## **Children of Watamu Trustee Report 2023 - 2024** 

Registration No: 1098731 

Address: Watamu, Kilifi County, Kenya 

## **Trustees:** 

Dave Hayward – Non Executive Director & Chairman 

Rose Pendo  - Director 

Chloe Groves – Treasurer 

Velma Kazungu – School Administrator 

Silas Karisa 

Dawn-Heather White 

Peter Reid 

Philip Marshall 

Grace Dunbar 

## **Introduction** 

The Children of Watamu Happy House is registered as a Children’s Home with the Charity Commission for England and Wales. The Home is also registered as a Charitable Children’s Institution (CCI)  in the Republic of Kenya CS No 000573. The Happy House was established in March 2010 by Sue and Dave Hayward who were regular visitors to Watamu. Within a few months of opening the number of children living in the Happy House was 104 but, through extensive work with the local community and in tracing members of extended family, this number has been reduced to an average of 50 children at any one time. Some of the children have been abandoned, some have lost parents through illness, some have been abused and some were referred by local children’s groups and communities as mothers could not afford to feed them and their children were at risk of starving. 



In keeping with the National Care Reform Strategy for Children in Kenya 2022 – 2032, the Happy House continues to provide a safe, secure and homely environment while attempting to repatriate children back into local communities, where possible. The Happy House also established the Happy House School which is attended by both Happy House children plus fee paying students which further helps with community integration as the children develop networks outside of their home. 

## **Structure** 

The Happy House Trustees meet on a quarterly basis. As four of the Trustees are based in Watamu and four are based in the United Kingdom, meetings take place via zoom and then minutes are emailed to the group within a few days. There are standing agenda items which include Financial Updates, Governance Issues, and progress reports on the annual Development Plan and annual Quality Improvement Plan. The Director, Non-Executive Director and School Administrator are also members of the local Management Board and they meet on a weekly basis. 

There were some changes to the Trust Board during the year with the sad demise of Mr Paul Hatch and the resignation of Mr Chris Franklin.  Mr Philip Marshall, a previous visitor and supporter of the Happy House and experienced Trustee, was welcomed to the Trust Board and attended his first Trust Board meeting in January 2024. 

## **Activities and Objectives** 

The Development Plan 2023 - 2024 had five Key Aims which addressed Finance, Documentation, development of the Junior Secondary School, Quality Improvement and the National Care Reform Strategy for Children  2022 – 2032. The Key Aims were: 

1. To separate the Happy House and School budgets to ensure tax is appropriately paid where applicable. 

2. To update all legal documentation, Policy & Procedures and registrations. 

3. To complete and monitor a School Development Plan and Quality Improvement Plan. 

4. To develop and monitor a Quality Improvement Plan 2023 – 2024 for the Happy House. 

5. To identify relevant sections of the National Care Reform Strategy for Children in Kenya 2022 – 2032 and begin the implementation of key reforms. 

As noted, Key Aim 4 was to agree and implement a Quality Improvement Plan 2023 – 2024. The actions in the Improvement Plan included: 



1. Evaluation of the Moving On Group 

2. File audit of the three most recently admitted children 

3. File audit of the young people discharged in the last 12 months 

4. Improve use of media to heighten the profile of the Happy House 

5. Establishment of a Health & Safety file to monitor implementation of the recommendations of the Sanitation report and other regular maintenance checks. 

## **Achievements and Performance** 

The majority of the Aims listed in the Development Plan have been realised. There continues to be a delay in receiving the Re-Registration Certificate despite regular contact with the Children’s Office. The Certificate has been promised many times but has not been sent although the Children’s Office continues to refer children to the facility. 

In the absence of any Inspections by the Children’s Office in 2023 – 2024, the Trustees carried out a series of Audits against the targets in the Quality Improvement Plan to ensure standards outlined in the National Standards for Best Practice in Charitable Children’s Institutions April 2013 are met. Each of the UK based Trustees visited the Happy House during the year and, as well as carrying out audits, they participated in Kids Club meetings, attended meetings with staff from the Home and the School and spent time talking with individual children and staff.  While the outcome of the visits was positive, some areas for improvement were identified, most specifically in record keeping based on the results of the file audits. An action plan will be included and monitored through the 2024 – 2025 Development Plan. However, it was also acknowledged that the workload for the social worker was onerous given the fact there are over fifty children with many of them preparing to transition so an additional parttime social worker has been employed to ensure standards are maintained. 

One of the actions from the 2023 – 2024 Development Plan was to employ an Accountant and this has been achieved. Since her appointment, all the Financial Policy & Procedures have been updated and approved through the Board of Trustees meetings. These include The Internal Control Document which covers Petty Cash, Procurement and Purchasing, Financial Records, Stock Taking, Capitalization Policy, Property Plant and Equipment and Stock Taking. An Anti Fraud, Bribery and Corruption Policy and Reserve Policy have also been introduced. 

