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2023-09-30-accounts

The Rahula Trust Registered Charity No. 1075742

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

The Rahula Trust

Registered Charity No. 1075742

Contents

1

The Rahula Trust

Registered Charity No. 1075742

Reference and Administrative Details of the Charity, its Trustees and Advisers

Name of the charity and principal address

The Rahula Trust is a registered charity no. 1075742. The principal address is 22 Ridge Lea, Hemel Hempstead, Herts. HP1 2AZ.

The Trustees at the date of the report are as follows:

Ven. T. Bandula (Hon. Secretary) Martin Evans (Hon. Treasurer) Prof. Rohan Kariyawasam Deborah Bruce David Foll

Pat Smith resigned on 6 September 2023. She served for 16 years in the capacity of Trustee. The Trustees would like to record their gratitude for her dedication and unstinting support for the Trust.

Independent Examiner

Sharon Hammond ACA, Flitwick, Beds. MK45 1UR.

Principal Bankers

Bank of Ceylon 1 Devonshire Square, London, EC2M 4WD

Metro Bank One Southampton Row, London, WC1B 5HA

Charity Bank Fosse House, 182 High Street, Tonbridge. TN9 1BE

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The Rahula Trust

Registered Charity No. 1075742

Report of the Trustees for the year ended 30[th] September 2023

The trustees present their annual report and financial statements of the charity for the year ended 30th September 2023.

Objectives and activities for the public benefit

The purposes of the Trust are the advancement of education of children and young people who are in conditions of poverty in Sri Lanka, Tibet, Myanmar, Nepal, Bhutan, India or any other parts of the world as the Trustees at their discretion shall decide, by the provision of grants. This is primarily achieved though an educational sponsorship scheme for children. The charity also provides grants to buy equipment such as library books and computers, and after school tuition, to further the education of children.

The Trust furthers its charitable purposes for the public benefit by providing long-term educational sponsorship to children in financial need and through its grant making policy which furthers the education of children in general in financial need.

Grant making policy

The Trust has established its grant making policy to achieve its objects for the public benefit.

Long-term educational grants are made to children who are selected on the basis of educational ability and financial need. The progress of children is monitored and if a child fails to make progress the grant is withdrawn.

In addition, grants are made to partner organisations to support projects which further the education of poor children in general. Projects are closely vetted and monitored to ensure stated objectives are achieved and financial probity and value for money is maintained.

A review of our achievements and performance: How our sponsorship grant making programme delivered public benefit

At 30 September 2023 the total number of sponsored children in Sri Lanka stood at 437 (2022: 424) of which 29 (2022: 24) students are in university or higher education. 17 (2022: 10) students completed their studies during the year including 6 (2022: 3) students at university or higher education.

We are always looking for new sponsors. If you would like to sponsor a child please contact us. The success of the sponsorship programme is evaluated through school reports. Many children achieved good grades in their examinations and we have received many letters of appreciation from them.

In addition to providing educational sponsorship to children, we have provided grants to partner organisations to help children in Sri Lanka, Nepal and Lesotho. These projects are regularly evaluated through reporting and future grants are dependent on satisfactory outcomes.

3

The Rahula Trust

Registered Charity No. 1075742

Report of the Trustees for the year ended 30[th] September 2023

Financial review

The Trust’s work is entirely funded from voluntary donations and Gift Aid. Our total income has increased this year to £108,065 (2022: £92,538). Sponsorship income increased to £65,728 (2022: £63,816) and general donations have increased to £23,000 (2022: £11,315). It is encouraging that many of our sponsorship donors have increased their donation during the last year and to see such a significant increase in general donations.

The Trust's main activity is providing educational sponsorship to children primarily in Sri Lanka. £60,646 was spent on sponsoring children in the year (2022: £79,150). The amount of sponsorship per child was increased significantly during the year to offset high inflation. However, the increase was more than offset by the improvement in the exchange rate between the GB Pound and the Sri Lankan Rupee, although the SL Rupee has now recovered somewhat from the lows seen during 2023.

The Trust also makes grants to projects providing teachers for after school tuition and provides equipment in schools and books for children. These amounted to £19,014 (2022: £6,845). The pandemic had prevented many activities taking place in the previous year.

