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2022-10-31-accounts

SHAREAfrica (A company limited by guarantee)

Report and Financial Statements For the year ended 31 October 2022

Charity number: 1094198 Company number: 4554704

ShareAfrica Report and Accounts 2021-2022

CONTENTS

Page
Legal and Administrative Information 2
Trustees’ Report 3 to 8
Independent Examiner’s Report 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Accounts 12 to 15

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ShareAfrica Report and Accounts 2021-2022

LEGAL AND ADMINISTRATIVE INFORMATION

CHAIRMAN OF THE TRUSTEES: Mr J McPhail COMPANY SECRETARY: Mr P Richardson TREASURER: Mr A S Rogers TRUSTEES: Mr L Currie Mr J McPhail Mr P Richardson Mr A S Rogers Mr E Morrow Mr P Cherrie CHARITY NUMBER: 1094198 COMPANY NUMBER: 4554704 REGISTERED OFFICE: 43 Green Lane Harrogate North Yorkshire HG2 9LP PRINCIPAL OFFICE ADDRESS: PO Box 401 Harrogate North Yorkshire HG2 9LP INDEPENDENT EXAMINER: Mr J Allen North Muir Muir of Kinellar Aberdeenshire AB21 0SD BANKERS: Barclays Bank plc 1 St Andrews Square Edinburgh EH2 2BD

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ShareAfrica Report and Accounts 2021-2022

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2022

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31[st] October 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS102) effective from 1[st] January 2015.

Aims, Objectives, Achievements and Performance

Purposes and Aims

The aims of the charity are to support fellow Christians and others living in impoverished conditions in Africa by donating, sponsoring, and investing in activities that will create opportunities for sustained improvement in livelihoods. Our aims fully reflect the purposes that the charity was set up to further.

Ensuring our work delivers our aims

Our aims, objectives and activities are kept under constant review and discussed at each meeting of the trustees. The outcomes of these reviews are summarised in this report. Fundamental to the review process is the requirement for public benefit as set out in the Charity Commission’s general guidance.

The focus of our work

Our objective for the year continued to be the reduction of poverty in Zambia. To meet this objective SHAREAfrica UK partners with SHAREAfrica Zambia (SAZ, a company registered in Zambia as a company ‘limited by guarantee’) to fulfil the objective of SHAREAfrica UK.

This objective is met through SHAREAfrica Zambia’s business structure which is set up to control the financial and operational activities of all aspects of the business. Presently there are three business units:

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ShareAfrica Report and Accounts 2021-2022

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 (Continued)

How our objectives deliver public benefit

All our objectives are delivered through SAZ activities mentioned above. Our approach involves developing skills and infrastructure that allows people to prosper through productivity. This improves earnings which in turn improves the health and wellbeing of families, extended families, and the community at large.

Productivity and earnings are central to improving livelihoods.

Who used and benefitted from our activities in 2022

1. Seed Growing: 110 Smallholder farmers have been trained to grow seed from a variety of parent seed developed at the SAZ farm.

2. Farmer Support Programme : 150 farmers were given seed, training, cash advances, and equipment. Some were given oxen and other were helped with early season ploughing and planting.

3. Food Factory : 15 people have been trained to operate food processing and packaging equipment. All factory workers are routinely tested by Ministry of Health inspectors. The Food Factory is certified by the Zambian food standards board.

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ShareAfrica Report and Accounts 2021-2022

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 (Continued)

4. The Orphan Programme: 219 orphans and vulnerable children were supported during the year. The children are selected according to published criteria to ensure that those in greatest need have priority.

5. Administration and Charitable Activities:

6. Direct and indirect beneficiaries

Financial Review

Overall Income

Total Income for the year has fallen slightly by 3% to £450,693 (20/21 £464,516).

Balances

Overall opening funds were £306,801. Closing funds were £230,504, which includes £127,474 in loans recoverable.

Funding Sources

Major donors, those giving £10,000 or more represents about 30% of total income. Monthly recurring payments from orphan and farmer support amount to less than 20% of total income. The remainder comes from ad-hoc donations. The spread in sources of income is similar to previous years.

Grants Given to SAZ

Grants given to SAZ amounted to £520,405 to SAZ. In addition, overall loans were increased by £20,338 during the year to SAZ.

Grant funding was allocated as follows:-

Farming £218,060 Orphans £87,914 General £148,288 Church £51,798 Feeding £12,668 Students £1,677 -------------------Total £520,405

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ShareAfrica Report and Accounts 2021-2022

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 (Continued) Financial Review (continued)

The farming programmes have the greatest number of beneficiaries. They also contribute most to the overall growth of the sustainability programmes supported by SHAREAfrica, therefore more money has been allocated to farming to build on proven success.

In the SAZ accounts, Admin is spread to the other business units to reflect the true cost of the programmes being supported by SHAREAfrica UK.

Other SAZ Funding

SAZ generates income from their commercial activities and grant funding from other agencies. This is separate from the funding provided by SHAREAfrica UK.