A target for 2023 – 2024 was to secure additional funding and build on a recently purchased site. This was a high priority due to the number of young people aged 16 years plus who would need to transition to other accommodation as they were still at school. One of the biggest achievements for the Happy House was to build the first 



bungalow and successfully transfer four young men into their new accommodation. They continue to receive support from the Happy House and the transition has been very positive. The other children have been to visit the accommodation which is within walking distance of the Happy House and moving on to semi-independence is now seen as a positive experience. Plans are in place to further develop the site so further fundraising will be required in 2024 – 2025 to facilitate this. 

A plot of land attached to the school to develop sporting facilities has been secured and Sponsors are involved in taking this forward in 2024 – 2025. Two Trustees carried out a Quality Audit at the school and some areas for improvement were identified and included in an Action Plan agreed with the General Manager and Head Teacher. Several of the targets for improvement had been met by the end of the 2023 school year and any outstanding targets have been included in the School Development Plan for 2024 which will be monitored through the weekly meetings with the management team. 

## **Assets and Budget** 

Funding comes from established sponsors plus one-off payments as a result of fundraising activities. Details are included in the published Accounts and are monitored by the Board of Trustees.  The main targets for fund raising in 2023 – 2024 were for the development of the semi-independent living accommodation and also the replacement of the Happy House roof. 

## **Challenges and Restraints** 

One of the main challenges for the Happy House has been trying to implement the National Strategy with limited support, guidance  or involvement from the Children’s Office. The Happy House is committed to providing a safe, homely environment and to ensuring that the ethos of the Home is in keeping with strategic direction. This is being achieved by setting our own Aims which are monitored by the Board of Trustees and focussing on key areas such as Exit Planning. 

Finance will always be a challenge for a small organisation and the Happy House is dependent on continuing Sponsorship for ongoing costs and fund raising campaigns for one-off expenses. This year one of the larger expenses was for the replacement of the roof of the Happy House at a cost of 8,600 Sterling. The original roof was made of the local material makuti but, as it was 15 years old and well beyond its expected lifespan, it 



started to leak during the rainy season. The makuti was replaced with a more permanent material. 

A new group of children are reaching 18 years old but are still in full time education. We need to raise enough money to build a second bungalow but also, as the Happy House continues to pay all the utilities and food bills for the semi-independent accommodation, we are reliant on sponsors continuing to support a young person once they have moved out of the main Happy House.  Fortunately the Sponsors of the four young men who moved to the semi-independent accommodation were agreeable to this. 

## **Future Plans** 

Plans for this year include continuing to fundraise for stage two of the Semi Independent Living Accommodation and focussing on preparing the older children for reintegration into the community where possible. The school will be working on the development of the sports facilities. Quality Audits will continue to be carried out based on the standards for Charitable Children’s Institutions.  Succession planning and composition of the Trust Board will be addressed this year. This actions will be included in the Development Plan 2024 - 2025 and will be reported on in next year’s Trustee Report. 

## **David Hayward** 

## **Chairman** 

## **March 2024** 



Sue Hayward - Happy Houso
Annual Report and Financial Statements- y￿ 3111W2023
Al an avÈragÉ exchange rgte 01171 Kenyan Schilling5to Ihe £ Slerlir
Income and Expenditure Account- y￿ 3111212023
23E
120,234
20Y2 E
153,123
Don8llon8 Recelv•d
Le88: Expendltur*
OpBr*lng IDBflcll)/Surr4
39,696
Statement ol Re88rv•s
Yethrended 31 DecernbEr2D22
2722 t
212,505
2022 £
209,68B
15,7801
A¢¢urnul•W Fund BAlan￿ Brouw F￿*9
IDolicltPEurplu8 for t￿yo￿r
ExGhang•dlftereThco
Tronsfor to re%orve8
Prlor YoarAdlu4tm•nt•
Aetumulkl•d Fund ￿*￿0• CarTrl•d Forwwd
158.4441
132.1
212.r4J5
Detslled Income and Expendlture Account - y￿ 3111212023
2D22
114396
Oth•r Inoom•
Expindllur•.'
Motty RwilTha EXP￿￿11￿￿•
Yolqphone. Pootoge ond Int•rn•t
A¥￿Ir8 and Malnten•no•
Food Progr•mrn•
Water and Et•ctilclly
Transport
88larle8 and Wog••
Llireclo¢8 Exp¢nv•
Enl•rt•lnm•nt
P￿nIIng aNJ Statlon•ry
Gardan Expts￿
glud•nts' Utllltl
MedlrNI ExpenM¥
Lrf•i 4 Expen8
nk Choru•B
16,699
4B91
11,B93
0,064
217n
4OQ4
1.3eo
77,1
1.302
314
4777
771
8,a02
441
2,681
1.784
327
ookknBplfig & AeEoub)tsnty F•M
c1•￿1n9 and SanStatlon
Generator Expen
Book8 and Learnlng M81•r1￿*
5ohool Fee8
Pont 8nd
Ml8coll8lleOUS
Llcen9e and pwmlts
Foielgn #xchawe lo
D¢pre¢ioti
1,954
11,086
819
133
IW¢lll f¢rih• Y•qr