Our Trustees continue to demonstrate their commitment to the charity both by providing financial support and donating their time in administering the charity, which keeps support costs to a minimum.

We are proud to be able to state that 100% of funds raised from our donors are used for the benefit of the children, as all work for the Trust is done on a voluntary basis. Governance and support costs are kept extremely low and are more than offset by the Gift Aid we receive.

Investment policy and performance

Under the Declaration of Trust the charity has the power to make any investment which the Trustees see fit. The current investment policy is to invest surplus funds in short bank deposit accounts and medium-term fixed interest deposits.

Risk management

The principal risks faced by the Trust lie in loss of donors under the sponsorship scheme, adverse fluctuation in exchange rates, high inflation and ineffective grant making.

The Trust assumes a long-term commitment to children to see them through their education once they are accepted under the sponsorship scheme. The main risk is that a donor withdraws their sponsorship before the child completes their education. Other risks relate to changes in the UK and overseas currencies and inflation. For example, recent high inflation in Sri Lanka has eroded the value of the amount sponsored children receive. We review the level of grants we give annually to mitigate the impact of inflation on children.

We monitor the projects we support carefully to ensure the grants we give are well spent.

4

The Rahula Trust

Registered Charity No. 1075742

Report of the Trustees for the year ended 30[th] September 2023

The trustees have agreed a set of internal financial controls that regulate the receipt of incoming funds, provide controls over expenditure, manage the setting up and operation of bank accounts and the investment of surplus funds, and the preparation of the accounts.

Reserves policy

We review the Trust’s unrestricted reserves annually to ensure it has sufficient reserves to manage its long-term commitments as well as to develop its activities. We have concluded that the Trust should maintain its unrestricted reserves at a minimum level of one year’s sponsorship expenditure (expected to be approximately £80,000 in the coming year) plus one year’s grants to long-term projects (currently £20,000). Reserves in excess of this will help ensure that our commitment to children under sponsorship can be maintained in real terms up to the end of their education. At 30 September 2023 reserves stand at £203,586 (2022: £177,040).

The effect of the economic and political situation in Sri Lanka is unpredictable, but the Trustees believe that the Trust has adequate reserves to mitigate any foreseeable risks.

Restricted reserves

Restricted reserves relate to donations received for sponsoring specific children through their education or for other charitable activities where the donor has specified how the funds should be spent. These funds must be used solely for the purpose they are intended.

Plans for the future

We are committed to continue our child sponsorship programme even if our costs exceed what we raise in sponsorship income. We have been successful in raising funds to fill that gap so that we can continue to support our existing children and to increase the number of children in sponsorship. We are also looking for ways to increase the support we give to other projects. In planning our expenditure for the coming year, we are mindful of the need to hold adequate reserves to meet a further shortfall in funding, should it occur.

Structure, governance and management:

Constitution

The Charity is operated under the rules of a Declaration of Trust made on 15[th] October 1998 and Supplemental Deed executed on 25[th] April 1999.

Organisation

A board of a minimum of three members, who meet biannually, administers the Trust. Trustees are chosen by reference to their commitment to the objectives of the charity and the skills they can offer. The day to day administration is carried out by the Secretary.

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Registered Charity No. 1075742

The Rahula Trust

Report of the Trustees for the year ended 30[th] September 2023

Trustees’ responsibilities in relation to the financial statements

The Trustees are responsible for preparing a Trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Approved by the Trustees on 27 February 2024 and signed on their behalf by:

Martin Evans Treasurer

The Rahula Trust Registered Charity No. 1075742 Independent Examinerfs report to tho Trustees th The Rahula Twst I report to the Trustees on my examination ol the accthjnts of the above charity Ilhe Trnsl'l lor the year ended 30 SepteM￿r 2023. As the charily's Trustees, you are responsible lor the preparation ol the accounts in accordan￿ with the requirements ol the Charilies Act 2011 {Ihe Acl')- report in respect ol my examinalion of the Trust's accounts carried out under section 145 01 the 2011 Act and in catrying out my examination. I have followed all the applicablg Directions given by the Chanty Commission under section 14515llbl ol the Ala. I have completed my 8xamination. I conlimi that no material matters have come to my attention in connection wf(h the examination whK* gives me cause to Ixlieve that in any material respecl: the accounting records wer8 not kept in arAJ)rdan￿ wtth section 130 01 the Charities Act- or the accounts dKI ac￿)r￿ with Ihe accountillg r￿ords.. or the accounts did not comFAy wlh the aFWicable requirements concemitYJ the loim and (x)nlent ol accounts sel out in Ihe Charit￿S IAecounls and Reports) Regulations 2008 other than any rg]uirement that the accounts give a 'lrue and fair. view which is llol a matter considered as part ol an independent examination. I have come across no other matters in u)nnection wlh the examination to which attention should be drawn in this reKK¢rt in order lo enthe a proper urKlerslanding of the a(xounls lo be reached. Signed: Dated.. 29 February 2024 Sharon Hammond ACA 14 Durham Close, Flitwick, Bttls. MK45 1 UR

