Charlty number: 1090274 THE DALITSO TRUST UNAUDITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
THE DAUTSO TRUST CONTENTS Page Refernnce and administratlve details of the Charity, its Trust886 and advisers Trustees. report Independent examinerfs report Statement of finanGial activities 10 Balance sheet Notes to the financial statements 12-24
THE DALITSO TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THEYEAR ENDED 31 MARCH 2024 Trustees K Densham, Chair T Densham, Secretary D Knott. Trustee Charity registered number 1090274 Prlncipal 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 dlrectors T Husbands A Husbands Page 1
THE DALITSO TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report and the financial statements for the year ending 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) in preparing the annual report and financial statements. Governlng Documents The Dalitso Trust 1$ a UK regk8tered charity. number 1090274 created in June 2001. obJtIveS The Charty was set up for the benefft of people in Malawi and bordering countries. The aim is to relieve povety as well as to advance education and ChristBnty. The Trust works in partnership with rural communities in Malawi to estsblish projects that engage, involve and develop the communty. We aim to make these communities self-sufficient in the areas of our involvement to ensure that we provKle sustainable solutions to local issues. What we do Community Heafth Education. Under 6 Educational play & parenting skills. Train church Seaders & facilitate Discovery Bibte Studies Who we work wtth The Trust works with rural Malawians. We work with a Christian ethos and often through local churches. However, our work is inclusNe and offered to all regardless of race, sex or re1lOuS belEts. The team develop relationships that educate. equip and then support Iixal communities and their leaders. The Trustees are aware that detriment and harm can arise from inapproprrate fomis of aidldevelopment work. All work is evaluated to ensure this potential is minimised. The offrE in Malaw. is based in Malingunde. This is h(yw the DT team spent their time: Activity: 20r21 21r22 22r23 23r24 Church Leadership Trdining & DBS Staff Training U6 Happy Faces Communty Health Education 25 15 35 25 25 15 30 30 30 10 30 30 30 10 30 Review of Activlties and Achlevements Dalitso Health - Community Health Evangellsm (CHE) CHE is a strategy developed by Medical Ambassadors and their methodology enables organisations to work effectively with the poor, giwng them choices to develop themselves. their families and communities. CHE health lessons are being taught weekty in seven villages. an increase of three from last year. These villages also have Happy Faces running too. We have a stsff team of five, with 14 volunteers. who have taught 324 healih lessons to 34 different families this past year. Once again, we have been able to award families with Heatthy Home Awards (HHA). 36 families received HHA level One, 16 families HHA level Two and eh1 families HHA level Three. Our stock of hybrKI goats remains at four healthy adults. The three males are on loan helping to improve the quality of the local goat herds. Our hybrid rabbits have mults'plied from 73 to 130. 123 rabbtts are now in ten villages up from six last year as part of a breeding programme. Page 2
THE DAUTSO TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Martha '1 was using my neighbourfs toilet and rt was fine wrth me as I had no intention of making one. After learning about hygiene and heamh through CHE lessons I fem shame for my family. we have built a toilet for our family and I feel respected. We are taking care of it and other people are learning from our actions., Belita '1 attended a CHE lesson on hcml God looks at us in love. I was solving personal problems with judgment and condemnation. My attitude was increasing the problem5 in my marriage, but there was a change in me after the lesson. N¢ybV l am sowing love not judgement and things are moving well. We have peace in my family., Vuto 'ln the past I did not mix wrth other people as I feared that would make me fall into trouble and lead me aslray. My lrfe was a struggle as I was isolaled. I met one of the CHE facilitators and learnt about good health which living in harmony with God, people, nature and myseff. This has helped me in many areas, but the biggest is to start associating with people. The result of this is my faming has become very successful because I can now ask advice from my fellow famiers.. Jeltta 'As a family we used to eat only maize as that was what we knew and trusted. Our maize would run OLrt each October and we would have hunger until February. CHE taught us to think and analyse what we have to make our food last the whole year. Our family is changed as we now eat a variety of food allowing the maize to last. We now eat rrce, pumpkins as a meal. potatoes instead of selling them and this has helped u8 so muchl I am so thankful for CHE in my village.. Serah '[ was not taking my children to get vacctnated because of my family beliets and the