Sue Hayward - Happy House
statement of Flnancial Positlon - y￿ 31112r2023
Closlng rate 199
2023
Ntsn-curront A88•18
pro￿rtY￿ Plont and Equlprnent
152,986
149,S33
Current Assets
Cash and Bank
Olh•r Rgc•lvabl
17.102
9.955
23.280
Curr•nt Ll•bllttl•8
377
Nat AMèts
FIMn¢•d by:
A¢cumulatvd FundA
Notes to the Flnanclal Ststem8nt8
2 C••h eank
Cash In Hand
Ca8h at Bank
91
119
3 A•C￿Vabl••
Other Rec&lv4bl•s
4 Curr•nt Ll•bllltl••
Oiher credltor•
$77

CHILDREN OF WATAMU
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Children of Watamu
Annual report and financ￿1818temelltB
For the
ear end8d 31 December 2023
CONTENT6
PAGE
Organl88tlon inlormallon
Report of the Board of TtU8tee8
Statement of maN￿geMent commEttee'8 ¥e8pon85bllllles
Report of tho independent auditor
Flnanel81 ststernènls,.
Slatsmènt of Sncome and éxpendllure
St8temènt of finanel81 posllSon
state￿￿1 of ohanges In equity
Sl8temenl of ¢8$h flows
Notes.. Slgnlflcant accounting pollcieB
10-12
Nolas
13-14
The followSng pag• dom not fomi an Integral part of th•¥• flnanclal stat•mqnts
S¢hedule of expenditure
App8ndlx I

Children of Wat8mu
Annual report and Thnanc￿l statements
For tho
aar ended 31 De￿mber 2023
ORGANISATION INFORMATION
80ARD OF TRUSTEES
Ms. R. Pendo
Mr. David Hayward
Mr. Peter Reid
Ms. Grace Dunbur
Mr6. Chloe Grove
Mrs. Velrna Kazunau
Mr. Silas Kari8a
Mrs. Dawn Heather Whlte
Mr. Phillp Marshall
REQISTERED OFFICE
Chlldren of Walamu
P.0. Box 796- 80202
.' Watsmu, K•ny•
INDEPENDENT AUDITOR
Monda & As$o¢iale8
Certified Publi¢ A¢￿Unts￿￿
P. O. Box 16826- 80100
Mombasa, Kenya
MAIN DONOR
8la¢kpool Soropllml818
Unlted Klngdom
PRINCIPAL 8ANKER
NCBA Bank PLC
Mallndl, Kenya

Children ol Walamu
Annual r8POrt andfinanual statements
For the
earended 310ecemb&r 2023
REPORT OF THE BOARD OF TRUSTEES
The organisation is govem8d by its by-laws. The O￿anISation was reglslgred wilh the Non-Govemmenlal
Organisallon's Co-ordination's Acl, 1990 in 2008.
The chairperson 18 Tesponsible for the gene￿1 polioy guldellnes rtrlatfng to the affalr8 of the organisation providad
in the constitution.
PRINCIPAL ACTIVITY
Children of Watamu organi$alion al¢w lo provlde health care, Impm8 hygi8n8. food-s8curty Bnd education in
Watamu. Malindi ~ Kenya.
ChIld￿n of Watamu organ16allon alms to provtde health ¢are and hygl¢ne. food-s￿￿ty and educalSon lo
de81itute Chlldren in Walamu, Kenya.
The Board of Trusttee m&ts four Umes a yeaT. The chalrm8n 68 respgn51ble for the general poll￿ guld¢llne$
relation to the affalfs of the OFganisatlon provlded the constttutfon.
Nothing ha$ ¢ome to the attention of the Board of Trustee8 to Indlcate that the organlsatlon ￿11 not remaln a going
concem forthe next hvetve mnlh8 from the date of th18 8ts1ement.
RESULTS
2023
Shs
2022
Shs
Tran$ferr¢d lo general resems.
843,886
BOARD OF TRUSTEES
Th8 Board of Trust¢•$ who held offi¢e du￿ng the y¢er and to the date of Ihlg r9PQrt ore 6hown on page 1.
STATEMENT AS TO DISCLOSURE TO THE ORGANIZATION'S AUDITOR
With raspgcl to each 8oard of Twst8es mgmb8r at the fjme Ihls report wo$ approved:
la) ther8 Is, so far a8 the por8on18 awaT•. no r8levanl audlt information of which the organl$allon'$ 4udltor16
unaware., and
b} the person ha8 taken all the steps that the person ought lo hav8 tak8n a8 a board memb8r so as to b8 8war8
of any relovanl audlt Informallon and to eslabllsh that the organlzation's audllor is awar8 of that infoTmallon.
TERMS OF APPOINTMENT OF THE AUDITOR
Monda & Assoclates conllnues In offi￿ in accordance with the ¢)rggni$alion'$ ¢on8tKulion and the
NGO'8 Ctrodlnalion A¢1, 1990. The Board of Tru$tes8 rrDnitgF the effeclivoness, obje¢llvlty and Independence
of the auditor. The mgmbers als9 approve the annuel gudll engagemonl conlraol whlch sets out Ihe term8 of the
audilols appolnlmenl and the related fees. The agreed audilorf$ remuneration of Sh8. 75,000 has been tharged
to inenmè and Èxpèndlture in thè yèar.
BY ORDER OF THE BOARD OF TRUSTEES
Trust••
Tru$toe
Tru$lee

