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2022-03-31-accounts

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2022

Charity Number 1092114

ROBIN DILLAMORE LTD

Chartered Accountants and Business Advisers The Melbourne Centre, Melbourne Road Blacon, Chester CH1 5JQ

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

CONTENTS PAGES
Legal and administrative information 1
Report of the trustees 2 to 5
Independent examiner’s report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 to 17

Page 1

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST LEGAL AND ADMINISTRATIVE INFORMATION

Charity registered number Governing instrument

1092114

Declaration of Trust dated 27 June 2001

Trustees A P Chaudhary S P V Chaudhary W T O’Leary M L Taplin J P Wilkinson I P O’Leary S Horsley Principal address PO Box 65 Newton Aycliffe Co Durham DL5 7YR Independent examiner Anna C R Benjumea Robin Dillamore Ltd Chartered Accountants The Melbourne Centre Melbourne Road, Blacon Chester CH1 5JQ UK bankers Barclays Bank plc 31 High Row Darlington Co Durham State Bank of India Manchester Branch Carlton House 18 Albert Square Manchester M2 5PE

Page 2

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Charitable objects

The Objects of the Charity are to proclaim and further the Gospel of God concerning His Son Jesus Christ our Lord and the preaching and teaching of the Word of God consistently with its Doctrines and in furtherance of those objects to: -

Organisational structure

The names of the Trustees and other legal information are shown on page 1 of these accounts. The trustees are responsible for:

The day-to-day responsibilities have been delegated to Aaron and Stephen Chaudhary who are in regular contact with the management of the children’s home.

Trustees Training.

The Trustees are experienced having served on the board for many years—several since this charity was established as well as on the board of other charities. They have had no specific training with this charity but keep up to date with the Trustee’s role and responsibilities under Charity Law.

Public benefit

The charity Trustees have complied with their duty in section 17(5) of the 2011 Charities Act to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. The Charity's activities are for the public benefit in that grants payable are made to works which eradicate poverty and ignorance, and payments to support the ministry of evangelists and Bible teachers are made to those who make no charge for their services and are dependent upon public subscription to enable them to minister.

Related parties

Three of the Trustees (A Chaudhary, M Taplin and W O'Leary) are also on the Board of Trustees of the David Chaudhary Ministries Fund (Registered Charity 326436).

Page 3

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Review of activities and achievements

During the beginning of the period under review the global pandemic was still restricting the operation of the children’s home and school. The Indian government had made the decision to close all non-government operated children’s home and schools. Travel was also restricted, and combined with a change in personal circumstances, this meant that during this period there were no visits to the Children's Home normally taken by Stephen Chaudhary (trustee) and his wife Lesley. However, it was anticipated that a visit would take place at the end of 2022.

This meant the closure of the children's home and the school resulted in children residing at the home returning to their families and guardians. The staff however, under their own initiative, responding by making regular visits to the villages and communities where the children came from with the intention of reassuring the families and guardians that the children' s home would reopen as soon as possible. Although this was demanding and time consuming work, the effort was appreciated and was a testimony to the genuine care and concern demonstrated by management and staff, and a number of families who, at the time were not connected to the children’s home and school, became interested

As well as the pastoral care of the children the staff also ensure the security of the children’s home property and maintenance. The staff continued to receive their salaries, however, a few decided to take on other work but thankfully the vacancies have since been filled with good quality personnel. The trustees are happy that during this season the home was well managed.

Although there is a push by the government to promote government run schools, there is a desire to promote the children’s home school in the local community and surrounding areas. It currently has five classes of lower and upper kindergarten aged children, the pupils are a mix of the younger children from the Home and children from the local village. The classes are well attended, and the children are disciplined and well behaved. The teaching is of a good standard.

The children's home and the school provide employment for 12 individuals including the management committee, key staff members, teaching staff, auxiliary staff including cook, assistant, and domestic worker, and watchman. The children's home workers who come from other areas are provided with on-site accommodation while the teachers tend to live locally and commute. Two ladies on staff were former residents of the children's home, this is especially satisfying.