Investment powers

The Charity’s investment powers are conferred by the Trustee Act 2000.

Reserves Policy

The agreed target is to maintain cash reserves at between 3 and 6 month’s expenditure. At 31[st] October 2022 reserves amounted to just over 5 months of the year’s expenditure.

Basis of Accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS102). Advantage has been taken of the special provisions of Part 15 of the Companies Act 2006 to allow the format of the financial statement to be adapted to reflect the nature of the company’s operation.

Plans for Future Periods

The charity plans to continue with and, as funding permits, support SAZ in expanding programmes in 2023. These include:

These developments are aimed at increasing the number of beneficiaries while at the same time remaining true to the ‘not-for-profit’ and ‘fair-share’ principles of the organisation.

Management Reporting from SAZ

SAZ submits management reports each month to the SA Trustees. These are circulated for review and discussed at Trustees meetings. On-line calls with SAZ directors are held to discuss various aspect of the SAZ business.

SAZ accounts are audited by professional external auditors.

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ShareAfrica Report and Accounts 2021-2022

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 (Continued)

Structure, Governance and Management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on 7 October 2002 and registered as a charity on 16 October 2002. The company was established under a Memorandum of Association which established its objects and powers and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Trustee Induction and Training

New trustees are given a thorough induction into the workings of the charity. Each trustee has a copy of the charity’s memorandum and Articles of Association which is explained by the Company Secretary, together with copies of the organisation’s financial statements, policies and procedures.

Risk Management

The trustees, who have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error, confirm a risk management strategy has been implemented. Strategic risks are considered and, as appropriate, procedures are established to mitigate those identified. Economic conditions in Zambia and fundamental reliance on good rains for our farmers are major factors which are kept under review.

Bribery

The provisions of the Bribery Act 2010 have been noted by the trustees and a resolution agreed to maintain our long established zero tolerance approach both in the UK and Africa. Our agents in Zambia are aware of and in agreement with this policy. We will monitor implementation of our policy in Zambia by requiring annual confirmation statements.

Fundraising and Safeguards

The charity does not employ or work with professional fund raisers or fundraising bodies. The charity takes its responsibility towards supporters who may be considered to be in vulnerable circumstances very seriously. The trustees respond sensitively and appropriately when they become aware of any individual whom they might consider to be in a vulnerable circumstance. The charity ensures that those individuals and bodies supporting the charity understand how their money will be used to assist the charity deliver its aims and objectives. In future impact statements will be sent out to all donors.

Organisation Structure

The trustees comprise the management of the charity. The trustees are all directors of the company and there are no directors who are not trustees. The trustees come from business, financial and administrative backgrounds appropriate to the activities of the charity. The trustees undertake most of the required administrative duties and no salaries or allowances are paid, other than legitimate expenses.

The charity’s activities in Zambia are mainly carried out through a local organisation - SHAREAfrica Zambia (SAZ) – with which the charity has no financial link. When funds are transferred, these are for specific projects, programmes or services and we review to ensure they are used for the purpose they are requested for. Controls are in place to monitor and manage the status and impact of all activities.

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ShareAfrica Report and Accounts 2021-2022

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 (Continued)

Responsibilities of the Trustees

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources for the financial year. In preparing these financial statements, the trustees should follow best practice by:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees

The trustees are all directors for the purpose of company law and trustees for the purpose of charity law. Those who served during the year and up to the date of this report are set out on page 2.

In accordance with company law the company’s directors certify that:

Independent Examiner

Mr J Allen has expressed his willingness to continue as the charity company’s independent examiner again this year.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies.

Approved by order of the board of trustees on 14[th] July 2023 and signed on their behalf by:

Mr J McPhail (Chairman)

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ShareAfrica Report and Accounts 2021-2022

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF SHAREAFRICA

I report on the accounts of the company for the year ended 31 October 2022, which are set out on pages 10 to 15.

Respective responsibilities of trustees and examiner

The charity’s trustees (who are also the directors for the purposes of company law) 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(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of 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 you as 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:

have not been met; or

Mr J Allen CA Chartered Accountant

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ShareAfrica Report and Accounts 2021-2022

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2022

Notes
INCOME FROM
Charitable Activities
General
2
Investment income
Total
EXPENDITURE ON
Charitable activities
General
3
Total
NET INCOME
RECONCILIATION OF FUNDS
Brought Forward
Carried Forward
7
Unrestricted
Funds
£
276,529
8
276,537
342,462
342,462
(65,925)
261,738
195,813
Restricted
Funds
£
174,156
-
174,156
184,528
184,528
(10,372)
45,063
34,691
2022
Total
£
450,685
8
450,693
526,990
526,990
(76,297)
306,801
230,504
2021
Total
£
464,505
11
464,516
385,369
385,369
79,147
227,654
306,801

The notes form part of these financial statements.