Children of Watam
Annual report and financial statements
For the
earended 31 Decernber 2023
STATEMENT OF MANAGEMENT COMMirrEE'S RESPONSIBILITIES
The organisation's constilutlon requires the management committee to prepare flnanc4al ststements for each
financlal year which give a true and fair view of the slate of affairs ol the organisation as at the end of the financial
year and ot its surplusldèficil or loss for thal year. It also requires the management committee to ensure that the
organisallon keeps proper accounting records that are Sufficient to show and explain the tran8actions of the
organisalion,. and that disclosè, with reasonable a￿￿raCy, the financial position of th& organlsallon ar¥J that enables
them to prepare financial statèmÈnls of the organisalion that comply with the International Accounting Standard and the
NGO'S Co-ordination Act, 1990. Thè management conwnlttee are also responsible for safeguardlng the assets of
the organisalion and for taking reasonable #tep8 for the prevention and detection of fraud and other irr8gularities.
The management Committee accèpt responslbilityfor the preparation and fair presentation of thè financlal
ststements in accordance with tha Intemational Accounting Standard and the NGO'S Co.ordin8tion Act, 1990 and
In the manner requlred by the organisation's eA)n$titulÉon. They also a￿pt responsibility for:
Designing, implementing and mainlaining Èu¢h internal ¢onlrol as they determine is necessary to
enable the preparatton of financial statèments that are free from material misstatement. whether
due to fraud or error,
il. Solecllng and applylng appropriate accounting polieiÈs', and
ill. Making accounting estlmates ond judgments that are reasonable in the circu¥nstsn¢%8;
The management committee are of the opinion that thè finanaal statements give a ttue and fair wew of the finawal
position of the organisatton as 8131 De¢ember 2023 and af its financial performan￿ and cash flows for the year then
ended in accordanc8 wth the Inlerrralional Accounting Standard and the NGU8 Co-ordination Act, 1990.
In preparing these linancial ststements the management commlttee have as$e¥8ed the organisation's ability to
continue as a going c4)ncem. Nothing has come to the attention of the management committee's to indicate that the
organisation will not remain a going concem for at least the next ￿efve months from the dale of this stste￿￿Trt.
The management commitie& aCkno￿édge that the independent audll of the financial $tatemenl8 d￿S not relieve
them of their responsibilitiÈ8.
So far as each of the management ¢ommiEfee Is aware, there is no relevant audll informatiori whith the auditor is
unaware of, and the management committee has taken all the steps that oughl lo have been taken in order to become
aware of any relevanl audit inf0ma￿on and to establlsh that the auditor is aware olthal information.
ApprovetJ by the management commlttee on
2024 signed on its behalf by..
Trustee
Trustso
Trustee