In the year to 31st March 2022 the costs of running the children's home and the school were £21,134.

Page 4

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Reserves

Reserves at 31st March 2022 were £908,328. In view of the need to provide security of accommodation, education and maintenance of the children from infancy to departure at adulthood and into further education it is intended to maintain reserves at the level needed to cover support and running costs for 15 years. A capital fund was set up to maintain those reserves, which is represented by investments valued at £631,214.

Investment powers, policy and performance

A proportion of funds is maintained on deposit, but the majority of the investments, presently £631,214, consists of freehold property let residentially in the UK.

Grant making policy

The Charity, at their discretion and in accordance with their objectives makes grants to trusted individuals and organisations whose purpose aligns with those of the charity. During this period such grants were made in support of missionaries to the Philippines. These were for £1,200.

Governance and internal control

The major risks to which the Charity is exposed, as identified by the Trustees, have been reviewed and systems established to mitigate those risks. Detailed returns are required from the Children's Home; under normal circumstances, annual visits are made to the Home to verify that it is properly run and that the condition of the building is of an acceptable standard, and that funds sent to the local charity are being correctly used.

Plans for the Future

Our mission and goals for the future remain consistent with our objectives, i.e. to communicate the Gospel of Jesus Christ, to provide financial support for the children’s home in Gajjaram, India and other children’s homes the trustees may wish to support, and to provide education for the children’s home and assist those involved in Christian ministry with the provision of children’s education.

Page 5 THE DAVID CHAUDHARY MINISTRIES CHILDREN'S HOME TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 TRUSTEES, RESPONSIBILITIES STATEMENT The trustees are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires the Irustees to prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the charily at the year end and of its incoming resources and resources expended during that year. In preparing these financial slatements, the truslees are required to.. select suitable accounting policies and then apply them consistenlly., observe the methods and principles in the Charities SORP., make judgments and accounting estimates that are reasonable and prudenl- prepare the financial statements on Ihe going concern basis unless it is inappropriate to presume that the charty will continue in operation. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply wilh the Charilies Act 2011. They are also responsible for safeguarding the assets of the charity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. INDEPENDENT EXAMINER The charity's independent examiner is Anna Beniumea of Robin Dillamore Ltd, Chartered Accounlants and Business Advisers. This report was approved by the trustees on .2.3.: 2023 and is signed on their behalf by.. -(LJl- A P Chaudhary Trustee

Page 6

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEES

We report on the financial statements of the trust for the year ended 31 March 2022, which are set out on pages 7 to 17.

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.

Basis of independent examiner’s statement

My examination was carried out in accordance with 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, I have reasonable cause to believe that

have been met; and

Anna C R Benjumea ACA

The Melbourne Centre, Melbourne Road, Blacon, Chester CH1 5JQ

Date: …………………. 2023 26th January

Page 7

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2022

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

Unrestricted Restricted Totals Totals
Funds Funds 2022 2021
Note £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 36,395 - 36,395 30,688
Income from Investments 3 32,139 - 32,139 31,581
─── ─── ─── ───
TOTAL INCOME AND ENDOWMENTS 68,534 - 68,534 62,269
─── ─── ─── ───
EXPENDITURE ON
Charitable activities
Grants payable 4 1,200 - 1,200 2,600
Costs of activities 5 21,134 - 21,134 18,270
Support costs 6 6,618 - 6,618 7,143
─── ─── ─── ───
TOTAL EXPENDITURE 28,952 - 28,952 28,013
─── ─── ─── ───
NET INCOME/(EXPENDITURE)
FOR THE YEAR 39,582 - 39,582 34,256
Transfer of funds - - - -
Other recognised gains / (losses)
Other gains / (losses) - - - -
─── ─── ─── ───
Net movement in funds for the year 39,582 - 39,582 34,256
Balances brought forward 868,746 - 868,746 834,490
─── ─── ─── ───
Balances carried forward 908,328 - 908,328 868,746
─── ─── ─── ───

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

All of the activities of the charity are classed as continuing.

