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2020-12-31-accounts

INTERNATIONAL AID TRUST FINANCIAL STATEMENTS 31 DECEMBER 2020

Company Registration Number 04167908 Charity Number 1086597

INTERNATIONAL AID TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

Contents Pages
Trustees’ Annual Report 1 - 11
Reference & Administrative Information 12
Independent Examiner’s Report 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes forming part of the financial statements 17 - 28

INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

The Trustees, who are also Directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31 December 2020. The Trustees have adopted the provisions of the Charities Statement of Recommended Practice (SORP FRS102).

OBJECTIVES AND ACTIVITIES

International Aid Trust is a Christian Humanitarian Aid Charity, which has evolved since 1991 when a small group of Christians started to take Bibles and aid to the former USSR. It is an independent organisation initially constituted as an unincorporated Charity (1996) and subsequently as a Company Limited by Guarantee (2001). The governing document defines our objects as:

The Trustees have had regard to the Charity Commission’s guidance on public benefit. Our strap line “Christian Compassion for a Hurting World” describes every aspect of our ministry and drives the way in which we seek to provide public benefit in every area in which we work.

International Aid Trust provides direct financial and in-kind relief; but our aim is to pursue projects which facilitate self-help and sustainable improvements to quality of life in order to break the chain of being born into poverty. We do this by modelling the practical and spiritual Gospel of Jesus Christ through:

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE

UK - Retail

Like all of the Retail Sector, Charity Shops have suffered hugely from the Lockdowns since March 2020. All our shops had to be closed on 23[rd] March, immediately cutting off our biggest source of income for the work of the Charity. The Lockdown gave us the opportunity to examine critically the past performance and potential of each of our 19 shops and to agree a strategy to focus on only the best performing shops. As soon as the Government advised the timing and conditions for re-opening in mid-June, we implemented a staggered re-opening of 11 shops and then began the process of negotiating with Landlords for early termination of leases on the remainder. Another consequence of this was that, regrettably, we had to make four staff redundant, with one further redundancy in 2021.

The consequence of the Lockdowns - two in 2020 and a third in the first half of 2021 - has been additional costs for our shops, the loss of four months trading and much reduced turnover from June 2020 onwards from the reduction in high street footfall. Government Grants for the Retail Sector made it possible for us to retain the 11 shops we now have. And thanks to the sterling efforts of our staff and volunteers and huge help from our supporters we have been able to ride the storm and come out of it leaner and fitter. Whether our shops will return to overall profitability has yet to be seen; so we are, in the meantime, investing more effort into our online sales platform.

UK – Warehouse

We have been aware for some time that our Longton Warehouse was much bigger than our present needs. Negotiations with our Landlord to reduce our footprint did not bear fruit. So through the agency of a long-term supporter, we were able to lease a temporary warehouse from September 2020 on a peppercorn rent and to vacate the Longton site by mid-December with an agreed settlement with the Landlord.

Clearing the Longton site was a huge effort: we packed and sent four shipments overseas; we moved our furniture and records to our new Office in Croft Mill; and it gave us a great opportunity to recycle a large amount of materials that we couldn’t ship overseas in time. What remained then had to be transferred to our temporary warehouse. We are indebted to several supporters who helped with that and to our Warehouse Staff who worked tirelessly for several weeks to achieve the deadline imposed by our Landlord.

The loss of our permanent Warehouse combined with the Lockdowns has had a number of other consequences:

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

In 2020, despite the lockdown, we were able to pack and load 108.5 tons of high-quality humanitarian aid with a value of over £1,000,000. Much of this is for our own projects, but over 60% is in partnership with other charitable organisations, for whom we make available our expertise in managing shipments of aid.

Ukraine

Ongoing problems of corruption mean that many young Ukrainians are still leaving to work in other nations, although this has been curtailed somewhat by the Pandemic. But it is so encouraging to hear that many who were helped in the earlier years of our ministry in Ukraine are now fulfilling leadership roles in the ongoing work and in some cases founding ministries of their own, including such projects as Sports for Deprived Children, Hospital Visits, Romany Support, Poor Family Care, Orphanage Visits, Ex-Offenders programmes, Day Camps and Youth Outreach.

We reinstated full support for our ministries in Ukraine in June 2021. Our support for a number of Rehabilitation Centres and their associated self-help projects continues. and we have seen successes in concrete block-making, bakery, fish farming, agriculture.

The Family Sponsorship Programme has been fully reviewed and ongoing support focussed on those Families which need the greatest support, most of whom live in rural communities.

The home visits our volunteers make to the terminally ill are also invaluable; they are often the only visitors these people receive. But these were forbidden throughout Lockdown.

The three home children's centres and the seven orphanages that receive our support have also suffered through the epidemic as, again, we were not allowed to visit. This is really sad because the love and care has produced many thriving young adults. Some of these who came to us as unwanted children are now making a real difference in their own country. Our homes do a lot to help themselves with some small holding farming and fishing.

