## _**www.mechanicsforafrica.com**_
## **MECHANICS FOR AFRICA**
# **REPORT AND FINANCIAL STATEMENTS**
# **FOR THE PERIOD ENDED 31 DECEMBER 2020**
## **Registered Charity number: 1086333**
Page of 1 17
The Trustees present their report together with the financial statements of the charity for the period ended 31 December 2020.
## **Origin, objectives and principal aims**
The members of Milford Baptist Church formed Mechanics for Africa as an unincorporated association on 21 January 2001. It was subsequently registered as charity number 1086333 on 26 April 2001.
The principal address is Milford Baptist Church, New Road, Milford, Godalming, Surrey, England, GU8 5BE.
The objects of the charity as stated in its constitution are the advancement of education and the relief of financial hardship and/or poverty in Southern Africa, principally Zambia.
The present, principal aim is to establish and operate a training college for motor mechanics in Zambia, giving young, underprivileged Africans skills for life. This is pursued through an associated Zambian-registered charity, Mechanics for Africa (Zambia).
## **Trustees**
The Trustees who served during the year are as follows:
1. Sarah Counter
2. David Lucas (Chair)
3. David Phillips (Correspondent with Charity Commissioners)
4. Richard Rowe
5. Peter Herring
6. Paul Cannings (Treasurer)
7. Susie Mooney
## **Review of activities, operations and risks**
The Charity was officially launched on 7 April 2001 at Milford Baptist Church, Surrey, UK by the former patron of Mechanics for Africa, Baroness Bottomley of Nettlestone (formerly Right Hon. Virginia Bottomley) who was the Member of Parliament for the constituency in which Milford is located until May 2005.
The primary activity of the charity has been the training of local Zambian students at the college in Ndola in motor mechanics and life skills. Specific activities of 2020 have included:
1. Continued training of students in motor mechanics and in life skills with City and Guilds examinations sat towards the end of the year.
2. Admission of the eighteenth group of students from the area around Ndola, Zambia
3. Commissioning of a solar power generation system to provide the majority of the electricity requirements of the college and workshop. This was funded by a special appeal in 2019 and a grant in 2020.
4. Modifying teaching practices to deal with the temporary closure and then social distancing restrictions imposed by the Zambian government in response to the Covid 19 pandemic.
5. Changing from City & Guilds to TEVETA as the examining board.
6. The development of a new website to attract students in Zambia and to aid fundraising in the UK
Page of 2 17
The economy in Zambia has continued to face challenges with the Kwacha exchange rate falling significantly against the pound and the dollar coupled with consequent high inflation for imported goods. This has impacted the college through increased costs.
Local fund raising in the UK has continued with income from sponsors funding the students in Ndola.
During 2020 the Trustees again undertook a review of policies and as a result updates were put in place; these will continue to be reviewed annually. These included Health & Safety, Safeguarding, Gender, Admissions, Disability, Staff Loans, Hardship Fund, Whistleblowing, Reserves policy, Non-donor gifts, Staff Appraisals and Staff Development. In 2020 Disability, Staff Appraisals and Hardship policies were reviewed and updated.
## **Plans for the future**
In 2021 MfA will continue fund raising; the MfA (Zambia) operational activity in Zambia will continue with a further student intake in January 2021. At the start of 2021 there were 81 students in training.
The Trustees express their appreciation for the enormous commitment shown by our team of twenty employees in Zambia, led by the highly capable and effective partnership of Harry Weld-Forester as Principal and Chief Executive and Sarah Weld-Forester as Lead Education Adviser during 2020 and the past 3 years. In 2020 the Weld-Foresters gave notice of their intention to resign and return to the UK in early 2021. After a full search for the right replacement CEO, the trustees were delighted to appoint Gwanire Kalombe. Gwanire brings a wealth of experience of both social care and education in both the UK and Zambia. After a handover period with the Weld-Foresters, she began as CEO in March 2021.
## **Operations**
The effects of the Covid 19 pandemic are global and Zambia has not escaped these. In March 2020, the Zambian Government directed the temporary closure of the college. The workshop continued to run on a skeleton staff and students were given work which they could complete at home where possible. This decision was not taken lightly as the impact on students and staff is significant. However, their safety had to be put first. The Trustees launched a special appeal to ensure that staff could continue to be paid and the poorest and most vulnerable students fed whilst the lockdown was in place. The appeal was successful and protected the college until it reopened.
Governance has been provided by the Trustees of MfA in accordance with the Constitution. The Trustees meet every two months with additional meetings for specific issues such as fundraising strategy, recruitment and budget setting. At each regular meeting the Treasurer presents management accounts to ensure careful governance of the Charity’s monies is maintained.
The individuals who are the Trustees of MfA are also the majority of the Trustees of MfA (Zambia) thus ensuring a seamless link between the charity’s fund raising and operational delivery.
