2021-03-31-accounts

Charity number: 1090274

THE DALITSO TRUST

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

THE DALITSO TRUST

CONTENTS

	Page
Reference and administrative details of the Charity, its Trustees and advisers	1
Trustees' report	2 - 11
Independent examiner's report	12
Statement of financial activities	13
Balance sheet	14
Notes to the financial statements	15 - 26

THE DALITSO TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees	K Densham, Chair
	S E Bennett, Vice Chair
	T Densham, Secretary
Charity registered number 1090274 Principal office 14 Wychall Park Grove Birmingham B38 8AQ Accountants Crowe U.K. LLP Chartered Accountants Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Bankers Lloyds TSB Black Horse House Medway Wharf Road Tonbridge Kent TN9 1QS Project directors T Husbands A Husbands

Page 1

THE DALITSO TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report and the financial statements for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) in preparing the annual report and financial statements.

Governing Documents

The Dalitso Trust is a U.K. registered charity, number 1090274 created in June 2001.

Objectives

The Charity was set up for the benefit of people in Malawi and bordering countries. The aim is to relieve poverty as well as to advance education and Christianity.

The Trust works in partnership with rural communities in Malawi to establish projects that engage, involve and develop the community. We aim to make these communities self-sufficient in the areas of our involvement to ensure that we provide sustainable solutions to local issues.

What we do

Community Health Education. Under 6 Educational play & parenting skills. Train Church leaders.

Who we work with

The Trust works with rural Malawians. We work with a Christian ethos and often through local churches. However, our work is inclusive and offered to all regardless of race, sex or religious beliefs. The team develop relationships that educate, equip and then support local communities and their leaders. The Trustees are aware that detriment and harm can arise from inappropriate forms of aid/development work. All work is evaluated to ensure this potential is minimised. The office in Malawi is rurally based in Malingunde.

This is how the DT team spent their time:

Activity	16/17%	17/18%	18/19%	19/20 %	20/21%
Church Leadership Training	19	20	20	22	25
Staff Training	17	18	18	18	15
U6 Happy Faces	19	20	22	25	35
Community Health Education	45	42	40	35	25

Review of Activities and Achievements

The start of April 2020 saw the Malawi Government planning its wider response to the Covid pandemic whilst recommending social distancing. A lockdown which included shutting schools and borders started in May lasting until September. In early May we managed to transition our work to become community based and outside in the fresh air where guidance allowed. Schools were shut again in a national lockdown from January to March 2021.

Dalitso Health – Community Health Evangelism (CHE )

CHE is a strategy developed by an organisation called Medical Ambassadors. This methodology enables organisations to work effectively with the poor, giving them choices to develop themselves, their families and communities if they so wish. CHE’s core values are essentially holistic and are strictly adhered to; community ownership, prevention, teaching, use of local resources, maturing leaders, multiplication and all built on community participation.

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

From April to August we finished off working in Kabzala, Chilibale, Kasakula and Mbanga communities. In September 2020 we started in the villages of Mbowera, Mbalame, Dzodzwe and Kapininga. We have a staff training team of 9 and 9 CHE volunteers to deliver health lessons to their neighbours. They taught 720 health lessons to different families this past year. Our main community emphasis this year with Covid challenges has been around schooling and pregnancy check-ups. Schooling can be a cultural challenge anyway, but with schools shut for 2 extended periods due to several lockdowns, getting children back in school was a priority. We are really pleased that 90% of children able to go to school have returned. Encouraging Mums was also a focus for our work, that they could confidently go to their local clinics for check-ups. We are thankful that 85% of Mums have gone for check-ups, after receiving Covid lessons from us to help dispel the fear that Covid is like Ebola in its severity and transmissibility.

Once again we have been able to award families a Healthy Home Award (HHA). 15 families received HHA One, 10 families HHA Two and 6 HHA Three.

We are developing our stock of hybrid goats. They have matured well and are strong and healthy. We are pleased that we have a baby kid, so we have gone from 3 to 4 goats. Our 10 hybrid rabbits have multiplied to 24 and 20 of these are involved in a village breeding programme in Kasamila village.

CHE continues to be a very powerful tool and in September as part of a team restructure it has been taught through our Happy Faces home visits to enable the wholistic and ‘joined up’ approach to the work.

Lipa ‘Before CHE I was always waiting for my parents to take care of me and my two children. After a lesson of how to improve life by using what we have, my mind came to its senses. I went and used manure in my field and we planted crops which did not need fertilizer. My life has changed with this new perspective and I am a blessing to my parents.’

Sara ‘I did not know about how HIV can transmit from a mother to her child. After learning this I reached out to my sister to help her take care of her baby. She is HIV positive and I wanted to support her at this important time of breast feeding, helping to ensure her baby stays negative. My sister and I had grown apart, so our relationship is changed, it is better than before. I thank God for all the CHE lessons in my community.’