Our wedding boutique where young women from Doraghinka Foster Home sew the dresses was also closed by Lockdown measures. Our retirement home in Moltavilovka continues to be a real haven and sets a standard for others in the country - some residents even comparing it to heaven!

The IAT Shoebox scheme is another great way of reaching detached communities in the countryside and breaking the ice with village communities. Despite the constraints of Lockdown we were able to send 11,520 boxes in 2020 compared with 14,440 in 2019.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

Moldova

Our tremendous ministry here amongst some of the very poorest people in Europe is led by Pastor Victor who has six villages in his care. The aid we send has made a huge difference to these struggling families and we hope to increase the help we provide through Rose Foulds, a Trustee and one of our volunteer coordinators, who looks after Moldova for the Trust. The programme has been frustrated somewhat because of the often-changing regulations concerning humanitarian aid allowed into the country, and now the Lockdown. But we managed to send one shipment of aid towards the end of 2020.

Belarus.

The Government there have stopped us sending any further humanitarian aid and continuing difficulties with the authorities have forced us to cease work in Belarus.

Romania

Our close partnership with Prison Fellowship Romania has also been set back, after some great success. The work they do with some of poorest in the Transylvania region and other parts of the country is improving lives in so many different ways: health care, education and general living conditions. We don’t just help materially but also by encouraging recipients to take control of their own futures by self-determination and having pride and respect in their neighbourhood and nation. We have provided much-needed equipment, food, clothing, medical supplies, furniture, educational material and children's toys. So much is being achieved through this ministry and we see real tangible improvements each time we visit that encourages us to want to do more. It’s a wonderful and effective ministry that we shall continue to support.

India

The persecution of Christians, together with Covid, is affecting many churches throughout India. However, our work in six states was flourishing before the Pandemic, and it will be again. Our National Director, Bishop Kota, was leading a great and growing team of pastors, teachers and church planters and we have every faith in his leadership.

The Bible School program is now being done by Zoom, with several of the students gathering together a success in Secunderabad. A group of 12 graduates have been appointed as “Bible Master”. They will each teach 12 students and when these 12 have graduated more will be chosen to teach further groups of 12. It is progressing really well.

Since 2009 International Aid Trust India has been instrumental in establishing over 70 churches and 30 house groups throughout the south of India. Regular theological training was provided for the pastors through monthly seminars in Secunderabad and Hyderabad. And we are very hopeful of this ministry continuing to grow. We currently support over 30 pastors, but would love to be able to support more. In 2020 8 regional conferences for pastors were organised by Zoom meetings, involving over 150 pastors. More are planned for 2021.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

Some of ministry has had to cease completely because of Covid, and they include,

They were doing so well with limited resources and we hope to restart them as soon as possible.

Sierra Leone

Thanks to the tremendous support of a number of churches and grant-making trusts we have been able to continue full funding of all our projects in Sierra Leone.

Covid has so far not been as big a problem as it is other nations, and we thank God for that.

From small beginnings in 2010 our work in the Lunghi Region of Sierra Leone has grown tremendously. Our New Hope School has repeatedly been given accolades by the Education Authorities, and for the fourth year running came second out of thirty district schools and was awarded excellent marks. We now have some 360 plus students; whose level of attainment means they are often the highest performing children when they leave to go on to high school. The school also operates various after school clubs that are very popular and so much appreciated.

Our Family Sponsorship Programme now supports 30 families as well as a full-time Midwife, Marion. She holds ante-natal and post-natal clinics on site and also runs mobile clinics in the more remote areas. This is having significant impact on infant mortality rates.

Our “Hands of Dorcas” sewing project has brought a great deal of joy to those benefitting from it as well as to the teachers, staff and those of us who have visited and seen the change in these young women. The training takes up to two years and includes basic literacy and numeracy skills. The 2020 Trainees were able to make face coverings at the start of the Pandemic for all the staff and children in the school.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

Our New Hope Church is based at the school and has gone from strength to strength and is now highly respected within the community. Rev Michael, our director is very highly respected, as is his wife Alice who is our Headmistress of the school.

Our training of evangelist missionaries to reach out into remote areas is proving to be a very positive move. Small groups are now growing in nine other villages and townships.

Emmanuel House, our rescued children’s home situated about one mile from the school, was dedicated In March 2019. This project came in response to the big increase in orphans since the recent Ebola crisis. It is currently home to 28 orphan children with two house parents. On Wednesday evenings the main room is now used as a church for the local community, with about 80 people attending. We dug our own well in the grounds that also serves the local village. Here we also hold mobile clinics here led by our Midwife and Nurse.

Prison Ministries

Our ministry to prisoners in Ukraine has also had a serious setback from the Pandemic. But we hope to restart this work in the summer of 2021.

