2022-04-05-accounts - Edukid

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EDUKID

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS

FOR THE

YEAR ENDED 5 APRIL 2022

EDUKID

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees present their report with the financial statements of the Charity for the year ended 5 April 2022.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity Number: 1099058 (England and Wales) Principal Address: 5 Hart Street, Bideford, Devon EX39 2NB Trustees: B Duhig (Chairman) N Wormington A Hardy (Secretary) M Kensett A Watson Chief Executive: C Turner Independent Examiner: Edward Meardon FCA R T Marke & Co Ltd 69 High Street Bideford Devon EX39 2AT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity is constituted and controlled by its governing document, a deed of trust.

Recruitment and appointment of trustees

Trustees are appointed by resolution of the Trustees and serve for a three year term. Retiring Trustees may be re-appointed at the end of their three year term.

Organisational structure

The Trustees are responsible for the strategic management of the charity, policy making and the monitoring of its work. The Trustees have delegated day to day operational management of the Charity to the Chief Executive.

Risk management

The trustees 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.

The trustees have considered the known risks to which the Charity is exposed and meet regularly to review these risks and keep updated the plans to minimise the impact on the Charity should any of these risks materialise.

OBJECTIVES AND ACTIVITIES

Objects of the Charity

The objects of the Charity are to advance education and relieve poverty, working in accordance with Christian principles, whilst not imposing our views.

EDUKID

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 5 APRIL 2022

Activities of the Charity

The Charity operates a UK Global Citizenship Schools programme to educate pupils on the issues of poverty.

The Charity provides school packs and educational scholarships to those living in poverty in Cambodia, Peru and Uganda.

The Charity provides further support to help break down the barriers to education in Cambodia, Uganda, Peru and Palestine. This includes therapy, IT and building classrooms.

The Charity organises educational trips to Cambodia, Uganda and Peru.

Public Benefit Statement

As trustees of the Charity we have complied with our duty under Charity Law to have due regard to guidance published by the Charity Commission on public benefit.

As well as directly benefiting the children and young people to whom it provides education and financial support, the Charity benefits society as a whole by furthering education and ultimately reducing poverty in the countries in which it operates.

ACHIEVEMENT AND PERFORMANCE

Edukid used much of the pandemic period to create an online Global Citizenship Programme (GCP). This is designed to enable UK students to learn about the UN Sustainable Development Goals and to empower them to put this into practice via our programmes and projects abroad.

Since exiting the pandemic Edukid has seen a steady increase in UK schools using our GCP and this in turn has seen an increase in income for our overseas programmes.

Edukid were also able to secure grants towards student trips to Uganda and Cambodia. This significantly impacted on Edukid’s turnover. Students on these trips spoke of life-changing moments and the positive impact it had on their own personal lives. Some of these students have gone on to apply for apprenticeships with Edukid.

Our work in Peru received it’s first full year funding. This funding has come from general funds and Edukid’s reserve. This deficit is forecasted to reduce rapidly over the next three years.

Around 2,600 children in Uganda, Cambodia, Peru and Palestine are supported in education or therapy through the work of Edukid.

Five Cambodian students graduated successfully during the year.

Four students in Uganda have university scholarships. They are studying Law and nursing.

Around 200 children in Gaza attend the Days of Joy programme that offers up to 10 psychosocial sessions to children suffering from the trauma of conflict.

Around 25,000 children in the UK are involved in Edukid’s UK schools programme.

FINANCIAL REVIEW

The Charity reported a deficit of income over expenditure of £15,225 on unrestricted funds not designated for specific purposes in the year. Unrestricted funds stood at £nil at 5 April 2022.

This deficit is largely due to the launch of our Peru programme, plus the knock on effect of the pandemic.

It is the policy of the Charity to maintain unrestricted reserves at a level which will enable it to continue operating in the event of a short-term drop in funding. The Trustees consider the current level of free cash reserves to be sufficient for this purpose.

EDUKID

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees have established Designated Funds as follows:

Growth Fund

A sum of £76,000 remains from a legacy received in a previous year which was set aside to allow the Charity to grow sustainably over the next few years.

Cambodia Project Commitment Fund

A sum of £35,420 has been set aside to ensure that the Schools project in Cambodia can continue in the event of a short term drop in funding. This is based on the likely costs of support funding for a 12 month period.

Uganda Project Commitment Fund

A sum of £44,000 has been set aside to ensure that the Schools project in Uganda can continue in the event of a short term drop in funding. This is based on the likely cost of support funding for a 12 month period.

Palestine Project Commitment Fund

A sum of £10,600 has been set aside to ensure that the project in Palestine can continue in the event of a short term drop in funding.