The notes on pages 9 to 17 form part of these financial statements.

Page 8 THE DAVID CHAUDHARY MINISTRIES CHILDREN'S HOME TRUST BALANCE SHEET 31 MARCH 2022 Note 2022 2021 FIXED ASSETS Tangible assets Investments 155.567 631,214 159,710 631,214 786,781 790.924 CURRENT ASSETS Debtors Cash at bank and in hand 10 11,662 111.659 16,201 63,695 123,321 79,896 CREDITORS- amounts falling due within one year 11 11,7741 12,0741 NEf CURRENT ASS￿5 121.547 77,822 NET ASSETS 908.328 868,746 FUNDS Unrestricted funds Designated funds General reserve 12 12 631,214 277,114 631,214 237,532 TOTAL FUNDS 12 908.328 868,746 These financial statements were approved by the trustees on tehaw by.. 2023 and are signed on their A P Chaudhary Trustee Tha n￿•￿ nn n2np.* Q tn 17 fnmi nart nf thASA finanp_ial RtAtp.mp.ntR.

Page 9

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared under the historical cost convention, and in accordance with the Charities Act 2011 and the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities (FRS 102)”.

Fund accounting

Unrestricted funds are general 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.

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 cost 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 and gains are allocated to the appropriate fund.

Income and endowments

All income and endowments are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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

No amounts are included in the financial statements for services donated by volunteers.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at headquarters.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Page 10

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

ACCOUNTING POLICIES (continued)

Foreign exchange gains and losses

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the average rate during the accounting period. All differences are taken to the SOFA.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Assets are capitalised where they can be used for more than one year and cost over £100.

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Long leasehold – 2% straight line

Other fixed assets – 20% straight line

Investments

Fixed asset investments are stated at the trustees’ best estimate of the market value as at the yearend date. A valuation by an independent expert has not been carried out.

Page 11

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

2. DONATIONS AND LEGACIES

2022 2021
£ £
Unrestricted donations 36,395 30,688
Restricted donations - -
─── ───
36,395 30,688
─── ───

The donations above are shown inclusive of the corresponding amounts of Gift Aid tax reclaimable.

3. INVESTMENT INCOME
2022 2021
£ £
Income from investment properties 36,820 34,243
Less Expenses (4,681) (2,662)
─── ───
Net income from investment properties 32,139 31,581
Bank interest receivable - -
─── ───
32,139 31,581
─── ───
4. GRANTS PAYABLE
2022 2021
£ £
Grants to other NGOs - -
Grants payable to UK individuals 1,200 2,600
Pastor and widows support - -
School and education fees - -
─── ───
1,200 2,600
─── ───
5. CHARITABLE ACTIVITIES
2022 2021
£ £
Running costs of the children’s home 21,134 18,270
─── ───
21,134 18,270
─── ───

Page 12

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

6. SUPPORT COSTS

6.
SUPPORT COSTS
2022 2021
£ £
Travel expenses - 29
PPS 533 991
Depreciation 4,143 4,143
Bank charges 133 -
Insurance 632 616
HMRC fine - -
Trustees’ indemnity insurance 372 313
Trustees’ meeting expenses - -
Accountancy 155 85
Telephone and internet 300 291
Independent examiner’s fees 350 675
─── ───
6,618 7,143
─── ───

7. TRANSACTIONS WITH TRUSTEES AND RELATED PARTIES

No remuneration was paid to the trustees for their services as trustees. The trustees were reimbursed for expenses of £100 during the year (2021 - £239). The trustees donated a total amount of £360 during the year to the charity (2021 - £600).