teaching of my church. I did not know that this made my children to be vulnerable to sickness, but after learning from CHE about prevention I took my children to the clinicl I have encouraged my relatives to go and vaccinate their children too because we haij the same beliefs.. Rute 'Before CHE I was keeping grudges against people and I could take years without forgiwng. CHE lessons have helped me to be hea emotiona5ty and become free. I have started talking to my uncle who I did not talk to for ten years. My family is amazed at the change in me., The following testimonies are from CHE volunteers who are helping to vistt families with health lessons. Hana 'ln the past I was happy with my lrfe and kept myself to myself. Then through CHE I leamt about multiplication, which is to share our own knowledge with others so that it will multiply. This is now my life and I stsrted sharing how to have a vegetable garden, make compost and ideas to help small businesses. l am encouraging people to share the skills they have with others.. Agnes 'Before I became a volunteer of CHE in my Mllage I could not organise my daily living. I could not control my finances or my speech, but after I started CHE. this helped to adjust all these areas. People are now learning from me and how I have changed to bebng responsible.. Pilira '1 was admiring people who were successful in my ll11age, but I no heart to learn. After I heard about CHE I took courage to volunteer myself to be sharing lessons and sorne practical projects in my home. My life is changing and l am happy to see fruit of this in my lrfe and family., Mwerengana 'ln my old lrfe I was not cooperative wth anybody else, including my husband. Our marriage was not going well and then I stsrted helping in CHE. l am changed as CHE has helped me to learn how to work together wilh my husband, the Dalitso team and people in the communty. CHE has really changed my lrfe., Dalitso Play- Free under 6 educational stsy & play sesslons Happy Faces (HF) is now working in six communities an increase of two from last year. We are serving an average of 41 families a week. We held a very jul graduation rernonY combining all four groups and inviting local leaders as 39 children graduated lo move on to primary school. We are thrilled that 25 new children joined in September. This year we have increased our volunteer leaders from 10 to 15, they are receiving training and continue to gain experience and confidence. Our aim is that these leaders wll create leadership teams in each village. We hope two leadership groups will stsrt in 2024. Shami 'Our daughter used to be very quiet as her Mum is mute, so she was using sn language most of the time. She has now stsrted speaking to people making me so thankful for the difference Happy Faces is making in my communty., Page 3
THE DALITSO TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDEO 31 MARCH 2024 Tsanzo 'Before Happy Faces, I would leave my children to play on their thvn while I was busy gambling and just wandering around. Since attending Happy Faces, I changed. Now I make sure we go to Happy Faces to learn together and I've even found the courage to stop garnbling so I can fu3 on caring for my children., Fele '1 have three children and the first two did not go to nursery before starting primary sGh¢xJI. They struggled to settle into the learning environment and trust the teacher. l am so happy to see our third child is not having these challenges, because Happy Faces laid a finn foundation in him. N(w4 l am encouraging other parents to bring their children to Happy Faces., Thandizo '1 used to think that rt is only teachers who can help my children academically and that my role is to Provide food and a home. Happy Faces has changed my mind as I now srt wrth my children and we learn together. l am trying my best so they can experience my wholistic care for them., Tola .1 was not sending my children to school but encouraging them to look for piece work in the fields. One day our neighbour took my chikl to Happy Fa. When she came home, I was so encouraged to see her counting and explaining stories she leamt. My mind is changed and I see I must support my children to go to school., The following testimonies are fr1 volunteers who have helped ad sessions. Dofa 'Before I started helping at Happy Faces I found it very drfficult to organise my time. In helping to lead I have leamt to Set time asKle for what l am priorbtising - my family and ser¥ing the community., Fanizo '1 used to think that my lrfe was beyond help, that I was no one. Happy Faces has built my confidence and I have also started a small business to support my family.. Elisy '1 was not trusting other people and was unwilling to share the knowledge I had. After being trusted to help lead Happy Faces sessions this has helped me to start trusting other people too., Mtama 'My heart used to fctus on serving my relatives and my children. Leading Happy Faces has softened my heart to sepie every child and person in our c(Ynmunty.' Titha 'Before helping at Happy Faces I thought serving was about finding an