Peru Project Commitment Fund

A sum of £25,000 has been set aside to set up a new schools project in Peru and ensure that it can still launch in the event of a short term drop in funding.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the Board

B Duhig, Chairman

Date: 19[th] January 2023

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF EDUKID

FOR THE YEAR ENDED 5 APRIL 2022

I report to the trustees on my examination of the accounts of Edukid for the year ended 5 April 2022 which are set out on pages 5 to 12.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trustees’ accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

(1) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
(2) the accounts do not accord with those records; or
(3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Edward Meardon FCA

Member of the Institute of Chartered Accountants in England and Wales R T Marke & Co Ltd 69 High Street Bideford Devon EX39 2AT

23[rd] January 2023

EDUKID BALANCE SHEET

AT 5 APRIL 2022

				2022	2021
		Unrestricted	Restricted	Total	Total
		Funds	funds	funds	funds
	Notes	£	£	£	£
FIXED ASSETS
Tangible assets	5	2,262	-	2,262	833
CURRENT ASSETS
Cash at bank and in hand		200,164	8,305	208,469	245,601
Debtors		1,189	-	1,189	1,994
CREDITORS
Amounts falling due within one year:
Accruals and deferred income	6	(800)	-	(800)	(600)
		____	__	____	___
NET CURRENT ASSETS		200,553	8,305	208,858	246,995
		____	__	____	___
TOTAL ASSETS LESS CURRENT
LIABILITIES		202,815	8,305	211,120	247,828
		____	__	____	___
NET ASSETS		202,815	8,305	211,120	247,828
		=========	=======	=========	=========
FUNDS
Unrestricted funds	7			202,815	239,916
Restricted funds	7			8,305	7,912
				___	____
TOTAL FUNDS				211,120	247,828
				========	==========

The financial statements were approved by the Board of Trustees on 19[th] January 2023 and were signed on its behalf by:

B Duhig, Trustee

A Watson, Trustee

The notes form part of these financial statements

EDUKID

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING STATEMENT OF COMPREHENSIVE INCOME)

FOR THE YEAR ENDED 5 APRIL 2022

	Restricted	Designated	Unrestricted
	Funds	Funds	Funds	Total	2021
	£	£	£	£	£
RECEIPTS
Incoming resources from
generated funds:
Voluntary income
- Regular donations	47,611	-	27,550	75,161	71,630
- One off donations	4,200	17,629	-	21,829	33,018
- Grants	24,000	1,183	3,618	28,801	37,244
- Schools Income	14,487	-	-	14,487	6,490
Income from Charitable activities:
Educational trips	-	23,296	-	23,296	11,871
Funds raised from events	-	-	-	-	8,661
Other income	-	-	16,405	16,405	10,574
	____	____	____	____	____
Total Income	90,298	42,108	47,573	179,979	179,488
	____	____	____	____	____
PAYMENTS
Costs of generating voluntary
income
Staff costs	-	-	7,781	7,781	27,472
Charitable activity expenses	-	-	11,287	11,287	-
Marketing	-	-	438	438	2,044
Charitable activities:
Support payments to Cambodia	24,586	2,775	-	27,361	32,200
Support payments to Palestine	2,423	8,177	-	10,600	5,000
Support payments to Uganda	39,896	3,784	-	43,680	40,000
Support payments to Peru	-	21,403	-	21,403	-
Additional educational payments
to Cambodia	-	-	-	-	-
Additional educational payments
to Uganda	-	-	-	-	-
Staff costs (UK schools)	22,000	-	34,656	56,656	17,450
Cost of educational trips	-	27,845	-	27,845	16,719
Travel costs UK	-	-	1,110	1,110	1,864
Courses	1,000	-	1,060	2,060	-
Depreciation of equipment	-	-	1,341	1,341	416
Loss on disposal of assets	-	-	-	-	774
Support costs
Office costs	-	-	1,324	1,324	4,179
Sundry expenses	-	-	216	216	88
Bank charges	-	-	55	55	-
Governance costs
Staff costs	-	-	530	530	776
Bookkeeping	-	-	2,080	2,080	1,020
Independent examination	-	-	920	920	720
	____	____	____	____	____
Total Expenditure	89,905	63,984	62,798	216,687	150,722
	____	____	____	____	____

EDUKID

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING STATEMENT OF COMPREHENSIVE INCOME)

FOR THE YEAR ENDED 5 APRIL 2022

	Restricted	Designated	Unrestricted
	Funds	Funds	Funds	Total	2021
	£	£	£	£	£
Net income/(expenditure) for the year	393	(21,876)	(15,225)	(36,708)	28,766
Transfers between funds	-	8,359	(8,359)	-	-
	____	____	____	____	____
Net movement in funds	393	(13,517)	(23,584)	(36,708)	28,766
Fund balance b/fwd	7,912	216,332	23,584	247,828	219,062
	____	____	____	____	____
Fund balance c/fwd	8,305	202,815	-	211,120	247,828
	========	=========	========	=========	=========

EDUKID

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the Charities Act 2011 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities (The Charities SORP (FRS102). The reporting currency is the pound sterling (£).

The Charity is a public benefit entity.

The Charity’s legal form is that of a Trust, constituted in the United Kingdom.

Since the balance sheet date, the consequences of the COVID-19 pandemic and the measures taken to control its spread have materially and adversely affected the Charity’s operations. The impact of the pandemic, as well as the effectiveness of government and central bank responses, remain unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Charity for future periods. The trustees are optimistic that necessary measures can be taken to ensure the viability of the Charity and so they have continued to adopt the going concern basis of accounting.

Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be qualified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the Charity, are recognised when the Charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the Charity where this can be quantified. The value of services provided by volunteers has not been included.

Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold.

Income from investments is included in the year in which it is receivable.

Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

No incoming resources are included in the SOFA net of expenditure.

Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates:

Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allowed directly to such activities and those costs of an indirect nature necessary to support them.

Where the Charity uses other Charities to provide services of disseminative funding on its behalf, these costs are included within Charitable expenditure.

EDUKID

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Support costs are those incurred directly in support of expenditure on the objects of the Charity and include project management.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Equipment – 3 years straight line basis

Taxation

The Charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the Charity without further specific purpose and which the Charity may use for its purpose at its discretion.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

2. TRUSTEES’ REMUNERATION AND BENEFITS

No Trustees received salaried remuneration or benefits during the year (2021: £nil).

Trustees’ Expenses and other payments

No amounts were reimbursed to Trustees during the year in respect of expenses.

3. STAFF COSTS

STAFF COSTS
	2022	2021
Wages and salaries	71,583	61,170
	========	========

The average monthly number of employees during the year was three. No employees received employee benefits of more than £60,000.

4. INDEPENDENT EXAMINERS FEES

	2022	2021
Independent Examination	460	360
Other work	460	360
	__	__
	920	720
	========	========

EDUKID

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

5. TANGIBLE FIXED ASSETS

5.	TANGIBLE FIXED ASSETS
		2022	2021
		£	£
COST
	At 6 April 2021	1,249	3,870
	Additions	2,770	1,249
	Disposals	-	(3,870)
		___	__
	At 5 April 2022	4,019	1,249
		___	__
DEPRECIATION
	At 6 April 2021	416	3,096
	Charge for year	1,341	416
	Depreciation on disposals	-	(3,096)
		___	__
	At 5 April 2022	1,757	416
		___	__
NET BOOK VALUE
	At 5 April	2,262	833
		========	========
6.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2022	2021
		£	£
	Accruals and deferred income	800	600
		========	========

EDUKID

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

7a. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
		Net	Transfers
		Movement in	between
	At 6.4.21	funds	funds	At 5.4.22
	£	£	£	£
Unrestricted funds
General Fund	23,584	(15,225)	(8,359)	-
Designated Growth Fund	76,000	-	-	76,000
Designated Cambodia Fund	35,420	526	(526)	35,420
Designated Uganda Fund	44,000	10,543	(10,543)	44,000
Designated Palestine Fund	10,000	(8,177)	8,777	10,600
Designated Peru Fund	25,000	(21,403)	21,403	25,000
Designated UK Contingency Fund	25,000	-	(19,120)	5,880
Designated Educational Trips Fund	912	(3,365)	8,368	5,915
	______	______	_______	_______
	239,916	(37,101)	-	202,815
Restricted funds
Cambodia	1,248	(948)	-	300
Uganda	1,620	875	-	2,495
Palestine	1,044	(834)	-	210
Peru	-	300	-	300
Grants for staff costs	4,000	1,000	-	5,000
	______	______	______	______
	7,912	393	-	8,305
	______	_____	______	______
TOTAL FUNDS	247,828	(36,708)	-	213,120
	===========	==========	===========	===========

EDUKID

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

7b. MOVEMENT IN FUNDS

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

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General Fund	47,573	(62,798)	(15,225)
Designated Growth Fund	-	-	-
Designated Cambodia Fund	3,302	(2,776)	526
Designated Uganda Fund	14,326	(3,783)	10,543
Designated Palestine Fund	-	(8,177)	(8,177)
Designated Peru Fund	-	(21,403)	(21,403)
Designated Educational Trips Fund	24,480	(27,845)	(3,365)
	______	_______	_______
	89,681	(126,782)	(37,101)
Restricted funds
Cambodia	23,638	(24,586)	(948)
Uganda	40,771	(39,896)	875
Palestine	1,589	(2,423)	(834)
Peru	300	-	300
Grants for staff costs	24,000	(23,000)	1,000
	______	______	______
	90,298	(89,905)	393
	_____	______	______
TOTAL FUNDS	179,979	(216,687)	(36,708)
	==========	==========	==========

Purpose of unrestricted funds

General funds are donations and other incoming resources receivable or generated for the objects of the Charity without further specific purpose and when the Charity may use for its purpose at its discretion.

Designated funds are set aside by the Trustees for the purpose of ensuring the Charity can continue to operate in the event of a short term drop in funding, and in the case of the growth fund to allow the Charity to grow in a sustainable manner.

Purpose of restricted funds

The restricted funds relate to amounts received in donations specific to the funding of projects in the particular country which have yet to be paid across to the relevant project.

The Grants for staff costs relate to restricted funds received for the purposes of paying the Charity’s staffing costs in UK schools work.

8. RELATED PARTY TRANSACTIONS

There were no disclosable transactions with related parties during the current or previous year.