REPORT OF THE INDEPENDENT AUDITOR
TO THE MEMBERS OF CHILDREN OF WATAMU
Oplnlon
We have aL*d((ed the financSal statements of Children of Walamu. sel out on pages 6 lo 13 whlch comprise the
Statement of financial position as at 31 December 2023. and the statement of income and expenditure statement of
changes In reserve$ and $lalement of rash ftows tho year ended, and noles lo the financial slatemenls, including
a $ummary of signifl¢ant attountiro poNctes.
In our opiniDn. the organisation's financaal statements give a true and fair view of the financial poSit￿n as at 31 Dèe£mbÉr
2023, and of tts financial petyomiance and c8sh flctrws for the year then ended in accordan￿ with International Accounting
Standard and the NGO'S C(kordination Act, 199D.
Ba$1$ for Oplnlon
We conducted our audit in acojrdance with Intemational St8ndards on Auditing IISAS). Our r8sponsibllities under those
standards are furthei described in the Auditorfs Resty)rLsibililies for the Audit of the Financial Statements section of our
report. We are independenl of the organTS8tion in accDrdan¢6 Mith the Inte[na￿O￿al Ethics Stsndard8 Board for Accountants.
Code of Ethics for Professional Accountants IIESBA Code) togetherwith the ethlcal roqulrBmenls that are refevant to our
audit of thè financial statements in Kenya. and we have fthfilled our other ethical responsibilltses in 8￿rdance wrfh these
requirements and the IESBA Code. W6 b8liev8 that the audit evidence we havè obtsinéd is $ihti¢ienl and appropnale to
provide 8 basis for our opinion
Other Infomiatlon
The members are Tesponsible for the other infom7atrsn. The Ot￿r information ￿mprL￿O5 the memberf¥ report but dees not
In¢lude the financbal 8tatemenls and our auditorfs ￿pOrt thereon.
Our opinion on the ffinan￿aI 8t8Eements does not cover the i)ther information and we do rKJt express anyfomi of asSLFrarice
condusion thereon.
In ¢onn8¢ts"on with our audit of th& Iinancial statements, ￿r responslbllity 1$ to read the other infoTm8tion and, in doing 80,
consider whether other informatDn is materiany in(x)nsistent wilh the financial statements or our knowledge oblaln8d in the
audrt, or olherwi8e appears to be malertally misstated. If, based on the wc(k we have performed. we oinclude that thèrè is a
material misstatement of this other infomislion, we are required lo r¢wt thal fa¢t. We have nothing lo report in thLs regard.
Responslbllltles of m4rymb•rs forth• financial st#t•m•nts
The Me￿beTr are resKK>nsible forlhe preparali(¥J of the financAal statements that gwe a true and fair view in a¢0)rdan￿ with
International Accounting Standard and the NGO'S C(kordinat￿n Aet. 1990, for s￿h intemal ¢ontrvl as Ihg m9mbers
determine is necessary to enab￿ the preparalion of flnancial ststements that are free from material nNsstatement, whether
olue lo fraud or error.
In preparing the finanLyal slalements, the memb8rs ar8 f85Follsible assessinu the org8ni9alion'$ abilty to ¢onlinue as a
going ¢on¢ern, disclosing as applicable. matters related to golng con￿rn and using fhe going concern basts for accounting
unless the members either intend lo liquidate kne organisatK>n orlo ¢¢asts oporatlons, or has no realisllc alfernalive but
to do so. Those charged wth governanrE are responsible for overseeing the organisatK)n's finan0￿1 reportlng process.
AuditOl'5 Responsibilities for the Audlt of the Flnanclal Statements
Our objeclwes are lo obtsin reasonable assuran￿ aboutwhelhef the financial statements ès a whole are free from matsrial
misslalemenl. whether due lo fraud or error, and lo is$ue an auditor's repott that includes our OPinTon. Reasonable
assurance is a high level of assltrancè. but is not è guarantéè that an audit ¢ondu¢ted in a￿ordan￿ wth ISAS will a￿ayS
detec* a mateTial misststemenl when it exists. Misstatements can aTrse from fraud or error and are considèred mÈtèrial rf.
individually or in the aggregate, they enuld reasonably ￿ expecied to Influence the ecOr￿MiC de¢&%ions of Lssers taken on
the basis of these finan￿al Slalernents.
..¢ontlnuod on pago 5

REPORT OF THE INDEPENDENT AUDITOR
TO THE MEMBERS OF CHILDREN OF WATAMU {CChNTINUED)
AUdit0￿S Responsibllities for the Audit of thè Finan¢lal Statomgnts I￿ntInued)
As part of an audit in a¢o)rdance with ISAS, w8 8xer¢ise professional judgment and maintaln profe88ional
skepli¢lsm throughout the audit. We also-
Identify and assess the risks of mateiial misstatement of thè financial statements, whether due to fraud or
error, design and perfomi audit pr￿d￿re$ responsiv8 to thosè ri$k8. and obtain audit evldonce that is
sufficient and sppropriate to provlde a basis for our opinion. The risk of not deteding a material
misstatement resulting from fraud 18 higher than for onè r8sulting from error, 4$ fraud may involve colluslon,
gery, intentional omission$, m58representations, or the override of internal control.
Obtsin an understanding of inlemal control relevant to th8 audit in order to design audit procedures that
are apP￿PrIate in the circumstan￿, but not for the purrK)s8 of expresslng an opinion on tho effeclSveness
of the organisaticjn's intemal control.
Evaluate the appropriateness of accounting policios used and the r8a%on8blene$$ of a¢¢ounting
estlmales and related dlselosures made by the m¥mbers.
Conclude on the apprapriateness of members, uso of the going concem basis of a¢wunllng and based on
the audit ewdence obtsin6d, whether a material unc¢rtainty exists Yelated to 6vènts or condllions that may
cast significant daubl on the organisation's ability to ¢onlinue as a going concern. If we ¢on¢lude that a
material Un￿rtaInty exists, we are required to draw ottenlion in our a¢Jdito¢s r8KX)rt to the related
dlsdo8wes in the financial statements or, rf such di$closures are inad8quate, to modify our opinion.
Our conclusions are based on the audit eviden¢¢ obtained up to the date of our auditor's report. However.
future events or conditions may cause the organlsalion lo cease lo continue as a going ￿Th¢ern.
Evaluate the overall presentation, structure and ¢ontent of the financial stateménts, including the
isclosuies, and whether th& financial statements represent the underlying transaotions and events in a
manner that achieves fair presentation.
We t￿MMUnICate wlth those tharged with govemance regarding, among other matters, th8 plann8d scope and timing
of the audit and Sign(fl￿nt a¥Jdtt findings, induding any signif5cant deftclencies in internal control that wa identrfy during
our audit.
Report on Other Legal and Regulatory Requirements
A8 required by the organisation's Constilulion. we report to you based on our audit that..
l) we have obtaIr￿1 all the information and explanalions whith lo the best of our kn￿edge and beli8f were necessary
for the purposes of our audit.
111 in our opinlon proper trx)oks of aceount have been kept by the organisalion, so far as appèars from our examlnation
of those books., and
Illl the organlsation's Ststement of financial ptssltl¢n and statement of in¢ome and expenditure ar8 in au￿rnent wth the
books ofacwunt.
Monda a Assoclates
CertiflÈd Publ1¢ Aeeountants
Mombasa
2024