ulterior benefit from people. Since helping I have learnt that it's about sharing yourself to others so that those in need can benefit from the love of God in my heart. l am blessed to be trusted.. Esimy 'Arriving at Happy Faces YS the first time I started helping my child leam. I took courage again to help my felk)w women in Happy Faces and my joumey has not stopped there. I have now been asked to lead some projects in my communty. l am so thankful for the Happy Faces team to help me become a trusted leader in my home, at Happy Faces and in my communty., Dalitso Leader5 - Church Leaders Training Follow Me (FM) are free part-time Christian leadership courses equipping local church leaders from any denomination. FM running six courses in three villages Mselera, Shawa, and Chaponda. We have 17 volunteer leaders (up from 12} and 13 students from eKJht drfferent denominations. In March we were able to celebrate 18 students graduating. Shadreck .1 have been a church leader overseeing 11 churches, but I was not able to prioritise my family. My wrfe was complaining about this issue and as I studied Folbw Me 2 chapter seven it opened my eyes. It is my responsibility to look after my household, I cannot make excuses. l am now sharing this wisdom wrth other leaders. I thank God for Follow Me., Everton 'As a church leader, I knew that I should be exemplary. but I thought that is only on spiritual matters Concerning church activities. Follow Me has helped me to be good exarnp in everything: the way I treat my wife, my children, what am doing with my crops and how I plan my time. I have been helped to change all of my ways and I feel l am more tSorthY than before., Page 4
THE DAUTSO TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Chilamba '1 am in Follow Me 2 and beaming about h(N to prepare Sunday messages has changed me. Before in preaching I VRS sharing a lot of my own thoughts, but now I know how to ground my words in the truth of the Bible. Disani 'Being a church leader requires you to make decisions every day and when I look back, I see I made many mistakes. I was using my intellect alone. Due to Follow Me 2 when l am meeting a situation I now pray and ask myseEf knhat would Jesus do in this situation and ask the Holy Spirti for help?, I believe l am making better decisions and making less mistakes.. Joyce '1 was not kind to my chiklren and when they came home, I would shoo them away and we did not spend time together. Through Follow Me I have met with Jesus and seen what He is really like. He is amazing as He toves children, loves learning and loves all people. I have been humbled and our famity is now blessed as is my marriage. l am so thankful for Foillyw Me in my lrfe., The following testimonies are from volunteers who have helped teach the courses. Chisomo 'At first I thought I cannot lead as l am a person who follow others. After some training and encouragement l am helping to lead Folkw Me. I feel honoured to help other leaders.. Alex 'Unfortunately in the church l attend rf are young and male or female you are not recognised with any leadership gift. So coming from that experience I was surprised to be asked to help lead Follow Me. had lots of questions because I greN up thinking thai it is not yet my time to lead. l am encouraged to be trusted to lead leaders., Lonos 'Being a participant of Follow Me and helping to lead Foll Me is different. When being a participant I studied the material in sessions, I listened well and gave my little contributions. Since being asked to help lead I have increased my study and meditation on the material and have been able to pray more. I make sure to prepare well and this has contributed a lot to my bible knowledge and my understanding of God helping me to grow my spirrtual life., Victor '1 have been part of Folk)w Me 1 and 2. To be train&1 to lead Follow Me has helped me to know my talent and giftings. I have discovered that I can teach and I have now been asked to teach adult bible classes at our church (Assembles of God). Follow Me has become part of the teaching materials here too., FM 15 also being used in other parts of Malawi, Zambia and Mozambique. Our Discovery Bible StudFes (DBS) groups have increased from seven to nine and added 26 more participants, to 86 in total. 23 volunteers help lead these groups. Only the two groups are receiving guidance from the Dalitso team, while the rest are self-led. The number of miracbes is once again quite staggering and the levels of faith and expectancy within the groups is very high. We have seen 347 miracles, 24 salvations and 28 baptisms. Edda: 'It was very hard for me as a woman to share what is in the Bible, because the church I belong to dS not allow women to share what is in the Bible or even say anything. Being given a chance to lead and being appreciated in DBS has given me confiden. So I took my courage to ask to read from the Bible at my church and they 9ave me an opportunity. I read from the book of Kings, summarising and explaining the meaning to us today. A change has taken place as women are invited to share, a great opportunty has been created for womenl, Takondwa 'My sister was very sick so I was caring for her. She asked me to invite her DBS group to come and pray with her. After the prayer I was amazed that there %fdS instant healing on my sister. I had never seen anything like this, so l asked for prayer and experienced a total peace in myself. That day I believed and joined the groupl, Page 5
