MECHANICS FOR AFRICA www.mechanicsforafrica.com MECHANICS FOR AFRICA REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023 Registered Charity number: 1086333 Page 1 of15
The Trustees present their report together with the financial statements of the charity for the period ended 31 December 2023. Origin, objectives and principal aims The members of Milford Baptist Church formed Mechanics for Africa (MfA) 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 (MfAZ). Trustees The Trustees who served during the year are as follows: Richard Rowe (Chair) David Phillips (Correspondent with Charity Commissioners) Sarah Weld-Forrester (appointed in the year) Peter Herring Paul Cannings (Treasurer) 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 2023 have included: Continued training of students in motor mechanics and in life skills with TEVETA examinations sat towards the end of the year. Admission of the twenty first group of students from the area around Ndola, Zambia with a special focus on recruiting from the poorest communities All new students who enrolled from January 2023 have been provided with a laptop and will be taught how to drive as part of their course. 7 of the January 2023 student intake are women but with the introduction of a new course in IT and data processing it is hopes that more women will be attracted to the college. £45,000 of grants and donations for the building of facilities to teach the new course including a new classroom were received in 2023. £15,000 of this was remitted to Zambia in 2023 with the balance held in a Restricted reserve at year end. Building work is complete at the time of this report. The economy in Zambia has continued to face challenges with high inflation for both wages and imported goods. This has impacted the college through increased costs. Local fund raising in the UK has continued and the donor base has been widened in 2023 to include more churches, individual donors, legactes and grants. Page 2 of 15
During 2023 the Trustees again undertook a review of policies, no new policies were adopted and all policies will continue to be reviewed annually. Plans for the future In 2023 MfA prioritised fund raising with an outsourced fundraising resource leading a number of new initiatives. Plans are in place to continue the widening of our donor base in 2024. In 2023, MfAZ also began the process allow it to raise further funds directly from the US. This process has now been successfully completed and MFAZ plans to start US fundraising activities in 2024. The Trustees express their appreciation for the enormous commitment shown by the team of over twenty employees in Zambia, led by the CEO Gwanire Kalombe, who began as CEO in March 2021. Gwanire is bringing a fresh and envigorating approach to the college and has ambitious plans to grow the size and scope of the activities of the college, whilst keeping a clear focus on providing the poorest with an excellent education, a solid grounding in life skills, and good job prospects. Governance 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 MfAZ 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. 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 Such risks are reviewed at Trustees, meetings, and appropriate measures are put in place to mitigate them. Reserves policy The Trustees maintain a Reserve through a Designated Fund. A one off £25,000 donation from a major donor allowed the reserves to be replenished in the year. This reserve is Page 3of15
currently £50,000 and represents the operating cost of the college operating in Zambia for a period of up to 3 months. In previous years the Designated Fund monies have been held in a separate CAF Gold Account. However, in 2022, CAF informed MfA that it was no longer offering customers its Gold Account. In order to ensure the charity had immediate access to these funds, the funds were therefore transferred to the current account held with Barclays Bank. It is the intention of the Trustees to open a new account to hold the Designated Fund monies in due course. Funds At 31 December 2022 the total funds were £109,458 comprising Unrestricted General Fund of £29,458 Unrestricted Designated Fund in accordance with the Reserves policy of £50,000 Restricted Fund of £30,000 representing a grant for the new IT facilities 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; (li) 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 Richard Rowe ...... Chair Date . Page4of15