The Trustees and many other volunteers have worked hard whether as fund raisers, administrators, treasurer, project proponents, prayer partners, planners or in other ways. We thank them all sincerely.
Page of 3 17
## **Risks**
Our business plan incorporates a detailed assessment of risks to the project and our responses to these.
The major obvious risk is lack of funding and because of this the Trustees devote considerable effort to budget development and management. Other risks include:
- Retention of teaching staff
- Operating in a developing country
- Fluctuations in exchange rate and inflation
- Extent of funds required from MfA over and above what can be raised locally in Zambia
- Additional funding required should it be necessary to keep the college closed again for an extended period of time due to Covid 19 restrictions
Such risks are reviewed at Trustees’ meetings, and appropriate measures are put in place to mitigate them.
## **Reserves policy**
During the year, the Trustees added £18,000 to a Reserve through a Designated Fund held in a separate interest-bearing account with CAF bank so that at the end of 2020 the Designated Fund held £35,359 which represents the operating cost of the college operating in Zambia for a period of 3 months and exceptional one off costs.
## **Funds**
At 31 December 2020 the total funds were £67,160 comprising
Unrestricted funds amounted to a total of £67,160 comprising
- Unrestricted General Fund of £31,801
- Unrestricted Designated Fund in accordance with the Reserves policy of £35,359
## **Statement of Trustee’s responsibilities**
The Charities Act requires the Trustees to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the charity and of the surplus or deficit for that period. In preparing those financial statements, the Trustees are required to:
- (i) select suitable accounting policies and then apply them consistently;
- (ii) make judgements and estimates that are reasonable and prudent;
- (iii) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
By Order of the Board of Trustees
David Lucas …………………………………… Date ……………………………… Chair
Page of 4 17
Page sof 17
## **Independent examiner's report on the accounts**
**Section A Independent Examiner’s Report**
> **Report to the trustees/ members of**[Mechanics for Africa]
> **On accounts for the year ended**[31 December 2020]
> **Charity no (if any)**[1086333]
> **Set out on pages** 7 to 11
**Respective responsibilities of** The charity's trustees are responsible for the preparation of the accounts. The **trustees and examiner** charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to:
- examine the accounts under section 145 of the Charities Act,
- • to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
- • to state whether particular matters have come to my attention.
**Basis of independent** My examination was carried out in accordance with general Directions given by **examiner’s statement** the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
**Independent** In connection with my examination, no matter has come to my attention (other than that disclosed below *) **examiner's** 1. which gives me reasonable cause to believe that in, any material respect, **statement** the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
- have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
**Date:**
**Signed:**
Page of 6 17
## **Name:** Mike Stubbs
> **Relevant professional** None **qualification(s) or body (if any):**
**Address:**[6 Windy Wood, Godalming, Surrey GU7 1XX ]
## **Section B Disclosure**
Only complete if the examiner needs to highlight material problems.
**Give here brief details of any items that the examiner wishes to disclose** .
Page of 7 17
Page 8of 17
## **MECHANICS FOR AFRICA STATEMENT OF FINANCIAL ACTIVITIES For the period ended 31 December 2020**
|**MECHANICS FOR AFRICA**
**STATEMENT OF FINANCIAL ACTIVITIES**
**For the period ended 31 December 2020**||
|---|---|
||**Unrestricted**
**General Designated Restricted**
**Total 2019**
**funds**
**funds**
**funds**
**funds Total funds**|
|**Incoming resources**
Incoming resources
Voluntary income (Donations and Gifts)
Voluntary income (recoverable under Gift Aid)
Activities for generating funds
Activities for generating funds (recoverable under GA)
Loans
Investment Income (Bank Interest)
Other incoming resources (Rent)
Discretionary Fund
Discretionary Fund (recoverable under GA)
**Total incoming resources**||
|||
||84,532
-
-
84,532
89,580
21,664
-
-
21,664
24,624
26,176
-
15,000
41,176
9,980
1,100
-
-
1,100
5,200
-
-
-
-
-
-
14
-
14
26
8,143
-
-
8,143
8,143
-
-
-
-
-
-
-
-
-
-|
||**141,614**
**14**
**15,000**
**156,629**
**137,553**
72,200
-
15,000
87,200
70,000
20,283
-
-
20,283
18,510
-
-
-
-
-
-
-
-
-
-
7,610
-
-
7,610
1,967
-
-
-
-
3,500
28,318
-
-
28,318
37,743
-
-
-
-
-|
|||
|**Resources used**
Transfers to MfA Zambia
Staff costs
Property
Capital Expenditure
UK Costs
Loan Repayments
Zambian Costs
Discretionary Fund
**Total resources used**||
||**128,412**
**-**
**15,000**
**143,412**
**131,720**
-
-
-
-|
|||
|**Net incoming / outgoing resources before transfer**|**13,202**
**14**
**0**
**13,217**
**5,833**
1,845
18,000
-
19,345
-
18,000
-
1,845
19,345
-|
|||
|**Transfers**
Gross transfers between funds - in
Gross transfers between funds - out
**Net incoming / (outgoing) before other gains / losses**||
||**(2,953)**
**18,014**
**(1,845)**
**13,217**
**5,833**
-
-
-
-
-
-
-
-
-
-|
|||
|**Other recognised gains / losses**
Gains / losses on investment assets
Gains on revaluation, fixed assets, charity's own use
**Net movement in funds**||
||**(2,953)**
**18,014**
**(1,845)**
**13,217**
**5,833**|
|||
|**Total funds brought forward**|**34,754**
**17,345**
**1,845**
**53,944**
**48,111**|
Page of 9 17
|**Total funds carried forward**|**31,801**|**35,359**|**0**|**67,160**|**53,944**|
|---|---|---|---|---|---|
|**Represented by**||||||
|**Unrestricted**||||||
|General fund|31,801|-|-|31,801|34,754|
|**Designated**||||||
|Reserves|-|35,359|-|35,359|17,345|
|**Restricted**||||||
|Discretionary fund|-|-|-|-|1,845|
The results detailed above are derived wholly from continuing operations. There are no recognised gains or losses other than those passing through the Statement of Financial Activities.
