making it one of our most successful years.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Future plans for 2021/22

Following the launch of Project Possible on 16th June 2021 via an online webinar for supporters, hosted by BBC journalist and Project Possible supporter, Sally Bundock, along with the International launch a week later for all Project Possible partners, hosted by CEO Andy Jong, we have worked hard on:

Introduction of new Spark Projects and associated communications and reporting
Deeper development of both our social media/digital marketing strategy and our church engagement strategy, as churches begin to reactivate following Covid restrictions

Other key developments planned for 2021-22 in line with our Strategic Plan include:

Redesigning our alternative charity gifts offering, to fit in with Project Possible branding and proposition
Following an initial focus on supporter retention after the Project Possible launch, to then look to grow our supporter acquisition and overall income
To offer a series of capacity building webinars for our Project Partners in relevant topic areas
Take forward our plans for sustainability in respect of both partners and individual beneficiaries via income generating activities
Creation of a Board policies manual to further improve governance of the charity
Formulating a Project Possible response and policies to address the issues of climate change and equity, diversity and inclusion

The prospect of the COVID-19 pandemic continuing to affect the UK, but more significantly the work of our partners, may mean the acceleration of some plans and the postponement of others.

Financial review and sustainability

Income and Expenditure

Project Possible’s total income for the year excluding legacies, was £511,712, which in a year of significant structural change for the charity, plus the impact of the pandemic on our fundraising activities, is a very encouraging result. Last year our income was £522,270, so the result this year reflects the continued generosity of our core supporters at a time of uncertainty.

Donations from individuals, churches and trusts, at £426,758 shows a modest increase from the previous year (£420,279). Our regular giving support has been maintained and it was a good year in terms of retaining and increasing regular givers. The amount received in one-off gifts was higher than last year and we had a good response to our emergency appeal to provide support for partners initiatives in the face of Covid 19 challenges. Our initial pessimistic forecasts about the impact of the Covid 19 pandemic on donation income were thankfully not realised and we were able to readjust to the circumstances flexibly by taking some of the key fundraising activities online/virtual. Some of our supporting churches were seriously impacted by Covid and suffered reduced income, which is reflected in the slightly reduced amount of income we received from that source this year.

Our net total balance between income and expenditure was a deficit of (£597,166), which is considerably more than in 2019/20, when it stood at (£202,333). This increase is due mainly to a substantial part of the amount set aside by the trustees in prior years for children up to the age of 18 in our Brighter Futures Homes becoming a commitment during the year and provision of £461,048

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

being made for this liability in the accounts. The deficit would have been higher but many of our partnerships were not able to operate at anything like full capacity for much of the year and hence our planned grant support was not required at the expected level.

The total amount of grant funding this year was £944,699 (2020: £498,205) and the allocation of grant funding and support costs made this year were Africa 28.5% (2020: 47.5%), the Americas 4.6% (2020: 9.5%), Asia 66.8% (2020: 40.5%) and Europe & Middle East 0.1% (2020: 2.5%).

The major strategic review named Project Whitestone, which we commenced last year to look at how the Charity can continue to operate effectively within one of the UK’s most competitive charity areas (Christian overseas aid/development), moved through various phases, culminating in the launch of Project Possible post year end. Hence, our expenditure on fundraising, at £127,338, is showing an increase of about £9,000 over last year and a generally higher than normal level as this is primarily due to one off expenditure associated with implementing Project Whitestone. We have commissioned market research, new branding, a new website and also a promotional video as part of our launch activities.

Staff costs increased this year due to an additional full-time member of staff. We had also planned to increase our fundraising activity by engaging more closely with churches and had appointed a part time member of staff to focus on this. However, the closure of churches due to Covid-19 meant that this plan was no longer viable and the salary costs for this post were only for a few months.

At the year end, total funds amounted to £3,395,003 (2020: £3,412,190) reflecting the increase due to the revaluation of assets and policy of the Board to maintain grant making at levels which incur an operating loss, to continue the transformative work being done by partners and the full provision for our commitments made with respect to the Brighter Futures Homes.

Balance Sheet and Reserves Policy

Each year the Trustees set aside sufficient reserves, to ensure a balance between spending to meet the immediate needs of our programmes and protecting our future work; by allowing time to adjust to any unexpected operational challenges in our overseas work or to a large or unexpected reduction in the amount of income we receive.