Childffjn of Watan
Annuel report 8nd fln8nci81 statements
For the
ear ended 31 December 2023
STATEMENT OF INCOME AND EXPENDITURE
2023
Shs
2022
Shs
Donath'ons re￿5Ve￿
19,562,056
10,521,225
other income
997.970
11,834,673
Admintslrative expenses
{11.481,oin
{20.321,3841
Other operating expenses
2.482.022)
2.878,401
Surpiusl{Deficit} before tsx
6.618,988
{843,88e}
Tax
Surplusl(Doficit> lor the y￿r
6.fj16.988
1943,8861
The notes on p8g85 10 to 13 form an integral part of these financial statements.
Report of the Independent audltor- pages 4 to S.

Children of Watamu
Annual report and financial Slatements
For the
ear ended 31 Decemljer 2023
STATEMENT OF FINANCIAL POSITION
As at 31 December
2023
2022
Shs
Shs
RESERVES
G¢noral reserve8
32,350 239
31238 241
REpRESE￿rED BY
Non*urrènt assets
Pfopertyi plant and equlpment
30,444.201
27 861 306
Cuttent assets
Rec8lvables
Cash and cash 8qulvalen18
905,253
1.075.785
905,253
2513988
1981038
3419241
Curront Il*bSlltl•¥
Payabl¢$
10
Not ¢ur¥•nl afj$•ts
1.906,038
3 376 935
32 350 239
31,238 241
The financlaS ststsm¢nl$ on page8 6 to 13 were approved and aulhori80d for188ue by the Management
Committe¢ on
2024 ar￿ were slllned on its behalf by..
M•mb•r
Member
The note8 on pag98 10 to 13 form an integral part of thè$& flnanclal slalements.
Report d the Independent audllor- pagès 4 to 5.

Chlldr&n of Watsm
Annual report and financ181 statements
For Ihe
arended 31 Llecember 2023
STATEMENT OF CHANGES IN RESERVES
Goneral
reserves
8h$
Year ended 31 Dee8mbar 2023
At start of y6ar
Transfers lo reseN8s
D8ficit for the year
31,238.241
(5,504,988)
6,816.986
At end of year
32.350.239
Yeaf ended 31 Docembgr 2022
At start of year
32,082,128
Defl¢lt for Ihe
At end of year
31 238 241
Report of the Independent 8udltor- pages 4 to S

ChAldren of W8tamu
Annual report and finanu81 st8tsments
Forthe
ar ended 31 December 2023
STATEIAENT OF CASH FLOWS
2023
Shs
2022
8h$
Notes
Cash flows from operailng actlvitie8
Surplusl{Deflclll for the year
6,618,986
1843,8861
Adjustments for:
DepreciatSon of property. plant and equlpmeni
917,105
993,834
Changes In worklng capllal:
Movement in trad8 and other payables
Moveznenl in trade and other recelvables
14.3861
44.990
32.e93
Net cash from opergling a¢tivities
7,586,784
100,371
cash flows from Investlng actlvltles
Cash pald lor purchase of propety, plant and equipment
3 500 000
3 958,185
Not Cash used In Investing actlvltles
3 500,000
3 958,185
Cash Ilows fTom flnanclng a¢tlvltl•$
Transf&rs during the y8ar
Cash flows from flnanclng 8Ctivlllo$
5 504 988
5,504,988
D8crease In ¢ash and I￿$h equivalents
(1.438,2031
(3.857.814)
Movem&nt Sn cash and ¢a$h equlvalents
Al Start of year
D¢¢rease
2,513,988
1438,203
8,371.803
3 857 814
At end of year
1075 785
2 513988
Th& nol6s on pages 10 to 13 form an Intégr81 part of these financial statsments.
Report of th8 Independ8nt audltor- pages 4 to 5.