THE DALITSO TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Mary 'My marriage had been teTTible and we were adIng separate lives. This reached a point where my husband took a second wrfe. I shared this with the group and we prayed together. After three weeks my husband apologised and asked if we can start afresh, just the two of us. I chose to forgive knowing that we had prayed for this. As of now we are having a happy and secure marriage. I do testify that God is the answer in every situation and this helps me invite others to the group., Annies 'Unknowingly my mum and her DBS group were praying for me. I was living a desperate lrfe and my marriage was suffering as I could not be faiihful. One day I was invtied to the group and I went along. On hearing the bible reading that day it touched deep in my heart and I knew it was true. So that day I was made new, it was then I learnt that people were praying for me." Amos '1 was smoking a lot of hemp and for no reason my need to use it faded away. My Mum asked me to her DBS group so l attended. She was so excited and she told the group that God had answered their prayers for the influence of the weed to stop. It was at this time th I knew that they had prayed for me. l am thankful as my life is starting to change by being a part of this group.. Hannah '1 lived a lrfe of separating myself from people and I had bts of challenges in my lrfe. I was very emotional feeling k)nely and empty inside. I became part of DBS and I now feel full of Itfe as we support each other., We have been able to Nn seven Kingdom Expansion (KE) weekends organised by FM students. 140 people were trained in door-t(>drxJr evangelism and prayer mintstry. We witnessed 227 miracles and 228 people came to faith. Ellen .1 was at home sick with stomach pain. Some people came and asked me to chat. They talked to me about the love of God on all mankind. They also asked me what is the one thing thal I want God to do for me. I was quick to say healing, as I was unwell. After they prayed for me. I was instantly better. I was ill for some time so I was surprised by a simpie prayer. I now encourage others not to underesb'mate the power of prayer., Saukani 'Before having Kingdom Expansion at my church we were not active in the community. We were waiting for organised church occaSn5 to reach people. KE has helped me to demonstrate the k)ve of God to the world. I have found a tool to build my life and other people's lives.. Malika 'A team of three &¥ne to my home and found me lying down with a headache. They prayed for me and as I felt much better I called my mum as she was sick too. My Mum arrived and the team asked me to pray for her, so I took courage to pray and God healed her leg there and then!, Nepiyala '1 have been leading the church for five years and we have not been growing. Some Follow Me students brought Kingdom Expansion for us to be trained. We then went out into the community to encourage and pray for people. l am amazed as our church has doubled and l am happy to have a tool called KE., Testimonies from volunteers helping with KE. Fravera '1 thought it was the Pastor and key leaders in the church who are heard and used by God. It was strange to be taught that God can hear me tcm), even with simple, short prayers. Kingdom Expansion has helped me to be part of Gfyj's movement in my area., Mfera .1 had a lot in my heart to share with peop but had no idea how to evangelise. Kingdom Expansion opened my eyes and allows me to share love and care to the nJy.' Zitha 'Gathering many people at one place lo preach was my past experience of evangelism. Kingdom Expansion is dtfferent and is helping me to reach olrt to people. I like that it is natural and can be part of everyday lrfe. wherever you meet people., Page 6
THE DAUTSO TRUST TRUSTEES. REPORT (CONTINUED) FOR THEYEAR ENDED 31 MARCH 2024 Everson 'For many years I did not see anyone new becoming part of our church and it became normal in my mind. After being trained in Kingdom Expansion I have been able to share my faith with others and l am not shy to pray for people rf inwted to. l am seeing miracles and time and time again people coming to faith. Some people come to be part of our church and some go to other ones. l am enjoying sharing my farth with other8. Education Fund We are pleased to be able to currentty support children at school, two at college and bNo at university. Visitors We received Mark Harbour, Tom Husbands and Kevin and Erica Pippert tn person to receive training and encouragement. We are thankful the team have been abb to have Zoom training conversations throughout the year with Bill Dixon, Mark Hartx)ur, Nicola Bass, Frank Hindle. Brian and Val Marriott and