Future plans

The potential for more projects, particularly in India and Sierra Leone is truly enormous. But we have been severely limited in the last few years by lack of funds, particularly because of rising costs and reducing profits in our Charity Shops.

We are looking at various ways to diversify our fundraising and at what opportunities there are in the new economic climate to increase our ability to fund more work.

Acknowledgements

During the Lockdowns we have received so much help from our supporters. And with the economy re-opening gradually through 2021 we look forward to benefitting again from the efforts of around 500 volunteers in the UK and over a thousand volunteers overseas in our various ministries. Plus countless others who donated goods either to our charity shops in the UK or to our Warehouse for shipping overseas. Without all these we could not begin the work of showing Christian Compassion for a Hurting World.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

Financial Review

The results for the year and the financial position of the Charity as at 31 December 2020 are set out in the Financial Statements on page 14 to 28.

Over 80% of our income normally comes from the sterling efforts of the staff and volunteers in our charity shops. The Lockdowns as a result of the Covid-19 Pandemic have therefore had a disproportionate effect on our finances in 2020 and into 2021. Instead of a reasonably steady flow of income from 19 shops, we have had to depend on four different Government Grant Schemes for the largest part of our income. And when we have been allowed to reopen our shops, we have found income to be highly variable from week to week and from place to place - much of it driven by changes in footfall in different high streets. This has made any kind of forecasting somewhat challenging. And it has made us extremely cautious about how quickly to spend the Government Grants when we have little idea how long it will take for the Charity Shop Sector to recover.

At the time of the first Lockdown in March 2020 the recovery strategy adopted by the Trustees in 2016 and revised in 2018 was bearing fruit: our forecasts showed that we would eliminate our borrowing from restricted funds by the end of 2020. The Trustees monitored our financial situation through the second quarter of 2020 and, in the light of the impact of the Lockdown, agreed that we should accelerate much of the remaining actions in the recovery plan - making use of the Government Grants to ensure that we could bear the up-front costs of closing eight more shops and moving our Head Office to Croft Mill. We also concluded that, in order to secure the future of the Charity, we would have to suspend support of all our overseas projects other than those in Sierra Leone, where there was no prospect of locally sourced support in the meantime, and suspend payment of shop rents while our shops were forced to close.

These somewhat drastic measures have already borne fruit:

This has encouraged us to look at the long-term business model of the Charity and in particular at how we should fund our overseas projects in future. To that end we have recently engaged the services of an Operations Consultant and an e-Commerce Facilitator. And now that visits can resume, our Community Ambassador is setting up an intensive programme of visits to local churches and schools with a view to broadening our support base.

2020 2019 2018
Income £0.84M £0.99M £1.10M
Expenditure £0.75M £0.99M £1.09M

The position at the end of 2020 meant that the balance sheet position was £100,021 (2019: £13,963) and the free reserves of the Charity at year end -£11,816 (2019: -£42,165).

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

This seemingly amazing improvement does, however, give a somewhat distorted picture of our finances. We have taken full advantage of the Government-sponsored grants and loans available, including the Coronavirus Job Retention Scheme (so-called Furlough payments), and much of this has now been consumed in underpinning closed shops and - since they were allowed to re-open in April 2021 - shops which have not yet returned to profit. We also have a liability arising from non-payment of rent during the period our shops were forced to close, although several of our landlords have agreed to cancel some or all of this liability. Our latest forecasts suggest that our position at the end of 2021 will remain healthy, although our overall financial position will still be highly dependent on successful retail trading.

STRUCTURE, GOVERNANCE & MANAGEMENT

Governing Document

The organisation is a Charitable Company Limited by Guarantee. The Company was established in 2001 under a Memorandum of Association which establishes the objects and powers of the Charitable Company and is governed under its Articles of Association. In the event of the Company being wound up, members are required to contribute an amount not exceeding £10.

Recruitment and Appointment of Management Committee

The Directors of the Company are also Charity Trustees for the purpose of charity law and under the Company’s Articles are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the members of the Management Committee, the Trustees, are appointed by resolution of the present Trustees for a period of three years.

Trustee Induction and Training

The existing Trustees are already familiar with the practical work of the Charity, having been involved in various ways with the Charity before being invited to become Trustees. If there is any need for new Trustees to be given any training, this is arranged with the other Trustees. All Trustees have to have a DBS check before being admitted.

Reserves Policy

We channel as much of our funds to our overseas projects as possible, merely maintaining sufficient reserves to ensure day-to-day liquidity; but it is our desire to re-build our free reserves to cover one month’s salaries and rents; £62,300. Our free reserves are negative £11,816 at the year end. Please see note 20 for the Trustees’ comments on going concern. The Trustees believe the measures we have taken would have brought our free reserves in line with the policy by the end of 2020. However the Coronavirus Pandemic has introduced massive uncertainties, which may well mean it will take a year or more longer to achieve this.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

Risk Management

The Management Committee has conducted a review of the major risks to which the Charity is exposed. System and procedures have been established to manage the risks the Charity faces:

Principal Risks & Uncertainties Strategies to manage these Accidents in the Warehouse A local Health and Safety company assist and advise on best practice and conduct quarterly inspections.