Vern ‘I was blaming my community leaders that they are not doing anything for me to be rich. After a CHE lesson of needs assessment, I knew where I needed to start. So I took action concentrating on my family farming. This is the first time in 10 years my husband and I have had enough food for the whole year and not been hungry.’

Stuart ‘In the past my home and even my harvest was not cared for. I used to wonder why is someone in my family always sick? I was always busy taking care of someone who was ill and I didn’t have time to farm. We were the poorest family in our community. One day I participated in the CHE lesson prevention vs cure. I was shocked to calculate all the money we had spent to buy medicine, for the sicknesses I learnt that we could prevent. Now my home is admirable in my village. We have no sickness, so I have time to discuss development issues, rather than taking care of sick family members. I thank God for this new freedom.’

Levi ‘Before CHE I was irresponsible as I left every home responsibility into the hands of my wife. She had to feed me and care for our children. After a CHE home visit lesson, I felt challenged to really take ownership of my family. I started getting piecework and invested the money in farming. This has allowed us to provide for our family needs. Another blessing is I am now respected by my wider family and the community.’

James ‘I understood farming as a curse, so I was not putting any effort into it. I felt cursed and hopeless in my life. I then learnt the CHE lesson of managing my garden in God’s way. I now realise that farming is in part what God told people to do on this earth. This year I have been a good example to those around me by working hard and my harvest is good. I feel better and have peace about caring for our environment and those around us. I am also encouraging my friends to live in harmony with all things.’

Mercy ‘I have been burning bushes, cutting trees and I did not respect other people’s property. The environment around my home was not pleasing. After a CHE lesson on harmony with nature I was touched. I took initiative to make seedlings and I planted some trees to restore creation. I am learning to be a responsible citizen.’

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Victoria ‘I was failing to say my feelings to my husband and even to my friends. I could see things going wrong in my life, although I felt I knew the solutions. I was chosen to be a CHE, visiting my neighbours with health lessons. This was my first step to start expressing my views. This has been a benefit to my husband as we are now having good honest communication, while before we were not showing our true selves to each other.’

Beatty ‘Before CHE came to our village, women were not considered for any leadership, only men. After seeing me lead a CHE home visit lesson, men have started including us in village leadership. I am so thankful that women now can take a fuller part in my village.’

Judith ‘I thought that I can’t change and that poverty is normal since my parents and everyone in my community is poor. So when we started having CHE lessons, I discovered who I am and why am I in my community. Straight away I stopped renting out my fields to others and my outlook changed. People now see my focus on farming and using what I have. People ask me lots of questions as I had a bumper harvest, so I am able to share all I know with them. My life has completely improved because of CHE.’

Timothy ‘Before my wife started doing CHE we were struggling in planning our days, weeks and especially our farming. We just thought that planning is for those who are rich and educated. But my wife has helped our family through CHE to plan with the little we have. Now we are managing well as a family by using our farm produce and resources. We are happy to see that the little we have is becoming enough because we plan well. We are enjoying life more and have peace because we now have enough food.’

Mary ‘Due to CHE I have become aware that I have things to steward and look after, things that God has placed in my care. I have realized that I want to pass on a legacy to my grandchildren, so I think about what I can invest, not just spend.’

Ben ‘For my whole life I have been waiting for the Government or someone else to come and give me resources, the things that would develop my family. In day to day life I sat and did nothing so my life was going nowhere, as I did not even grow enough food for my family due to laziness. After learning a CHE lesson on ownership, it changed me and helped me to take some initiative. I now know that I have to choose to develop my own life, my family and also my community. For the first time ever we have grown more food than we need. I am so thankful to the CHE training team.’

Chabwalo ‘My wife and I are old now and we had been feeling forgotten by our community. We have a loss of relationships, but after a visit by the CHE team I have seen a change in our minds. We now know that we are a part of the community and have a role to play. Yes were are old, but we have been reminded of who we are and our true value. This has helped our stress and worry to reduce.’

Narda ‘Before I was growing local maize seed that I kept from year to year. In CHE we had lessons on crop husbandry and learnt about different types of seed. So this year my harvest was so large because I changed to a hybrid seed. Many people admired my crop. I become friends with the DT team as we share vision and even stories that are hidden.’

Dalitso Play – Free under 6 educational stay & play sessions

We have now been running Happy Faces for 9 years and in the past have tried to develop groups situated in the villages, outside of our building. This has finally happened due to Covid. The 2 sessions that were in our building have turned into 4 community groups seeing our numbers of children involved increase from 35 to 104. Due to the change in locations we have trained 4 women who are helping us to lead in their own villages.

