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2021-12-31-accounts

INTERNATIONAL AID TRUST FINANCIAL STATEMENTS 31 DECEMBER 2021

Company Registration Number 04167908 Charity Number 1086597

INTERNATIONAL AID TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

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 2021

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 2021. 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 2021

ACHIEVEMENTS AND PERFORMANCE

UK - Retail

For a Charity which has traditionally sought to fund about 80% of its work from funds raised by our Charity Shops, the last two years have been extremely challenging. It has convinced us to reduce our dependency on our retail operation, retaining only that which most successfully serves the objectives of the Charity. By the end of the third Lockdown in April 2021 we had reduced the number of our Charity Shops from 19 to 11 and had to bear significant one-off costs in so doing. Our Retail Manager then worked with the remaining 11 to optimise their performance, and this has paid off well, with the overall profitability of these 11 matching the overall profitability of the 19 we had two years ago.

We have also benefitted, since July 2021, from the services of enthusiastic eCommerce Manager. Our Charity Shops pass to him donated items which are unusual or potentially valuable and he has been able to raise funds through sales on eBay and Etsy at a profitability which exceeds that of most of our high street Charity Shops.

UK – Warehousing

For nine months, up until October 2021 we had occupied a temporary warehouse in Lostock Hall, near Preston Lancashire. This obviously helped us until we moved into another semipermanent site in the same complex. It is owned by the same landlord who has given us a very agreeable lease. We also have an extremely good relationship with landlord’s son who occupies part of the same building. Whilst we don’t have the luxury of space that the site at Longton provided we are paying circa £80K less. We had already planned to move offices to our new site in Chorley and these and these rental costs are also shown in this reduction. The lockdowns have affected us much in the same way as they the wider community.

Some examples are:

In 2021, 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.

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TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

Overseas

Like all other ministries, we have suffered through, and because of lockdown. But things are looking much brighter now, and much more positive. This is our 30[th] year anniversary and we did plan to have a celebration. But it has been delayed a little longer.

Ukraine

Most of our ministry in Ukraine has been affected by the invasion.

Russian forces invaded Ukraine on Thursday 24[th] February. A terrible day in history. But praise God that we had aid in our distribution centre south of Kiev and were able to respond quickly to some urgent needs. Very quickly we were able to mobilise our teams the length and breadth of of the nation. In the UK we issued an appeal for aid and volunteers and the response has been simply marvellous. Seeds that were sown in Churches and organisations years ago have borne fruit, and as of the 7[th] April we have collected, sorted, packed and transported thirteen 45 ft articulated lorries to help the people still in Ukraine, and also to the refugees fleeing the country through the bordering European nations (approx. 135 tons of aid). Over the past 30 years we have built up partnerships and friendships in all these nations. Helping, encouraging, and supporting them, and at the same time we have been able to found inter country relationships that have greatly helped with this terrible suffering. We have been given free use of warehouses on the borders just outside Ukraine so that our trucks have been able to unload there, and then the aid is transferred directly onto our own transport and taken to the many affected areas of need for distribution.

We have done several appeals on Radio Lancashire and some TV exposure. This has resulted in large amounts of aid donations, and large numbers of volunteers helping at our warehouse, and what a wonderful group of people they are. Over 700 pallets of aid have been processed by them – a superb effort all round.

All the leadership of the churches in Ukraine that we have, and partner within Ukraine, have stayed behind throughout, and the churches have stayed open. This has been a wonderful example and encouragement to all our helpers. We have been also been able to purchase two more mini-buses/vans to help with the distribution of our aid.

Lennie Fisher, one of our Trustees, has taken on the task of coordinating the Ukrainian refugee program, and he achieving some success after a slow start due to the UK visa delays.

Many young Ukrainians who left the country to find work have now returned to support the nation or join the military. This is so encouraging to hear that they have returned. And, many who were helped by us in the earlier years of our ministry in Ukraine are now fulfilling leadership roles in this ongoing work amongst the victims of war.

We continue to support our key workers in their various ministries.

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.

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TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

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 work in the children's centres and orphanages that receive our support have also continued to suffer 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 in the city of Fastow has survived because weddings are still being held. But where young women from Doraginka 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 International Aid Trust Shoebox scheme is another great way of reaching detached communities in the countryside and breaking the ice with village communities. Our “Virtual Shoe Box Project” has now been launched and it is looking very positive indeed. It works like this: Donors in the UK can choose online the age and sex of the recipient, and which country they want the box to go to. They then pay £15.00 for each box. We send the money to our trusted people who buy the items locally to fill the boxes. In Ukraine and India we can source the empty boxes locally.