The target level of reserves is between six and nine months of grant expenditure for projects funded from unrestricted giving, which equates to approximately £400,000. The Charity has been able to maintain the planned level of reserves throughout the year. The basis for determining the target level of reserves is kept under review by the Trustees.

We had been holding £800,000 of designated funds set aside from the general reserves in the accounts as a provision for our Brighter Futures Children’s homes, since they are no longer regarded as a suitable way in which to raise orphaned and severely disadvantaged children. For this reason and because these homes do not fit with Project Possible’s future proposition, a long-term exit plan has been put in place. Subject to local regulations being met, no further children funded by Project Possible are being admitted to all the Brighter Futures homes and, whilst no commitment has been made (to the homes) it is Project Possible's intention to support all the children currently within the whole programme through to independent living around the age of 18. The Trustees have therefore determined that in these accounts, this commitment is recognised as a grant in the SoFA and are

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

making a provision in the balance sheet for £461,048 as an amount due to be paid after more than one year.

As has been mentioned, a key part of Project Possible’s future strategy is to build the sustainability of our partners and to this end a designated Sustainability fund has been established of £500,000 to be utilised as quickly as viable income generating initiatives are developed. We are mindful of the growing need for action over climate change and have designated £200,000 funds specifically for partners to utilise in responding to this crisis. The Board views this as a much more direct way to achieve fossil fuel reduction than making carbon offsets by tree planting etc. It is foreseen that the challenges of the Covid pandemic will continue to adversely affect our partners into the future and we wish to continue to respond flexibly and quickly to any threats and problems that arise. To that end we have designated a Covid impact reduction fund of £50,000. Finally, the need to update our ageing donor database and acquire new CRM (Customer relationship management) software is acknowledged by designating a fund of £50,000 to meet this requirement.

Free (or Operating) reserves, which is money available to the Trustees to run the charity on a day to day basis, at the year end stood at at £472,980 due to the legacy funds received and thus provides a healthy position. The Board has put in place a financial strategy to disburse the legacy funds within the next 10 years.

We have closely monitored our financial position in light of the disruption to some normal activities during the coronavirus pandemic and with the increased short- and longer-term economic uncertainty as to funding levels this has entailed. Having reviewed the financial position and future plans for the charity, the Trustees have identified no material uncertainties related to events or conditions that cast significant doubt on the charity’s ability to continue its activities for the foreseeable future.

Investment policy

The Trustees have a general power to invest and disinvest the Charity’s funds in furtherance of the Charity’s objects. The charity’s investment policy is reviewed annually by the Finance and Fundraising Committee with the objective being to maintain high liquidity while ensuring maximum security, meeting the ethical standards set by the Board and achieving a balance of capital growth and income. Funds available to meet grant payments are kept in short term bank accounts so that payments can be made when required.

Rathbones act as our investment managers, managing the portfolio against the benchmark agreed by the trustees in November 2017 of the WMA Income, ARC Charity Index and the Consumer Price Index (plus an appropriate return) over a current time horizon of 10 years.

The Charity’s ethical investment policy specifically excludes companies whose principle business is in armaments, gambling, pornography, tobacco and alcoholic drinks, child labour and their exploitation. At the next review meeting with Rathbones we shall be considering whether further investment criteria are required to reflect the values of the charity in respect of climate change.

Our portfolio holds a mixture of equities, fixed interest (gilts and bonds) and diversified assets as well as cash. We view the return to date as satisfactory and will continue to monitor performance against the benchmark and against the overall objective of generating an income return of up to £100,000 per annum.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Structure governance and management

Organisation

The Trustees who served during the year ended 31 March 2021, who are also directors for the purpose of Company law, are listed in the Reference section and are responsible for the governance of the Charity. None has any beneficial interest in the Company, all are members and each one guarantees to contribute £1 in the event of a winding up. They met on four regular occasions to formally discuss and progress the activities of the Charity and additionally met together regularly for prayer. The Board has established two subcommittees dealing with (a) International affairs and (b) Finance and Fundraising, which met between the formal meetings of the Trustees. There were also some additional Board meetings specifically related to the work being undertaken in relation to the change from Rope to Project Possible.

The Chief Executive is appointed by the Trustees to manage the day to day operations with delegated authority within terms approved by the Trustees. Trustees are appointed at General meetings of the Charity following recommendations by existing Trustees. A third of directors are required to retire by rotation at each Annual General Meeting.