Cecelia ‘Before HF I was not knowing what to do with my kids at home during school holidays. The HF team has taught me many games and activities which I can do. This changed the lockdown to a time of me learning to teach them as a Mum. It is a miracle as in the past I have found them to bother me as I had nothing to offer them. I am full of praises for this change.’

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Kilesi ‘In the past we only washed our hands to take food and the same water could be used for many people. In HF we have many family health lessons and help about the virus with things we did not know. I now have a tip tap at home which is helping to keep us safe. As I wash my hands regularly now, I do pray, express praises and my desire to draw close to Him.’

Sara ‘For many years I stayed away from people to be on my own. I was very worried of what people thought of me and how they looked at me. After hearing about a new HF group I decided to take my daughter. Taking part in the games and teaching showed me that I am a capable person. I realised I was thinking things which are not true. I have now made some friends and will not block my child’s learning. I am her first teacher and know that God has given her and me gifts for us to use. She is bright, clever and I am proud to help her learning.’

Rita ‘My daughter was having trouble in how to make friends and play with other children. After bringing her to Happy Faces she is changed. Her character has grown and she is now living in harmony with her friends. She likes to go to HF and it has made me happy to see her develop.’

Molly ‘In coming to Happy Faces I started to feel encouraged to teach my children at home. This new confidence has spread to the church, so I am able to do some teaching there too. I am enjoying that people can trust me’

Loni ‘I was thinking that to send a child to Happy Faces is a waste of time, that there is no point. But after attending, I realize that I was wrong and my child is very ready to learn and grow. We too are changing as our daughter is influencing us a family. We started to go to church on her request and we are growing spiritually.’

Tapiwa ‘I was confused that Happy Faces meets only once a week. I thought this is not enough time to invest in a child, but after attending one session, my mind was opened. I then realized that the key is me, for me to learn how to help my child learn. This is my new lifestyle.’

Gill ‘It was hard for me to help other people, but after I started attending Happy Faces I was changed. One Happy Faces day I was sick and could not go, so my friend took my son and helped him during the session. This kindness was amazing and I am now able to help people who are in need.’

Jaeyden ‘I used to see challenges in my community, but I would not have courage to speak about solving them. Happy Faces has helped me to know who I am. These days I am asking our community leaders lots of questions. I am no longer afraid of taking action toward community transformation.’

Chisomo ‘I was looking at my education background and that the village elders have never asked me to lead anything. My life slightly changed when I was given time to lead my fellow mums in a Happy Faces session. The same mums were messengers to our village of how I led them. Now the leaders are trusting me to lead a development group in our village. We are looking how we can positively change our village. Thank you Dalitso as I was identified and encouraged by the HF team!’

Gwen ‘I was thinking that am just a mere woman and my role is to only do chores at home. Volunteering to help lead Happy Faces has helped me to stand up as a leader in my community. There is a change in my family because my husband and I are now working together in partnership.’

Anis ‘I was struggling to think through and make good choices for my family. Since helping to lead at Happy Faces things have changed. My confidence has arrived and I have become happy. Even my husband is pleased as I am now able to organise and live confidently.’

Abi ‘I was so happy that as we stared HF my shy daughter started talking with other children. At home I had many challenges as I had never received any help or training to have knowledge and confidence. Through HF home visits I have learnt how to care for my children physically, emotionally and spiritually. I am so encouraged to be part of HF and tell all my friends to get involved too.’

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Kasi ‘A few months ago I was sick and given medication from the doctor. As soon as my body was feeling fine I stopped the course, then I got sick again. It is only now that we have learnt about taking the whole course of medicine I realise why I became ill again. I am telling my friends and neighbours to finish the whole course of medicine so they can be well.’

Miriam ‘I was living in stress as I was just surviving, things were very tough financially for my family. In my mind I thought that you need lots of money to run a business. I was privileged to participate in the lessons of small business. After the lesson I raised a very small amount of money and began to bake local cakes for sale. This is how my small business started and the stress in my life is much reduced. Thank you so much.’

Dalitso Leaders - Church Leaders Training

Follow Me (FM) are free part time Christian leadership courses. Each one lasts a year and equips local church leaders from any denomination. We were running 6 Follow Me courses and then the lockdown came. People were fearful to meet even distanced and outside so all our courses were cancelled. In September we started 2 new locations, teaching FM1 in Mselera and Shawa. We currently have 23 students and are training 7 people to help lead.

Andrew ‘I am now in FM3 and for many years I had no interest or idea of what was going on here at Dalitso. Time came that I was invited to be part of FM and it shocked my heart to see how delicious it is to have FM in my life. I am now in my 3rd year of learning and being part of this Follow Me family – I sometimes wonder why I delayed before joining this family. Above all I now know God loves the whole church, every denomination, before I could not be open to others or care for them. We are all part of the same body.’