In Sierra Leone they cannot source boxes so we have asked our Dorcas Sewing ladies to make back packs. These serve two purposes. They provide a back - pack full of very useful items, and the bag can be used for school or shopping afterwards. It also involves the local people in helping their own needy people. And it saves collection, storage, and transportation costs here in the UK. It’s so very positive.

Moldova

A 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. With the invasion of Ukraine pastor Victor immediatety began setting up a reception and rescue centre. We had a container of aid already planned.

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

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TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

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 try our best to continue to support.

India

The continuing persecution of Christians, together with the lockdowns, is affecting many churches throughout India. However, our work in six states was flourishing before the Pandemic, and it has started flourishing 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 continuing to be done by Zoom, with several of the students gathering together in various places. 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 2021 eight regional conferences for pastors were organised by Zoom meetings, involving over 150 pastors. More are planned for 2022.

Some of ministry has had to cease completely because of Covid, but now they are open again, and they include:

They are continuing to do so well with limited resources, and we hope to build on this success as finance allows.

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TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

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.

The Sierra Leone “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. And now they are making back packs for the gift project!

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 two miles from the school, continues to thrive. The vision and need came in response to the big increase in orphans following the 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 more than 80 people attending. We dug our own well in the grounds that also serves the local village. Here we also hold mobile clinics led by our Midwife and Nurse.

Prison Ministries

The prisons and correctional institutions in Ukraine have reopened allowing our ministry to prisoners to begin again. Again, we had also had a serious setback with the Pandemic but it is looking very positive once again. The aids hospital has also reopened its doors and we really do thank God that this valuable work has begun again.

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TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 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 with funding, exacerbated by the lockdowns. Now things are improving, and we look to building on what has been achieved over the years.

Our new offices in Chorley are well on the way to completion with plans to insulate the roof and lower the ceiling on the 1[st] floor before winter sets in again. We hope to obtain grants to complete the main open area and use it for the community. A lift is needed, a fire escape and a separate small prayer/ meeting room.

We are now actively planning for our High School in Sierra Leone. For several years now we have been asked to build a high school to cater for the students leaving our New Hope School.

At 11 -13 years of age they have to leave for high school and we lose them from our Christian family. Most of the high schools are Muslim run and Sunday is a work/school day. The time has never felt right. But recently the Holy Spirit spoke to me and said “now is the time”. So we will go ahead in faith. We also plan to begin using our Emmanuel House as a sixth form in September 2022 because the children who live there attend New Hope school during the day so the building is empty.

Acknowledgements

During the Lockdowns we have received so much help from our supporters and we are so very grateful. And with this wonderful support the positive spirit throughout the charity is clearly felt. Big thanks are also due for the efforts of around 250 volunteers in the UK and over a thousand volunteers overseas in our various ministries. Plus, countless others who have 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 this Hurting World.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

Financial Review

The results for the year and the financial position of the Charity as at 31 December 2021 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 therefore had a disproportionate effect on our finances in 2020 and 2021. Instead of a reasonably steady flow of income from 19 shops, we had to depend on four different Government Grant Schemes for the largest part of our income. Between Lockdowns, when our shops were allowed to be open, income was highly variable from week to week and from place to place. But, like most in the Charity Shop sector, when we were allowed to re-open our shops after the final Lockdown in April 2021, we experienced a huge surge in both sales and donations. After a few weeks this calmed down and income has returned to being reasonably steady.

The move of our Head Office to Croft Mill at the end of 2020 and the permanent closure of eight of our worst-performing shops have brought a big reduction in costs. Our objective to cover all our overhead costs and a proportion of our overseas work from the profitability of our shops is therefore being achieved again. And the remaining balance of the Government Grants has left us in a position to invest further in the business in order to expand our overseas projects.

2021 2020 2019
Income £0.80M £0.84M £0.99M
Expenditure £0.61M £0.75M £0.99M

The position at the end of 2021 meant that the balance sheet position was £289,247 (2020: £100,021) and the free reserves of the Charity at year end £132,031 (2020: -£11,816).

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.

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TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

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. It has always been our desire to cover one month’s salaries and rents, currently £42,500. As forecast last year, our free reserves recovered significantly through 2021 and were £132,031 at the year end. Whilst this is above the policy amount, it reflects provision set aside to support investment in our fundraising strategy and in further development of our new Headquarters to support its use for community engagement.

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 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 b. Past commitments and investment c. Previous successful relationship, to minimise risks of aid being diverted for uses outside our control or for fraudulent purposes.