New Trustees are provided with details of the Charity’s governing documents, Trustee reports and financial statements and a full background on the Charity’s activities. They are also encouraged to access the Charity Commission website for details of Trustee responsibilities, governance guidelines and legalities. An induction process has been devised to ensure new Board members become fully familiar with the workings of the Charity following their appointment and includes the opportunity to meet with the Chief Executive and other staff.

Grant making policy

Project Possible does not implement projects directly, it provides support, capacity building and grants to small and locally managed partners that are recognised and government registered nongovernmental organisations (NGOs). Our partners must meet minimum standards in terms of financial controls, reporting capacity, safeguarding and governance.

Grants are made by distributing donations received, usually on a quarterly basis, to partners who have submitted a proposal for funding and agreed the basis of a Partnership Agreement between them and the Charity. Project Possible partners are required to submit reports and budgets regularly to the Charity in order for ongoing grants to be made.

The Chief Executive, with the Programmes and Partnerships Manager, will decide the number and level of grants to be provided to the charity’s partners, based on the approved annual strategy and budget. The International Committee will review and approve the annual programme and any additional or urgent grant proposals identified by staff or the committee as requiring a higher level of governance scrutiny.

Safeguarding

Part of our mission is to restore a sense of value and vocation to vulnerable people and our Christian values commit us to treating everyone with dignity, care and respect. In order to keep all the people we reach through our work safe – partners, individual beneficiaries, staff and volunteers, we have

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

invested a significant effort in developing a set of safeguarding policies and implementing them via a strict set of systems to ensure that these are followed. A suite of tools and training materials have also been developed and we continue to revise and improve these as annual reviews are undertaken with our partners. The Board of Trustees receives a report on an annual basis and considers emerging best practice and guidance to ensure that good safeguarding practice is being embedded in ours and our partner’s organisations.

We actively encourage our staff, partners and members of communities in which we work to report safeguarding concerns and incidents should they occur, as well as to report any allegations of historic incidents they may become aware of.

Risk management

The Trustees have a risk management strategy which comprises:

A regular (quarterly) Board review of the risks faced by the Charity; and
established procedures to mitigate the risks identified.

The senior management team are responsible for ensuring that day-to-day risks are managed through agreed systems and procedures.

Covid-19

At the start of this financial year, the events and impact of Covid-19 required us to add this into all areas of our risk matrix. These included: an expected fall in income, a more uncertain fundraising environment, a potentially less responsive supporter base, equipping our operational functions for effective homeworking, limited travel to visit and engage directly with partners, likelihood of restricted work for a long period by our partners due to localised restrictions, impact on wellbeing and productivity of Project Possible staff due to isolation and remote working, or physical health due to exposure and infection of Covid-19 and lastly, a risk of a failure of the technology relied upon in the remote working scenario for the Project Possible team. Measures to mitigate the adverse effects of these potential risks were taken and continue to be reviewed as the global picture changes.

Other risks identified include:

1) Movement of funds overseas - this is mitigated by using Western Union, who are a leading worldwide provider and also by paying money direct to the Project Possible Partners who submit budgets and quarterly expenditure updates.
2) Use of funds overseas - this is mitigated by visits to the projects, Zoom/WhatsApp calls to gain updates and quarterly reports and expense budget analysis. Clear objectives are set on every project and budgets submitted prior to the commencement of the project for scrutiny.
3) IT system operation - information and files were moved onto a cloud-based system this year and we have an IT support company who maintain the systems.
4) Data protection - Our donor database is secured and is never shared with any other organisations and has a limited access and only used by key personnel.

The trustees are satisfied that appropriate steps are being taken to manage these risks, and that sufficient procedures are in place to enable management and trustees to assess the effectiveness of risk management.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Fundraising

Project Possible does not use professional fundraisers or commercial participators. The Charity nevertheless observes the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and Project Possible received no complaints relating to its fundraising practice.

Remuneration Policy and Performance Management

Project Possible seeks to pay all of its staff a fair and appropriate salary, while making sure it exercises good stewardship and has the ability to do so. Staff pay levels including the Chief Executive, are reviewed on an annual basis by the Board, which then endorses the overall annual pay settlement for all staff during the annual Budgeting Planning and Approval process.

We actively invest in the learning and self-development of our staff and ensure that Staff Performance Reviews identify these needs and budget provision is made for this purpose.