Patricia ‘I am in FM 2 and these books have helped change my life from the old one I was living. As I look back I was thinking about myself all the time and not considering others. Even in my personal life I was not paying attention to caring for myself or my family. These things have changed greatly and I have a new mind – I seemed so ignorant before, so I am really changed. The chapter called ‘The Leaders Family’ has been my favourite and born so much fruit in my life.’

Kaluwa ‘Before I starting Follow Me I was wondering how God makes someone to be a leader. So as I went through this topic of leaders call and a desire to share the gospel became very strong within me. So I have started sharing and I know some people will respond and come to faith. This has been my journey into leadership’

William ‘Before Follow Me I did not know the work of the Holy Spirit. This course has opened up my mind and to learn about Pentecost. Now I accept the Holy Spirit in my heart and look to His leading in my life.’

Dell ‘I have been reading and hearing the Bible, but I had no idea of what Pentecost means. I so enjoy being part of FM1 and now know I am friends with the Spirit.’

Mrs Banda ‘I used to think that only the Pastor or Elders were gifted by God. I have come to know that we all have gifts given to us to share and build each other up. I realise my gift is encouragement through singing and worship. Thank you so much for Follow Me to help me know who I am.’

Rose ‘Being the wife of a pastor I have lots of experience in serving people, but I lacked Bible knowledge, so Follow Me is an answer to my life. In the past I never knew where to start reading and that question was always with me. FM changed this, I now know how the Bible is structured and the 4 gospels are very dear to me. This is my new life that I know I can find Jesus in the gospels and meet Him there.’

Salome ‘Before I did not know that each person has giftings and that these come from God. I thought it is just the pastor who is gifted with preaching and serving. I have learnt through Follow Me that God calls us all to use our gifts to serve Him and each other. I now have confidence that I am called to serve and to be a blessing. I am sharing my faith and know that God is with me.’

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Moses ‘In the past I was very focussed on other people’s weakness and I would react whilst blaming them. God has used Follow Me to meet me and reveal my heart. I have learnt that I am weak in judging others and I have been making a lot of mistakes. The challenge before me is to respond in love, letting the Bible encourage and renew me.’

FM is also being used in other parts of Malawi, Zambia and Mozambique too. We did not have any training for this group this year due to Covid. The 5 other groups in Malawi that we helped start have 61 students.

In 2019 some of the team were trained Discipleship Making Movement training. This training uses the Discovery Bible study tool, bringing useful skills to help them teach and facilitate FM. After one year of starting these groups we now have 6 with 40 participants. 7 people have been trained to help lead these groups. The amount of miracles is quite staggering and the level of faith and expectancy within the groups is very high. We have seen 171 miracles in the 6 groups and 12 salvations.

June ‘Before I started attending this group I did not really know about the church. I thought it is the building and a place to go. Now I realise that it is me and when we meet in smaller groups or at our building.’

Sarah ‘Before being a part of this group I never expected that God actually changed people’s lives. I was having serious problems with my husband as he was living his own life with no regard for me. I shared with the group and we prayed. Two weeks later so much had changed, my husband is made new. We are properly together now and he is even taking me to Church. My new life is that I have confidence that God does change people’s situation.’

Len ‘Before this group I was not interested to pray for people. At the end of every session we have time to pray for each other. One time my back was healed and Pat asked me to pray for a lady in the group who was also sick – she was healed too! Amazing, I was so encouraged to see that God used me. I have prayed for the sick in my village and they have been healed on the spot, so now when anyone is ill someone always comes to get me.’

Vicki ‘My husband divorced me 2 years ago and we have had no communication since. In the group I shared about this and my desire for communication, so my friends prayed for me. The next day he rang me, which is an amazing miracle to me. So we are now communicating.’

During the year we were able to run 3 weekends of Kingdom Expansion when restrictions allowed. 8 FM students helped the team serve and train people from local churches in prayer and healing. Teams visit homes and pray for the sick. Last year 51 people were trained during this time 146 people experienced healing and 90 people came to faith.

Jerry ‘I have been feeling depressed and with no peace in my life. My heart has been beating so very fast so I asked for prayer. It took two prayers, but I found myself healed and without any issues. Only God could have done this miracle, so I will be joining a Church.’

Joy ‘I was struggling with bad stomach pain. Prayer was offered at Kingdom Expansion and in that moment the pain went off my stomach. I cannot doubt, because of what God did to me.’

Matthew ‘I was very sick and fearful that that I would die. I had severe stomach pain and could not eat. A group of people prayed for me and my health turned around straight away. This is the 2nd miracle I have received from God and this time I am going to respond to Him.’

Charity ‘Somehow I managed to get a seed in my eye. I was in pain for 2 weeks and had tears everyday as it would not come out. A group prayed for me and at that very same time my eye became perfect again. I thank God that I am now able to see.’