The Rahula Trust

Charity registration number: 1075742

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2023 Including Income & Expenditure Account

Income and endowments from:
Donations and legacies
Investment Income
Total income and endowments
Expenditure on:
Charitable activities
Total expenditure
Net Income / (Expenditure)
Net Movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Notes
2
3
4		 Unrestricted
Restricted
Funds
Funds
2023
2022
£
£
£
£
Total Funds
39,173
66,928
106,101
90,900
1,964
-
1,964
1,638
41,137
66,928
108,065
92,538
13,861
67,658
81,519
89,016
13,861
67,658
81,519
89,016
27,276
(730)
26,546
3,522
27,276
(730)
26,546
3,522
176,310
730
177,040
173,518
203,586
-
203,586
177,040

The statement of financial activities includes all gains and losses recognised during the year.

All income and expenditure derives from continuing activities.

The notes on pages 9 to 14 form part of these financial statements.

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The Rahula Trust

Charity registration number: 1075742

BALANCE SHEET AS AT 30 SEPTEMBER 2023

Notes
Current Assets
Debtors
7
Cash at bank and in hand
Total current assets
Net assets
Charity funds
Restricted funds
8
Unrestricted funds
8
Total charity funds		 2023
£
6,841
196,745
203,586
203,586
-
203,586
203,586		 2022
£
7,079
169,961
177,040
177,040
730
176,310
177,040

The financial statements were approved and authorised for issue by the Board on 27 February 2024 and signed on their behalf by:

Martin Evans, Treasurer

The notes on pages 9 to 14 form part of these financial statements.

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The Rahula Trust

Charity registration number: 1075742

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. ACCOUNTING POLICIES

1.1 Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)).

The Charity adopted SORP (FRS 102) in the current year. In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP (FRS 102) the restatement of comparative items was required. They have concluded that no restatement was required.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The Rahula Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Tangible fixed assets and depreciation

The charity has no fixed assets.

1.3 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities.

1.4 Charitable status

The charity is established as a charitable trust and is registered with the Charities Commission, charity number: 1075742.

1.5 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income and gains and losses on investments are allocated to the appropriate fund.

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The Rahula Trust

Charity registration number: 1075742

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 (continued)

1. ACCOUNTING POLICIES (continued)

1.6 Income recognition

Income is included in the Statement of Financial Activities when the charity has legal entitlement to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. The charity has no viable means of measuring the value of nonmonetary donations.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material (see note 2).

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

Investment income is recognised on a receivable basis.

No amount is included in the financial statements for volunteer time in line with SORP (FRS 102). The trustees give their time as volunteers but it is impossible to measure the value to the charity.

1.7 Expenditure recognition

Expenditure is accounted for on an accruals basis and has been classified under expense headings that aggregate all costs related to the category. Charitable expenditure comprises all expenditure deemed to directly relate to the objectives of the Charity.

Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Governance costs include legal advice for the trustees and any other costs incurred in connection with compliance with constitutional and statutory requirements.

Support costs - the amounts disclosed under each of the above categories comprise those costs which are directly attributable to that category together with an apportionment of support costs where appropriate.

1.8 Pensions

The charity has no employees and no pension commitments.

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The Rahula Trust

Charity registration number: 1075742

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 (continued)

1. ACCOUNTING POLICIES (continued)

1.9 VAT

The charity is not registered for VAT. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.10 Debtors

Other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.11 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.12 Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in 'net gains / (losses) on investments' in the SOFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.

