The Turning Point Trust
Report and Financial Statements
Year Ended 31[st] December 2020
UK Registered Charity Number 1091025
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Reference and administrative information
Trustees (who all served throughout the year unless otherwise stated)
Peter Wichmann, Chair of Trustees Paul Barnes Clare Harwood (resigned on 10/02/2020) Steve Dew Lorna Jones Andy Reid Debbie Volans
Registered Address
Turning Point Trust c/o Christ Church Jubilee Square Woking Surrey GU21 6YG
UK Registered Charity Number
1091025
Bankers
CCLA, Senator House, 85 Queen Victoria St, London EC4V 4ET The Co-operative Bank, PO Box 250, Skelmersdale, WN8 6WT
Report of the Trustees for the year ended 31 December 2020
The Trustees present their annual report and financial statement for the charity for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and follow the Statement of Recommended Practice (SORP).
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Structure, governance and management
The Trust is a registered charity, number 1091025, and is constituted under a trust deed dated 18 January 2002. According to the deed, the Trust was established “to relieve children in Kenya who are in need by reason of poverty, in particular children who are homeless, by providing and assisting in the provision of shelter, food, clothing, education and opportunities for personal development.” The Trust raises funds from a number of supporting churches and through a network of individual supporters.
The Trust makes donations to Turning Point Kenya, for its work in the slums of Nairobi. It has historically also paid for UK staff working either in Kenya or the UK, although this ceased in early 2018. The Trust also pays to raise funds and awareness in the UK for the work in Kenya.
New trustees are appointed by existing trustees. All trustees give of their time freely and no remuneration was paid to trustees during the year. Details of trustee expenses and related party transactions are disclosed in note 2 to the accounts.
Turning Point Kenya is registered as an NGO (non-governmental organisation) with the Kenya NGO Board. There are currently six Directors of Turning Point Kenya, including Peter Wichmann and Paul Barnes, who are also Trustees of Turning Point in the UK. The Trustees believe that this is helpful in providing assurance and continuity across the two legal entities.
Risk management
The Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to mitigate those risks.
The key risks identified by the Trustees during this period were:-
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Expenses running ahead of income . Trustees continue to monitor this closely. During 2020 income exceeded expenditure very slightly, so the situation improved marginally. The first months of 2021 have not materially changed this. The reserves position continues to be a high focus for the Trustees.
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Currency exchange fluctuations . During 2016 this risk materialised. Given almost all income for Turning Point Kenya comes from the UK, changes in the exchange rate can have a significant impact. Since 2016 the rate has moved consistently to help.
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Unrest in Kenya. Whilst the Trust cannot directly influence this, the Trustees are satisfied that everything reasonably possible has been done to mitigate the risk whilst still meeting the needs of the beneficiaries of the charity.
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Safeguarding. The work in Kenya involves supporting children who are often very vulnerable. Turning Point Kenya has a robust policy in place and Turning Point in the UK receives a report each year from the Kenya Directors.
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During 2020 the global pandemic had a material impact on Turning Point. Operations in Kenya were very significantly curtailed for a period, but actions taken by the Turning Point Kenya Board helped reduce costs. Income in the UK stood up reasonably well given the challenges faced by many charities.
Objectives and activities for the public benefit
The objects of the Trust are to relieve children in Kenya who are in need by reason of poverty, in particular children who are homeless, by providing and assisting in the provision of shelter, food, clothing, education and opportunities for personal development.
The Trust carries out these objects by:
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making grants to Turning Point Kenya to support its work with children in the slums of Nairobi. This includes helping provide food, clothing, basic healthcare, access to education, and support for emotional and spiritual development;
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paying for work in the UK to raise awareness and funding, and
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sometimes providing staff from the UK to work in Kenya to support the work of Turning Point Kenya.
A review of achievements and performance
During 2020 the work of Turning Point in Kenya was inevitably significantly impacted by the global pandemic. When the Kenyan government took the decision to close schools for an extended period, Turning Point had no choice but to close down most of its work. We did what we could to respond to the needs of the community, for instance by providing hand-washing stations. With online learning not at all practical for the families we support, regrettably we were unable to do much in the way of learning support for the children and young people.
Whilst income in the UK was down on previous years regular donations were broadly unimpacted – instead the impact was felt in reduced one-off donations (some of which would be associated with fundraising activities which were not possible for much of the year), and reduced income from grant making trusts. The Kenya NGO was able to reduce its costs during the year which meant that overall the organisation ended the year in broadly the same position as it started from a financial perspective, which in the circumstances was a good outcome.