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Daniel ‘There was Kingdom Expansion in our village. Unfortunately I was away, but when I returned I saw some very strange things. People with no previous interest in God were talking about miracles and many people joined the Church. Sick people are now well and marriages that were full of pain have been healed. Thank you Dalitso for serving us.’

Darcy ‘I have had a problem with a friend in my village. We have become enemies through a misunderstanding, even though I have tried to talk to her several times. This issue was in my mind and I could not find peace. I shared this with a Kingdom Expansion team and they prayed for me and my situation. My heart was changed in that moment and I sensed some freedom. Since then I have talked to her and we have agreed to move forward. I thank God for this success.’

Mando ‘I really enjoy Follow Me and Kingdom Expansion weekends. It increases my faith as we pray and share seeing God move. It is a shame to pause these activities due to Covid.’

Beth ‘Both Follow Me and Kingdom Expansion build me up and I enjoy them so much. In the past I never shared or prayed with people. It happened that I was ill and Jameson prayed for me at home. I was then invited to a KE weekend and it strengthen my faith. Now I pray for people and share my faith. I miss KE due to Covid and look forward to starting again when things are safe.’

Rideson ‘I love Kingdom Expansion as I am able to serve other people and be served at the same time. I enjoy the opportunity from DT team share a message during the celebration service. I would be so happy for Kingdom Expansion to be every week!’

At the start of 2021 Jameson and a few volunteers started using the Jesus at the Door card at the market one day a week. 3 people came to faith, there were 19 healings and 3 marriages have been restored.

Ruth ‘My first husband and I separated as he was away working in South Africa. I have been married 3 more times and it didn’t work. In my heart I realised I wanted to reconcile to my first husband. We have not had any communication for over 3 years. Jameson prayed with me as I needed a miracle. He encouraged me to trust God and tell Him what is in my heart. I did that with many tears. Amazingly I am now in good communication with my first husband. I am thankful and know that God heard my prayers.’

Bron ‘One day I had a great argument with my wife and I bit her. Relatives and neighbours then attacked me and took me to the police station. After being released I met Jameson as I was in the barber shop talking to my friend. As I talked about the situation I was surprised to hear Jameson’s questions because they helped me to think and realise my problem. I was challenged that I do want to love my wife and build her up. He then prayed for me.’

Pikeni ‘My wife and I were struggling as we could not agree in many areas of our life together. I was thinking of suicide which contributed to my crazy thinking, sometimes I behaved as if I was mad. One day I met Jameson and he had a picture of Jesus at the door. He prayed with me, but I did not share my family challenge. I decided to invite Jameson home, so I was able to share and pray some more. My wife and I then started to experience peace and harmony together. Unfortunately she recently died, but I cherish the peace and love we were sharing.’

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Resource Centre

We signed a Memorandum of Understanding on March 4th 2020 with Lilongwe Water Board (LWB) for the compulsory purchase of our building and most of our plot. We received the full payment on May 12th 2020. In anticipation of this payment in April a local architect designed a large building for us, split into 3 sections, each section with 2 rooms. The aim was that Happy Faces, Follow Me and an office area could all have their specific rooms.

The building is located on a plot of land we already owned and were using as access to our previous plot. This sites is located just outside of the proposed LWB development.

In June we are able to buy a small lorry to transport local building materials such as gravel, sand and timber and also supplies like cement from Lilongwe. A local Foreman and a team of builders were hired and managed by Chippo, Rhodess and Paterson.

In April 2021 we were able to move in to the new building as the last few finishing touches are done and the new toilet block is being finished off too. The building project has been a big success, the hard work of the team and their dedication to go from plans to construction being able to move in within a year is outstanding. As our old building was being disconnected from the electricity supply the electricity company used our previous meter to connect our new building. This can take months and year, so we are thrilled that was able to happen.

Visitors

There have been no visitors due to the Covid pandemic. We have however been able to use Zoom to our advantage by having people interacting with team, especially with Rhodess, Chippo and Paterson. This has been a blessing to get more people involved by sidestepping the time and costs needed to travel to Malawi. We are thankful the team have been able to have training and conversations with Bill Dixon, Mark Harbour , Nick Sutton, Nicola and David Bass , Brian and Val Marriott, Kevin and Erica Pippert.

Covid

In April 2020 to follow local government social distancing advice all our work moved out of our building and outdoors. This allowed us 2 weeks to finish each of our projects well as the country prepared for a national lockdown of businesses, shops and schools. CHE produced a set of Covid lessons about the virus which we were able to teach and deliver to each community.

In September after the first lockdown we were able to open again and carry one with all our work outside and in the community.

Frontline health staff have received the vaccine in Malawi. We hope that there will be a wide vaccine roll out in Malawi as soon as possible.

Looking ahead there are currently strict criteria for entry into Malawi due to Covid. A Malawian passport is needed or a Residency Visa. Being able to travel to Malawi as a regular visitor still looks quite a long way off, so it is difficult to plan when future trips may be possible.

