2023-03-31-accounts

STARFISH GREATHEARTS FOUNDATION (company number 4528018 – a company limited by guarantee)

(Charity Number 1093862)

Report of the Trustees and unaudited Financial Statements for the year ended 31 March 2023

www.starfish-greathearts.org

STARFISH PARABLE

An old man has a habit of early morning walks on the beach. One day, as he looked along the shore, he saw a human figure moving like a dancer. As he came closer he saw that it was a young woman and she was not dancing but was reaching down to the sand, picking up starfish and very gently throwing them into the ocean.

“Young lady”, he asked, “Why are you throwing starfish into the ocean?”

“The sun is up, and the tide is going out, and if I do not throw them in they will die.”

“But young lady, do you not realise that there are miles and miles of beach and starfish all along it? You cannot possibly make a difference.”

The young woman listened politely, paused, and then bent down, picked up another starfish and threw it into the sea, past the breaking waves, saying:

“It made a difference for that one.”

(Adapted from the story “The Star Thrower” by Loren Eisely)

CONTENTS

Charity Information .................................................................................... 1 Report of the Trustees ................................................................................. 2 Independent Examiners Report .................................................................. 7 Statement of Financial Activities .................................................................8 Balance Sheet .............................................................................................. 9 Notes to the Financial Statements at 31 March 2023 ................................. 10

Registered as a charity in England and Wales. Registered charity number: 1093862

www.starfish-greathearts.org

Independent Examiner

CHARITY INFORMATION

Constitution

Starfish Greathearts Foundation (“Starfish”) is a company limited by guarantee and a registered charity governed by its memorandum and articles of association.

Registered Company Number

4528018

Registered Charity Number

1093862

Patrons

Dame Janet Suzman Sir Mark Moody-Stuart

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees.

Danny Burke ACMA 17 Queens Road Uxbridge Middlesex UB8 2NN

Bankers

Metro Bank One Southampton Row London WC1B 5HA

Solicitors

Legal advice is sourced where needed on a pro bono basis from an international law firm regulated by the Solicitors Regulation Authority.

Registered office

111 St Mary Graces Court Cartwright Street London E1 8NB

The Trustees who served during the year and since the year end were as follows:

Edward Cottrell (Chair) Matthew Houlton Chris Kotze Danielle Olivier (joined June 26 2023) Carla van Rensburg (resigned March 28 2023) Ursula Schliessler James Siswick Katherine Smithson

Board of Advisors

The Board of Advisors are not Trustees but serve as advisors to the Trustees. The Board of Advisors are drawn from respected members of the community in the United Kingdom.

John Lazar Caelim Parkes Paul Seligman Hendrik du Toit

Management

Elinor Middleton – Chief Executive Officer

Company Secretary

Matthew Houlton

Registered as a charity in England and Wales. Registered charity number: 1093862

1

www.starfish-greathearts.org

REPORT OF THE TRUSTEES

This report together with the financial statements of Starfish for the year ended 31 March 2023 has been prepared in accordance with the Financial Reporting Standard, effective 1 January 2015, Companies Act 2006, Statement of Recommended Practice (SORP), applicable UK accounting standards (FRS 102), and the Memorandum and Articles of Association.

Trustees’ meetings are set out in the Articles of Association. The Trustees receive guidance from the Board of Advisors. The Board of Advisors is a body of experienced individuals who provide guidance and advice to the Trustees on request. The day to day management of the charity is undertaken by the Chief Executive Officer who provides strategic and operational leadership of Starfish UK.

Financial management continues to be provided by volunteers with relevant expertise.

Related Parties

STRUCTURE, GOVERNANCE AND MANAGEMENT

Introduction to Starfish

Starfish was formed in response to the unfolding tragedy of children orphaned or made vulnerable by the HIV/AIDS epidemic in South Africa.

The organisation was founded in London by a group of young professionals in 2001 and registered with the Charity Commission as a charity in England and Wales in 2002 (registered charity number 1093862).

Starfish is a company limited by guarantee governed by its Memorandum and Articles of Association (company number: 4528018).

Vision and Mission

A sister charity to Starfish is registered in South Africa as a nonprofit organisation and Section 21 company, and is referred to in this report as “Starfish SA”. Starfish SA was established by founding members of Starfish with the express purpose of sharing the Starfish vision in South Africa and enabling delivery to the children we support. Projects supported by Starfish are mainly identified, managed, monitored and evaluated by Starfish SA.

Additionally, Starfish USA is a corporation and is registered as a charitable organisation under Section 501(c)3 of the US Internal Revenue Service (EIN 20-3622548). The team share the same Starfish vision and deliver their work through Starfish SA. These charities are not under common control with Starfish and so not consolidated in these financial statements. There is, however, a Global Steering Committee in place to provide oversight and ensure good governance across the Starfish entities.

