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2023-03-31-accounts

Charity registration number 1081104

ORPHAIDS UK

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

ORPHAIDS UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr T Pickford
Mrs M J Digman
Mr D Watson
Mr A H Digman OBE
Charity number 1081104
Principal address 14 Vicarage Way
Hust Green
Etchingham
East Sussex
TN19 7QQ
Independent examiner Oliver Read FCCA ACA
James Todd & Co Limited
1 & 2 The Barn Oldwick
West Stoke Road
Lavant
Chichester
West Sussex
PO18 9AA
Bankers Lloyds Bank plc
Woodside
The High Street
Cranbrook
Kent
TN17 3DJ

ORPHAIDS UK

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 15

ORPHAIDS UK

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objects of the charity are the furtherance of the Christian faith and Gospel throughout the World, the relief of poverty, the advancement of education and the care of orphans and other children. It achieves these objects through its work in Third World countries where there is a high degree of poverty.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Activities

OrphAids UK continues to meet the goals of its trustees and trust deed in providing support to the Orphans of Aids in Ecuador and in assisting orphans and victims of HIV elsewhere in the world.

We continue to provide regular funding required to run ongoing projects in 2 countries:

Ecuador

Through funding to OrphAids Ecuador, a separate and unrelated charity registered in Ecuador, we continue to undertake work in 3 major areas:

a) A community which consists of

c) Education of children/young people and families in relation to sexual health and HIV/AIDS carried out in the form of workshops. Also, Orphaids takes the opportunity to have a presence at any festivals to ensure the prevention for HIV/AIDS message is available to the local community.

d) Provides refuge and support for abused women and children, as requested by Ecuadorian Social Services, until such time as arrangements can be made by Ecuadorian social services for support and relocation, if needed.

Columbia

Through funding to Funho Orphaids, a separate and unrelated charity registered in Columbia, we continue undertake outreach work in the deprived areas of Palmira and Pereira by undertaking education of children, young people and mothers regarding HIV and AIDS and support for those suffering in the community.

ORPHAIDS UK

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

Ecuador

OrphAids UK has continued to provide ongoing support to OrphAids Ecuador throughout this year and supported the following activities:

-HIV/AIDS Health education and prevention work has continued during the pandemic via zoom workshops

Columbia

The work in Columbia continues to provide education prevention and support to many areas, including police and military academies, and continues to work in all levels of the education sector. In addition, in partnership with local churches, supporting people affected by the COVID19 pandemic.

Orphaids Ecuador and Funho Orphaids (Columbia) both continue to work closely with their respective governments, meeting with both Government Ministers and government representatives to provide advice in the area of HIV and Sexual Health and supporting government initiatives in these areas.

Financial review

The trustees hold a very small number of listed investments which were gifted to the charity. The quantity held is too small to warrant the services of an investment manager and instead they are managed by the trustees.

Two trustees visited the site in Ecuador and met with the Ecuadorian and Columbian workers and with the board of trustees of the Ecuadorian charity. The work and accounts were reviewed and no issues were found in the management of the work and finances. The trustees were impressed with the amount of work being undertaken in both countries.

Going concern

It continues to be a difficult financial environment for the charity. The receiving charities in South America are continuing to work to reduce costs and undertake income generating activities to reduce the amount of monies needed from the UK to support the work. The trustees made the teams in Ecuador and Columbia aware of the funding issues for the future once reserves are depleted. Orphaids in Ecuador and Colombia have local income generation events during normal times, this has been invaluable to the work.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Major risks

The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

ORPHAIDS UK

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

The future plans and objectives of the charity for the coming year are as follows:

a) to continue to support the project that is already established in Ecuador. This is a long term and ongoing commitment.

b) to continue to support an HIV community and education programme in Columbia and working with underprivileged children, young people, and families. This is also a long term and ongoing commitment.

c) to continue to search for support for the running of the UK charity.

b) to continue to share the Christian Faith in all that is undertaken.