The attached notes form a part of these financial statements.
Page 10 of 17
**MECHANICS FOR AFRICA Balance sheet as at 31 December 2020**
|**MECHANICS FOR AFRICA**
**Balance sheet as at 31 December 2020**|**MECHANICS FOR AFRICA**
**Balance sheet as at 31 December 2020**||
|---|---|---|
|**Class**
**Description**||**2020**
**2019**|
||||
|**Fixed Assets**
**Current Assets**||-
-
31,801
36,599
35,359
17,345|
|Current Account
CAF Gold Savings account
**Cash at Bank**|||
|||**67,160**
**53,944**|
|**Current Liabilities**|||
|Loans
**Net Current Assets**||-
-
**67,160**
**53,944**|
||||
|**Represented by funds**
Unrestricted -
Genera**l**
Unrestricted -
Designated
Restricted
Restricted loan|||
|||31,801
34,754
35,359
17,344
-
1,845
-
-|
|||**67,160**
**53,944**|
||||
|**Statement of assets and liabilities as at 31 December 2020**
**Unrestricted**
**General Designated Restricted Endowment**
**2020**
**2019**|||
|**Current assets**
Current Account
CAF Gold Savings account
**Current Liabilities**
Loans
**Grand total**|||
||
31,801
-
-
-
31,801
36,599
-
35,359
-
-
35,359
17,345||
||||
||-
-
-
-
-
-||
||**31,801**
**35,359**
**-**
**-**
**67,160**
**53,944**||
## **Fund movement by type as at 31 December 2020**
|**Closing**|**Opening Incoming Outgoing Transfers Gains/losses**|
|---|---|
|||
|Unrestricted - General
Unrestricted - Designated
Restricted
Restricted loan|34,754
156,614
(143,412)
(16,155)
-
31,801
17,345
14
-
18,000
-
35,359
1,845
15,000
(15,000)
(1,845)
-
-
-
-
-
-
-|
Page 11 of 17
**Grand total**
**(158,412)**
**53,944**
**171,628**
**67,160**
Approved by the Trustees and signed on their behalf by: -
……………………………………………….
Date ...............................…………………
The attached notes form a part of these financial statements.
Page 12 of 17
**MECHANICS FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 December 2020**
## **1. ACCOUNTING POLICIES**
The following accounting policies have been used consistently in dealing with items which are considered material in relation to the financial statements.
## **Accounting convention**
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards and the accounting Statement of Recommended Practice (“Accounting by Charities”).
## **Fund accounting**
Unrestricted funds comprise accumulated surpluses and deficits on the General Fund. They are available for use at the discretion of Trustees in furtherance of the charity’s general objectives.
Designated funds are amounts that have been put aside at the discretion of Trustees.
Restricted funds are funds subject to specific restricted conditions imposed by the donors.
## **Incoming resources**
Incoming resources represent the total income receivable during the period comprising donations, gifts and associated income tax recoverable under gift aid, fundraising and appeals income, and bank interest.
All loans are interest free with no repayment terms.
## **Resources expended**
Direct charitable expenditure represents the costs of the principal activities of the Charity. It includes staff costs that are directly attributable to these activities.
## **2. FUNDS**
As at 31 December 2020 the funds are a mixture of general, restricted and designated as are shown on the Statement of Financial Activities. The Restricted Fund comprises the Discretionary Fund established to provide funds in Zambia for use at the sole discretion of the college leadership in Zambia in assisting students and their families.