Risk Management

Our vision is a future where vulnerable children receive the life, hope and opportunities they deserve.

Our mission is to empower people to deliver professional and sustainable services to orphaned or vulnerable children in communities affected by HIV and AIDS and poverty.

We achieve this by funding programmes and strengthening the capacity of community-based organisations to provide quality care to children with a holistic focus on health, wellbeing, education and child protection. We work with local partners to identify innovative solutions to meet their changing needs.

Appointment of Trustees

The criteria that the Board take into account in appointing people as Trustees is whether they possess skills that will be useful to the Board and that can be used to fill gaps in the experience, knowledge or contacts of the Board and can contribute meaningfully to the work of Starfish.

Trustees Induction and Training

The Company Secretary explains the roles and responsibilities of being a Trustee to each new Trustee and provides them with relevant Charity Commission publications on Trustee duties and responsibilities. The Chair of the Board explains to each new Trustee how the Board operates and what is expected from each Trustee. Ongoing training is provided on an ad hoc basis.

Organisation

The Directors of Starfish are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees shall not be less than three in number, but are not subject to any maximum. The Trustees meet at least four times a year. The Trustees elect from among their number, on an annual basis, a Chair, whose responsibilities for chairing the

The Trustees consider risks at each meeting and a comprehensive review is carried out annually. The latest risk assessment review was undertaken in March 2023.

As part of this process, the Trustees have implemented a risk management strategy, which comprises:

• An annual review of the risks which Starfish may face

• The establishment of systems and procedures to mitigate those risks identified

• The implementation of procedures designed to minimise any potential impact on Starfish should any of those risks materialise

OBJECTIVES AND ACTIVITIES

The charitable objects, for which Starfish is incorporated, as set out in the Memorandum and Articles of Association, are as follows:

• The relief of poverty, sickness and distress

• The preservation and protection of health

• The advancement of education

• The provision of facilities for recreation and leisure time activities for the occupation of persons who have need for such facilities by reason of their youth, disablement, poverty or social and economic circumstance in the interests of social welfare and with the object of improving their conditions in life

Registered as a charity in England and Wales. Registered charity number: 1093862

2

www.starfish-greathearts.org

• And in particular, but without prejudice to the generality of the foregoing, for the benefit of children and young persons in South Africa

In pursuit of these objects, Starfish focuses upon supporting children in South Africa orphaned or left vulnerable by the HIV/AIDS pandemic, specifically by the following activities:

• Inspiring people to give their time, money, skills, experience and other resources

• Engaging all who express interest in joining Starfish

• Enrolling individuals and organisations as committed partners

• Enabling and leveraging the potential of all who give of their time, money, skills, experience and other resources

• Providing leadership that focuses and supports the Starfish organisation, while developing and protecting the brand and vision

These activities find expression in a single overall charitable activity with the objects of raising funds to support projects identified and managed by Starfish SA.

The Crisis

In 2022, there were 168,000 recorded new HIV infections in South Africa. South Africa has one of the highest HIV rates in the world with an estimated 8.2 million people living with the virus, 270,000 of whom are children aged 0-14 years old (UNAIDS, 2022). It is estimated that only 48% of those children are receiving Antiretroviral treatment (UNAIDS, 2022). UNAIDS reports that in 2021, 1.2 million children were made orphans between the ages of 0 – 17 as a result of AIDS.

Orphans are particularly vulnerable to HIV because of economic and social insecurities; they are often at risk of being forced into sex in exchange for support, and typically become sexually active earlier than other children. Furthermore, the mental-health outcomes among children orphaned by AIDS are found to be much worse than children orphaned as a result of other causes (Kidman, 2021). This is partly attributed to the stigma and isolation associated with the virus. UNAIDS (2020) reports stigma and discrimination ‘combine to impede access to HIV services and to reduce medication adherence.

In a country where gender inequality persists, females experience an unequal burden of the virus and account for more than half the total number of people living with HIV in eastern and southern Africa. According to the Child Gauge Report (2021), six out of seven new adolescent HIV infections in subSaharan Africa (15–17-year-olds), are girls. Every week, around 4,900 young women aged 15–24 years become infected with HIV. (UNAIDS, 2022). In South Africa specifically, gender disaggregated data reveals an average of 11.5% of men living with HIV compared to 20.6% of women (Kim et al., 2021). It is estimated that one quarter of South African women in their reproductive ages (12-49 years) are HIV positive (NCBI, 2022).