Equity, Diversity and Inclusion (ED&I)

In our efforts towards good governance for Project Possible, the Board has established an ED&I Working Group of staff and Trustees, tasked with considering all aspects of diversity and helping to ensure that inclusion remains at the forefront of all we do and how we work. We want to also build an approach that guides the organisation in its use of language and visual media that demonstrates respect and equity with partners and the communities we serve. This work is ongoing and will result in a roadmap for the organisation to adopt and work on for the future.

Trustees’ responsibilities in relation to the financial statements

The Trustees (who are the directors of Project Possible for the purposes of company law) are responsible for preparing the Annual Report 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 period which give a true and fair view of affairs of the charitable company and of its incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities Statement of Recommended Practice;
make judgments and estimates that are reasonable and prudent;
state whether UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The Trustees are responsible for keeping adequate 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

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure to our auditors

In so far as the trustees are aware:

• There is no relevant audit information of which the charitable company’s auditors are unaware

• The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor reappointment

In accordance with section 485 of the Companies Act 2006, Summers Morgan was reappointed as the charitable company’s auditors during the year and has expressed its willingness to continue in that capacity.

Approval

The Annual report was approved by the trustees on 9[th] December 2021 and signed on their behalf by

Philip Derbyshire Chair

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Reference and Administrative Details

----- Start of picture text -----
Status Project Possible is a company limited by guarantee and is registered with the
Charities Commission for England and Wales. At first registration the organisation
was named “Rope Charitable Trust”. This was changed to Project Possible in
April 2021.
Governing Document Project Possible is governed by its Memorandum and Articles of Association, first
incorporated 10 [th] March 1998 then amended by special resolution 11 [th] December
2008 and amended again by special resolution 22 [nd] April 2021. This second
amendment was for the name change to Project Possible, and to bring some
clauses into line with current employment legislation.
Company Number 03524732
Charity Number 1069608
Registered Office and 24 London Road West
Operational Address Amersham
HP7 0EZ
Trustees Trustee Name From To
Kathy Nussbaum 11/04/2008 28/01/2021
(Chair from 08/04/2016 to 28/01/2021)
Philip Derbyshire 17/01/2014 Present
(Chair from 28/01/2021 to present)
Antony Houghton 09/01/2009 Present
Rev. John Shepherd 20/04/2012 Present
Charles Thompson 17/03/2017 Present
(Treasurer from 17/03/2017 to present)
Kaye Lillycrop 23/03/2018 Present
Rev. John Bernard 29/04/2021 Present
Chief Executive Andrew Jong
Bankers Lloyds Bank plc, 70-71 Cheapside, London EC2V 6EN
and
CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling ME19 4JQ
Investment Managers Rathbone Investment Management, 8 Finsbury Circus, London
EC2M 7AZ
Auditor Summers Morgan – Chartered Accountants
Sheraton House, Lower Road, Chorleywood WD3 5LH
----- End of picture text -----

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Independent auditor’s report – To the Trustees of Project Possible

Opinion

We have audited the financial statements of Project possible (the ‘Charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Charitable company’s affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records; or
certain disclosures of Trustee’s remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit or
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ report and from the requirement to prepare a strategic report.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees’ report (incorporating the strategic report and directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Trustees’ report (incorporating the strategic report and directors’ report) have been prepared in accordance with applicable legal requirements.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-sresponsibilities-for-the-audit-of-the-fi. This description forms part of our auditor's report.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charitable company through discussions with trustees and other management, and from our knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Companies Act 2006, the Charities Act 2011, taxation and employment legislation;

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting any reading the minutes of the board of the trustees; and
identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of the board of trustees; and

-enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the members and management and the inspection of regulatory and legal correspondence, if any.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Use of our report

This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Corden ACA (Senior Statutory Auditor)

for and on behalf of Summers Morgan ......................... Chartered Accountants Statutory Auditor

First Floor, Sheraton House Lower Road Chorleywood Hertfordshire WD3 5LH

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Statement of Financial Activities (including income and expenditure account)

Unrestricted funds 2021 £ 245,553 194,000 83,103 1,851	Restricted funds 2021 £ 181,205 - - -	Unrestricted funds 2020 £ 235,712 115,970 101,991 -
524,507	181,205	453,673
127,338 24,277	- -	118,177 24,781
151,615	-	142,958
220,915 42,463 684,946 935 6,600	105,777 9,755 79,872 - -	225,752 50,704 190,123 16,016 6,600
955,859	195,404	489,195

1,107,474	195,404	632,153
(582,967) 579,979	(14,199) -	(178,480) (296,876)
(2,988) -	(14,199) -	(475,356) -
(2,988) 3,381,725	(14,199) 30,465	(475,356) 3,857,081
3,378,737	16,266	3,381,725

None of the charitable activities were acquired or discontinued in the year and there were no recognised gains or losses other than shown above.