Our priority is to keep everyone safe and to keep up with government guidelines and good/safe practice

Future Planning

In April 2021 we plan to take down our old building and store elements that we may be able to use in the future. The new building will be finished off with painting and the electrical wiring of 2 sections.

The past 18 months has been turbulent and we aim to settle into this new rhythm of community work which has been such a blessing during a challenging time.

We have a 9 acre plot further upstream in Mbalame that we will start to secure the boundaries of later in the year. Our aim is that in the longer term this will become our training and retreat centre. We hope to develop further plans of how the site can be developed towards the end of the year and in 2022

The purchase of a vehicle to replace the Hilux was due to take place in late 2020, but due to lockdown and limited international travel this will be reviewed on an on-going basis. We thank the Grace Foundation for their gifts in this regard.

With a possible third wave of Covid and international travel being restricted it is impossible to predict when trip to Malawi will resume and when they can be done safely. Zoom is working well and we will maintain management meetings and training sessions using the platform.

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Governance

Organisational Structure

A U.K. based board of Trustees oversee the activities of The Dalitso Trust. The Trustees are responsible for policy decisions and there is regular contact with the directors.

Thomas and Alison Husbands (the Directors) run The Dalitso Trust day to day. They oversee Chippo Chale from the U.K., as he leads the team in Malawi. The Senior Leadership Team in Malawi is Chippo, Patterson Staiford and Rhodess Abel.

Employed staff consists of one U.K. employee and in Malawi, Malawi nationals comprising 16 staff members and 33 volunteers.

Finances

The Trust’s income this year has remained stable with sufficient reserves in place.

Principal Funding Sources

The Trust’s funding base is mostly relational and we encourage people to visit Malawi to see the work. We have a core group of individuals/families who give monthly and 5 partner churches. The pandemic has caused us to evaluate our income and we have had discussions between trustees, staff, our book keeper and partner churches. Our judgement based on the effect of the 2008 financial crash and these conversations is that we do not believe that the Trust’s income will be significantly affected. A revised budget was drawn up to highlight areas where some savings of 10 to 20% could be made to add a small buffer if needed. We are monitoring finance levels carefully and at the time of signing this report the Trust’s income has remained stable and in line with our predictions. We are aware Covid support from the U.K. government finishes in a variety of forms in September 2021 and this diligence needs to be maintained to see the effects on the economy and our support.

Investment Policy

Capital expenditure is limited to the requirements in Malawi. Historically the bulk of this has been for vehicles, land and buildings. We rely on raising sufficient finances for our needs and we have not entered into any borrowing arrangements.

Risk Management

Risks are regularly reviewed and discussed amongst the Malawian team and the trustees.

Reserves Policy

The Trust reserves policy is reviewed annually and the current reserve range is set to £16,500 to £20,500. The Trust has also set aside a further £20,000 which is earmarked to be put towards a new vehicle. The remaining balance is provisionally earmarked to finishing the Malingunde building project £4,500 and phase 1 of the Mbalame plot development £105,000.

Related Parties

Book keeping and administration of the day-to-day U.K. banking is undertaken by Birmingham Vineyard. We thank them for their continuing support.

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THE DALITSO TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Trustees are recruited with a view to what they can bring to The Dalitso Trust bearing in mind the mix of skills within it. Trustees are recruited by word of mouth and by direct approach to people who possess the appropriate skills and support the values of Dalitso.

New Trustees are given a briefing on the role of a Trustee and the current Trustees bring them up to date on the position of The Dalitso Trust. Copies of all relevant information are provided (such as Financial Statements, Trust Deed, copies of minutes of trustee meetings, guidance from the Charity Commission on the role and responsibilities of a Trustee). Questions are actively encouraged and all Trustees have direct access to the SLT in Malawi.

Approved by order of the members of the board of Trustees on ................ and signed on their behalf by:

................................................

K Densham Chair of Trustees

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THE DALITSO TRUST

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021

Independent Examiner's Report to the Trustees of The Dalitso Trust ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2021.

Responsibilities and Basis of Report

As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

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

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

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

1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

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

3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed:

Dated:

Kerry Brown FCA

Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

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THE DALITSO TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note Income from: Donations and legacies 4 Other trading activities 5 Investments 6 Total income Expenditure on: Charitable activities Total expenditure Net income/(expenditure) before net gains on investments Net gains on investments Net income/(expenditure) Transfers between funds 14 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Restricted funds 2021 £ 11,260 - - 11,260 355 355 10,905 - 10,905 (1,975) 8,930 - 8,930 8,930	Unrestricted funds 2021 £ 50,178 6 16 50,200 46,571 46,571 3,629 106,574 110,203 1,975 112,178 81,556 112,178 193,734	Total funds 2021 £ 61,438 6 16 61,460 46,926 46,926 14,534 106,574 121,108 - 121,108 81,556 121,108 202,664	Total funds 2020 £ 46,435 - 8 46,443 49,144 49,144 (2,701) - (2,701) - (2,701) 84,257 (2,701) 81,556

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 - 26 form part of these financial statements.