In sub-Saharan Africa, six in seven new HIV infections among adolescents aged 15–19 years are among girls. Girls and young women aged 15–24 years are twice as likely to be living with HIV than young men. Women and girls accounted for 63% of all new HIV infections in 2021.

population, with the greatest concentration (27%) in the KwaZulu Natal (KZN) region where many of our projects are based. An estimated 16% of children in KZN are orphaned (living with 1 or no biological parents), which is equivalent to over 673,000 children (Children Count, 2022). In the years since the virus first appeared, the communities we work in have lost entire generations of parents, carers and teachers. Inevitably, negative health indicators are particularly high within KZN, supported by reports from our community partners that emphasise lack of healthcare, education, and nutritional services within these areas as significant obstacles. Healthcare access is one of the biggest issues that children in South Africa face. One fifth (20%) live in remote areas significant distances from their nearest healthcare facility (Child Gauge, 2021). As inequality continues to deepen and South Africa ranks amongst the most economically unequal economies in the world, the HIV/AIDS epidemic serves to amplify negative effects on the economy in a number of ways. While the disease has resulted in a reduction of the labour force, it has also increased healthcare expenditure, produced significant negative impacts on child growth and development, diverted public investment, and exacerbated income inequality by decreasing per capita income growth rates. The children we care for are those who suffer the most from this stark reality.

In 2022/23 we have seen the compounding effect of Covid-19 on our communities, bringing further hardship, food insecurity and domestic abuse alongside health concerns. Children’s safety, nutrition and health have been compromised, while their education has been disrupted. A reported 2.2 million jobs were lost between April and June 2020 alone in South Africa (UNICEF 2020) and in the first quarter of 2023 unemployment sat at 32.9% (Statistics South Africa, 2023). The livelihoods lost due to Covid-19 and these high unemployment rates have a direct impact on our children. In particular, orphaned children are some of the most marginalised and vulnerable to the adverse impacts of Covid-19, as the hardship of losing a parent and being subject to poverty intersect. All of our projects have all reported deepening poverty in their communities due to the pandemic.

The Response

By challenging perspectives and beliefs, Starfish seeks to mobilise and inspire individuals in their various fields of influence to bring life, hope and opportunity to these children and their communities. In this way, Starfish is developing an international community – a community heightened in its awareness of the problems of the HIV and AIDS pandemic and determined to overcome them. As part of our remit to support the most vulnerable, we extended our work to respond immediately to the Covid crisis by rolling out testing, distributing PPE and health education messages and increasing our food parcel drops to households living in terrible poverty.

ACHIEVEMENTS AND PERFORMANCE

The financial performance of Starfish in the United Kingdom is displayed in the accompanying financial statements on pages 8 to 18. Starfish SA and Starfish USA financial information is accounted for separately.

Income

Income for this financial year was £282,253 (£328,271 in 2022). This was in line with budget, as the spike in 2022 was due to a one-off capital build donation. In 2023/24 we will redouble our efforts to secure new income from corporates, individuals,

HIV prevalence remains high at one in five of the general

Registered as a charity in England and Wales. Registered charity number: 1093862

3

www.starfish-greathearts.org

trusts and foundations. We hope to continue to grow our individual donor income stream and have put in place a strategy to support this growth. In order to ensure that our outgoings are minimal the team in the UK continues to benefit from pro bono office space and since February 2020 there is only 1 paid staff member.

Charitable Trusts and Foundations

Starfish secured grants totalling £108,614 in 2022/23 (2022: £75,860) from charitable trusts and foundations. The increase in income from the prior year reflects both our supporters’ funding cycles, and an increase in output in this area.

Corporate Donations

We received corporate donations totalling £15,543 in 2023 (2022: £12,893 see note 2). Whilst unrestricted support remains low, we continue to enjoy substantial engagement from employees at a number of major companies and invaluable support from Investec, our host. We are planning a number of exciting challenges for the staff in 2023/24, including scaling the 3 peaks and tackling Tough Mudder. We will be approaching a number of new companies in 2023/24 to endeavour to increase this support.

Donated Goods and Facilities

Investec provided Starfish with pro bono office space valued at £26,400 (2022: £26,400 see note 6b), enabling Starfish to ensure that more donations are restricted to charitable work by operating with exceptionally low UK overheads.

Individual Donations

Total donations received during the year through payroll giving, standing orders and single donations amounted to £86,630 (2022: £115,762). We will be focusing on this stream in 2023/24 to mitigate the loss of income from sporting activities.

Sporting Initiatives

Sporting activities raised £12,057 (2022: £38,002). This income stream remains low, and we have not seen the post covid bounce back we would have hoped for. We are proud of the difference this funding stream as made since our inception. Starfish’s very first fundraising initiative and income generation was from our sporting campaign: Greathearts. This campaign forms a fundamental part of the charity even forming part of our name. Starfish now delivers a portfolio of fundraising sports initiatives, and the money is ploughed back into helping the most vulnerable children.

Expenditure

Direct staff costs relate to the employment costs of the Chief Executive Officer. All salary costs are direct staff costs and there are no support staff costs.

Investec Bank plc continued to provide Starfish with pro bono office space and facilities ensuring that the organisation maintains low administration costs. This has been recognised in donations, income, and costs.