The trustees would like to take this opportunity to thank all those who support OrphAids UK in so many ways, from volunteer work to financial support and prayer support.

Almost all functions undertaken by members of OrphAids UK are undertaken free of charge, so ensuring that overheads are low. Without this financial and personal support, we would not be able to undertake this important work in South America.

Structure, governance and management

The trustees who served during the year and up to the date of signature of the financial statements were: Mr T Pickford

Mrs M J Digman Mr D Watson Mr A H Digman OBE

Recruitment and appointment of trustees

The trustees are appointed by the board of trustees in accordance with the trust deed and are briefed on appointment as to their responsibilities and obligations towards the charity.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees' report was approved by the Board of Trustees.

Mr A H Digman OBE

Trustee

8 January 2024

ORPHAIDS UK

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ORPHAIDS UK

I report to the trustees on my examination of the financial statements of Orphaids UK (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Oliver Read FCCA ACA

James Todd & Co Limited 1 & 2 The Barn Oldwick West Stoke Road

Lavant Chichester West Sussex PO18 9AA England

Dated: 8 January 2024

ORPHAIDS UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
75,328
325
Investments
4
300
-
Total income
75,628
325
Charitable activities
5
70,750
450
Net losses on investments
9
(2,698)
-
Net income/(expenditure) and
movement in funds
2,180
(125)
Reconciliation of funds:
Fund balances at 1 April 2022
30,155
12,250
Fund balances at 31 March 2023
32,335
12,125		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
75,653
49,206
360
300
275
-
75,953
49,481
360
71,200
54,322
510
(2,698)
(839)
-
2,055
(5,680)
(150)
42,405
35,835
12,400
44,460
30,155
12,250		 Total
2022
£
49,566
275
49,841
54,832
(839)
(5,830)
48,235
42,405

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

ORPHAIDS UK

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
The funds of the charity
Restricted income funds
14
Unrestricted funds		 2023
£
9,042
29,099
38,141
2,244		 £
8,563
35,897
44,460
12,125
32,335
44,460		 2022
£
7,197
25,963
33,160
2,016		 £
11,261
31,144
42,405
12,250
30,155
42,405

The financial statements were approved by the trustees on 8 January 2024

Mr A H Digman OBE Trustee

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

OrphAids UK is an unincorporated charity governed by deed and registered with the Charities Commission under charity number 1081104. The principal address is 14 Vicarage Way, Hurst Green, Etchingham, East Sussex, TN17 7QQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's trust deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment

20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Cash and cash equivalents

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

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 75,328 325 75,653 49,206 360 49,566

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

4 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Income from listed investments 280 274
Interest receivable 20 1
300 275

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

5 Expenditure on charitable activities

Orphan Care
Community
Care
AIDS
Awareness
2023
2023
2023
£
£
£
Direct costs
Centre overheads and running costs
39,760
-
-
Community care, support of children and families
-
26,221
-
School education costs
-
450
-
39,760
26,671
-
Share of support and governance costs (see note 6)
Support
1,210
1,210
1,209
Governance
380
380
380
41,350
28,261
1,589
Analysis by fund
Unrestricted funds
41,350
27,811
1,589
Restricted funds
-
450
-
41,350
28,261
1,589		 Total
Orphan Care
Community
Care
AIDS
Awareness
2023
2022
2022
2022
£
£
£
£
39,760
30,360
-
-
26,221
-
19,862
-
450
-
510
-
66,431
30,360
20,372
-
3,629
986
986
987
1,140
381
380
380
71,200
31,727
21,738
1,367
70,750
31,727
21,228
1,367
450
-
510
-
71,200
31,727
21,738
1,367		 Total
2022
£
30,360
19,862
510
50,732
2,959
1,141
54,832
54,322
510
54,832

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Expenditure on charitable activities

(Continued)

OrphAids UK operates by providing grant funding to support the work of 2 charities, OrphAids Ecuador and Funho Orphaids, which run the projects in Ecuador and Columbia respectively.