Children of Watamu
Annual report and financialstatements
Forthe
ear ended 37 December 2023
NOTES: SIGNIFICANT ACCOUNTING POLICIES
The principal aocounting policies adopted in the preparation of these financial Statemer￿ are set out below.
These policies have been consistently applied to all the years pr&s8nled, unle88 other￿$8 slaled.
Oeneral Inforniatlon
Children of Watafflu Is a Non-&)vemmentsl Organisation TegiSteT& in Kenya. The address of
ils registsred office and 11$ principfjl place of bu8ine88 18 in WalamLS, Kenya. The organisalion's prfndpal
actlvity Is lo provide heollh care se￿l¢e$ in rural &rea8 and to improve hygiene, food-8ecurity and education.
2. &) 8È8ls of pr•paTation
The flnanelal slalemenls of Chlldren of Walamu have been prepared In accordance wllh the
Inlernat4on81 Aeeoufttl¢)g Standard end the NG(Y8 Co-ordination Act, 1990.
The preparatlon of flnanclal tststements In confomilty wth th8 Inltrmalionejl Accounllng Standard End the
the NGO'S Co-ordin8tSon Aet, 1990 requlre8 the use ot certain critical accounllnu 08llmale8. It also requiTe8
man898m8nt to exerc18a Its judgment in the proce88 of applylr4J the organls•tion'$ accounllng poll¢le8.
These flnanclal 8talements comply wlth the requlrement8 of the International Accountlng Stsndard and the
NGO'$ Co-¢)rdin&tion Act, 1990. The ¥lalemgnl of profil or10s8 repTe8enl8 the proflt and Ioss account
referred lo in the Act. Th$ 8lalemenl of financial poBltion represen18 the balance sheet refeTred lo In the Art.
Oolng ¢on¢•m
The financlal p8rfoimance of the organi3alSon Is sel out In the members, report and in the Ftslemgnt of
income •ntl expendlture. The flnanclal poslllon of the organl8alSon 18 8et out In the 81atemenl of finan¢lal
posS150n.
Based on thè finan¢i81 performan￿ 8nd posSllon of th• organ48atlon and Its riBk rnanagement pollcles. th8
mèmber8 are of the oplnion that the organlsallon 1$ well plaeed to conlSnue In buBlne8ts for the foreBeeable
future and a8 8 re8uEt the financial 3tslemenl$ are prepored on a going concern ba81$.
b) Donatlons recognltlon
Mo$1 of the donation$ r￿e1Ved are from the principal donor which are r8cogni6qd upon ¢rodll In Ihg bank
Ihrough $wlft transfer8. All other donalionb are re￿g￿lS￿d upon r8C8iPt.
cl Propèrty? plant and wulpm•nt
All property, plant and •quSpm*nl 18 inlllally recorded al ¢081 and thereafter steted 81 higtorfcgl
cost less depreciation. Historical eosl comprws expendllure inlttally incurred to bring the asset
lo 118 location and condition ready for ils Intended use.
Subsequent costs are indudgd in the a88et'8 carwng amDunl or recognlsed 09 8 soparal
asset. as appropriate, only when 51 Is probable that fuiure economic benefits a$$o¢iated wlh
the ￿eM ￿11 flow to the organisation and fhe ¢u¥t can be rgllatAy mea8ured.
10

Children of Walamu
Annual report and fi'nanc￿1 statèments
For the
oarended 31 D8cèmbér 2023
NOTES: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED}
c) Propertyi plant and equlpment {¢ontlnuedl
D8prèciallon 1$ calculated on reducing balance method to write down the ¢ost of gach asset, to Its residual
valué 0￿r its e8timated useful Ilf¢ usSng the followng annual rates..
Land
Motor V8hiole8
Motor Bikes
FumilLtre & Fittings
Machinery & Equlpmenl
Green House
Computers & A¢cé8sor168
Text books
250h
12.SQA
12.SV•
12.5%
12.5%
30%
0%
An a8sel's ¢arrylng amount Is wrillen ¢Jown immèdiately to Its recoverable amount V the asset'$ oorrying
amount is orealer than 118 e81imaled retsoverable amount.
The 8888ts residual values and useful Ilvès ar& r6vlewed, and adlu81ed If approprfale. al each 8latemenl of
1Snanclal posillon dale.
Galn8 and 1088e8 on di8posal of propety. plant and equlpment are d818rmlned by comparlng tho proceed8
wllh the earrylng amount and aTe taken Into account In delermlning op•Mling proflVIos8.
dl Racèlvablè*
R8ceiv8bles are re¢ognl8ed al the Iransactlon price.
Al the end of each reportlng perfod, the carylng amounts of roc¢ivobl¢s ar¢ reviewed to delemilne whether
there18 any obiecllve evid¢n¢¢ that the amounts are not recoverable. If $0, an impairmenl108$ 18
Tecogni8ed immedlalely in th• In￿me and expendllur8 acwunl.
•) Cash and cash equlval•nts
For th8 purposes of the Statement of ¢a$h flows, cash and cash equlvalants comprt88 Cg$h hand and
cash al bank.
fj Payabl•$
Payables ara recc4Jnised at the transgctirm pri¢¢ lin¢luding tranSac￿On costsl.
g} emplo￿• b•n•fit obligations
The organi$allon and its employ8es contribute to the Natlonal Social Security FurKI INSSF). a statutory
defined conlribjtion $¢h&me reglstered undef the NSSF Act Tha orgAnisAtion's Cont￿bUt￿on to the dofined
contribution scheme are tharged to profit or loss in the year to which they relate.
h) Comparatives
Where n&e6ssary, comparative figures have been adjusted lo ¢onfotm with changes in Pr￿ent￿tIon in the
¢urrent year.