Nick Harding. Future Planning for 2024125 The team has been asked to help delrver trwo CHE training courses due to the team's experience and ability in teachinglfacilitating. Land that is owned in MbaL8me wll continue to be planted WFth trees and boundary lines marked out wf(h sisal plants. The past year we have trained more volunteers to help teach and run sessions and this coming year our focus is alk)wing these volunteers to have more ownership by c¢>leading with our team to develop their leadership skills. Governance Organisatlonal Strudure A UK based board of Trustees oversee the activrties of The Dalitso Trust. The Trust&s are responsible for policy decisions and there is regular contact Wtih the Directors. Thomas and Alison Husbands (the Directors) run The D81itso Trust daY-tday. They oversee Chippo Chale from the UK. as he leads the team in Malawi. The Senior Leadership Team in Malawi is Chippo, Patterson Starford and Rhodess Abel. Employed staff consists of one UK employee and in Malawi, 13 Malaman staff members and 40 volunteers. Flnanc8S At the time of signing this report the Ttust's irKlividual regular donor income has remind stable, but reduced from partnering organisations. Grft aid is also in the process of being backdated for the 2 previous years. This giving reduction has been factored into our budgets for the ¢¢)ming ar. Princlpal Fundlng Sources The Trust's funding base is mostty relational and we encourage people to visit Malawi to see the work. We have a core group of individualsifamilies who give monthty and three partner churches. The pandemic caused us to evaluate our income and we continue to monrtor finance levels carefully due to inflation and the cost-of-living crisis in the U.K. At the time of signing this report the Trust's income has remained stable and in line with our predictions. Page 7
THE DAUTSO TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Inve8tment Policy Capital expenditure is limited to the requirements in Malawi. Historicalty the bulk of this has been for vehicles, land and buildings. We rely on raising Sufflent finances for our needs and we have not entered into any borrowing arrangements. Risk Managemont Risks are regularly reviewed and discussed amongst the Malawian team and the trustees. Reserves Policy The Trustees consider the free reserves should equal the costs of running the charty for for the next 6 months, of £19,000. The free reserves total is £85.243 (2023: £110,370).The balance of free reseNes is eamiarked to finish the Mbalme Plot Development. Free reserves is calculated by taking total reserves of £187,225 (2023.. £214,140) less restricted funds of £38 (2023: £Nil) less fixed assets of £101.944 (2023: £103,770). Free reseNes total £85,243 (2023: £110,370). Related Parties Book-keeping is undertaken by Birmingham Vineyard and Lodestar Accounting Limited and we thank them for their continuing support. Trustees Trustees are recruited with a view to what they can bring to The DalFtso 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 the Trust. New Trustees are given a briefing on the role of a Twstee and the current Trustees bring them up to date on the position of The Dalrtso Trust. Copies of all relevant infomiation are provided (such as Financial Statements, Trust Deed, copies of minutes of trustee meetings, guidance from the Charty Commission on the role and responsibilities of a Trustee). Questions are activety encouraged and all Trust&s have direct acce5S to the Senior Leadership Team in Malawi. Approved by order of the members of the board of Trustees and signed on their behalf by. K Densham Chair of Trustees Date. 29 Jkn 202 Page 8
THE DAUTSO TRUST INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2024 Independent Examinerfs Report to the Trustees of The Dalltso Trust (Ihe Charlty.) I report to the charY Trustees on my examination of the accounts of the Charity for the year ended 31 March 2024. Responsibilities and Basis of Report As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance wtth the requirements of the Charities Act 2011 {Ihe 2011 Act.). I report in respect of my examination of the Charitys accounts Caled out under section 145 of the 2011 Act and in carrying out my examination I have folEowed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Independent Examinefs SLqtement 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 applKable 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 exiant regulations but has been wtihdrawn. l understand that thi5 has been done in order for the accounts to provide a true and fair view in accordance wlih the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. I have completed my examination. I confirn that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act., or the accounts do not accord with those words; or the accounts do not comply with the appltcable requirements conceming the fom and content of accounts set out in the Charities {Accounts and Reports) Regulations 2008 other than any requirement that the accounts gtve a 'true and fairf 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 Charitys Trustees. as a bcmjy, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I Mht stste to the Charity's Trustees those matters l am required to state to them in an Independent examinefs report and for no other purpose. To the fullest extent pemiitted by law. I do not accept or assume responsibility to anyone other than the Charity and the Charitsls Trustees as a body, for my work or for this report. Signed". Dated: 30 January 2025 Helen Blundell LLB FCA FCIE DChA Crowe U.K. LLP 81ack Country House Rounds Green Road Oldbury West Midlands 869 2DG Page 9