The Designated Fund comprises the Reserve Fund in accordance with the Reserves policy
Page 13 of 17
**MECHANICS FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 December 2020 (continued)**
## **Analysis of income and expenditure**
## **Income**
## **Incoming resources - Voluntary income (Donations and Gifts)**
|I2-1 - Gifts
I2-3 - Sponsorship
I2-4 - Standing Orders
I2-5 - Gift Aid Refund
I2-6 - MBC Gifts
Total|**Total**
**General**
**Designated Restricted**
**Endowment 2020**
**2019**
70,411
-
-
-
63,422
68,711
8,440
-
-
-
8,440
7,820
260
-
-
-
260
250
7,410
-
-
-
7,410
7,373
5,000
-
-
-
5,000
5,425|
|---|---|
||91,521
-
-
-
84,532
89,579|
## **Incoming resources - Voluntary income (recoverable under Gift Aid)**
|I1-1 - Gift Aid Gifts
I1-3 - Gift Aided Sponsorship
I1-4 - Gift Aided Standing Orders
Total|**Total**
**General**
**Designated Restricted**
**Endowment 2020**
**2019**
1,599
-
-
-
2,449
2,375
13,345
-
-
-
13,345
16,273
5,870
-
-
-
5,870
5,976|
|---|---|
||20,814
-
-
-
21,664
24,624|
## **Incoming resources - Activities for generating funds**
|I1-2 – Fundraising - Gift Aided
I2-2 – Fundraising – non-GA
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
1,100
5,200
19,185
-
15,000
-
41,176
9,980|
|---|---|
||19,185
-
15,000
-
42,276
15,180|
## **Incoming resources - Investment Income (Bank Interest)**
|I4-1 - Bank interest
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
14
-
-
14
26|
|---|---|
||-
14
-
-
14
26|
## **Incoming resources - Other incoming resources**
|I2 – Property Rental
I3-3 - Loans
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
8,143
-
-
-
8,143
8,143
-
-
-
-
-
-|
|---|---|
||8,143
-
-
-
8,143
8,143|
## **Discretionary Fund**
**Total**
Page 14 of 17
|I3-1 - Discretionary Fund - Gift Aided
I3-2 - Discretionary Fund – non-GA
Total|**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
-
-
-
-
-
-
-|
|---|---|
||-
-
-
-
-
-|
Page 15 of 17
## **Expenditure**
## **Transfers to MfA Zambia**
|O2-1 - Transfers to MfA Zambia
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
72,200
-
15,000
-
87,200
70,000|
|---|---|
||72,200
-
15,000
-
87,200
70,000|
|||
|**Staff costs**
O1-1 - Staff Salaries from UK
O1-2 - National Insurance Payment
O1-3 - Income Tax Payment
O1-4 - Pension Payments
O1-5 - Fundraising Staff
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
17,883
-
-
-
17,883
16,110
-
-
-
-
-
-
-
-
-
-
-
0
2,400
-
-
-
2,400
2,400
-
-
-
-
-
-|
||20,283
-
-
-
20,283
18,510|
|**Property - Capital Expenditure**
**Total**
**Unrestricted Designated Restricted**
**Endowment t 2020**
**2019**
O3-1 - Capital Expenditure - Property
-
-
-
-
-
-
O3-2 - Capital Expenditure - Equip
-
-
-
-
-
-
Total
-
-
-
-
-
-|**Property - Capital Expenditure**
**Total**
**Unrestricted Designated Restricted**
**Endowment t 2020**
**2019**
O3-1 - Capital Expenditure - Property
-
-
-
-
-
-
O3-2 - Capital Expenditure - Equip
-
-
-
-
-
-
Total
-
-
-
-
-
-|
|---|---|
||-
-
-
-
-
-|
|||
|**UK Costs**
O4-1 - Travel & Subsistence
O4-2 - Consumables
O4-3 - Training
O4-4 - Insurance
O4-5 – Fundraising
O4-6 - Miscellaneous costs
O8-1 - Bank charges
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
565
-
-
-
-
-
-
-
-
-
-
-
-
310
-
-
-
310
260
6,086
-
-
-
6,086
1,074
1,105
-
-
-
1,105
-
109
-
-
-
109
68|
||7,610
-
-
-
7,610
1,967|
## **Loan Repayments**
|O7 - Loan Repayments
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
3,500|
|---|---|
||-
-
-
-
-
3,500|
## **Zambian Costs**
|O5-1 - Exams fees and materials|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
16,724
-
-
-
16,724
21,423|
|---|---|
Page 16 of 17
|O5-2 - Freight & Travel Costs
O5-3 - Miscellaneous Zambian Costs
O5-4 – School Fees
Total|-
-
-
-
-
-
10,175
-
-
-
10,175
11,970
1,420
-
-
-
1,420
4,350|
|---|---|
||28,319
-
-
-
28,319
37,743|
|||
|**Discretionary Fund**
O6 - Discretionary Fund
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
-|
||-
-
-
-
-
-|
Page 17 of 17
## _**www.mechanicsforafrica.com**_
## **MECHANICS FOR AFRICA**
# **REPORT AND FINANCIAL STATEMENTS**
# **FOR THE PERIOD ENDED 31 DECEMBER 2020**
## **Registered Charity number: 1086333**
Page of 1 17
The Trustees present their report together with the financial statements of the charity for the period ended 31 December 2020.