Charitable expenditure includes funds donated to Starfish SA to cover Starfish UK’s share of the Programme Team costs, which is an essential part of programme delivery and management.

Total expenditure was £212,119 for the year (2022: £201,707).

PUBLIC BENEFIT PROVIDED AND SUMMARY OF KEY INITIATIVES UNDERTAKEN BY STARFISH

The Charity's Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to Public Benefit

guidance published by the Charity Commission. All Trustees gave their time voluntarily and received no benefits from the Charity. No trustee reclaimed any expenses from the charity during the current or previous year.

For the year ending 31 March 2023, Starfish undertook a number of key activities within the framework of the aims set out in the charity’s governing document to provide public benefit to children and young people in South Africa. More specifically, the beneficiaries of public benefit provided by Starfish for the year were children that have been made vulnerable or orphaned by the HIV/AIDS crisis and who are experiencing poverty in South Africa. The activities of Starfish for the year were undertaken with the objective of supporting the advancement of education, preservation and protection of health, and the relief of poverty, sickness and distress.

Globally, funds from all Starfish offices supported more than 13,500 children.

In summary, these programme activities included nutritional support, facilitation and provision of education welfare services and training to increase the overall quality of care provided to children. These activities are as follows:

- Health and Education Crisis Intervention

Starfish supports children with food parcels to enable them to stay alive during times of crisis. Many children are left to look after sick and dying parents and are unable to access basic resources needed to survive. Newly orphaned children are often left to fend for themselves with no support structure around them. Food parcels represent a vital lifeline that enables children to hold onto the hope of a brighter future while we work with them to link them into long term support structures, social services and enable them to receive government welfare grants. The parcels typically contain maize meal, beans, peanut butter, sugar and salt to enable a family of four to survive for a month.

Emergency food parcels also enable staff to build up a relationship with the children. The parcels are used as a short term, but vital lifesaving tool to enable families and children to survive until we can link them to a more secure and sustainable source of food such as vegetable gardening and government grants.

As well as enabling orphaned children to apply for school fees exemption, our projects also crucially provide the necessary support around education such as the provision of school uniforms, shoes, stationery and books. Without these, children would not be able to attend school despite the fact that school represents the one sustainable means of building independent and economically active lives. We provide the necessary support to enable children to continue their education following the death of their parents. This is vitally important to enabling children’s lives to stabilise, initiating the rebuilding process.

Our mobile clinic offers testing and care to some of the most vulnerable children in rural areas. The Wellness Wagon was launched to mitigate some of the challenges to accessing care, including lack of provision, inadequate staffing and medical resources, school absenteeism and unaccompanied children not being taken seriously by health officials.

Results confirmed the need for services with 67% of children referred for follow up care. A second wagon was launched in 2015 to provide care in the Eastern Cape and a third was launched in 2019 in partnership with Altro, who donated materials and expertise. The Wellness Wagon has truly proved to be a beacon of hope, at the forefront of delivery of testing, PPE and food parcels during the Covid 19 pandemic and lockdown in South Africa. We are expanding our reach in

Registered as a charity in England and Wales. Registered charity number: 1093862

4

www.starfish-greathearts.org

2023/24 with the launch of static medically converted shipping containers to address the desperate need for diagnosis and care, and a brand new wagon capable of tackling the most challenging landscape.

• Support for Community Based Organisations

It is widely accepted, based on experience of organisations in South Africa and throughout the rest of the continent where large populations of AIDS orphans exist, that the best models of care for vulnerable and orphaned children are found within the children’s communities, not in institutions.

The huge numbers of children orphaned by HIV/AIDS in South Africa needing support means that neighbourly support is no longer enough. As a response, community members are getting together to assist children and their families within their communities. Community initiatives can provide various kinds of assistance including parenting, protection, and psychosocial support as well as material assistance.

However, these community groups require assistance to effectively care for children. They need support to deliver the best responses, reaching the most vulnerable children over the long term. Starfish invests in the futures of thousands of children across South Africa making sure they have the tools they need to become independent young adults. We do this through community based organisations (CBOs) working at grassroots level. We believe that by empowering these organisations with our knowledge, financial resources and training, vulnerable children, their families, and communities will be strengthened. Our support is flexible and can be adapted by the projects themselves. This enables individual communities to develop their own solutions to the challenges they face.

The service packages our project partners provide typically includes:

• Nutritional support through sustainable food gardening and hot meals

• Day care and pre-school for infants and young children

• Psychosocial care for traumatised children

• Homework support and training for older children

• Safe and caring environments in which children can play and socialise

• Government grant facilitation for child headed households and foster care families

• Caregivers giving direct support for child headed households until we can link children to foster care families

• Healthcare services

- Capacity Building

There are thousands of CBOs that work to support orphaned children and adults at risk due to HIV/AIDS. These organisations deliver a range of education and health support services. However, often, donors and the government are unable to work with these CBOs because they have no formal framework, infrastructures such as bank accounts, or non-profit organisation registration. Staff and volunteers require training and skills around budgeting and financial management, fundraising, business plans and codes of conduct.