Terrorism and piracy

All personnel travelling abroad carry adequate travel insurance and consult FCO advice.

Safety and integrity of Only trusted carriers and routes are used. Goods are only humanitarian aid shipments shipped to known and trusted recipients. Protection of children and All Trustees are DBS checked; and the Charity’s Child vulnerable persons Protection Policy is promulgated by appropriate signage. Property leases Leases are generally short term or with adequate break clauses.

Cash flow Sufficient reserves are held to maintain day-to-day liquidity.

Integrity of grants Grant-making criteria used in selecting recipients include: a. within the objects and current policies

Fundraising

We do not engage in traditional fundraising. Our approach has always been to build long-term relationships with supporters - both individual and corporate - who contribute to the work of the charity in a variety of ways, including monetary. Our new “Community Ambassador” role has been designed to build on this principally by visiting churches, community groups and schools to explain what we do and to encourage engagement in support of particular projects. Our charity shops are our principal means of raising funds by seeking to offer donated clothing and other goods for sale at competitive prices. Our shop managers take responsibility for ensuring that all customers are treated with care and respect; and several of our shops have benefitted from placements of vulnerable adult volunteers.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

We do not work with a professional fundraiser or commercial participator. Nor do we subscribe to any fundraising regulation scheme.

In 2017 the Trustees agreed a fundraising policy that applies to all staff and volunteers to ensure that all fundraising is done in sympathy with the aims and objectives of the charity and in line with the requirements of the 2016 Charities Act. Compliance with this is monitored by the Senior Management Team.

Organisation Structure

The Charity’s headquarters is in Lancashire, where there is an Office and a large Warehouse. There are also local area groups and representatives in other parts of the UK.

Day-to-day management is conducted by the CEO in conjunction with the Office Manager, Retail Manager, Warehouse Manager and Finance Manager. Significant decisions are reported to the Trustees, and all Trustees meet with the CEO at least four times each year.

The pay of staff other than the CEO is set by a panel of Trustees, who review pay levels annually and make recommendations to the Trustees. The pay of the CEO is reviewed annually by the Chair of Trustees.

National Directors are employed overseas who have many years’ experience in the humanitarian aid field.

Rev Bernard Cocker is also President of International Aid Trust in Ukraine through which projects are funded and maintained. In India we operate as New Jerusalem Ministries. IAT Sierra Leone has been registered as a charity in Sierra Leone. These charities have been constituted to simplify negotiations with government authorities, for aid shipments, ministry projects and charitable donations.

We raise funds through a network of 19 charity shops in the UK which sell goods predominantly donated by the public; but goods are also donated by private companies with permission to sell them.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees, who are also Directors of International Aid Trust for the purposes of company law, are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charitable Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant information of which the Charity’s independent examiner is unaware; and each Trustee has taken all steps that they ought to have taken as a Trustee to make themselves aware of any relevant information and to establish that the Charity’s independent examiner is aware of that information.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

SIGNED ON BEHALF THE BOARD:

Alexander Taylor (Chairman) ...................................................... Date: 15[th] September 2021

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INTERNATIONAL AID TRUST

REFERENCE & ADMINISTRATIVE INFORMATION

YEAR ENDED 31 DECEMBER 2020

Charity Name

International Aid Trust

Charity Registration Number

1086597

Company Registration Number

04167908

Registered Office and Operational Address

The Galleries, Croft Mill 43 Pall Mall Chorley, Pr7 3LT

Trustees

Mr A R Taylor Mr T D Leach Dr C Crawforth Mr P Cook Mrs Rose Foulds

Chair Health & Safety Representative

Senior Management Team

Rev Bernard Cocker CEO and Founder Mrs Alison Hammerton Office Manager Mrs Nina Haydon Retail Manager Mr Paul Hamilton Warehouse Manager – Resigned 7[th] May 2021 Mr David G Jones Finance Manager

Independent Examiner

Joshua Kingston BSc ACA, Burton Sweet Limited, Chartered Accountants & Business Advisers, The Clock Tower, 5 Farleigh Court, Old Weston Road, Flax Bourton, Bristol BS48 1UR

Bankers

Royal Bank of Scotland, Edinburgh Virgin Money, Lancaster Santander, Bootle

Solicitors

Blackhust Budd Solicitors, 22 Edward Street, Blackpool, FY1 1BA

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INTERNATIONAL AID TRUST

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

YEAR ENDED 31 DECEMBER 2020

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.