## **Origin, objectives and principal aims**
The members of Milford Baptist Church formed Mechanics for Africa as an unincorporated association on 21 January 2001. It was subsequently registered as charity number 1086333 on 26 April 2001.
The principal address is Milford Baptist Church, New Road, Milford, Godalming, Surrey, England, GU8 5BE.
The objects of the charity as stated in its constitution are the advancement of education and the relief of financial hardship and/or poverty in Southern Africa, principally Zambia.
The present, principal aim is to establish and operate a training college for motor mechanics in Zambia, giving young, underprivileged Africans skills for life. This is pursued through an associated Zambian-registered charity, Mechanics for Africa (Zambia).
## **Trustees**
The Trustees who served during the year are as follows:
1. Sarah Counter
2. David Lucas (Chair)
3. David Phillips (Correspondent with Charity Commissioners)
4. Richard Rowe
5. Peter Herring
6. Paul Cannings (Treasurer)
7. Susie Mooney
## **Review of activities, operations and risks**
The Charity was officially launched on 7 April 2001 at Milford Baptist Church, Surrey, UK by the former patron of Mechanics for Africa, Baroness Bottomley of Nettlestone (formerly Right Hon. Virginia Bottomley) who was the Member of Parliament for the constituency in which Milford is located until May 2005.
The primary activity of the charity has been the training of local Zambian students at the college in Ndola in motor mechanics and life skills. Specific activities of 2020 have included:
1. Continued training of students in motor mechanics and in life skills with City and Guilds examinations sat towards the end of the year.
2. Admission of the eighteenth group of students from the area around Ndola, Zambia
3. Commissioning of a solar power generation system to provide the majority of the electricity requirements of the college and workshop. This was funded by a special appeal in 2019 and a grant in 2020.
4. Modifying teaching practices to deal with the temporary closure and then social distancing restrictions imposed by the Zambian government in response to the Covid 19 pandemic.
5. Changing from City & Guilds to TEVETA as the examining board.
6. The development of a new website to attract students in Zambia and to aid fundraising in the UK
Page of 2 17
The economy in Zambia has continued to face challenges with the Kwacha exchange rate falling significantly against the pound and the dollar coupled with consequent high inflation for imported goods. This has impacted the college through increased costs.
Local fund raising in the UK has continued with income from sponsors funding the students in Ndola.
During 2020 the Trustees again undertook a review of policies and as a result updates were put in place; these will continue to be reviewed annually. These included Health & Safety, Safeguarding, Gender, Admissions, Disability, Staff Loans, Hardship Fund, Whistleblowing, Reserves policy, Non-donor gifts, Staff Appraisals and Staff Development. In 2020 Disability, Staff Appraisals and Hardship policies were reviewed and updated.
## **Plans for the future**
In 2021 MfA will continue fund raising; the MfA (Zambia) operational activity in Zambia will continue with a further student intake in January 2021. At the start of 2021 there were 81 students in training.
The Trustees express their appreciation for the enormous commitment shown by our team of twenty employees in Zambia, led by the highly capable and effective partnership of Harry Weld-Forester as Principal and Chief Executive and Sarah Weld-Forester as Lead Education Adviser during 2020 and the past 3 years. In 2020 the Weld-Foresters gave notice of their intention to resign and return to the UK in early 2021. After a full search for the right replacement CEO, the trustees were delighted to appoint Gwanire Kalombe. Gwanire brings a wealth of experience of both social care and education in both the UK and Zambia. After a handover period with the Weld-Foresters, she began as CEO in March 2021.
## **Operations**
The effects of the Covid 19 pandemic are global and Zambia has not escaped these. In March 2020, the Zambian Government directed the temporary closure of the college. The workshop continued to run on a skeleton staff and students were given work which they could complete at home where possible. This decision was not taken lightly as the impact on students and staff is significant. However, their safety had to be put first. The Trustees launched a special appeal to ensure that staff could continue to be paid and the poorest and most vulnerable students fed whilst the lockdown was in place. The appeal was successful and protected the college until it reopened.
Governance has been provided by the Trustees of MfA in accordance with the Constitution. The Trustees meet every two months with additional meetings for specific issues such as fundraising strategy, recruitment and budget setting. At each regular meeting the Treasurer presents management accounts to ensure careful governance of the Charity’s monies is maintained.
The individuals who are the Trustees of MfA are also the majority of the Trustees of MfA (Zambia) thus ensuring a seamless link between the charity’s fund raising and operational delivery.
The Trustees and many other volunteers have worked hard whether as fund raisers, administrators, treasurer, project proponents, prayer partners, planners or in other ways. We thank them all sincerely.