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INTERNATIONAL AID TRUST

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

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 “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.

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.

In 2021 we signed a contract with Chell Perkins to advise us on our fundraising strategy and to support our grant application process. But all contact with the public is conducted by our own staff.

Organisation Structure

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

In 2021 we appointed an Operations Manager to take charge of all the UK-based work of the Charity and to free up our CEO to focus on supporter engagement and management of the overseas projects. Day-to-day management is therefore now conducted by the CEO in conjunction with the Head of UK Operations, Office Manager, Retail Manager and Finance Manager. Significant decisions are reported to the Trustees, and all Trustees normally 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. International Aid Trust 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 11 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 2021

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: 26 June 2022

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INTERNATIONAL AID TRUST

REFERENCE & ADMINISTRATIVE INFORMATION

YEAR ENDED 31 DECEMBER 2021

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 Chair Mr T D Leach Resigned 15/9/21 Dr C Crawforth Mr P Cook Mrs Rose Foulds Mr Lennie Fisher Appointed 15/9/21 Mr Stephen Hardman Appointed 1/2/22

Senior Management Team

Rev Bernard Cocker CEO and Founder Mr Philip Walker Operations Manager (appointed 22/6/21) Mrs Alison Hammerton Office Manager Mrs Nina Haydon Retail Manager 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 2021

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021.

.

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).

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, Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Date: 26 June 2022

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INTERNATIONAL AID TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted Total Funds
Funds
Funds
2021
Note
£
£
£
Income from:
Donations and legacies
2
285,302
112,854
398,156
Other trading activities
3
404,423
15
404,438
Investments
22
-
22
Total income
689,747
112,869
802,616
Expenditure on:
Raising funds - gifts and donations
4
15,471
-
15,471
Raising funds - trading
4
403,136
-
403,136
Charitable activities
4
92,595
102,188
194,783
Total expenditure
511,202
102,188
613,390
Net income/(expenditure)
6
178,545
10,681
189,226
Transfers between funds
17
(6,397)
6,397
-
Net movement in funds
172,148
17,078
189,226
Reconciliation of funds:
Total funds at start of year
17
47,546
52,475
100,021
Total funds at end of year
17
219,694
69,553
289,247		 Total Funds
2020
£
500,743
336,674
106
837,523
16,917
496,559
237,989
751,465
86,058
-
86,058
13,963
100,021

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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BALANCE SHEET

----- Start of picture text -----
AS AT 31 DECEMBER 2021 Company number: 04167908
2021 2020
Note £ £
Fixed Assets
Tangible assets 10 87,663 59,362
Current Assets
Debtors 11 29,653 22,128
Cash at bank 291,555 160,111
321,208 182,239
Creditors : Amounts falling
due within one year 12 (78,420) (97,413)
Net Current Assets 242,788 84,826
Creditors: Amounts falling due
after more than one year 13 (41,204) (44,167)
Net assets 289,247 100,021
Funds
Unrestricted funds 18 219,694 47,546
Restricted funds 18 69,553 52,475
289,247 100,021
----- End of picture text -----

For the year ended 31 December 2021 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 26 June 2022 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 2021

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		 2021
£
169,044
(34,659)
-
22
(34,637)
(2,963)
131,444		 2020
£
148,315
(48,084)
480
106
(47,498)
44,167
144,984

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

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INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

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

There are no material uncertainties about the charity’s ability to continue as a going concern, despite the significant uncertainty being caused by the worldwide COVID-19 crisis. Whilst the Trustees expect there to be a significant impact on the charity’s operations and reserves in the coming months and years, the charity has sufficient reserves to be able to meet these challenges.

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 those costs of an indirect nature necessary to support them.

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.

17

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

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.

18

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

2 Donations and legacies

Unrestricted
Restricted Total Funds
Funds
Funds
2021
£
£
£
Donations and legacies
72,859
104,716
177,575
Job retention scheme grants
68,252
-
68,252
Local restriction support grants
93,502
-
93,502
Retail, hospitality and leisure grants
-
-
-
Restart grants
24,003
-
24,003
Gift Aid
26,686
8,138
34,824
285,302
112,854
398,156		 Total Funds
2020
£
153,555
116,835
14,340
195,000
-
21,013
500,743

Prior year comparatives

Donations and legacies
Job retention scheme grants
Local restriction support grants
Retail, hospitality and leisure grants
Gift Aid		 Unrestricted
Restricted Total Funds
Funds
Funds
2020
£
£
£
92,093
61,462
153,555
116,835
-
116,835
14,340
-
14,340
195,000
-
195,000
16,328
4,685
21,013
434,596
66,147
500,743