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ShareAfrica Report and Accounts 2021-2022

BALANCE SHEET AS AT 31 OCTOBER 2022

Notes
Current Assets
Debtors
5
Cash at bank and in hand
5
Creditors
Amounts falling due within one
year.
6
Net Assets
Funds
Unrestricted general fund
7
Restricted funds
7
Unrestricted
Funds
£
127,877
67,936
195,813
-
195,813
195,813
-
195,813
Restricted
Funds
£
484
34,207
34,691
-
34,691
-
34,691
34,691
2022
Total
£
128,361
102,143
230,504
-
230,504
195,813
34,691
230,504
2021
Total
£
109,552
199,018
308,570
(1,769)
306,801
261,738
45,063
306,801

In the directors’ opinion the company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The notes on pages 12 to 15 form an integral part of these accounts.

The financial statements were approved by the Board of Trustees on 14[th] July 2023 and were signed on its behalf by:

Mr J. McPhail (Trustee)

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ShareAfrica Report and Accounts 2021-2022

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the United Kingdom and Republic of Ireland (FRS102) (effective from 1[st] January 2015), Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland the Companies Act 2016. The financial statements have been prepared under the historical cost convention.

Income

Donations and legacies are accounted for when received by the Charity. All other income is recognised in the statement of financial activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under the headings that aggregate all costs related to the category. Where costs cannot be directly attributable to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from Corporation Tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with a charitable objective at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanations of the nature and purpose of each fund is included in the note in the financial statements.

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ShareAfrica Report and Accounts 2021-2022

2
ANALYSIS OF INCOME
Donations
Gift Aid
Interest
3
CHARITABLE ACTIVITIES
General Grants
Grants to Churches
Farmer Programme
Orphan Programme
Further Education
Feeding Programme
Support costs (see below)
Support costs:
Printing,
postage
and
stationery
Bank charges and interest
Accountancy costs
Unrestricted
Funds
£
269,615
6,914
8
276,537
148,288
8,652
172,456
-
-
6,481
335,877
6,585
342,462
4,213
1,004
1,368
6,585
Restricted
Funds
£
160,785
13,371
-
174,156
-
43,146
45,604
87,914
1,677
6,187
184,528
-
184,528
-
-
-
-
2022
Total
£
430,400
20,285
8
450,693
148,288
51,798
218,060
87,914
1,677
12,668
520,405
6,585
526,990
4,213
1,004
1,368
6,585
2021
Total
£
438,090
26,415
11
464,516
53,870
22,429
214,122
66,061
2,138
18,828
377,448
7,921
385,369
5,405
1,148
1,368
7,921

4 STAFF COSTS AND EMOLUMENTS

There were no employees during either this or the previous year.

5 CURRENT ASSETS

CURRENT ASSETS
Debtors
Gift Aid
SAZ Loan
Unrestricted
Funds
£
403
127,474
127,877
Restricted
Funds
£
484
-
484
2022
£
887
127,474
128,361
2021
£
2,416
107,136
109,552

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ShareAfrica Report and Accounts 2021-2022

5 CURRENT ASSETS (Continued)

Unrestricted Restricted
Funds Funds 2022 2021
Cash at Bank £ £ £ £
Barclays Current 54,446 19,545 73,991 71,469
Barclays Deposit 13,013 14,000 27,013 127,004
Paypal 477 662 1,139 545
67,936 34,207 102,143 199,018
Total Current Assets 195,813 34,691 230,504 308,570

6 CREDITORS: amounts falling due within one year

Trade Creditors Unrestricted
Funds
£
-
-
Restricted
Funds
£
-
-
2022
£
-
-
2021
£
1,769
1,769

7 MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net
At 01.11.21 movement in At 31.10.22
funds
£ £ £
Unrestricted funds 261,738 (65,925) 195,813
General Reserve
Restricted funds
Church - - -
Farmers 2,036 (1,093) 943
Orphans 29,301 (17,823) 11,478
Further/Higher Education 12,705 (1,677) 11,028
Feeding - 4,981 4,981
Water 184 - 184
Special Needs 837 5,240 6,077
45,063 (10,372) 34,691
TOTAL FUNDS 306,801 (76,297) 230,504

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ShareAfrica Report and Accounts 2021-2022

7 Movement in Funds (continued)

[Net movement in funds, included in the above are as follows:- ]

Unrestricted funds
General Reserve
Restricted funds
Church
Farmers
Orphans
Further/Higher Education
Feeding
Water
Special Needs
Incoming
resources
£
276,537
43,146
44,511
70,091
-
11,168
-
5,240
174,156
Resources
expended
£
(342,462)
(43,146)
(45,604)
(87,914)
(1,677)
(6,187)
-
-
(184,528)
Movement
in funds
£
(65,925)
-
(1,093)
(17,823)
(1,677)
4,981
-
5,240
(10,372)

The General Reserve represents the “free funds” of the charity which are not designated for particular purposes.

8. TRUSTEES’ EXPENSES

No remuneration or expenses were paid to the trustees during this or the previous year.

9. GENERAL MATTERS

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