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THE DALITSO TRUST

BALANCE SHEET AS AT 31 MARCH 2021

2021 Note £ Fixed assets Tangible assets 11 52,872 52,872 Current assets Debtors 12 - 789 Cash at bank and in hand 151,957 26,570 151,957 27,359 Creditors: amounts falling due within one year 13 (2,165) (2,668) Net current assets 149,792 Total assets less current liabilities 202,664 Net assets excluding pension asset 202,664 Total net assets 202,664 Charity funds Restricted funds: Restricted funds 14 8,930 - Designated funds 14 129,500 - Unrestricted funds 14 61,846 72,004 Revaluation reserve 2,388 9,552 Total unrestricted funds 14 193,734 Total funds 202,664 The financial statements were approved and authorised for issue by the _______and signed on their behalf by:

2020 £ 56,865 56,865 24,691 81,556 81,556 81,556 81,556 81,556 Trustees on

K Densham

Chair of Trustees

The notes on pages 15 - 26 form part of these financial statements.

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The Dalitso Trust is a charity registered with the Charity Commission in England and Wales.

The Charity's registered address is 14 Wychall Grove, Birmingham, B38 8AQ.

The Charity has been established for the benefit of persons in Malawi and bordering countries particularly to advance the Christian religion, to relieve poverty and to advance education.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Dalitso Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

Due to the Covid-19 pandemic the trustees have been closely monitoring the regular giving that supports the Trust. This was highlighted as an area of concern, however there have not been any significant changes in giving during the last year. This combined with the world adjusting to the pandemic the trustees feel that there is no longer a particular risk to regular giving. The Trust also currently has a significant cash reserve due to compensation from the compulsory purchase of our building and most of our plot by the Lilongwe Water Board. As a result, the trustees have a reasonable expectation that the Trust will continue in operational existence for the foreseeable future. Therefore, they continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.4 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.6 Tangible fixed assets and depreciation

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold land - Not depreciated - Freehold buildings 2% straight line Motor vehicles - 25% reducing balance - Fixtures and fittings 15% reducing balance

2.7 Revaluation of tangible fixed assets

The charity has adopted the revaluation model to revalue items of property whose fair value can be measured reliably. The revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. The fair value of items of plant and machinery is usually their market value determined by appraisal.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity.

2.8 Financial instruments

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at transaction price.

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

There are no complex financial instruments

2.9 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.10 Role of Volunteers

The charity relies on the efforts of its volunteers. The value of these volunteers is not incorporated within the accounts.

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

i) Valuation of freehold land (see note 9). ii) Residual value of freehold buildings (see note 9).

4. Income from donations and legacies

Donations Gift aid on donations Total 2020	Restricted funds 2021 Unrestricted funds 2021 £ £ 11,260 48,757 - 1,421 11,260 50,178 - 46,435	Total funds 2021 £ 60,017 1,421 61,438 46,435	Total funds 2020 £ 46,435 -
			46,435

5. Income from other trading activities

Income from fundraising events

	Unrestricted	Total	Total
	funds	funds	funds
	2021	2021	2020
	£	£	£
Fundraising Income	6	6	-

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Investment income

Unrestricted funds 2021 £ Investment income 16 Total 2020 8	Total funds 2021 £ 16 8	Total funds 2020 £ 8

7. Analysis of expenditure by activities

Leadership Training CHE Under 6's Total 2020	Activities undertaken directly 2021 £ 7,592 4,554 7,593 10,627 30,366 31,184	Support costs 2021 £ 5,433 2,225 3,709 5,193 16,560 17,960	Total funds 2021 £ 13,025 6,779 11,302 15,820 46,926 49,144	Total funds 2020 £ 13,120 8,313 16,164 11,547
				49,144

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Leadership 2021 £ Staff costs 4,549 Depreciation 652 Project expenses 1,035 Travel expense 1,267 Education fund expenses 89 7,592 Total 2020 6,857 * Community Health Education	Training 2021 £ 2,729 391 621 760 53 4,554 5,613	CHE 2021 £* 4,550 652 1,035 1,267 89 7,593 10,916	Under 6's 2021 £ 6,370 912 1,449 1,772 124 10,627 7,798	Total funds 2021 £ 18,198 2,607 4,140 5,066 355 30,366 31,184	Total funds 2020 £ 16,694 202 8,569 5,719 -
					31,184

Analysis of support costs

Staff costs Depreciation Travel expenses Office expenses Governance costs Total 2020	Leadership 2021 £ 3,309 47 - 354 1,723 5,433 6,263	Training 2021 £ 1,985 28 - 212 - 2,225 2,700	CHE 2021 £* 3,308 47 - 354 - 3,709 5,248	Under 6's 2021 £ 4,632 66 - 495 - 5,193 3,749	Total funds 2021 £ 13,234 188 - 1,415 1,723 16,560 17,960	Total funds 2020 £ 12,767 222 183 1,821 2,967
						17,960

• Community Health Education

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Independent examiner's remuneration

The independent examiner's remuneration amounts to an independent examiner fee of £1,500 ( 2020 - £1,500 ).