.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We draw attention to note 20 in the financial statements and the financial review in the Trustees’ report, which indicates that the charity has negative free reserves of £11,816. These conditions, along with the other matters (which include a review of future forecasts and post year end performance) as set forth in note 20, indicate that a material uncertainty exists that may cast significant doubt on the charitable company’s ability to continue as a going concern.

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 accounts to be reached.

Joshua Kingston BSc ACA Burton Sweet Limited The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Date: 15[th] September 2021

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INTERNATIONAL AID TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted Total Funds
Funds
Funds
2020
Note
£
£
£
Income from:
Donations and legacies
2
434,596
66,147
500,743
Other trading activities
3
336,480
194
336,674
Investments
106
-
106
Total income
771,182
66,341
837,523
Expenditure on:
Raising funds - gifts and donations
4
16,917
-
16,917
Raising funds - trading
4
496,559
-
496,559
Charitable activities
4
172,528
65,461
237,989
Total expenditure
686,004
65,461
751,465
Net income/(expenditure)
6
85,178
880
86,058
Transfers between funds
17
(14,869)
14,869
-
Net movement in funds
70,309
15,749
86,058
Reconciliation of funds:
Total funds at start of year
17
(22,763)
36,726
13,963
Total funds at end of year
17
47,546
52,475
100,021		 Total Funds
2019
£
208,912
786,410
47
995,369
22,434
634,104
333,636
990,174
5,195
-
5,195
8,768
13,963

The Charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing

The notes on pages 17 to 28 form part of these financial statements See note 9 for fund-accounting comparative figures

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INTERNATIONAL AID TRUST

BALANCE SHEET

----- Start of picture text -----
AS AT 31 DECEMBER 2020 Company number: 04167908
2020 2019
Note £ £
Fixed Assets
Tangible assets 10 59,362 19,402
Current Assets
Debtors 11 22,128 32,097
Cash at bank 160,111 15,127
182,239 47,224
Creditors : Amounts falling
due within one year 12 (97,413) (52,663)
Net Current Assets 84,826 (5,439)
Creditors: Amounts falling due
after more than one year 13 (44,167) -
Net assets 100,021 13,963
Funds
Unrestricted funds 18 47,546 (22,763)
Restricted funds 18 52,475 36,726
100,021 13,963
----- End of picture text -----

For the year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors responsibilities

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476,

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

These financial statements were approved by the trustees on 15 September 2021 and are signed on its behalf by:

……………..

Alexander Taylor Chair

The notes on pages 17 to 28 form part of these financial statements

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INTERNATIONAL AID TRUST

STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2020

Note
Net cash inflow from operating activities
15
Non-operational cash flows:
Investing activities
Payments for tangible fixed assets
Proceeds from the sale of fixed assets
Investment income
Financing activities
Loan increase/(decrease)
Net cash inflow for the year
16		 2020
£
148,315
(48,084)
480
106
(47,498)
44,167
144,984		 2019
£
11,252
(7,023)
600
47
(6,376)
(22,000)
(17,124)

The notes on pages 17 to 28 form part of these financial statements

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YEAR ENDED 31 DECEMBER 2020

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting policies

The charity is a public benefit entity as defined under FRS102.

There are material uncertainties related to the trading conditions of International Aid Trust that cast doubt on the charity's ability to continue as a going concern. The Trustees do still consider it appropriate to prepare these accounts on a going concern basis, see note 20 for further explanations.

I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods;

II. When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.

Donated services and facilities are included at the value to the charity if this can be quantified. The value of services provided by volunteers has not been included in these accounts.

Clothing and other items for resale through the charity's shops are recognised as income within other trading activities when they are sold due to the impracticalities of estimating the value of such stock items upon receipt.

Investment income is included when receivable.

Income from other trading activities is accounted for when earned.

A valuation for humanitarian aid received for distribution is excluded from the accounts due to a lack of a reliable estimate. An estimate is disclosed in the Trustees’ report but not recognised in the accounts.

Expenditure on raising funds comprise the costs associated with attracting gifts and donations and the costs of trading for fundraising purposes including the charity's shops and fundraising events.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and

Governance costs include the costs relating to meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity. These are included within support costs.

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INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (continued)

All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis as set out in note 4.

Redundancy payment expenditure is recognised at the point when employment is ended and when the amount is calculable.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Leasehold improvements - straight line over the length of the lease Shop and office equipment - 25% p.a reducing balance Motor vehicles - 25% p.a reducing balance

Assets with a cost exceeding £1,000 are capitalised.

