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2021-12-30-accounts

Charity registration number 1104396

Company registration number 05147284 (England and Wales)

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Hunt
S Cleaver
M G Elms
J M Southgate
D Grunberg
L Digrandi
P Wilson
Secretary D Grunberg
Charity number 1104396
Company number 05147284
Registered office 5 Technology Park
Colindeep Lane
Colindale
London
NW9 6BX
Auditor Grunberg & Co Ltd
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
Bankers HSBC PLC PLC
8 Canada Square
London
E14 5HQ

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

CONTENTS

Page
Trustees' report 1 - 4
Statement of Trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Statement of financial position 10
Notes to the financial statements 11 - 18

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2021

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 December 2021. 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Objectives and activities

Nyumbani UK and The Hotcourses Foundation is constituted as a company limited by guarantee (incorporated on 7 June 2004) and is therefore governed by its memorandum and articles of association. The objectives of the Charity, as set out in the memorandum and articles of association, are:

The trustees currently have a policy of supporting projects with a primary focus on education and support for children that can be carefully monitored to ensure the funds are properly applied.

Our objective is to make a measurable, tangible difference to the lives of children in some of the poorest parts of the world. We have focused on orphans suffering due to AIDS and HIV living in East Africa. Until March 2022 we were working in partnership with a Kenyan organisation called COGRI/Nyumbani, a well-established local organisation where there had previously been a track record of effective and corruption-free administration. They have three significant projects currently helping over 9,000 children. There is a children's home in Nairobi for HIV positive children; an outreach programme within eight of the informal settlements of Nairobi, that provides support to children with HIV and AIDS and their siblings; and the Nyumbani village which is a community that provides a family home, healthcare, security and an education to orphaned children, most of whom have lost their parents to AIDS. In recent years, the Charity has had a strong focus on educational funding but has also supported capital projects, including the building of new homes for children and teachers, a sports pitch, libraries and laboratories for the schools in the village.

The majority of the administration costs of Nyumbani UK and The Hotcourses Foundation are covered by IDP Connect Limited, to ensure that donations go directly to our educational projects. Two part-time independent contractors in Kenya work with the COGRI/Nyumbani Lea Toto program staff, to monitor the children who are supported by the Hotcourses Scholarship Fund for the benefit of the children in the Lea Toto programme. In 2021 we continued to receive a donation in-kind from IDP Connect Limited to cover the cost of those two individuals, as well as the availability of staff members, who assist with the financial administration of the Charity. The in-kind donation from IDP Connect Limited also covers the salary of a part time consultant who works as an independent contractor for the Charity.

In July, 2021 we hired a full-time Director of Schools to help improve the quality of education in the Nyumbani Village, Kenya.

All other work is by the volunteer board members, trustees and other volunteers.

Application of the Charity's funds

During the course of 2021, Nyumbani UK and The Hotcourses Foundation has sent funds to support the following:

Hotcourses Primary School

The Foundation continued to support the running costs of Hotcourses Primary School in 2021, which currently has 586 pupils, 24 teachers and 5 support staff. We also sent funds for a new library at Hotcourses Primary School.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Lawson High School

The Foundation continued to support the running costs of Lawson High School in 2021. The school currently has 290 students and 17 teachers. In addition to the classrooms, the high school also has a science block, an administration block, a library and a computer laboratory.

Hotcourses Scholarship Fund for the benefit of children in the Lea Toto Program, Nairobi.

The Foundation continues to support the education of around 83 children living in the Nairobi slums, most of whom are HIV positive. This support includes paying school fees, buying uniforms and shoes, paying for books, exam fees, providing school meals and regularly monitoring their progress.

Nyumbani Children's Home, Nairobi

Funds were sent as sponsorship for individual children through direct donors.

Tertiary Education

Donor funds were directed towards the cost of tertiary education for those children, as determined by the COGRI staff in Kenya.

Public benefit

The trustees confirm that they have referred to the Charity Commission's public benefit guidance when carrying out past and planning future activities.

Through the programmes supported by our Charity, many underprivileged children in Kenya receive access to education, comprehensive medicine and healthcare support, housing and community. A solid education provides a pathway for the vulnerable to pull themselves out of poverty. Children who are HIV positive with the right medicines, healthy diet and well managed lifestyle can expect to have normal life expectancies, but our programme is vital to ensure successful outcomes. A self-sustainable village provides a family-like setting for orphaned children under the stewardship of elderly adults and seeks to ensure that the children receive love, sustenance, healthcare, holistic education and culture transfer, aiming at their physical and psychological development. The Nyumbani village also provides holistic care and support for the grandparents in their later years.