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Balance sheet

Fixed assets Tangible assets 6 Investments 7 Current assets Debtors 8 Cash at bank and in hand 9 Net current assets 9 Net Assets Charity funds Restricted funds 10 Unrestricted funds: Designated funds 11 General fund 12 Total funds Notes Creditors: amounts falling due within one year Total assets less current liabilities Creditors: amounts falling due after one year	£ £ £ £ 134 541 3,442,950 3,066,095 3,443,084 3,066,636 204,584 99,604 243,823 274,768 448,407 374,372 (73,102) (28,818) 375,305 345,554 3,818,389 3,412,190 (423,386) - 3,395,003 3,412,190 16,266 30,465 2,905,623 2,905,623 473,114 476,102 3,395,003 3,412,190 2021 2020
	£ 204,584 243,823
	448,407 (73,102)

The financial statements were approved by the Board on 9th December 2021

..............................

Philip Derbyshire Chairman of Trustees

Company number: 3524732

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Statement of cash flows

Statement of cash flows
	2021	2020
	£	£
Cash flows from operating activities
Net cash used in by operating activities	(292,895)	(335,206)
Cash flows from investing activities
Interest from investments	19	276
Sale of short term investments	-	200,000
Proceeds on disposal of investments	261,931	159,457
Net cash provided by/(used in) investing activities	261,950	359,733
Changes in cash and cash equivalents during the year	(30,945)	24,527
Cash and cash equivalents brought forward	274,768	250,241
Cash and cash equivalents carried forward	243,823	274,768
Reconciliation of net movements in funds to net cash flow from operating activities
Net movement in funds for the year (as per Statement of financial activities)	(597,166)	(202,333)
Adjustment for:
Depreciation charges	407	407
Interest from investments	(19)	(276)
Dividends and interest retained in investment portfolio	(83,084)	(101,715)
Management fees charged to investment portfolio	24,277	24,781
(Increase)/decrease in debtors	(104,980)	(68,508)
Increase/(decrease) in creditors	467,670	12,438
Net cash used in operating activities	(292,895)	(335,206)

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

Notes to the financial statements

1. Accounting Policies

Project Possible is a private company limited by guarantee no. 3524732 incorporated in England and Wales. The registered office is 24 London Road West, Amersham, Buckinghamshire HP7 0EZ. The company is registered with the Charity commission no. 1069608. The company was formerly named Rope Charitable Trust until it changed its name on the 16[th] June 2021.

1.1. Basis of preparation

These accounts have been prepared in accordance with Accounting and Reporting for Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standards for the UK and Republic of Ireland (FRS102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006.

The accounts have been prepared in sterling, which is the functional currency of the Charity. Monetary amounts in the financial statements are rounded to the nearest £1.

The Charity meets the definition of a public benefit under FRS102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2. Going concern

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

1.3. Incoming resources

Voluntary income is received by way of gifts and donations and is included in full in the Statement of Financial Activities when receivable and legal entitlement has been established and can be reliably measured. The value of services provided by volunteers has not been included in the financial statements because that value cannot be reasonably quantified in financial terms.

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

Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Legacies from a person’s death estate are recognised when we have been notified and probate has been granted before the year end, the estate has been finalised and the executors are able and ready to make the distribution.

1.4. Expenditure

Support costs are allocated to individual charitable activities on a pro rata basis. Staff and related costs incurred in liaising with Project Possible partners abroad, reviewing claims for grants and

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

assessing the effectiveness of grant making is allocated directly to individual charitable activities as set out in note 3 to the financial statements.

Grants payable are recognised when paid, unless there is an earlier unconditional obligation to make payments. Where the charity has made a firm commitment to provide grant funding to a beneficiary over a number of years without significant conditions attaching to the grant and the commitment has been communicated directly to the grant recipient, the charity recognises a constructive obligation. The full amount of the commitment is recognized as a grant in the SoFA and a provision made in the balance sheet for amounts unpaid at the year end, apportioned between amounts due within one year and after more than one year.

All expenditure is inclusive of irrecoverable VAT.