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INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

2 Donations and legacies

Unrestricted
Restricted Total Funds
2020
£
£
£
Donations and legacies
92,093
61,462
153,555
Job retention scheme grants
116,835
-
116,835
Local restriction support grants
14,340
-
14,340
Retail, hospitality and leisure grants
195,000
-
195,000
Gift Aid
16,328
4,685
21,013
434,596
66,147
500,743
Prior year comparatives
Unrestricted
Restricted Total Funds
2019
£
£
£
Donations and legacies
107,054
61,340
168,394
Gift Aid
32,762
7,756
40,518
139,816
69,096
208,912
Income from: Other trading activities
Unrestricted
Restricted Total Funds
2020
£
£
£
Shop sales
316,216
194
316,410
Office & warehouse sales & recycling
credits
20,264
-
20,264
336,480
194
336,674		 Total Funds
2019
£
168,394
-
-
-
40,518
208,912
Total Funds
2019
£
741,242
45,168
786,410

3 Income from: Other trading activities

The prior year comparatives were all represented by unrestricted funds

19

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

Total expenditure
Grants (note 5)
UK staff costs
Subsistence & travel
Transport, ferries & documentation
Advertising & promotional expenses
Legal, audit & accountancy
Premises costs & other associated costs
Communications, IT, stationery
Transport, handling & processing costs
Depreciation and loss on disposal
Irrecoverable VAT
Bank charges
Exchange gain or loss
Prior year comparatives
Grants (note 5)
UK staff costs
Subsistence & travel
Transport, ferries & documentation
Advertising & promotional expenses
Legal, audit & accountancy
Premises costs & other associated costs
Communications, IT, stationery
Transport, handling & processing costs
Depreciation and loss on disposal
Irrecoverable VAT
Bank charges
Exchange gain or loss		 £
£
-
-
16,917
274,308
-
2,153
-
23
-
-
-
5,103
-
187,713
-
13,968
-
1,061
-
4,059
-
437
-
7,734
-
-
16,917
496,559
£
£
-
-
19,786
326,728
-
6,261
-
62
2,648
50
-
7,598
-
262,011
-
17,017
-
2,418
-
2,942
-
320
-
8,639
-
58
22,434
634,104
Raising funds - gifts
and donations
Raising funds - trading
Raising funds - gifts and
donations
Raising funds - trading		 2020
2019
£
£
£
£
£
-
65,276
-
65,276
104,050
41,832
16,917
-
349,974
415,931
794
219
-
3,166
6,811
5
23,344
-
23,372
26,568
-
-
-
-
2,698
1,033
1,103
3,450
10,689
13,207
46,527
10,308
-
244,548
346,591
1,840
2,125
-
17,933
22,277
18,172
6
-
19,239
37,735
2,709
877
-
7,645
4,334
89
94
-
620
472
974
295
-
9,003
9,415
-
-
-
-
85
113,975
120,564
3,450
751,465
990,174
2019
£
£
£
£
-
104,050
-
104,050
49,631
19,786
-
415,931
470
80
-
6,811
15
26,491
-
26,568
-
-
-
2,698
1,168
1,071
3,370
13,207
81,006
3,574
-
346,591
3,061
2,199
-
22,277
34,872
445
-
37,735
726
666
-
4,334
79
73
-
472
404
372
-
9,415
14
13
-
85
171,446
158,820
3,370
990,174
Collection, handling
& storage of aid
Overseas aid
deliveries, projects &
ministry
Governance
Charitable activities
Collection, handling
& storage of aid
Overseas aid
deliveries, projects &
ministry
Governance
Charitable activities

4 Total expenditure

20

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

5 Grants payable

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |IAT New Jerusalem Ministries|4,583|18,250| |IAT Good Samaritan Foundation Odessa, Bethany Church| |Minsk, Moltavilovka Church Kiev|14,083|35,733| |Sierra Leone New Hope School|44,525|41,350| |Various small recipients|2,085|8,717| |Total grants payable|65,276|104,050|

----- End of picture text -----

Of the grants made above, £500 (2019: £nil) relates to grants made to individuals; the remainder were grants made to institutions.

6 Net income/(expenditure) for the year

----- Start of picture text -----
||||| |---|---|---|---| |This is stated after charging:|2020|2019| |£|£| |Depreciation and loss on disposal|7,645|4,334| |Independent Examiner's remuneration|- independent examination|1,990|1,950| |- accounts preparation|1,460|1,420| |- other services|278|134|

----- End of picture text -----

No Trustees received any remuneration or were reimbursed for expenses during the year or during the prior year.

Donations from Trustees, key management personnel and related parties were £11,675 (2019: £24,776).

7 Staff costs and numbers

The aggregate payroll costs were:

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |Wages and salaries|329,716|393,258| |Social security costs|12,198|17,585| |Pension|3,346|3,702| |Redundancy payments|4,714|1,386| |349,974|415,931|

----- End of picture text -----

No employee received emoluments of more than £60,000.

The total employment benefits received by key management personnel were £118,735 (2019: £132,478).

21

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

7 Staff costs and numbers (continued)

The average headcount of staff during the reporting period was 28 (2019: 32).