Independent examiner's report on the accounts Section A Independent Examinergs Report Report to the trustees/ members of Mechanics for Africa On accounts for the year ended 31 December 2023 Charity no (if any) 1086333 Set out on pages 7t011 Respective responsibilities The charitys trustees are responsible for the preparation of the accounts. The of 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 examinatio no matter has come to my attention (other examiner's than that disclosed below ) statement which gives me reasonable cause to believe that in, any material respect, 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 to whiclL in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Page5of15
Slgned: Date: Name: Mike Stubbs Relevant professional qualification(s) or body (if any): None Address: 6 Windy Wood, Godalming, Surrey GU7 1XX Sectioii B Disclosiire Only complete if the examiner needs to highlight material problems. Give here brief details of any items that the examiner Ivishes to disclose. Page6of 15
MECHANICS FOR AFRICA STATEMENT OF FINANCIAL ACTIVITIES For the period ended 31 December 2023 Unrestricted General Deslgnated Restricted funds funds funds Total 2022 funds Total funds Incoming resources Incoming resources Voluntary income (Donations and Gifts) 106,738 106,738 83,140 Voluntary income (recoverable under Gift Aid) 95,029 95,029 29,787 Activities for generating funds 5,732 5,732 2,552 Activities for generating funds (recoverable under GA> Loans Investment Income (Bank Interest) 106 Other incoming reSoUrS (Rent) 8,143 8,143 8,282 Restricted Funds for IT block 45,000 45,000 Total incoming resources 215,643 45,000 260,643 123,867 Transfers to MfA Zambia 128,500 128,500 117,700 Staff costs Propety Capital Expenditure 19,600 19,600 20,320 UK Costs 9,409 9,409 2,715 Loan Repayments Zambian Costs 7,300 7,300 11,700 Restricted Funds for IT block 15.000 15,000 Totsl resources used 164,809 15,000 179,809 152,435 Net incoming l outgoing resources before transfer 50,834 30,000 80,834 (28,568) Page7of15
Transfers Gross transfers between funds - in 25,000 25,000 Gross transfers between funds - out (25,000) (25,000) Net incoming l (outgoing) before other gains I losses 25,834 25,000 30,000 80,834 (28,568) Other recognised gains I losses Gains / losses on investment assets Gains on revaluation, fixed assets, charity's own use Net movement in funds 25,834 25,000 30,000 80,834 (28,568) Total funds brought forward 3,624 25.000 28.624 57.193 Total funds carried forward 29,458 50,000 30,000 109,458 28,624 Represented by Unrestricted General fund 29,458 29,458 3,624 Designated Reserves 50,000 50,000 25,000 Restricted Restricted Funds for IT block 30,000 30,000 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 8 of15
MECHANICS FOR AFRICA Balance sheet as at 31 December 2023 Class Descri tion 2023 2022 Fixed Assets Current Assets Current Account 109,458 28,624 CAF Gold Savings account Cash at Bank 109,458 28,624 Current Liabilities Loans Net Current Assets 109.458 28,624 Represented by funds Unrestricted - General 29,458 3,624 Unrestricted - Designated 50,000 25,000 Restricted 30,000 Restricted loan 109.458 28.624 Statement of assets and liabilities as at 31 December 2023 Unrestricted General Desi nated Restrlcted Endowment 2023 2022 Current assets Current Account 29,458 50,000 30,000 109,458 28,624 CAF Gold Savings account Current Liabilities Loans Grand total 29,458 50,000 30,000 109,458 28.624 Page 9 of15