9. Staff costs

Wages and salaries Pension Costs	2021 £ 29,355 2,077 31,432	2020 £ 27,494 1,967
		29,461

The average number of persons employed by the Charity during the year was as follows:

UK based staff Malawi based staff	2021 No. 1 14 15	2020 No. 1 13
		14

No employee received remuneration amounting to more than £60,000 in either year.

Key management personnel of the organisation comprise of trustees and project directors. One member of key management was remunerated for their services to the organisation. The total amount of employee benefits paid to key management personnel were £22,700 (2020: £19,800).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. Tangible fixed assets

Cost or valuation At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Freehold property £ 55,000 30,572 (41,250) 44,322 - 480 480 43,842 55,000	Motor vehicles £ 36,495 9,480 - 45,975 35,889 2,127 38,016 7,959 606	Fixtures and fittings £ 4,711 - - 4,711 3,452 188 3,640 1,071 1,259	Total £ 96,206 40,052 (41,250)
				95,008
				39,341 2,795
				42,136
				52,872
				56,865

Included in land and buildings is freehold land at valuation of £6,875 (2020: £27,500) which is not depreciated. The estimated residual value of the buildings is considered to be equal to the valuation of the buildings and the depreciation charge is therefore £Nil (2020: £Nil).

The carrying amount under the cost model of the assets which have been revalued would have been £11,362 (2020 - £45,448) .

12. Debtors

Due within one year Prepayments and accrued income	2021 £ - -	2020 £ 789 789

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Creditors: Amounts falling due within one year

Other creditors Accruals and deferred income	2021 £ 605 1,560 2,165	2020 £ 743 1,925
		2,668

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds

Statement of funds - current year

Designated funds Vehicle Malingunde building project Mbalame plot development General funds General Funds - all funds Revaluation reserve Total Unrestricted funds Restricted funds Education Fund Vehicle Fund Total of funds	Balance at 1 April 2020 £ - - - - 72,004 9,552 81,556 81,556 - - - 81,556	Income £ - - - - 50,200 - 50,200 50,200 1,260 10,000 11,260 61,460	Expenditure £ - - - - (46,571) - (46,571) (46,571) (355) - (355) (46,926)	Transfers in/out £ 20,000 4,500 105,000 129,500 (120,361) (7,164) (127,525) 1,975 - (1,975) (1,975) -	Gains/ (Losses) £ - - - - 106,574 - 106,574 106,574 - - - 106,574	Balance at 31 March 2021 £ 20,000 4,500 105,000
						129,500
						61,846 2,388
						64,234
						193,734
						905 8,025
						8,930
						202,664

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds General Funds - all funds Revaluation reserve	Balance at 1 April 2019 £ 74,705 9,552 84,257	Income £ 46,443 - 46,443	Expenditure £ (49,144) - (49,144)	Balance at 31 March 2020 £ 72,004 9,552
				81,556

Restricted funds

Education fund - fund to pay for the cost of higher education for the older students in Malawi Vehicle fund - fund to purchase a replacement for the Hilux truck which transports people in Malawi. This includes a transfer, for the depreciation charge in the year, with general funds for £1,975.

Transfer s

The transfer from restricted funds to general funds for £7,164 is for the element of the revaluation reserve which relates to the disposal of the property in the year. The additional transfer from general funds to designated funds for £129,500 is to set aside future costs as per the Trustees Report.

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets Current assets Creditors due within one year Total	Restricted funds 2021 Unrestricted funds 2021 £ £ 7,505 45,367 1,780 150,177 (355) (1,810) 8,930 193,734	Total funds 2021 £ 52,872 151,957 (2,165)
		202,664

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THE DALITSO TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets Current assets Creditors due within one year Total	Unrestricted funds 2020 £ 56,865 27,359 (2,668) 81,556	Total funds 2020 £ 56,865 27,359 (2,668) 81,556

16. Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the UK fund and amounted to £1,362 (2020: £1,188). Contributions totalling £301 (2020: £228) were payable to the fund at the balance sheet date and are included in creditors.

17. Related party transactions

The aggregate of trustee donations in the year (not including gift aid) was £6,985 from two trustees (2020: £6,600 - two trustees).

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