In addition, a great amount of time, the value of which is not reflected in these financial statements, is donated by thousands of volunteers throughout the UK & abroad.

8 Taxation

The charity is exempt from corporation tax on its charitable activities.

9 Fund-analysis comparative figures

Unrestricted
Funds
£
Income from:
Donations and legacies
139,816
Other trading activities
786,410
Investments
47
Total income
926,273
Expenditure on:
Costs of generating funds
Raising funds - gifts and donations
22,434
Raising funds - trading
634,104
Charitable activities
199,894
Total expenditure
856,432
Net income/(expenditure)
69,841
Transfers between funds
(34,890)
Net movement in funds
34,951
Reconciliation of funds:
Total funds at start of year
(57,714)
Total funds at end of year
(22,763)		 Restricted
Funds
£
69,096
-
-
69,096
-
-
133,742
133,742
(64,646)
34,890
(29,756)
66,482
36,726		 Total Funds
2019
£
208,912
786,410
47
995,369
22,434
634,104
333,636
990,174
5,195
-
5,195
8,768
13,963

22

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

10 Tangible fixed assets

Leasehold
Improvements
£
Cost
At 1 January 2020
7,023
Additions
39,089
Disposals
-
At 31 December 2020
46,112
Depreciation
At 1 January 2020
-
Disposals
-
Charge for the year
-
At 31 December 2020
-
Net book value
At 31 December 2020
46,112
At 31 December 2019
7,023
11 Debtors
Other debtors
Prepayments & accrued income
12 Creditors: amounts falling due within one year
Trade creditors
Other creditors
Taxes and social security costs
Accruals & deferred income
Other loans
Bank loan		 Shop &
office
equipment
£
50,393
-
(12,211)
38,182
42,141
(11,238)
2,064
32,967
5,215
8,252		 Motor
Vehicles
£
36,219
8,995
(20,624)
24,590
32,092
(18,257)
2,720
16,555
8,035
4,127
2020
£
8,267
13,861
22,128
2020
£
4,281
55,332
3,517
3,450
25,000
5,833
97,413		 Total
£
93,635
48,084
(32,835)
108,884
74,233
(29,495)
4,784
49,522
59,362
19,402
2019
£
11,619
20,478
32,097
2019
£
10,203
1,193
5,897
3,370
32,000
-
52,663

23

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

13 Creditors: amounts falling due after more than one year

Bank loan 2020
£
44,167
44,167		 2019
£
-
-

The Bank Loan is a Bounce Bank Loan repayable over 10 years under the Government-sponsored Bounce Bank Loan Scheme.

14 Commitments

At 31 December 2020 the company had total commitments, under non-cancellable operating leases paid as follows:

Within one year
Between two & five years		 120,146
117,296
Land &
buildings		 Total
2020
£
120,146
117,296		 Total
2019
£
177,052
186,546

The operating lease payments recognised as an expense in the year amounted to £107,619 (2019: £245,496).

At 31 December 2019 the company had total commitments, under non-cancellable operating leases paid as follows:

Within one year
Between two & five years		 177,052
186,546
Land &
buildings		 Total
2019
£
177,052
186,546

15 Reconciliation of net movement in funds to net cash inflow from operating activities

Statement of Financial Activities: Net movement in funds
Investment income
Depreciation
Loss on disposal of tangible fixed asset
Movement in creditors: current liabilities
Movement in debtors
Net cash inflow from operating activities		 2020
£
86,058
(106)
4,784
2,860
44,750
9,969
148,315		 2019
£
5,195
(47)
4,334
448
5,264
(3,942)
11,252

24

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
16 Analysis of change in cash during the year
2020 2019 Change
£ £ £
Cash at bank 160,111 15,127 144,984
2019 2018 Change
£ £ £
Cash at bank 15,127 32,251 (17,124)
17 Movement in funds
At 1 Jan At 31 Dec
2020 Income Expenditure Transfers 2020
£ £ £ £ £
Restricted funds
-
Family sponsorship 1,913 19,043 (14,083) 6,873
- - -
Harvest orphanage 1,330 1,330
India 625 2,925 (3,583) - (33)
Sierra Leone New Hope School 23,169 37,919 (44,577) 17,499 34,010
-
Children's holiday camps 4,089 4,248 (3,000) 5,337
Philippines 612 - - - 612
Bibles 1,138 358 (1,000) - 496
- - -
Nepal 1,573 1,573
Reach International 1,993 500 (500) - 1,993
Small grants - 1,348 (1,718) 370 -
Small other funds 284 - - - 284
36,726 66,341 (65,461) 14,869 52,475
Unrestricted funds
-
Fixed asset designated fund 19,402 (4,784) 44,744 59,362
Free reserves (42,165) 771,182 (681,220) (59,613) (11,816)
(22,763) 771,182 (686,004) (14,869) 47,546
Total funds 13,963 837,523 (751,465) - 100,021
----- End of picture text -----