Page of 3 17
## **Risks**
Our business plan incorporates a detailed assessment of risks to the project and our responses to these.
The major obvious risk is lack of funding and because of this the Trustees devote considerable effort to budget development and management. Other risks include:
- Retention of teaching staff
- Operating in a developing country
- Fluctuations in exchange rate and inflation
- Extent of funds required from MfA over and above what can be raised locally in Zambia
- Additional funding required should it be necessary to keep the college closed again for an extended period of time due to Covid 19 restrictions
Such risks are reviewed at Trustees’ meetings, and appropriate measures are put in place to mitigate them.
## **Reserves policy**
During the year, the Trustees added £18,000 to a Reserve through a Designated Fund held in a separate interest-bearing account with CAF bank so that at the end of 2020 the Designated Fund held £35,359 which represents the operating cost of the college operating in Zambia for a period of 3 months and exceptional one off costs.
## **Funds**
At 31 December 2020 the total funds were £67,160 comprising
Unrestricted funds amounted to a total of £67,160 comprising
- Unrestricted General Fund of £31,801
- Unrestricted Designated Fund in accordance with the Reserves policy of £35,359
## **Statement of Trustee’s responsibilities**
The Charities Act requires the Trustees to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the charity and of the surplus or deficit for that period. In preparing those financial statements, the Trustees are required to:
- (i) select suitable accounting policies and then apply them consistently;
- (ii) make judgements and estimates that are reasonable and prudent;
- (iii) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
By Order of the Board of Trustees
David Lucas …………………………………… Date ……………………………… Chair
Page of 4 17
Page sof 17
## **Independent examiner's report on the accounts**
**Section A Independent Examiner’s Report**
> **Report to the trustees/ members of**[Mechanics for Africa]
> **On accounts for the year ended**[31 December 2020]
> **Charity no (if any)**[1086333]
> **Set out on pages** 7 to 11
**Respective responsibilities of** The charity's trustees are responsible for the preparation of the accounts. The **trustees and examiner** charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to:
- examine the accounts under section 145 of the Charities Act,
- • to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
- • to state whether particular matters have come to my attention.
**Basis of independent** My examination was carried out in accordance with general Directions given by **examiner’s statement** the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
**Independent** In connection with my examination, no matter has come to my attention (other than that disclosed below *) **examiner's** 1. which gives me reasonable cause to believe that in, any material respect, **statement** the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
- have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
**Date:**
**Signed:**
Page of 6 17
## **Name:** Mike Stubbs
> **Relevant professional** None **qualification(s) or body (if any):**
**Address:**[6 Windy Wood, Godalming, Surrey GU7 1XX ]
## **Section B Disclosure**
Only complete if the examiner needs to highlight material problems.
**Give here brief details of any items that the examiner wishes to disclose** .
Page of 7 17
Page 8of 17
## **MECHANICS FOR AFRICA STATEMENT OF FINANCIAL ACTIVITIES For the period ended 31 December 2020**
|**MECHANICS FOR AFRICA**
**STATEMENT OF FINANCIAL ACTIVITIES**
**For the period ended 31 December 2020**||
|---|---|
||**Unrestricted**
**General Designated Restricted**
**Total 2019**
**funds**
**funds**
**funds**
**funds Total funds**|
|**Incoming resources**
Incoming resources
Voluntary income (Donations and Gifts)
Voluntary income (recoverable under Gift Aid)
Activities for generating funds
Activities for generating funds (recoverable under GA)
Loans
Investment Income (Bank Interest)
Other incoming resources (Rent)
Discretionary Fund
Discretionary Fund (recoverable under GA)
**Total incoming resources**||
|||
||84,532
-
-
84,532
89,580
21,664
-
-
21,664
24,624
26,176
-
15,000
41,176
9,980
1,100
-
-
1,100
5,200
-
-
-
-
-
-
14
-
14
26
8,143
-
-
8,143
8,143
-
-
-
-
-
-
-
-
-
-|
||**141,614**
**14**
**15,000**
**156,629**
**137,553**
72,200
-
15,000
87,200
70,000
20,283
-
-
20,283
18,510
-
-
-
-
-
-
-
-
-
-
7,610
-
-
7,610
1,967
-
-
-
-
3,500
28,318
-
-
28,318
37,743
-
-
-
-
-|
|||
|**Resources used**
Transfers to MfA Zambia
Staff costs
Property
Capital Expenditure
UK Costs
Loan Repayments
Zambian Costs
Discretionary Fund
**Total resources used**||
||**128,412**
**-**
**15,000**
**143,412**
**131,720**
-
-
-
-|
|||
|**Net incoming / outgoing resources before transfer**|**13,202**
**14**
**0**
**13,217**
**5,833**
1,845
18,000
-
19,345
-
18,000
-
1,845
19,345
-|
|||
|**Transfers**
Gross transfers between funds - in
Gross transfers between funds - out
**Net incoming / (outgoing) before other gains / losses**||
||**(2,953)**
**18,014**
**(1,845)**
**13,217**
**5,833**
-
-
-
-
-
-
-
-
-
-|
|||
|**Other recognised gains / losses**
Gains / losses on investment assets
Gains on revaluation, fixed assets, charity's own use
**Net movement in funds**||
||**(2,953)**
**18,014**
**(1,845)**
**13,217**
**5,833**|
|||
|**Total funds brought forward**|**34,754**
**17,345**
**1,845**
**53,944**
**48,111**|
Page of 9 17
|**Total funds carried forward**|**31,801**|**35,359**|**0**|**67,160**|**53,944**|
|---|---|---|---|---|---|
|**Represented by**||||||
|**Unrestricted**||||||
|General fund|31,801|-|-|31,801|34,754|
|**Designated**||||||
|Reserves|-|35,359|-|35,359|17,345|
|**Restricted**||||||
|Discretionary fund|-|-|-|-|1,845|
The results detailed above are derived wholly from continuing operations. There are no recognised gains or losses other than those passing through the Statement of Financial Activities.