THE DAUTSO TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Note Income from: Donations and legacies Investments Gain on sale of propety 10.01)0 37.016 274 47,016 274 2.549 77,538 Totsl income 10.000 39,839 49,839 77.591 Expendtture on: Charitable activrties 8.712 76.754 57,593 Total expondlture 8,712 68.042 76,754 57,593 Net Incomel(expénditure) Transfers between fvnds 1.288 {1,250) (28,203) 1,260 (26.915) 19,998 14 Net movement in funds 126.953) (26,915) 19,998 Reconclllation of funds: Total funds brought forward Net movement in funds 214,140 {26,9531 214,140 (26,915) 194, 142 19.998 Total funds caffied forward 187.187 187.225 214,140 The Statement of Financial Actr¥itses includes all gains and losses recognised in the year. The notes on pages 15 - 26 fomi part of these financial statements. Page 10
THE DAUTSO TRUST BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Flxed assets Tangible assets 11 101.944 103, 770 101,944 103, 770 Current assets Debtors Cash at bank and in hand 12 2,026 85.407 323 112,307 87.433 112.630 Creditors: amounts falling due within one year 13 12.152) (2,260) Net current assets 8S.281 110,370 Total net assets 187,225 214, 140 Charity funds Restricted funds.. Restrted funds 14 Designated funds Unrestricted funds Revaluation reserve 14 14 109,907 74.892 2,388 108,878 102,874 2,388 14 Total unrestricted funds 14 187.187 214, 140 Total funds 187,225 214, 140 The financial statements were approved and authorised frjr issue by the Trustees and sned on their behaff by: on K Densham Chair of Trustees The notes on pages 15 - 26 form part of these financial statements. Page11
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 General Information The Dalitso Trust is a charity registered with the Charity Commission in England and Wales. The Charitvs registered address is 14 Wychall Grove, Binningham, 838 8AQ. The Charty has been established for the benefft of persons in Malawi and bordering countries particularty to advance the Christian religion, to relieve poverty and to advance education. Accounting policias 2.1 Basls of preparation of flnancial statements The financial statements have been prepared in a¢¢ordance with the Chartties 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 Republrc 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 financsal statements have been prepared to gbve a 'true and fairf view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fairf view. This departure has involved following the Charities SORP IFRS 102) published in October 2019 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practi effective from 1 April 2005 which has since been withdrawn. The Dalitso Trust meets the definition of a Publ benefrt entity under FRS 102. Assets and liabilities are initialty recognised at historical cost or tran&3ction value un5es8 Otherwise stated in the relevant accounting policy. 2.2 Golng concern Due to the cost of livtng crisis the trustees have been closely monTtoring the regular gmng that supports the Trust. This was highlighted as an area of concern, however there have not been any signifrcant changes in nomial giving during the last year. The Trust also currently has a significant cash reserve due to Gompensation from the compulsory purchase of our building and most of our plot by the Lilongwe Water Board. As a resutt, the trustees have a reasonable expectation that the Trust 11 continue in operational existence for the foreseeable future. Therefore, they continue to believe the going conrn basis of accounting appropriate in preparing the annual financial statements. Page 12
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles (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 cQ)jectives of the Chanty and which have not been deSnated 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 restiictions 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 Spectr fund. The aim and use of each restricted fund is set out in the notes to the financial statnents. Investment income. gains and k)sses are allocated to the appropriate fund. 2.4 Income All income is recognised once the Charty has entiilement 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 relatK)n to investrnent income is recognised at the time the investment income is receivable. 2.5 Expendlture 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 classffied by activlty. 