1.5. Pensions

The Charity provides contributions to the personal pension funds of all staff. The pension costs charged in the financial statements represent the contributions payable by the Charity during the period.

1.6. Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fittings - life of the lease, up to six years

Equipment - Straight line over three years

1.7. Investments

Listed investments are stated at market value and other fixed asset investments are stated at maturity value which is their best estimate of their market value. Realised and unrealised gains and losses are reflected through the Statement of Financial Activities.

Investments which mature within twelve months are included within current assets.

1.8. Fund accounting
The funds held by the Charity are:
Unrestricted general funds - these are funds which can be used in accordance with the objects of the Charity at the discretion of the Trustees;
Unrestricted designated funds – these are funds set aside by the Trustees out of unrestricted general funds for the purposes noted in the financial statements; and
Restricted funds - these are funds which can only be used for particular purposes within the objects of the Charity, usually to support particular projects or needs. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Gift Aid related to restricted donations is treated as restricted income.
1.9. Cash and cash equivalents

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

Project Possible – “Be the Spark” Annual Report and Financial Statements for the year ended 31 March 2021

1.10. Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. As noted in 1.7 above investment realised and unrealised gains and losses are reflected through the Statement of Financial Activities.

1.11. Taxation

The Charity is not subject to Corporation Tax. It is entitled to claim from HM Revenue & Customs the tax associated with income received under Gift Aid.

1.11. Foreign currency transactions

Foreign currency transactions are translated to sterling at rates ruling at the date of the transaction.
1.12. Operating lease rentals

The costs of operating leases are charged to expenditure as they are due and payable.

Project Possible – “Be the Spark”

Annual Report and Financial Statements for the year ended 31 March 2021

Staff costs 2021 £ 71,902 -	Unrestricted Funds 2021 £ 245,553	Restricted Funds 2021 £ 181,205	Restricted Funds 2021 £ 181,205
	245,553	181,205
	2020 £ 235,712	2020 £ 184,567
	235,712	184,567
	Other costs 2021 £ 55,436 24,277	Grant funding 2021 £ - -
71,902	79,713	-
- 22,269 21,966	- 1,550 11,285	269,622 - -	269,622 235,069 23,819 42,735 33,251 48,239
44,235	12,835	269,622
- 3,559 3,511	- 248 1,804	43,096 - -	43,096 46,151 3,807 8,391 5,315 9,470
7,070	2,052	43,096
- 52,135 51,425	- 3,629 26,419	631,210 - -	631,210 205,438 55,764 37,348 77,844 42,158
103,560	30,048	631,210
- 64 63	- 5 32	771 - -	771 11,547 69 2,099 95 2,370
127	37	771
- 78,027 76,965	- 5,432 39,541	944,699 - -	944,699 498,205 83,459 90,573 116,505 102,237

154,992	44,973	944,699

Project Possible – “Be the Spark”

Annual Report and Financial Statements for the year ended 31 March 2021

Staff costs 2021 £ ts are o total -	Other costs 2021 £ 6,600	Grant funding 2021 £ -	Grant funding 2021 £ -
226,894	131,285	944,699
2020 £ 73,937 -	2020 £ 44,240 24,781	2020 £ - -
73,937	69,021	-

- 31,450 26,177	- 11,285 22,062	235,069 - -	235,069 42,735 48,239
57,627	33,347	235,069
- 6,175 5,139	- 2,216 4,331	46,151 - -	46,151 8,391 9,470
11,314	6,547	46,151
- 27,485 22,877	- 9,863 19,281	205,438 - -	205,438 37,348 42,158
50,362	29,144	205,438
- 1,545 1,286	- 554 1,084	11,547 - -	11,547 2,099 2,370
2,831	1,638	11,547
- 66,655 55,479	- 23,918 46,758	498,205 - -	498,205 90,573 102,237

122,134	70,676	498,205
-	6,600	-
196,071	146,297	498,205

Project Possible – “Be the Spark”