Page 13

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

8. FIXED ASSETS

Cost or valuation
As at 1 April 2021
Additions
Disposals
As at 31 March 2022
Depreciation
As at 1 April 2021
Charge for the year
Disposals
As at 31 March 2022
Net book values
As at 31 March 2022
As at 31 March 2021
Motor vehicles
Office
equipment
Long
Leasehold
TOTAL
£
£
£
£
1,222
2,339
192,521
196,082
-
-
-
-
-
-
-
-
1,222
2,339
192,521
196,082
1,222
1,462
33,688
36,372
-
293
3,850
4,143
-
-
-
-
1,222
1,755
37,538
40,515
-
584
154,983
155,567
-
877
158,833
159,710

9. FIXED ASSET INVESTMENTS

Freehold property Total
£ £
Cost / Revaluation
At 1 April 2021 631,214 631,214
Additions - -
─── ───
At 31 March 2022 631,214 631,214
─── ───
Net book value
At 1 April 2021 631,214 631,214
─── ───
At 31 March 2022 631,214 631,214
─── ───

The properties are held in the UK and consist of five modern residential letting properties. These investments are all to provide an income return for the Charity.

These have not been formally re-valued, but in the opinion of the Trustees their market value is in the region of £631,214 at the balance sheet date.

Page 14

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

10. DEBTORS

2022 2021
£ £
Income tax recoverable 11,036 15,666
Prepayments 626 535
─── ───
11,662 16,201
─── ───

11. CREDITORS: amounts falling due within one year

2022 2021
£ £
Accruals and deferred income 805 1,105
Obligation under rent bond 969 969
─── ───
1,774 2,074
─── ───

12. STATEMENT OF FUNDS

Unrestricted funds
General reserves
Designated fund (Capital fund)
Restricted funds
Total restricted
Total funds
At 1
April
2021
Income
Expenditure
Transfers
Gains and
losses
At 31
March
2022
£
£
£
£
£
£
237,532
631,214
68,534
-
(28,952)
-
-
-
-
-
277,114
631,214
-
-
-
-
-
-
868,746
68,534
(28,952)
-
-
908,328

The general reserves are the free funds of the charity which are not designated for particular purposes. As stated in the Trustees’ Report, a capital fund has been set up to provide security of accommodation for at least fifteen years (previously twelve), based on the current level of support, which in the year to 31[st] March 2022 was £21,134 (2021 - £18,270). The income of this fund is regarded as part of the general funds of the Trust and is applied against the support of children and the expenses of the children’s homes.

Page 15

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at
31 March 2022
represented by:
Fixed assets
Fixed asset
investments
Current assets
Current liabilities
Designated
funds
£
-
631,214
-
-
631,214
General
funds
£
Total
Unrestricted
funds
£
155,567
-
123,321
(1,774)
155,567
631,214
123,321
(1,774)
277,114
908,328

Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with any restrictions.

14. INDEMNITY INSURANCE

As permitted by the Trust Deed, the charity paid for the insurance premiums to indemnify Trustees from any loss arising from neglect or defaults of Trustees and any consequent loss.

Page 16

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

15. STATEMENT OF CASH FLOWS

Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments of borrowing
Cash inflows from new borrowing
Receipt of endowment
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at the end of the reporting period
2022
2021
Note
£
£
47,964
34,963
(Note 16)
-
-
-
-
-
-
-
-
-
(84,881)
-
(84,881)
-
-
-
-
-
-
-
-
47,964
(49,918)
63,695
113,613 (Note 17)
-
-
111,659
63,695
(Note 17)

Page 17

THE DAVID CHAUDHARY MINISTRIES CHILDREN’S HOME TRUST NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

16. RECONCILIATION OF NET INCOME/(EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities
2022
2021
£
£
39,582
34,256
4,143
4,143
-
-
-
-
-
-
4,539
(3,522)
(300)
86
47,964 34,963

17. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
Notice deposits (less than 3 months)
Overdraft facility repayable on demand
Total cash and cash equivalents
2022
2021
£
£
111,659
63,695
-
-
-
-
111,659
63,695