Starfish has undertaken to increase the capacity and sustainability of project partners. In 2022/23 we launched a new ‘Starfish Way’ to improve consistency in programme delivery across our portfolio. This new set of standards covers

training and capacity building, through to the introduction of a new nutritionally balanced menu and delivery of food to all partners.

Programme Managers are experienced individuals not only conducting monitoring of projects, but also providing the necessary support around the development of key skills. We have found that this combination of ad hoc but focussed training alongside support delivered by Starfish staff is proving exceptionally beneficial with projects considerably increasing their reach and quality of programmes delivered. Training ranges from finance and management to social care courses. In 2023/24 there will be an even greater emphasis on training with a special focus on standardising the teaching ability of ECD carers through the roll out of training to ensure the best educational support for vulnerable children.

To support both programme delivery and enable us to better report back to our donors in real-time, we are moving our reporting systems online.

FINANCIAL REVIEW

Policy on Reserves

Income funds are split either designated by donors or unrestricted funds. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. This may be a specific project, geographic area or type of work such as health, education or child protection services. Unrestricted funds have been split into Operational Reserves, the Designated Projects Fund and the residual unrestricted funds.

Operational Reserves

The Trustees closely monitor the level of Operational Reserves available to ensure there is sufficient financial flexibility in place. The Trustees’ policy is that there should be Operational Reserves of approximately £60,000 (2022: £60,000) so as to cover at least six months of staff and administration costs. The remaining Unrestricted Reserves available at 31 March 2023 were £67,823 (2022: £37,978).

Designated Projects Fund

The Trustees review the charity's need for project reserves annually in line with the guidance issued by the Charity Commission. From time to time the Trustees make transfers in to this Fund to ensure projects continue to be fully supported if our annual income targets are not reached. The Fund balance is currently £71,906 (2022: 44,721).

Grant Making Policy

Available funds raised by Starfish UK are remitted to Starfish SA. The granting of funds is determined by Starfish SA and Starfish UK in line with the organisation’s project funding strategy, which is approved by Starfish UK, approval at project committee meetings, as well as adequate compliance by the project partner in regards to auditing and reporting.

Investment Policy

Under the Memorandum and Articles of Association, Starfish has the power to make any investment which the Trustees see fit. Starfish aims to achieve an acceptable sterling investment return whilst ensuring sufficient cash is available to meet the operating costs of Starfish and project commitments. Starfish aims to minimise currency risk associated with project commitments as and when clarity exists as to the terms and timing of amounts to be transferred. Starfish has primary

Registered as a charity in England and Wales. Registered charity number: 1093862

5

www.starfish-greathearts.org

banking relationships with Metro Bank. Surplus cash funds are placed with Metro Bank and Virgin Money during the year and interest received from these placements was £nil (2022: £ nil).

Trustees’ Responsibility in Relation to the Financial Statements

Company law requires the Trustees to prepare financial statements that give a true and fair view of the state of affairs of the charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the Trustees are required to:

• Select suitable accounting policies and apply them consistently

• Make judgements and estimates that are reasonable and prudent

• State whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements and

• Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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.

Future Plans

As we strengthen our model based on best practice and extensive engagement with experts in the sector, we are confident that we will find new donors as passionate as we are about our cause. We are grateful for the continued support from individual donors; a tribute to the Charity’s founding principles and a belief that each one of us can make a difference. Plans for the year ahead include a continued focus on increasing income from charitable trusts, foundations and companies as well as support for our team of individual fundraising volunteers. We are delighted that our US chapter have supported the development of a brand-new website to be launched in October 2023.

The Trustees have approved a schedule of periodic disbursements to project partners in South Africa for the period to 31 March 2024.

These financial statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

…………………………………

Edward Cottrell

Chair, on behalf of the Trustees October 9 2023

Registered as a charity in England and Wales. Registered charity number: 1093862

6

www.starfish-greathearts.org

Independent Examiner's Report to the Trustees of Starfish Greathearts Foundation

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:

• examine the accounts under section 145 of the Charities Act;

• 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

• to state whether particular matters have come to my attention.

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, no matter has come to my attention which gives me reasonable cause to believe that, in any material respect, the requirements:

• to keep accounting records in accordance with section 130 of the Charities Act; and

• to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met.