Schools re-opened again in January 2021 and all Turning Point activities in Kenya resumed at that point.
During 2020 TP Kenya has begun to use the land at Kingangop to generate income by growing crops. The year was spent preparing for this, and in early 2021 a small income has been generated – this is expected to grow in the coming months and provide a reasonable level of income to the organisation going forwards.
We are very grateful to the staff of Turning Point in Kenya who work with children and parents on a day to day basis, often dealing with challenging situations. We are also grateful for our
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supporters and donors in Kenya, the UK, and elsewhere without whom our work would not be possible. We remain determined to pursue our vision to help the children we serve become the people God made them to be.
Financial Review
Incoming donations from individuals and churches was reduced in the year at £144,792 (2019: £160,159), impacted to some degree by the limited opportunity for fundraising in the year. In addition to this grants were received totalling £27,700 (2019: £39,770), the Trustees’ view being that some of this reduction was due to the pandemic impact. Income from investments (interest on money held of deposit) remained at £0 (2019: £0). Total income was therefore decreased at £172,492 (2019: £199,929).
The cost of generating funds decreased to £1,877 (2019: £5,582). Direct staff costs in this area remained at zero as no staff costs were incurred in the UK, because paid fundraising work was conducted in Kenya by TP Kenya, and all UK effort is voluntary.
Grants to Turning Point (Kenya) decreased significantly to £169,293 (2019: £204,374) reflecting reduced UK income.
The cost of providing staff remained at £0 (2019: £0) as the employment of the only UK staff member ceased in 2018.
Total expenses therefore decreased to £171,170 (2019: £209,956).
Total funds at the end of the year increased to £6,586 (2019: £5,264). Of this figure, the amount representing restricted funds was £1,095 (2019: £595). The general fund as at 31st December 2020 was £5,491, which represents 12 days of general activities, up from 8 days as at 31[st] December 2019.
Reserves Policy
It is the policy of the Trustees to maintain sufficient reserves to avoid short term cash flow issues, as well as to enable an effective response in the event of unexpected situations arising in Kenya. Equally, the Trustees do not expect or plan to build up large reserves, given the extensive needs in Kenya. The core income base is regarded as sustainable by the Trustees as it includes income from a reasonable number of different donors, and a significant part consists of regular monthly payments.
Plans for the future
The mission of the Trust is described in the following statement:-
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“Our vision is to see vulnerable families and children living in Nairobi’s informal settlements achieve their full God-given potential.”
This statement continues to inform future planning. The Trustees aim to consolidate the work now underway in the three centres in Kibera, serving increasing numbers of children and young people, as well as strengthening the nature of that support. The Trustees are planning to grow the income to support this increased work.
During 2020 the work of the UK Trustees has focused on supporting the Kenya NGO in its response to the global pandemic and ensuring that the UK income is protected as best it could be. These discussions and decisions taken have led to the financial position being stable despite the pandemic. Once the situation becomes more stable – hopefully later in 2021 – attention can turn once again to longer term planning.
Trustees’ responsibilities in relation to the financial statements
The Trustees are responsible for preparing the Trustees’ Report and financial statements in accordance with the applicable law and United Kingdom Accounting Standards. The Trustees have decided to prepare accounts on an accrual basis which will therefore give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements the Trustees are required to:-
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Select suitable accounting policies and then apply them consistently;
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Observe the methods and principles of the Charities SORP;
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Make judgements and estimates that are reasonable and prudent;
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State whether applicable accounting standards have been followed, subject to any departures disclosed and examined in the financial statements, and;
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Prepare the financial statements on the ongoing concern basis unless it is inappropriate to assume that the charity will continue in business.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website.
Approved by the trustees on 14 July 2021 and signed on their behalf by:
Peter Wichmann
Peter Wichmann, Chair of Trustees
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Independent Examiner’s Report to the Trustees of The Turning Point Trust
Report to the trustees of Turning Point Trust on accounts for the year ended 31[st] December 2020, charity number 1091025, set out on pages 8 to 11.
Respective responsibilities of trustees and examiner
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act,
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to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145 (5) (b) of the Charities Act), and
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to state whether particular matters have come to my attention.
Basis of the independent examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that, in any material respect, the requirements:
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to keep accounting records in accordance with section 130 of the Charities Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed R W Dallimore Date 14 July 2021 Name R W Dallimore MSC, ACMA.