Annual Report and Financial Statements for the year ended 31 March 2021

Resources expended (continued) Grants payable Area Grants to Institutions: Youth Action Uganda Africa Changemakers South Africa Africa Nightingale Eye & Ortho Clinic Africa FEEEJ Africa Word made Flesh America Jehovah Jira Ministries Asia Asha Kiran Society Asia Dolpa Home Asia Shining Light Community Development Organisation Asia Project Macedonia Europe Uttara - approved, not yet paid Asia Alikadam - approved, not paid Asia Ebeneezer - approved, not paid Asia Jehovah Jira Ministries - approved, not paid Asia Grace Home - approved, not paid Asia Dolpa Home - approved, not paid Asia Other institutions Grants to individuals (1 grant, 2020: 3 grants) Grants to Institutions: Youth Action Uganda Africa Changemakers South Africa Africa Nightingale Eye & Ortho Clinic Africa FEEEJ Africa Word made Flesh America Jehovah Jira Ministries Asia Asha Kiran Society Asia Dolpa Home Asia Heart of Lebanon Asia Shining Light Community Development Organisation Asia Project Macedonia Europe Other institutions Grants to individuals (3 grants)	Unrestricted Funds 2021 £ 37,513 14,217 22,840 23,333 14,408 19,944 23,609 4,125 12,807 771 87,431 46,817 32,083 114,038 67,569 113,110 114,679	Restricted Funds 2021 £ 11,261 10,960 42,052 - 6,154 17,813 30,372 15,382 312 - - - - - - - 58,564
	749,294	192,870 2,534
	749,294	195,404
	2020 £ 48,016 8,720 5,836 21,115 14,113 30,573 13,095 11,970 - 19,464 11,547 98,372	2020 £ 18,630 9,877 13,685 5,462 7,200 12,901 42,105 11,966 - 1,989 - 80,743
	282,821 6,964	204,558 3,862
	289,785	208,420

3 Resources expended (continued)

Project Possible-"Be the Spark" Annual Report and Financial Statements for the year ended 31 March 2021 Other costs Includes 2021 2020 Office rÈnt and rates Office supplies Computers. IT and consultancy Partne supportcosts PR and marketing Staff training, travel and Otherexn5e5 Audit fee Investment Portfolio management Costs Oepreciation of fittirÉs and equipment 17,548 12,197 17,471 70 51,779 936 17,536 12,753 23.710 17,975 39,878 2,656 24,27? 407 24,781 407 131,285 146,296 4 Remuneratlon of key mana¥ement persorbnel ThÈ r@rwnÈradon of kÈy ManagenI person1 Is as follo.. 2021 2020 A88reg3te remunerdtien 41.751 41,626 Ouring yearto 31 Mar¢h 2021 no12020- one) nEmbers of the key management personnel ar three12020- three) twstee$ gave ID totsl dwations to pK¥e¢ts Irestrcted fut$) of £98812020 £3,438). 5 Employees There were 10 etYyloyee$14 part-timel during year ended 31 March 202112020.. 914 part-timell. There were no etyployees whose amual er(duw*nts were £60,(K)D or rfue120ZO.' 01. Employment Costs 2021 2020 Wages and galarie$ Social security costs Employercontribution to defined ContributiL ppn5ion 5cherne 20V156 13.191 9,247 178,279 11.831 5,961 224894 196,071 36

Project Possible-"Be the Spark" Annual Report and Financial Statements for the year ended 31 March 2021 6 Tanglble fftx4d assets Flttlngs & Equlprn•nt C¢+St At l April 2020 At 31 March 2021 17 Depreclatlon At l April 2020 Charge foryear 16,891 407 At 31 Mareh 2021 17 Net book value: At 31 Mareh 2021 134 At 31 March 2020 541 7 InveMmentS quoted Investments Total Llsted on o ret4inisedSto¢k exchah At market valu At l April 2020 Addltions at cost Disposals ar turrénr valuÈ Realised gain/l10551 on di5P05al Unrealised in£reaselldecreasel in matet value 3,066.095 616,280 1819,4041 30,183 549.796 36695 616.280 1819A041 30.183 549.796 At 31 March 2021 3,442,950 3,442?50 Inveslment5 ill the year •nd conslsted of.. Listed securities Cash awaifing invÈstN*nt 3,328,082 114,868 3,442,950 At cost At l April 2020 Additions Disposals 3.250.979 616.280 1742.9161 At 31 March 2021 3.124.34J Dividends and interest of E83,08412020- EIOI,7151 was received from the listed securities in the year. The portfolios a structured In Investments in listed securities. 37