The Examiner's relevant professional qualification or body is: Chartered Institute of Management Accountants

________ Danny Burke ACMA 17 Queens Road Uxbridge Middlesex UB8 2NN

Date: October 24 2023

Registered as a charity in England and Wales. Registered charity number: 1093862

7

www.starfish-greathearts.org

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2023

(including Income and Expenditure Account)

___________

	Notes			Year ended 31 March 2023	Year ended 31 March 2022
Income from:		Unrestricted	Restricted	Total	Total
		£	£	£	£
Donations and legacies	2	156,783	113,413	270,196	286,718
Trading income and fundraising
initiatives:
- Starfish events	3	12,057	-	12,057	41,553
Investment income received		-	-	-	-
Total income		168,840	113,413	282,253	328,271
		_____	____	_____	_____
Expenditure on:
Raising funds	4	53,120	-	53,120	53,724
Charitable activities	5	58,690	100,309	158,999	147,983
		______	_____	_____	______
Total expenditure		111,810	100,309	212,119	201,707
		______	_____	_____	______
Net movement in funds		57,030	13,104	70,134	126,564
Fund Balances Brought Forward	12	142,699	85,279	227,978	101,414
		_____	_____	_____	______
Fund Balances Carried Forward	12	199,729	98,383	298,112	227,978

All results were derived from continuing activities. There were no recognised gains or losses for the year ended 31 March 2023. The comparative split between restricted and unrestricted funds in 2022 is shown in note 14. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. The notes on pages 10 – 18 form part of these financial statements.

Registered as a charity in England and Wales. Registered charity number: 1093862

8

www.starfish-greathearts.org

BALANCE SHEET

as at 31 March 2023

Notes Tangible Fixed Assets 9 Current Assets Debtors 10 Cash at Bank Creditors: Amounts Falling Due Within One Year 11 Net Current Assets Net Assets Income Funds Unrestricted Operational Reserve 12,13 Designated Projects Fund 12,13 Unrestricted Reserves 12,13 Restricted 12,13 Total Funds	31-Mar 2023 £ - 5,266 294,256 ––––––––––––––– 299,522 -1,410 ––––––––––––––– 298,112 ––––––––––––––– 298,112 ––––––––––––––– 60,000 71,906 67,823 98,383 ––––––––––––––– 298,112 –––––––––––––––	31-Mar 2022 £ - 26,282 202,196 ––––––––––––––– 228,478 -500 ––––––––––––––– 227,978 ––––––––––––––– 227,978 –––––––––––––––
		60,000 44,721 37,978 85,279 ––––––––––––––– 227,978 –––––––––––––––

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The Trustees have not required the charitable company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for

a ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

b preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. Approved on behalf of the Board of Starfish Greathearts Foundation.

………………………

Edward Cottrell Date: October 9 2023 Chair

Registered as a charity in England and Wales. Registered charity number: 1093862

9

www.starfish-greathearts.org

Statement of Cash Flows

NOTES TO THE FINANCIAL STATEMENTS at 31 March 2023

1. Accounting policies

Basis of Preparation

The financial statements have been prepared in accordance with the historical cost convention, the Companies Act 2006, the Statement of Recommended Practice (SORP), and applicable UK accounting standards.

Fund Accounting

Unrestricted Funds

Unrestricted Reserves are available for use at the discretion of the Trustees in furtherance of the general objectives of Starfish and have not been designated for other purposes.

Designated Projects Fund and Operational Reserves are unrestricted funds earmarked by the trustees for particular purposes. For more details please see our reserves policy on page 5.

Restricted Funds

Restricted funds are to be used in accordance with specific restrictions imposed by donors. The aim and use of the restricted funds are set out in the notes to the financial statements.

Income

A statement of cash flows has not been prepared as Starfish qualifies as a small company and is therefore exempt from the requirements to produce a statement of cash flows.

Donated Services

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 when there is no financial cost borne by a third party.

Interest Received

Interest is included when receivable by Starfish.

Tangible Fixed Assets

Computer equipment purchased during the year is capitalised and depreciated on a straight line basis over the estimated useful life of three years.

Software development costs that meet the requirements for capitalisation are depreciated on a straight line basis over the estimated useful life of three years.

Foreign Exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

All income is accounted for on a receivable basis.

Donations

Donations are received from individuals and corporations. Starfish reclaims Gift Aid from His Majesty’s Revenue & Customs where appropriate documentation has been received from the donor.

Starfish Events

Funds raised from Starfish events are accounted for on a receivable basis and are stated on a gross basis as expenses related to these events are included in expenditure.

Expenditure

All expenditure is accounted for on an accruals basis and, in accordance with the requirement of the SORP, has either been classified directly to or allocated as appropriate support costs over the Foundation’s two main activities under the SORP of:

• Cost of raising funds

• Funding of Starfish SA

Grants Policy

All available funds raised by Starfish UK are remitted to Starfish SA based on their project funding strategy, which is approved by Starfish UK.