Childrnn of Watamu
Annual report and financial stat8m8nts
For the
¢9ar8nd8d 31 Déc8mb8r 2023
NOTES ICONTINiJEDI
Donations r•ceiv•d
2023
Shs
2022
Shs
Donations from principal donor
Other donation8
19,582,056
997,970
10,521,225
11,834,673
20.560,025
22 355.898
Other donation
Misc•llaneou8 in¢omt
905,253
D•ficli for th• y••r
The follomng Items have been Gharged In arrfving al transfers lo deftclt
for Ihe year..
StBff ¢08ts
Dèprèci8tlon of propety. plant and aqulpment INole 71
Audlt fe¢8
4,712,659
917,105
75.000
11,269,438
993,634
100,000
6. Tax
Current lax
The current Inwm¢ lax ¢hqrge16 Calculated on the ba818 of lax rale8 and law8 that have been enacted or
8ub81anUvely enacted by the reportlng dot¢.
12

Children of Watamu
Annual report and financialskatements
Forthe
ear end8d 31 December 2023
NOTES {CONTINUEDI
2023
Shs
2022
Shs
R•cÈivabl•s
Other receivables
905 253
9. Cash and cash 8quival8nts
Cash in hand
Cash at bank
18,154
1,057,831
17,525
2,496,463
1 075,785
2,513,988
10. Payables
Accrued exwnses
75.000
11. Country ol registration
The Organisation is constituted in Kenya under the Non-Govemmenlal Organlsatlon¥ Cwrdinaltons Act
(Cap. 134 of 19901 as a non profil-making organisation and is domi¢iFed in Kenya.
12. Prttentation ¢urrnn¢y
The fir*ancial statements are Present￿ in Kenya Shillings ISh$l.
14

Children ofWat4mu
Annual r¢porf and financMI ststements
For the
rended 31 Decembgr 2023
SCHEDULE OF EXPENDITURE
2023
Shs
2022
Sh$
ADMINISTRATIVE EXPENSES
Projects
Foad program
Garden expenses
Students, utilities
BcM)k$ & leaming materiel
School fees
2.033.774
131.791
564,603
3.471.564
70.440
263,373
471,435
413.666
4.690.478
1892 100
Employment:
Salariès & wage$
4,712,fj59
11.269.438
Other adminl$trative expenses.,
Motor running expenses
Telephone, postage & inteinet
Transport
Dlre¢lorf$ expenses
Entèrt8inmenl
Pr*nting & stslionery
Medical èxpenses
Bank tharges
Audit fèes
L@gal & professlonal fees
Forèign ex¢hang610ss
Miwllaneous
608,792
194,550
144,750
435.791
53.690
158,827
93,773
55,918
75.000
305.000
2,277,417
432,945
198.495
190.131
84.980
551.414
64.385
84.713
100.CQO
376.797
679
19.511
Total othèr administratlvtt •xpéns6s
2.126.090
4,361,468
Total administrati￿ èxpènsÈs
11,461,017
20,321,384
ESTABLISHMENT EXPENSES
Repairs & maintenance
Water & electrscity
Cleaning & Sanitation
Rent and rates
Security
License and perm
Depreciation
836,370
7,037
231,510
140,000
1.175.845
438.597
53.270
140,ODO
58,000
19,055
917,105
Total establishment expens•s
2.482.022
2 878.401
Appendix I

Auditors. Report
Rèport of the Indèpèndènt Auditors to the board of trustses of
Children of Watamu
We have audited the financial statements sel out on pages 6 and 12. We have obtained all Ihe infomation and
and explanations which lo the best of our knowledge and belief were necessary lor the purposes ol our
atjdit arKI to piovide a reasonable basis for our opinion. The financial stslemenls are in agreement with Ihe
books ol accounts.
Respective responsibilities of board of trustees and auditors
The board ol trustees are responsible for the preparab'on of financial statements which give a true and fair
view of the 51ale of affairs of Ihe organisation and of the operating results. Our responsibility is to express
an independent opini¢)n on the financial stalernenls based on our audit and to report our opinion to you.
Basis of opinion
We conducted our audrt in accordance wrth Inlemalional Standards on Audiling.Those standards require that
we plan and perfomi our audit to obtain ieasonable assurance that the financial statements are free from
material misstatement. An audrt includes an examination. on a test basis. of evidence supporting arnounls and
disclosures in the financial statements. It also indudes an assessment of the accounting polioe5 Used arKI
significant estimates made by the board of trustees, as well as an evaluation of the overall presentation of
the financial statements.
Oplnlon
In our opinion. proper botsks of a(zount have been kept and the fina[￿la1 statements give a true and fair view of
the state of Ihe financial affairs of thè organisalion as al 31 Deoember 2022 and of its resutts for the year
Ihen ended an
the International Finanaal Reporting Slandard.
I Asjoci
Monda &
Certtfied Public
P. O. Box 16826 - 80100
Mombasa
nts
2023