Fund movement by type as at 31 December 2023 Opening Incoming Outgoing Transfers Gainsllosses Closin Unrestricted - General 3,624 215,643 (164,809) (25,000) 29,458 Unrestricted - Designated 25,000 25,000 50,000 Restricted 45,000 (15,000) 30,000 Restricted loan Grand total 28,624 260,643 (179,809) 109,458 Approved by the Trustees and signed on their behalf by: _ Date..... .... . The attached notes form a part of these financial statements. Page 10of15
MECHANICS FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 December 2023 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 reSoUrS 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. FUNDS As at 31 December 2023 the funds are a mixture of general, restricted and designated as are shown on the Statement of Financial Activities. The Designated Fund comprises the Reserve Fund in accordance with the Reserves policy. The Restricted Fund represents a grant for the IT classroom. Page11 of15
MECHANICS FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS For the period ended 31 December 2023 (continued) Analysis of income and expenditure Income Incoming resources - Voluntary income (Donations and Gifts) General Desi nated Restricted Endowment 84,555 Total 2023 84.555 2022 59,257 12-1- Gifts 124 - Standing Orders" 8,275 8,275 8,130 12-5 - Gift Aid Refund 2,708 2,708 11,554 12-6 - MBC Gifts 11,200 11,200 4,200 Total 106,738 106,738 83,141 Incoming resources - Voluntary income (recoverable under Gift Aid) neral Desi nated Restricted Endowment 75,800 Totsl 2023 75,800 2022 12,450 11-1- Gift Aid Gifts 114 - Gift Aided Standing Orders" 19,229 19,229 17,337 Total 95,029 95,029 29,787 Incoming resources - Activities for generating funds Unrestricted Desi nated R strlcted Endowment Total 2023 2022 11-2 - Fundraising - Gift Aided 12-2 - Fundraising - non-GA 5,732 5,732 2,552 Total 5,732 5,732 2,522 Incoming resources ~ Investment Income (Bank Interest) nated Restricted Endowment Total 023 Unrestric d Desi 2022 106 14-1- Bank interest Total 106 Page 12 of15
Incoming resources - Other incoming resources Total 2023 8,143 Unrestricted D 8,143 si nated Restrict d Endowment 2022 8,282 12 - Propety Rental 13-3 - Loans Total 8,143 8,143 8,282 Restricted Fund Total 2023 15,000 Unrestricted De nated Restricted Endowment 15,000 2022 13-1- Restrided Funds for IT block - Gift Aided 1&2 - Restricted Funds for IT block- non-GA 30,000 30,000 Total 45,000 45,000 Standing orders are no longer shown split between sponsorship and other Page 13of15
Expenditure Transfers to MfA Zambia Total 2023 128,500 Unr strlcted D sl nated Restricted Endowment 128,500 2022 117,700 02-1- Transfers to MfA Zambia Total 128,500 128,500 117,700 Staff costs Total 2023 Unrestricted Desi nated Restricted Endo ent 2022 01-1- Staff Salaries from UK- ** ** 01-2 - National Insurance Payment 01-3 - Income Tax Payment 014 - Pension Payments 01-5 - Fundraising Stsff Total Property - Capital Expenditure Total 2023 Unrestrlcted Desl nated Restricted Endowment t 2022 03-1 ~ Capital Expenditure - Propety 03-2 - Capital Expenditu - Equip 19,600 19,600 (note) 20,320 (note) Totsl 19,600 19,600 20,320 Note: MfA purchased laptops for the new student intakes UK Costs Totsl 2023 1,381 Unrestricted Desi 1,381 nated Restrl ted Endowmen 2022 799 04-1- Travel & Subsistence 04-2 - Consumables 04-3 - Training 044- Insurance 330 330 320 04-5 - Fundraising 7,448 7,448 1,425 04-6 - MislIaneOUS costs 90 90 08-1- Bank charges 160 160 171 Total 9,409 9,409 2,715 Page 14of15
Loan Repayments Total 202 Unrestrfctsd Desi nated Restrlct Endowment 2022 07 - Loan Repayments Total Zambian Costs Total 2023 Unrestricted Desi nat d Restricted Endow ent 2022 05-1- Exams fees and materials"- 05-2 - Freight & Travel Costs 05-3 - MislIaneOUS Zambian Costs- 4,700 4,700 8,100 054- School Fees 2,600 2,600 3,600 Total 7,300 7,300 11,700 Discretionary Fund Total 2023 15.000 Unrestrlc ed Desl nated Restricted End 15,000 wment 2022 06 - Restricted Funds for IT block Total 15,000 15,000 The costs of the Ndola management team were paid by the college directly from March 2021 other than certain increments which are still paid from the UK. "The TEVETA examination costs were paid by the college directly in 2021 and onwallls Page 15 of 15