The attached notes form a part of these financial statements.
Page 10 of 17
**MECHANICS FOR AFRICA Balance sheet as at 31 December 2020**
|**MECHANICS FOR AFRICA**
**Balance sheet as at 31 December 2020**|**MECHANICS FOR AFRICA**
**Balance sheet as at 31 December 2020**||
|---|---|---|
|**Class**
**Description**||**2020**
**2019**|
||||
|**Fixed Assets**
**Current Assets**||-
-
31,801
36,599
35,359
17,345|
|Current Account
CAF Gold Savings account
**Cash at Bank**|||
|||**67,160**
**53,944**|
|**Current Liabilities**|||
|Loans
**Net Current Assets**||-
-
**67,160**
**53,944**|
||||
|**Represented by funds**
Unrestricted -
Genera**l**
Unrestricted -
Designated
Restricted
Restricted loan|||
|||31,801
34,754
35,359
17,344
-
1,845
-
-|
|||**67,160**
**53,944**|
||||
|**Statement of assets and liabilities as at 31 December 2020**
**Unrestricted**
**General Designated Restricted Endowment**
**2020**
**2019**|||
|**Current assets**
Current Account
CAF Gold Savings account
**Current Liabilities**
Loans
**Grand total**|||
||
31,801
-
-
-
31,801
36,599
-
35,359
-
-
35,359
17,345||
||||
||-
-
-
-
-
-||
||**31,801**
**35,359**
**-**
**-**
**67,160**
**53,944**||
## **Fund movement by type as at 31 December 2020**
|**Closing**|**Opening Incoming Outgoing Transfers Gains/losses**|
|---|---|
|||
|Unrestricted - General
Unrestricted - Designated
Restricted
Restricted loan|34,754
156,614
(143,412)
(16,155)
-
31,801
17,345
14
-
18,000
-
35,359
1,845
15,000
(15,000)
(1,845)
-
-
-
-
-
-
-|
Page 11 of 17
**Grand total**
**(158,412)**
**53,944**
**171,628**
**67,160**
Approved by the Trustees and signed on their behalf by: -
……………………………………………….
Date ...............................…………………
The attached notes form a part of these financial statements.
Page 12 of 17
**MECHANICS FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 December 2020**
## **1. ACCOUNTING POLICIES**
The following accounting policies have been used consistently in dealing with items which are considered material in relation to the financial statements.
## **Accounting convention**
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards and the accounting Statement of Recommended Practice (“Accounting by Charities”).
## **Fund accounting**
Unrestricted funds comprise accumulated surpluses and deficits on the General Fund. They are available for use at the discretion of Trustees in furtherance of the charity’s general objectives.
Designated funds are amounts that have been put aside at the discretion of Trustees.
Restricted funds are funds subject to specific restricted conditions imposed by the donors.
## **Incoming resources**
Incoming resources represent the total income receivable during the period comprising donations, gifts and associated income tax recoverable under gift aid, fundraising and appeals income, and bank interest.
All loans are interest free with no repayment terms.
## **Resources expended**
Direct charitable expenditure represents the costs of the principal activities of the Charity. It includes staff costs that are directly attributable to these activities.
## **2. FUNDS**
As at 31 December 2020 the funds are a mixture of general, restricted and designated as are shown on the Statement of Financial Activities. The Restricted Fund comprises the Discretionary Fund established to provide funds in Zambia for use at the sole discretion of the college leadership in Zambia in assisting students and their families.