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 activty 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 activty are apportioned between tIM)se activities on a basis consistent with the use of resour5. Central stsff costs are allocated on the basis of time spent, and depreciation charges allocated on the pOrtn of the asset's use. Expenditure on charitable activtties is incurred on directly undertaking the activities vthich further the Chartys objectives, as well as any associated support costs. All expenditure is inclusive of le¢oV1e VAT. 2.6 Tanglble red assets and depreciatlon A review for impairment of a fixed asset is carried out rf events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls beeen the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impaimient losses are recognised in the Statement of financial acti¥ll. Tangible fixed assets are inthalty 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 fed asset into rts intended working condition should be included in the measurement of cost. Page 13
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (contlnued) 2.6 Tangible red assets and depreciation (ntInued) DepClatIon is charged so as to allocate the cost of tsngible fixed assets less their residual value over their estimated useful lives. Depreciation is provmjed on the folluwing bases: Freehold land Freehold buildings Motor vehicles Fixtures and frtiings - Not depreciated 2% straight line 25¥0 reducing balance 15OA reducing balance 2.7 Revaluation of tangible red assets The charity has adopted the revaluation model to revalue items of property whose fair value can be measured relwbly. The revaluations shall be made with sufficient regularty to ensure that the carrying amount does not differ materialky from that which woukl be detemiined using fair value at the end of the reporting period. The fair value of land and buildings is usualty detemined from market-based evidence by appraisal that is nomialty undertaken by professionally qualified valuers. The fair value of items of plant and machinery is usualEy their market value detemiingj by appraisal. Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity. 2.8 Flnancial instruments Debtors Short tenn debtors are measured at transaction price, less any impairynent. Creditors Short temi creditors are measured at transaction pri. 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 Charty 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 Voluntsers The charity relies on the efforts of its volunteers. The value of these vdunteers is not incorporated wrthin the accounts. Page 14
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Crltical accounting estimates and arthts of Judgment Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are belEved to be reasonable under the circumstsnces. Crkti'cal accounting estimates and assumptions.. Valuation of freehold land (see note 9). Residual value of freehold buildings (see note 9). Income from donations and legacies Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Donations 10,000 37,016 47.016 77,538 Total 2023 77,538 77,S38 Investment income Unrestricted funds 2024 Total funds 2024 Total funds 2023 Investment income 274 274 Total 2023 Other Incoming resources Unrestricted funds 2024 Total funds 2024 Total funds 2023 Profrt on sale of assets 2,549 2.549 Page 15
THE DALITSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Other incomlng resources (continued) During the year an asset that had already been written off was sold and £93.75 was received in relation to this. Analysls of expenditure by actfvitles Activities undertaken directty 2024 Support costs 2024 Total funds 2024 Total funds 2023 Leadership Training CHE Under 6's 15,958 5,322 15,958 15,958 8,445 2,159 6,477 6,477 24,403 7,481 22,435 22.435 18,626 6, 179 16,087 16,701 53,1% 23,558 76,7S4 57,593 Total 2023 43,253 14,340 57.593 Analysis of direct costs Total funds 2024 Tolal ftinds 2023 Leadershlp 2024 Training 2024 CHE. 2024 Under 6.8 2024 Staff costs Depreciation Project expenses Travel expense Education fund expenses 9,258 3,550 1.167 1,014 3,087 1,183 390 338 9,258 3.550 1.167 1,014 9,258 3,550 1.167 1.014 30,861 11,833 3,891 3,380 22,841 11,327 766 5,258 969 324 3,231 3,061 15.958 5,322 15,958 15,958 53,196 43, 253 Tot812023 12,976 4,938 12,363 12,976 43, 253 ' Community Health Education Page 16
THE DALITSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysis of expenditure by actfvlties Icontinued) Analysis of support costs Total funds 2024 Total funds 2023 Leadership 2024 Tralning 2024 CH 2024 Under 6's 2024 Staff costs Depreciation Office expenses Insurance Govemance costs 5,839 69 510 59 5,839 69 510 59 5,839 69 510 59 19,463 229 1,701 197 11,382 135 171 20 1,968 1,926 8,445 2,159 6.477 6,477 23,558 14,340 Total 2023 5,650 1,241 3, 724 3. 725 14,340 . Communty Health Education Independent examinerfs remuneration The independent examinerfs rnuneratIOn amounts to an independent examiner fee of £1.875 (2023 - £1,784). Staff costs 2024 2023 Wages and salaries Pension Costs 31,670 2, 553 22,380 50.324 34,223 Page 17