Registered as a charity in England and Wales. Registered charity number: 1093862

10

www.starfish-greathearts.org

NOTES TO THE FINANCIAL STATEMENTS at 31 March 2023 (continued)

2. Donations

Donations and intangible income Foundations and Trusts Fundraising Individual donations - standing orders Individual donations - once-off Corporate donations Corporate intangible donation - Rental of Premises - Sponsored good and services GiftAidReclaim	31-Mar 31-Mar 2023 2022 £ £
	108,614 75,860 21,450 28,238 86,630 115,762 15,543 12,893 26,400 26,400 4,656 4,656 6,904 22,909
	270,196 286,718

Corporate intangible donation refers to the in kind donation of office space in lieu of rental by Investec Plc. This relationship was initiated in November 2007.

3. Income from Starfish Events and Fundraising Initiatives

Starfish events US Gala Sports Initiative	31-Mar 31-Mar 2023 2022 £ £
	- 3,551 12,057 38,002 12,057 41,553

Registered as a charity in England and Wales. Registered charity number: 1093862

11

www.starfish-greathearts.org

NOTES TO THE FINANCIAL STATEMENTS at 31 March 2023 (continued)

4. Cost of Raising Funds

Cost of Generating Funds Direct Staff Costs (Note 6a) Cost of Starfish events Support Costs Cost of Sports Initiative	Direct Support Costs Costs £ £ 35,867 17,253	31-Mar 31-Mar 2023 2022 £ £ 53,120 53,724
		30,525 29,028 5,147 6,813 17,253 17,667 194 216
		53,120 53,724

Donated services of £17,253 (2022: £17,667 see Note 2) are included in the cost of raising funds.

5. Charitable Activities

Funding of Starfish SA and other programmes -CBO Support and Capacity Building Activities within the UK Governance costs	Direct Support 31-Mar 31-Mar Costs Costs 2023 2022 £ £ £ £ 104,759 - 104,759 98,727 104,759 - 104,759 98,727 37,308 14,613 51,922 50,506 2,319 - 2,319 (1,250)
	144,386 14,613 158,999 147,983

Governance costs include independent examiner’s fees of £1,410 (2022: independent examiner’s remuneration of £1,410). Included in the total expenditure of £51,922 is £26,400 for in kind donation of office space in lieu of rent by Investec PLC (see note 15) and £4,656 for donated goods and services received towards various activities.

Registered as a charity in England and Wales. Registered charity number: 1093862

12

www.starfish-greathearts.org

NOTES TO THE FINANCIAL STATEMENTS at 31 March 2023 (continued)

6. Support Costs

a) Staff Costs

a) Staff Costs Wages and salaries Other Direct staff costs Other staff costs Less direct staff costs in relation to fund raising Support staff costs relating to charitable activities	31-Mar 31-Mar 2023 2022 £ £
	62,626 59,802 4,335 4,145 872 559
	67,834 64,507 (30,525) (29,028) 37,308 35,479

The average number of employees for the year was one (2022: one), employed in furthering the charitable aims of the organisation. One employee earned more than £60,000 during the year under review (year ended 31 March 2022– nil).

b) Administration

b) Administration costs Rent of premises Sponsored Administration Depreciation Development Costs Written Off General expenses including: - marketing - insurance - other	31-Mar 31-Mar 2023 2022 £ £
	26,400 26,400 4,656 4,656 - - - - - - 301 407 510 1,231
	31,867 32,694

Registered as a charity in England and Wales. Registered charity number: 1093862

13

www.starfish-greathearts.org

Less administration costs in relation to fund raising Administration costs relating to charitable activities	(17,253) (17,667)
	14,613 15,027

Rent on premises is donated by Investec Bank Plc, other includes pro bono support costs.

7. Taxation

As a charity Starfish is exempt from taxation of its income and gains within Section 505 Taxes Act 1988 or Section 256 Taxation of Chargeable Gains Act 1992 to the extent they are applied to its charitable objectives. No tax liability has arisen in the year.

8. Trustees’ Remuneration

The Trustees have waived their right to any emoluments from Starfish. No trustee received any reimbursed expenses during the year (2022 - £nil).

9. Tangible Fixed Assets

At 01 April 2021 and 31 March 2022 Accumulated Depreciation At 01 April 2022 and 31 March 2023 Net Book Value as at 31 March 2022 Net Book Value as at 31 March 2023	Computer Software £ 2,959 ------------ 2,959 ------------- - ---------- - -----------	Computer Hardware £ 1,665 --------------- 1,665 ---------------- - ------------ - ------------	Total Assets £ 4,624 --------------- 4,624 -------------- - ---------- - -----------

Registered as a charity in England and Wales. Registered charity number: 1093862

14

www.starfish-greathearts.org

NOTES TO THE FINANCIAL STATEMENTS at 31 March 2023 (continued)

10. Debtors

Debtors Accrued donations Prepaid expenses	31-Mar 31-Mar 2023 2022 £ £
	5,266 22,815 - 3,467
	5,266 26,282