1.13 Bank and cash

Cash at bank and in hand includes bank accounts, cash and short-term highly liquid investments with a short maturity of twelve months or less from the date of acquisition or opening of the deposit or similar account.

1.14 Estimation uncertainty

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

1.15 Financial instruments

The charity 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 their settlement value.

1.16 Preparation of the accounts on a going concern basis Having considered future budgets and cash flows, the trustees confirm that they have no material uncertainties about the entity's ability to continue as a going concern for the foreseeable future.

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The Rahula Trust

Charity registration number: 1075742

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 (continued)

2 . INCOME FROM DONATIONS AND LEGACIES

INCOME FROM DONATIONS AND LEGACIES
Sponsorship
General Donations
Legacies
Gift Aid		 Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
£
£
£
£
-
65,728
65,728
63,816
21,800
1,200
23,000
11,315
1,500
1,500
-
15,873
-
15,873
15,769
39,173
66,928
106,101
90,900

In 2022, of the total income from donations and legacies of £90,900, £25,884 was to unrestricted funds and £65,016 was to restricted funds.

3 . INCOME FROM INVESTMENTS

INCOME FROM INVESTMENTS
Interest receivable Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
£
£
£
£
1,964
-
1,964
1,638
1,964
-
1,964
1,638

In 2022 all investment income was to unrestricted funds.

All of the charity's investment income arises from money held in interest bearing deposit accounts.

4 . ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Activities undertaken analysed by region

Grants and sponsorship
Governance costs
Support costs		 Sri Lanka
Nepal
Lesotho
Total
Total
2023
2023
2023
2023
2022
£
£
£
£
£
74,546
2,410
2,703
79,659
85,995
397
13
14
424
404
1,393
43
-
1,436
2,617
76,336
2,466
2,717
81,519
89,016

In the current year, of the total expenditure of £81,519 on charitable activities, £13,861 was from unrestricted funds and £67,658 was from restricted funds.

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The Rahula Trust

Charity registration number: 1075742

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 (continued)

5 . ANALYSIS OF GOVERNANCE AND SUPPORT COSTS

ANALYSIS OF GOVERNANCE AND SUPPORT COSTS
Postage
Printing and stationery
Bank charges
Trustee indemnity insurance		 General
Governance
Total
Total
Support
Related
Allocated
Allocated
2023
2023
2023
2022
£
£
£
£
256
-
256
986
305
-
305
739
875
-
875
892
-
424
424
404
1,436
424
1,860
3,021

No Examiner’s fees were paid for the independent examination of the Charity’s accounts (2022: nil)

6 . TRUSTEES' AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES

The Trustees neither received nor waived any remuneration in the year (2022: £nil).

No Trustees received reimbursement of expenses during the year (2022: £nil).

The charity considers its key management personnel to be its Trustees who are all volunteers and are unremunerated for their services as trustees.

The charity has no employees.

7 . DEBTORS

DEBTORS
Gift Aid recoverable Total
Funds
2023
£
6,841
6,841		 Total
Funds
2022
£
7,079
7,079

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The Rahula Trust

Charity registration number: 1075742

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 (Continued)

8 . FUNDS MOVEMENT Current year

Current year
Unrestricted funds
Restricted funds
Previous year
Unrestricted funds
Restricted funds		 Balance
Balance
30-Sep-22
Income
Expenditure
Transfers
30-Sep-23
£
£
£
£
£
176,310
41,137
(13,861)
-
203,586
730
66,928
(67,658)
-
-
177,040
108,065
(81,519)
-
203,586
Balance
Balance
30-Sep-21
Income
Expenditure
Transfers
30-Sep-22
£
£
£
£
£
172,318
27,522
(23,530)
-
176,310
1,200
65,016
(65,486)
-
730
173,518
92,538
(89,016)
-
177,040

RESTRICTED FUNDS DESCRIPTIONS

Restricted funds comprise donations given for child sponsorship or for other charitable activities where the donor has specified how the funds should be spent. All restricted funds for child sponsorship have been expended in the year. The balance of £730 at 30 Sept 2022 related to funds given for childrens' book festivals in Lesotho which have now taken place.

9 . PENSION COMMITMENTS

The charity had no pension commitments or obligations during the year (2022: nil).

10 . RELATED PARTY TRANSACTIONS

There are no related party transactions during the year (2022: nil).

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