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Staff costs (contlnued) The average number of persons employed by the Charity during the year was as folk)ws: 2024 No. 2023 UK based staff Malawi based staff 13 13 14 14 No employee received rernuneration 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 benefts paid to key management personnel were £45,456 (2023.. £23,872). 10. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefrts {2023- £NIL). During the year ended 31 March 2024, no Trustee expenses have been incuffed (2023 - £NIL). Page 18
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Tanglble red assets Frn8hold property Motor Fixtures and vehicles fittings Total Cost or valuation At 1 April 2023 Additions Disposals 60,529 9,002 94.847 4.711 1,489 160,087 10,491 (36.495) (36,495) At 31 March 2024 69.531 58,352 8.200 134,083 Depreciatlon At 1 April 2023 Charge for the year On disposals 1.719 50,661 10.983 (36.240) 3,937 229 56,317 12,062 136,2401 At 31 March 2024 2,669 25,404 4,166 32,139 Net book value At 31 March 2024 66,962 32.948 2.034 101,944 At 31 Mah 2023 58,810 44, 186 774 103, 770 Page 19
THE DALITSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Tanglble red assets (continuad) Included in land and buildings is freehokl land at valuation of £6,875 (2023: £6,875) 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 (2023= £Nil). The carrying amount under the cost mtjdel of the a&sets which hw4e been walued would have been £11,362 (2023- £1t.362). Page 20
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. Debtors 2024 2023 Due wlthin one year Other debtors Prepayments and accrued income 731 1.295 323 2,026 323 13. Credltors: Amounts falllng due within one year 2024 2023 Other creditors Accruals and deferred inc(xne 277 1,875 475 1, 785 2,152 2, 260 14. Statement of funds Statement of funds - current year Balance at 31 March 2024 Balance at I April 2023 Transfers Inlout Income Expenditure Deslgnated funds Malingunde building project Mbalame plot development Education fund 105.000 1,378 105,000 2,407 2,760 (1.n1) 108,878 2,760 (1.731) 109,907 Page 21
THE DALITSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Statement of funds (continued) Designated Funds Malingunde building project.. First stage building project to provtde replacement Offi and teaching space after compulsory purchase of prewous land and buiKling. Mbalame building project: Second stage buihjing prqect to provide new training facilities and long term base of operations. Education fund - fund to pay for the cost of higher education for the older students in Malawi. General funds General Funds - all funds 102.874 2,388 37,079 (66.311) 74,892 2,388 Revaluation reserve 105,262 37,079 (66,311) 1,260 77,280 Total Unrestslcted funds 214.140 39.839 168.042) 1,250 187.187 Restricted funds Building fund Bicycle fund Education fund Laptop fund 17.000) (212) {1,500} 250 38 1,250 (1,250) 10,000 18,712) (1,250) 38 Total of funds 214.140 49,839 (76,754) 187,225 In the year ended 31 March 2024 there was a transfer of £1,250 due to unrestricted fixed assets being purchased from restricted funds but where there is no remaining restrictton on use of the asset. Restricted funds Building fund- Fund to pay for buikling materials and building team salaries. Bicycle fund- Fund to pay for the purchase and any subsequent repairs to a bicycle. Education fund- Fund to pay for the cost of hbgher education for the older students in Malawi. Laptop fund- Fund to pay for a new laptop. Page 22
THE DAUTSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Statsment of funds (contlnued) Statement of funds - prior year Balance af 31 March 2023 B818nce at 1 Apnl 2022 Transfers iout Incm Expenditur8 Unrestrlcted funds Designated funds Vehicle Malingunde building project Mbalame plot development Education fund 20,OCLI 2,5 105,OCQ 28,OLX) (48,LXIO) 105, 000 1.378 2, 630 (3.061) 1,809 127,5 30, 630 (3,061) (46, 191) 108,878 General funds General Funds- all funds Revaluation reserve 56, 296 2.388 46,961 {54,532) 54. 149 102,874 2, 388 58, 684 46,961 (54,532) 54.149 105,262 Total Unrestricted funds 186, 184 77,591 (5T,593) 7, 958 214, 140 Restrlcted funds Education Fund Vehicle Fund (1,809) (6, 149) 6. 149 7,958 (7,958) Page 23
THE DALITSO TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. Anatysls of net assets between funds Analysis of net assets between funds - currgnt period Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Current assets Crediiors due within one year 101,944 87,395 (2,152) 101,944 87,433 (2,152) 38 Totsl 38 187,187 187,225 Analysls of net assets between funds - prior perfod Unrestricted funds 2023 Total funds 2023 Tangible fixed assets Current assets Credf(ors due within one year 103, 770 112,630 (2.260) 103, 770 112,630 (2,260) Total 214, 140 214, 140 16. Pension commitments The company opeptes a defined contributions pension scheme. The assets of the scheme are held separatety 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 £21,584 {2023'. £1,792). Contributions totslling £277 (2023: £475) re payable to the fund at the balance sheet date and are included in credrtors. 17. Related party transactions Trustee donations totalling £3,000 were made in the year. (2023: £3,000) Page 24