11. Creditors: amounts falling due within one year

Creditors: Amounts falling due within one year Accrued Expenses	31-Mar 31-Mar 2023 2022 £ £
	1,410 500
	1,410 500

Registered as a charity in England and Wales. Registered charity number: 1093862

15

www.starfish-greathearts.org

NOTES TO THE FINANCIAL STATEMENTS at 31 March 2023 (continued)

12. Statement of Funds

Restricted funds Operational Reserves Designated Project funds Unrestricted funds Total funds	At At 1 April Incoming Resources Contingency Transfer to 31-Mar 2022 resources Expended Reserve Reserves 2023 £ £ £ £ £ £
	85,279 113,413 (100,309) - - 98,383 60,000 - - - - 60,000 44,721 - - - 27,185 71,906 37,978 168,840 (111,810) - (27,185) 67,823
	227,978 282,253 (212,119) - - 298,112

The unrestricted funds include the Operational Reserves, Designated Projects Fund and Unrestricted Reserves. The Operational Reserves of £60,000 (2022: £60,000) will cover six months of staff and administration costs.

The Designated Projects Fund is held to safeguard the charity's services and projects in South Africa in the event of delays in the receipt of grants, or any shortfall in fundraising income. This will enable Starfish to fulfil its immediate short term charitable commitments. A transfer of £27,185 was made into this fund in 2023 (2022: £44,721 was transferred in to the fund).

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of the restricted funds are set out in the table below:

Balance at		Balance at
1 April		31 March
2022Income	Expenditure	2023
££	£	£
Trusts for the Wellness Wagon 7,92325,000	(16,772)	16,151
IFP Donation for KZN11,56937,500	(27,300)	21,769
Allan & Nesta Ferguson Foundation20,000-	(14,797)	5,203
Anonymous for KZN42,69325,038	(26,979)	40,752
ALMT for Woza Moya ECD - 14,675	(5,405)	9,269
Restricted donations of £5,000 or less3,09511,200	(9,055)	5,240
======= =====	======	======
85,279113,413	(100.308)	98,383
–––––– –––––	–----------	------------

Restricted funds are to be used solely for the purpose for which they were awarded. This may be a specific project, geographic area or type of work such as health, education or child protection services.

Registered as a charity in England and Wales. Registered charity number: 1093862

16

www.starfish-greathearts.org

NOTES TO THE FINANCIAL STATEMENTS at 31 March 2023 (continued)

13. Analysis of Net Assets between Funds

Debtors Cash at bank Total liabilities	Restricted Unrestricted Total Funds Funds 2023 £ £ £
	- 5,266 5,266 98,383 195,873 294,256 (1,410) (1,410)
Net assets	98,383 199,729 298,112

14. Unrestricted and Restricted Funds Split 2023

				Year
	Notes			ended 31 March	Year ended 31 March 2022
				2023
Income from:		Unrestricted	Restricted	Total	Total
		£	£	£	£
Donations and legacies	2	156,783	113,413	270,196		286,718
Trading income and
fundraising initiatives:		-	-	-		-
- Starfish events	3	12,057	-	12,057		41,553
Investment income received		-	-	-		-
		-	-	-		-
Total income		168,840	113,413	282,253		328,271
		_____	____	_____		_____
Expenditure on:
Raising funds	4	53,120	-	53,120		53,724
Charitable activities	5	58,690	100,309	158,999		147,983
		______	_____	_____		______
Total expenditure		111,810	100,309	212,119		201,707

Registered as a charity in England and Wales. Registered charity number: 1093862

17

www.starfish-greathearts.org

		______	_____	_____	______
Net movement in funds		57,030	13,104	70,134	126,564
Fund Balances Brought Forward	12	142,699	85,279	227,978	101,414
		_____	_____	_____	______
Fund Balances Carried Forward	12	199,729	98,383	298,112	227,978

15. Related Parties

Starfish Greathearts Foundation, registered in South Africa (Section 21 company registration number: 2003/002865/08) (“Starfish SA”) is the sister charity of Starfish Greathearts Foundation (“Starfish"), registered in England and Wales. Starfish SA has the same charitable objects as Starfish.

During the period under review there was charitable expenditure of £104,759 (2022: £98,727) from Starfish to Starfish SA to further the charitable objects of Starfish SA. These will enable Starfish to fulfil its immediate short term charitable commitments. At the year-end amounts due to Starfish SA was £nil (2022 £nil).

The Starfish team are hosted by Investec Bank plc.

16. Guarantors

Starfish is a company limited by guarantee. In the event of a winding-up, the liability of each of the members is limited to £1. At 31 March 2023 the members of the company were all Trustees as listed in the Trustees Report.

17.

Post Balance Sheet Events

There have been no significant events between the balance sheet date and the date of this Report.

Registered as a charity in England and Wales. Registered charity number: 1093862

18