3 Income from: Other trading activities

Unrestricted
Restricted Total Funds
Funds
Funds
2021
£
£
£
Shop sales
383,422
15
383,437
Office & warehouse sales & recycling
credits
16,051
-
16,051
Transport services
4,950
-
4,950
404,423
15
404,438
Prior year comparatives
Unrestricted
Restricted Total Funds
Funds
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
2020
£
316,410
20,264
-
336,674

19

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

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
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		 £
£
-
-
15,471
211,662
-
4,024
-
179
-
317
-
12,471
-
140,246
-
18,401
-
1,832
-
4,500
-
374
-
9,130
15,471
403,136
£
£
-
-
16,917
274,308
-
2,153
-
23
-
-
-
5,103
-
187,713
-
13,968
-
1,061
-
4,059
-
437
-
7,734
16,917
496,559
Raising funds - gifts
and donations
Raising funds - trading
Raising funds - gifts and
donations
Raising funds - trading		 2021
2020
£
£
£
£
£
-
102,100
-
102,100
65,276
29,326
15,471
-
271,930
349,974
4,373
699
-
9,096
3,166
22
52
-
253
23,372
134
80
-
531
-
1,349
1,746
3,750
19,316
10,689
10,796
2,283
-
153,325
244,548
1,913
3,134
-
23,448
17,933
13,987
-
-
15,819
19,239
557
1,301
-
6,358
7,645
46
108
-
528
620
995
561
-
10,686
9,003
63,498
127,535
3,750
613,390
751,465
2020
£
£
£
£
-
65,276
-
65,276
41,832
16,917
-
349,974
794
219
-
3,166
5
23,344
-
23,372
-
-
-
-
1,033
1,103
3,450
10,689
46,527
10,308
-
244,548
1,840
2,125
-
17,933
18,172
6
-
19,239
2,709
877
-
7,645
89
94
-
620
974
295
-
9,003
113,975
120,564
3,450
751,465
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 2021

5 Grants payable

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |IAT New Jerusalem Ministries|16,679|4,583| |IAT Good Samaritan Foundation Odessa and Moltavilovka| |Church Kiev|21,245|14,083| |Sierra Leone New Hope School|53,587|44,525| |Various small recipients|10,589|2,085| |Total grants payable|102,100|65,276|

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

Of the grants made above, £666 (2020: £500) 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:|2021|2020| |£|£| |Depreciation and loss on disposal|6,358|7,645| |Independent Examiner's remuneration|- independent examination|2,160|1,990| |- accounts preparation|1,590|1,460| |- other services|138|278|

----- 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 £50,976 (2020: £11,675).

7 Staff costs and numbers

The aggregate payroll costs were:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Wages and salaries|263,847|329,716| |Social security costs|5,136|12,198| |Pension|2,359|3,346| |Redundancy payments|588|4,714| |271,930|349,974|

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

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

The total employment benefits received by key management personnel were £88,648 (2020: £118,735).

21

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

7 Staff costs and numbers (continued)

The average headcount of staff during the reporting period was 20 (2020: 28).

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
434,596
Other trading activities
336,480
Investments
106
Total income
771,182
Expenditure on:
Costs of generating funds
Raising funds - gifts and donations
16,917
Raising funds - trading
496,559
Charitable activities
172,528
Total expenditure
686,004
Net income/(expenditure)
85,178
Transfers between funds
(14,869)
Net movement in funds
70,309
Reconciliation of funds:
Total funds at start of year
(22,763)
Total funds at end of year
47,546		 Restricted
Funds
£
66,147
194
-
66,341
-
-
65,461
65,461
880
14,869
15,749
36,726
52,475		 Total Funds
2020
£
500,743
336,674
106
837,523
16,917
496,559
237,989
751,465
86,058
-
86,058
13,963
100,021

22

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

----- Start of picture text -----
10 Tangible fixed assets
Shop &
Leasehold office Motor
Improvements equipment Vehicles Total
£ £ £ £
Cost
At 1 January 2021 46,112 38,182 24,590 108,884
Additions 15,159 - 19,500 34,659
- - - -
Disposals
At 31 December 2021 61,271 38,182 44,090 143,543
Depreciation
-
At 1 January 2021 32,967 16,555 49,522
Charge for the year 1,827 1,304 3,227 6,358
- - - -
Disposals
At 31 December 2021 1,827 34,271 19,782 55,880
Net book value
At 31 December 2021 59,444 3,911 24,308 87,663
At 31 December 2020 46,112 5,215 8,035 59,362
11 Debtors
2021 2020
£ £
Other debtors 9,765 8,267
Prepayments & accrued income 19,888 13,861
29,653 22,128
12 Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 22,243 4,281
Other creditors 42,567 55,332
Taxes and social security costs 4,304 3,517
Accruals & deferred income 3,750 3,450
Other loans - 25,000
Bank loan 5,556 5,833
78,420 97,413
----- End of picture text -----