The Designated Fund comprises the Reserve Fund in accordance with the Reserves policy
Page 13 of 17
**MECHANICS FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 December 2020 (continued)**
## **Analysis of income and expenditure**
## **Income**
## **Incoming resources - Voluntary income (Donations and Gifts)**
|I2-1 - Gifts
I2-3 - Sponsorship
I2-4 - Standing Orders
I2-5 - Gift Aid Refund
I2-6 - MBC Gifts
Total|**Total**
**General**
**Designated Restricted**
**Endowment 2020**
**2019**
70,411
-
-
-
63,422
68,711
8,440
-
-
-
8,440
7,820
260
-
-
-
260
250
7,410
-
-
-
7,410
7,373
5,000
-
-
-
5,000
5,425|
|---|---|
||91,521
-
-
-
84,532
89,579|
## **Incoming resources - Voluntary income (recoverable under Gift Aid)**
|I1-1 - Gift Aid Gifts
I1-3 - Gift Aided Sponsorship
I1-4 - Gift Aided Standing Orders
Total|**Total**
**General**
**Designated Restricted**
**Endowment 2020**
**2019**
1,599
-
-
-
2,449
2,375
13,345
-
-
-
13,345
16,273
5,870
-
-
-
5,870
5,976|
|---|---|
||20,814
-
-
-
21,664
24,624|
## **Incoming resources - Activities for generating funds**
|I1-2 – Fundraising - Gift Aided
I2-2 – Fundraising – non-GA
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
1,100
5,200
19,185
-
15,000
-
41,176
9,980|
|---|---|
||19,185
-
15,000
-
42,276
15,180|
## **Incoming resources - Investment Income (Bank Interest)**
|I4-1 - Bank interest
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
14
-
-
14
26|
|---|---|
||-
14
-
-
14
26|
## **Incoming resources - Other incoming resources**
|I2 – Property Rental
I3-3 - Loans
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
8,143
-
-
-
8,143
8,143
-
-
-
-
-
-|
|---|---|
||8,143
-
-
-
8,143
8,143|
## **Discretionary Fund**
**Total**
Page 14 of 17
|I3-1 - Discretionary Fund - Gift Aided
I3-2 - Discretionary Fund – non-GA
Total|**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
-
-
-
-
-
-
-|
|---|---|
||-
-
-
-
-
-|
Page 15 of 17
## **Expenditure**
## **Transfers to MfA Zambia**
|O2-1 - Transfers to MfA Zambia
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
72,200
-
15,000
-
87,200
70,000|
|---|---|
||72,200
-
15,000
-
87,200
70,000|
|||
|**Staff costs**
O1-1 - Staff Salaries from UK
O1-2 - National Insurance Payment
O1-3 - Income Tax Payment
O1-4 - Pension Payments
O1-5 - Fundraising Staff
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
17,883
-
-
-
17,883
16,110
-
-
-
-
-
-
-
-
-
-
-
0
2,400
-
-
-
2,400
2,400
-
-
-
-
-
-|
||20,283
-
-
-
20,283
18,510|
|**Property - Capital Expenditure**
**Total**
**Unrestricted Designated Restricted**
**Endowment t 2020**
**2019**
O3-1 - Capital Expenditure - Property
-
-
-
-
-
-
O3-2 - Capital Expenditure - Equip
-
-
-
-
-
-
Total
-
-
-
-
-
-|**Property - Capital Expenditure**
**Total**
**Unrestricted Designated Restricted**
**Endowment t 2020**
**2019**
O3-1 - Capital Expenditure - Property
-
-
-
-
-
-
O3-2 - Capital Expenditure - Equip
-
-
-
-
-
-
Total
-
-
-
-
-
-|
|---|---|
||-
-
-
-
-
-|
|||
|**UK Costs**
O4-1 - Travel & Subsistence
O4-2 - Consumables
O4-3 - Training
O4-4 - Insurance
O4-5 – Fundraising
O4-6 - Miscellaneous costs
O8-1 - Bank charges
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
565
-
-
-
-
-
-
-
-
-
-
-
-
310
-
-
-
310
260
6,086
-
-
-
6,086
1,074
1,105
-
-
-
1,105
-
109
-
-
-
109
68|
||7,610
-
-
-
7,610
1,967|
## **Loan Repayments**
|O7 - Loan Repayments
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
3,500|
|---|---|
||-
-
-
-
-
3,500|
## **Zambian Costs**
|O5-1 - Exams fees and materials|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
16,724
-
-
-
16,724
21,423|
|---|---|
Page 16 of 17
|O5-2 - Freight & Travel Costs
O5-3 - Miscellaneous Zambian Costs
O5-4 – School Fees
Total|-
-
-
-
-
-
10,175
-
-
-
10,175
11,970
1,420
-
-
-
1,420
4,350|
|---|---|
||28,319
-
-
-
28,319
37,743|
|||
|**Discretionary Fund**
O6 - Discretionary Fund
Total|**Total**
**Unrestricted Designated Restricted**
**Endowment 2020**
**2019**
-
-
-
-
-
-|
||-
-
-
-
-
-|
Page 17 of 17