25

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

17 Movement in funds (continued)

Prior year comparatives

Restricted funds
Family sponsorship
Harvest orphanage
India
Sierra Leone New Hope School
Children's holiday camps
Philippines
Bibles
Nepal
Reach International
Small grants
Projects in Romania
Small other funds
Unrestricted funds
Fixed asset designated fund
Free reserves
Total funds		 At 1 Jan
2019
£
2,515
1,330
1,564
20,224
7,077
612
1,780
1,573
1,993
-
27,080
734
66,482
17,761
(75,475)
(57,714)
8,768		 Income
£
16,231
-
3,633
33,041
13,012
-
1,138
-
-
2,041
-
-
69,096
-
926,273
926,273
995,369		 Expenditure
£
(35,733)
-
(18,250)
(44,167)
-
-
(1,780)
-
-
(6,282)
(27,080)
(450)
(133,742)
(4,334)
(852,098)
(856,432)
(990,174)		 Transfers
£
18,900
-
13,678
14,071
(16,000)
-
-
-
-
4,241
-
-
34,890
5,975
(40,865)
(34,890)
-		 At 31 Dec
2019
£
1,913
1,330
625
23,169
4,089
612
1,138
1,573
1,993
-
-
284
36,726
19,402
(42,165)
(22,763)
13,963

Purpose of restricted funds

Family sponsorship - IAT's scheme linking sponsors in the UK to needy families and individuals in Eastern Europe.

Harvest orphanage - Orphanage in Sri Lanka for children orphaned by the 2004 Boxing Day Tsunami or from the Tamil uprising.

India (New Jerusalem Ministries) - Education, orphans and ministry to the poor across four states in Southern India, including sponsorship of a number of church pastors.

Sierra Leone New Hope School - Educating, feeding, health care and pastoral work in the community; sponsorship of a number of families; construction of homes for families to host children orphaned by the recent Ebola outbreak in West Africa.

26

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

INTERNATIONAL AID TRUST

17 Movement in funds (continued)

Children's holiday camps - Providing summer holidays for needy children in Ukraine. The transfer from this fund in the year was due to a donor giving permission for the funds they had donated over a number of years to be derestricted to other activities within the charity's objects. These funds were transferred to free reserves.

Philippines - Provision of humanitarian aid and relief of suffering caused by natural disasters in the Philippines.

Bibles - Provision of Bibles to India.

Nepal - Provision of humanitarian aid and relief of suffering caused by natural disasters in Nepal.

Reach International - a partner church working principally in Belarus to relieve suffering and poverty.

Small grants - small grants to needy individuals and families wherever we work.

Projects in Romania - support of partner charities in Romania, principally by providing warehouse and transport facilities for the shipment of humanitarian aid.

Small other funds - through donations and one-off donations which do not fit within existing funds. The transfer from this fund reflects costs incurred in our Warehouse in 2019 in support of a partner charity working in Mexico.

18 Analysis of net assets between restricted and unrestricted funds

Year-end 31 December 2020
Restricted funds
Unrestricted funds
Fixed asset designated fund
Free reserves		 Tangible
Fixed
assets
£
-
59,362
-
59,362		 Cash at
bank
£
52,475
-
107,636
160,111		 Other
Current
assets
£
-
-
(75,285)
(75,285)		 Long term
Creditors
£
-
-
(44,167)
(44,167)		 Total
£
52,475
59,362
(11,816)
100,021

27

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

18 Analysis of net assets between restricted and unrestricted funds (continued)

Year-end 31 December 2019
Restricted funds
Unrestricted funds
Fixed asset designated fund
Free reserves		 Tangible
Fixed
assets
£
-
19,402
-
19,402		 Cash at
bank
£
36,726
-
(21,599)
15,127		 Other
Current
assets
£
-
-
(20,566)
(20,566)		 Long term
Creditors
£
-
-
-
-		 Total
£
36,726
19,402
(42,165)
13,963

The total amount of cash at bank is £15,127 at the year-end with no overdraft utilised. The £36,726 reflects the total restricted fund balance and the (£21,599) reflects the cash balance borrowed from restricted funds.

19 Company limited by guarantee

The company is limited by guarantee and as such has no issued share capital. In the event of the company being wound up the liability of the members is limited to £10 each.

20 Going concern basis

At the time of the first Lockdown in March 2020 our recovery strategy was bearing fruit: our forecasts showing that we would eliminate our borrowing from restricted funds by the end of 2020. The Trustees remain confident that the impact of the Government-sponsored grants for which we have been eligible, combined with the measures we have taken in the last 15 months, will allow us to maintain that improvement throughout 2021 and beyond, and therefore consider it appropriate to continue to adopt the going concern basis in preparing these financial statements.

28