Project Possible-"Be the Spark" Annual Report and Financial Statements for the year ended 31 March 2021 8 Debtors 2021 2020 Income tax recoverable Other debtor5 Prepayrnents 9,522 191,096 J,966 39,733 55,986 3.885 9 Credltors Ct•dltors: Amounts falllng du• wlthln on• y•ar'. 2021 2020 Taxes & soclal securlty costs other credltors Accruals and deferred income Grants Approved not yet paid 4.694 902 Z9,844 3,980 556 24,283 20ZI 2020 Ctedltors: Amounts falllni due after more than one year: Grants approved Th)t yet paid 423.386 423 386 10 Rertrlrt•d fvnds The income funds of the Charity include restricted funds which are received for specific projects or beneficiaries. These are usually paid out Within six rrbonth5 of Ceipt and are for relief projects or beneficiaries in the continents shown and thÈ restrictions are that the funds should only be applied for the projects or beneficiaries for whom the funds We given. Balance at i Aprll 2020 BalantÈ at 31 Marth 2021 Movement In funds IncomlnK R4sourc4s Tron5fer5. r•wurt•s •¥p•nd•d c•lns & l¢ss•s Africa Am@ri¢a Asia Europe & Middle East 18,150 2,533 9,782 89.241 7,222 75,272 9.470 1105,7771 19,7551 179,8721 5.182 9.470 30 181 Balance at I April 2019 Balance at 31 Mah 2020 Movement in funds IncomlnR Resour¢es resources expended Transfers. gabns & losses Africa America Asia Europe & Middle East 34,865 5,339 14,114 83.576 LO,502 ,489 1100,2911 113,3081 194,8211 ,150 z53 9.7B2 208 420 Further inlorrnation 15 available regarding specific project5 on request from the Charity's registered office. 38

Project Possible – “Be the Spark”

Annual Report and Financial Statements for the year ended 31 March 2021

Balance at 1 April 2020 £ 2,105,623 800,000 - - - -	Balance at 1 April 2020 £ 2,105,623 800,000 - - - -	Balance at 1 April 2020 £ 2,105,623 800,000 - - - -
2,905,623	-	-
Balance at 1 April 2019 £ 2,905,623 -
2,905,623	-	-

11 Designated funds

The Charity received a large gift from The Acorn Foundation during an earlier year which the Trustees have set aside for the development of the Charity and its activities over the forthcoming years including building the sustainability of the Charity's partners and the Charity itself.

A key area of Project Possible's future strategy is to build the sustainability of our partners and so a Sustainability fund has been established of £500,000.

We are mindful of the growing need for action over climate change and have designated £200,000 funds specifically for partners to utilise in responding to this crisis.

To enable us to respond flexibly and quickly to the ongoing challenges of the Covid pandemic, we have designated £50,000 to a Covid impact reduction fund.

Finally, £50,000 has been designated to a new technology fund, this is to replace our aging donor database and acquire a new CRM (Customer relationship management) software.

Project Possible – “Be the Spark”

Annual Report and Financial Statements for the year ended 31 March 2021

12 General fund Balance at 1 April 2020 £ Unrestricted funds 476,102 Balance at 1 April 2019 £ Unrestricted funds 951,458 13 Analysis of net assets between funds Fund balances at 31 March 2021 are represented by: Tangible fixed assets Investment assets Current assets Creditors - amounts falling due after one year Creditors - amounts falling due within one year	Balance at 1 April 2020 £ 476,102	Balance at 1 April 2020 £ 476,102	Balance at 1 April 2020 £ 476,102
	Balance at 1 April 2019 £ 951,458
			Unrestricted £ 134 3,442,950 432,141 (73,102) (423,386)
			3,378,737

Included within current assets is restricted cash of £16,266 which cannot be used for the general purposes of the charity; the Trustees have also designated funds of £2,905,623 which have been set aside from the general funds of the charity.

14 Financial commitments

Land and buildings: Minimum lease payments on leases with expiry in two to five years: The total future lease payments under non-cancellable operating leases are:	2021 2020 £ £ 53,640 68,964

The expense charged in the Statement of Financial Activities in the year amounted to £16,800 (2020 £16,800).

15 Trustees - remuneration and reimbursement of expenses

During the year, the Trustees received no remuneration (2020 - same) nor did they receive any reimbursement of expenses (2020 - same).

16 Legacy receivable

Just prior to the previous year end the Trustees were notified of a residuary legacy due to the Charity. Although probate was granted, due to Covid-19, the final quantification and realisation of the assets is taking some time. It is estimated that £190,000 will be received and this has been included in the Statement of Financial Activities for the year.

17 Related party transactions

There were no related party transactions during the year.