During the year, grants totaling £39,759 (2022: £30,360) and £26,221 (2022: £19,862) were paid to OrphAids Ecuador and Funho Oprhaids respectively.

Both OrphAids Ecuador and Funho Orphaids are completely separate charities, registered in their own countries, and with no Trustees common to the UK charity. The Trustees of OrphAids UK have no influence over the decisions made to OprhAids Ecuador or Funho Orphaids, although they will provide advice when requested by the individual charities.

6 Support costs allocated to activities

Insurance
Legal and professional fees
Computer costs
Bank charges
Accountancy
Governance costs
Analysed between:
Orphan Care
Community Care
AIDS Awareness		 2023
£
817
164
443
1,077
1,128
1,140
4,769
1,590
1,590
1,589
4,769		 2022
£
809
129
35
1,062
924
1,141
4,100
1,367
1,366
1,367
4,100

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

9 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2023 2022
Gains/(losses) arising on: £ £
Revaluation of investments (2,698) (839)

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11 Fixed asset investments

Cost or valuation
At 1 April 2022
Valuation changes
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
12
Debtors
Amounts falling due within one year:
Other debtors
13
Creditors: amounts falling due within one year
Accruals and deferred income		 Listed
investments
£
11,261
(2,698)
8,563
8,563
11,261
2023
2022
£
£
9,042
7,197
2023
2022
£
£
2,244
2,016

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

14 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April 2022 Incoming Resources At 31 March
resources expended 2023
£ £ £ £
Medical fund 6,368 125 - 6,493
Palliative Care fund 2,448 - - 2,448
Education fund 1,624 - - 1,624
Malawi fund 90 120 (110) 100
Project Ecuador 1,720 80 (340) 1,460
12,250 325 (450) 12,125
Previous year: At 1 April 2021 Incoming Resources At 31 March
resources expended 2022
£ £ £ £
Medical fund 6,368 - - 6,368
Palliative Care fund 2,448 - - 2,448
Education fund 1,624 - - 1,624
Malawi fund 480 120 (510) 90
Project Ecuador 1,480 240 - 1,720
12,400 360 (510) 12,250

The medical fund is to pay for drugs, medical investigations and surgery for those children in the orphanage with AIDS. Specific monies and grants have also been raised to support the work of Dr Bailhache among children and people around Quito and Santo Domingo, Ecuador.

The Palliative Care fund is to be used to build and run the OrphAids Care Centre in Ecuador, which will be used for palliative care.

The Education fund is used for the education of orphaned children at the OrphAids Ecuador orphanage.

The Project Ecuador fund supports the work of Dr Gardiner in Quito and Santo Domingo.

As well as assisting orphans of AIDS in South America, the charity is also involved with orphans of AIDS in Malawi, Africa and specific monies have been donated for feeding the orphans and for supporting key workers who look after the health of the orphaned children. These funds are sent via the unconnected charity, Starfish Malawi.

The charity currently assists with the running costs of the orphan centre but the charity's long-term plan is for the centre to become self sufficient. This is to be achieved by setting up projects which will provide future income to fund the orphan centre.

ORPHAIDS UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

15 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April 2022 At 1 April 2022 Incoming Resources
Gains		 and losses At 31 March
resources expended 2023
£ £ £ £ £
General funds 30,155 75,628 (70,750) (2,698) 32,335
Previous year: At 1 April 2021 Incoming Resources
Gains		 and losses At 31 March
resources expended 2022
£ £ £ £ £
General funds 35,835 49,481 (54,322) (839) 30,155
Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
Fund balances at 31 March 2023 are represented by:
Investments 8,563 - 8,563
Current assets/(liabilities) 23,772 12,125 35,897
32,335 12,125 44,460
Unrestricted Restricted Total
funds funds
2022 2022 2022
£ £ £
Fund balances at 31 March 2022 are represented by:
Investments 11,261 - 11,261
Current assets/(liabilities) 18,894 12,250 31,144
30,155 12,250 42,405

16 Analysis of net assets between funds

17 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).