23

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

INTERNATIONAL AID TRUST

13 Creditors: amounts falling due after more than one year

Bank loan 2021
£
41,204
41,204		 2020
£
44,167
44,167

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 2021 the company had total commitments, under non-cancellable operating leases paid as follows:

Within one year
Between two & five years		 70,600
83,596
Land &
buildings		 Total
2021
£
70,600
83,596		 Total
2020
£
120,146
117,296

The operating lease payments recognised as an expense in the year amounted to £109,708 (2020: £107,619).

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

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		 2021
£
189,226
(22)
6,358
-
(18,993)
(7,525)
169,044		 2020
£
86,058
(106)
4,784
2,860
44,750
9,969
148,315

24

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

16 Analysis of change in cash during the year
Cash at bank
Cash at bank
17 Movement in funds		 2021
£
291,555
2020
£
160,111		 2020
£
160,111
2019
£
15,127		 Change
£
131,444
Change
£
144,984
Restricted funds
Family sponsorship
Harvest orphanage
India
Sierra Leone New Hope School
Children's holiday camps
Philippines
Bibles
Nepal
Reach International
Small grants
Small other funds
Virtual Shoeboxes
Croft Mill Appeal
Unrestricted funds
Fixed asset designated fund
Free reserves
Total funds		 At 1 Jan
2021
£
6,873
1,330
(33)
34,010
5,337
612
496
1,573
1,993
-
284
-
-
52,475
59,362
(11,816)
47,546
100,021		 Income
£
11,765
-
7,610
57,218
530
2,950
1,125
-
500
-
-
1,187
29,984
112,869
-
689,747
689,747
802,616		 Expenditure
£
(19,186)
(1,330)
(19,124)
(53,587)
(1,818)
(3,862)
(499)
(1,573)
(500)
(166)
-
(543)
-
(102,188)
(6,358)
(504,844)
(511,202)
(613,390)		 Transfers
£
549
-
11,740
8,430
-
300
-
-
-
166
-
-
(14,788)
6,397
34,659
(41,056)
(6,397)
-		 At 31 Dec
2021
£
1
-
193
46,071
4,049
-
1,122
-
1,993
-
284
644
15,196
69,553
87,663
132,031
219,694
289,247

25

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

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
Small other funds
Unrestricted funds
Fixed asset designated fund
Free reserves
Total funds		 At 1 Jan
2020
£
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		 Income
£
19,043
-
2,925
37,919
4,248
-
358
-
500
1,348
-
66,341
-
771,182
771,182
837,523		 Expenditure
£
(14,083)
-
(3,583)
(44,577)
-
-
(1,000)
-
(500)
(1,718)
-
(65,461)
(4,784)
(681,220)
(686,004)
(751,465)		 Transfers
£
-
-
-
17,499
(3,000)
-
-
-
-
370
-
14,869
44,744
(59,613)
(14,869)
-		 At 31 Dec
2020
£
6,873
1,330
(33)
34,010
5,337
612
496
1,573
1,993
-
284
52,475
59,362
(11,816)
47,546
100,021

Purpose of restricted funds

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

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

YEAR ENDED 31 DECEMBER 2021

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS

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.

Small other funds - through donations and one-off donations which do not fit within existing funds.

Virtual Shoeboxes - Providing shoeboxes or bags to needy people in Ukraine, India and Sierra Leone using locally-sourced materials.

Croft Mill Appeal - Funding for upgrading our new Headquarters in Chorley to provide facilities for our supporters and for local community group use.

18 Analysis of net assets between restricted and unrestricted funds

Year-end 31 December 2021
Restricted funds
Unrestricted funds
Fixed asset designated fund
Free reserves		 Tangible
Fixed
assets
£
-
87,663
-
87,663		 Cash at
bank
£
69,553
-
222,002
291,555		 Other
Current
assets
£
-
-
(48,767)
(48,767)		 Long term
Creditors
£
-
-
(41,204)
(41,204)		 Total
£
69,553
87,663
132,031
289,247

27

INTERNATIONAL AID TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

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

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

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.

28