Address 70 Orchard Drive, Horsell, Woking, Surrey, GU21 4BS
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Statement of Financial Activities for the year ending 31 December 2020
| Note Incoming resources Donations from individuals / churches Donations from grant making trusts Investment income Total incoming resources Resources expended Costs of generating funds Charitable activities 3 Total resources expended Net (outgoing) incoming resources before transfers Transfers between funds Net movement in funds Total funds brought forward Total funds carried forward |
Unrestricted Funds Restricted Funds Total Funds 2020 Total Funds 2019 137,940 6,852 144,792 160,159 27,700 27,700 39,770 0 0 0 |
|---|---|
| 165,640 6,852 172,492 199,929 1,877 1,877 5,582 162,941 6,352 169,293 204,374 |
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| 164,818 6,352 171,170 209,956 822 500 1,322 -10,027 |
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| 822 500 1,322 -10,027 4,669 595 5,264 15,291 |
|
| 5,491 1,095 6,586 5,264 |
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The Turning Point Trust Balance Sheet as at 31 December 2020
| Note Fixed assets: Tangible assets Investments Total fixed assets Current Assets: Debtors 4 Cash at bank and in hand Total current assets Liabilities: Creditors falling due within one year Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year Creditors Provisions Net assets The funds of the charity: 5 Restricted income funds Unrestricted income funds Total charity funds |
Unrestricted Funds Restricted Funds Total Funds Prior Year - - - - - - - - |
|---|---|
| - - - - |
|
| 1,791 - 1,791 1,217 3,700 1,095 4,795 4,047 |
|
| 5,491 1,095 6,586 5,264 - - - - |
|
| 5,491 1,095 6,586 5,264 |
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| 5,491 1,095 6,586 5,264 - - - - - - - - |
|
| 5,491 1,095 6,586 5,264 |
|
| 1,095 1,095 595 5,491 5,491 4,669 |
|
| 5,491 1,095 6,586 5,264 |
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Notes to the accounts
1. Accounting Policies
(a) Basis of preparation
The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP) including the concessions that are available for smaller charities and the Charities Act 2011.
(b) Funds structure
The charity has no endowment funds. Restricted funds are to be used in accordance with specific instructions imposed by the donor. There are a number of restricted funds, details of which are described in note 5.
(c) Incoming resources
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.
(d) Resources expended
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Grants payable are payments made Turning Point (Kenya) and to third parties in the furtherance of the charitable objects of the Trust.
(e) Costs of generating funds
The costs of generating funds consists of the costs of printing and distributing leaflets and newsletters, some staff costs associated with fund-raising, and costs for Trustee visits to Kenya.
(f) Governance costs
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
(g) Tangible fixed assets and depreciation
All assets costing more than £1,000 are capitalised and valued at historic cost. Depreciation is charged on equipment that is written off on a straight line basis over four years. (There have been no additions in the last six years.) All assets in Kenya are under the control and management of Turning Point (Kenya). The organisation currently has no fixed assets.
2. Related party transactions and trustee’s remuneration
Trustees received no emoluments (2019: £Nil). Expenses in the year totalled £269 (2019: £807). This was for expenses incurred such as postage and stationery.
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3. Analysis of charitable activity
The trust undertakes its charitable activity through making grants to Turning Point Trust in Kenya, a registered NGO in Kenya, and sometimes by employing UK staff to assist with the management and resourcing of the work in Kenya. The following table shows a breakdown of the charitable activity costs.
| Unrestricted | Restricted | Total Funds | Total Funds | |
|---|---|---|---|---|
| Analysis of Charitable Activities | Funds | Funds | 2020 | 2019 |
| Grants to Turning Point Kenya | 162,648 | 6,352 | 169,000 | 204,123 |
| Staff costs | 0 | 0 | 0 | |
| Governance costs | 293 | 0 | 293 | 251 |
| Total | 162,941 | 6,352 | 169,293 | 204,374 |
4. Analysis of current assets
The amounts showing as debtors represents amounts due in Gift Aid claimed but received after the yearend.
5. Analysis of restricted charitable funds
| Balance | Incoming | Resource | |||
|---|---|---|---|---|---|
| b/f | resources | expended | Transfers | Balance c/f | |
| College fees | 420 | 0 | 0 | 0 | 420 |
| Feeding Project | 0 | 50 | 50 | 0 | 0 |
| Education for One Individual | 175 | 0 | 0 | 0 | 175 |
| Farm | 0 | 1,000 | 1,000 | 0 | 0 |
| Kianda Appeal | 0 | 4,950 | 4,450 | 0 | 500 |
| Christmas Gifts | 0 | 852 | 852 | 0 | 0 |
| Total | 595 | 6,852 | 6,352 | 0 | 1,095 |
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