Achievements and performance

Fundraising

Due to COVID-19, fundraising efforts continued to be limited throughout most of the year. We hosted a Gala Dinner and Auction in the Houses of Parliament in September, 2021. However, the number of guests was limited to 120 people due to Covid restrictions, which impacted the amount of funds we were able to raise.

Financial review

The financial position of the Charity is healthy.

The Charity's Statement of Financial Activities show a net surplus of £749,077 (2020: £604,813) and total reserves of £6,686,343 (2020: £5,887,266)

Reserves policy

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Investment policy and objectives

The Charity received a material legacy donation in 2019. After evaluating alternatives, the trustees concluded the funds would be most efficiently managed internally by forming an investment committee with relevant experience who would recommend an investment strategy for the Charity and monitor and report of ongoing investment performance. A long term investment strategy was developed by the investment committee and adopted by the trustees with the goal of generating returns over the long term exceeding inflation and implemented by holding a portfolio of low cost passive ETFs held in a UK investment account with a leading broker. The legacy funds received were fully invested in the agreed portfolio by late 2020. The trustees view the role of the Charity's endowment as being to ensure that it can continue to meet its commitment to fully fund the schools in the Nyumbani village over the long term despite the schools' annual operating costs exceeding the Charity's income from donations.

Risk management

The trustees have considered the major risks to which the Charity is exposed. The first main risk is lack of incoming funds. To mitigate this risk, trustees have implemented the policy on reserves and always look for new opportunities to diversify the sources of income. The other risk is unauthorised expenditure of the funds. The trustees regularly review the risk management system and financial controls and procedures to prevent fraudulent activities. We have a secure donor database and follow the guidelines of GDPR to ensure compliance with data protection legislation.

Plans for future periods

We continue to fund the Hotcourses Scholarship Programme, which currently provides for the education of 83 HIV-positive students living in the informal settlements around Nairobi, Kenya. In March 2022 we suspended our support of the Nyumbani Village and the Nyumbani Home due to serious concerns over child safeguarding and management at COGRI-Nyumbani. We are currently reviewing a shortlist of educational organisations in Kenya that are interested in receiving funding and the trustees aim to make a decision by the end of 2022. We remain convinced that the best way to improve the life chances of the children we support is to provide them with an excellent education, leading to career outcomes that will allow them to live independently economic lives.

We will resume fundraising events and look for new sponsorships once our trustees have selected a new educational project to be funded and we have completed our due diligence of the organisation.

The Giving Back team at IDP Connect Limited works on a volunteer basis to support fundraising efforts and awareness of the Charity and its objectives. They continued to have limited opportunities to provide support to the Charity in 2021 due to COVID-19.

Structure, governance and management

The Charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J Hunt

S Cleaver M G Elms J M Southgate S Philips (Resigned 21 October 2021) D Grunberg L Digrandi P Wilson

Recruitment and appointment of new trustees

New trustees are appointed due to their interest in the work of the Charity and their recognised experience in specific fields which will further support the work of the Charity. New trustees can be appointed by a majority vote of the existing trustees. New trustees are given a full induction by the other trustees of the Charity.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Auditor

In accordance with the company's articles, a resolution proposing that Grunberg & Co Ltd be reappointed as auditor of the company will be put at a General Meeting.

Website

www.nyumbani.org.uk

The Trustees' report was approved by the Board of Trustees.

M G Elms

Trustee

30 September 2022

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are also the directors of Nyumbani UK And The Hotcourses Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF NYUMBANI UK AND THE HOTCOURSES FOUNDATION

Opinion

We have audited the financial statements of Nyumbani UK And The Hotcourses Foundation (the ‘Charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF NYUMBANI UK AND THE HOTCOURSES FOUNDATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of Trustees' responsibilities, the trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit procedures performed included the reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; discussions with the directors' on their own assessment of the risks that irregularities may occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were aware of any instances of non-compliance, including any potential litigation or claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; inspection of relevant legal correspondence and board minutes; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF NYUMBANI UK AND THE HOTCOURSES FOUNDATION

As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect on the financial statements included the UK Companies Act, Charities Act 2011, Employment Laws and Health & Safety legislation.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gedalia Waldman BA FCA (Senior Statutory Auditor)

for and on behalf of Grunberg & Co Ltd 30 September 2022 Chartered Accountants Statutory Auditor 5 Technology Park Colindeep Lane Colindale London United Kingdom NW9 6BX

Grunberg & Co Ltd is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
funds
2021
Notes
£
Income from:
Donations and legacies
2
117,078
Other trading activities
3
50,750
Investments
4
115,551
Total income
283,379
Expenditure on:
Raising funds
5
89,714
Charitable activities
6
380,682
Total expenditure
470,396
Net gains/(losses) on
investments
11
887,733
Net movement in funds
700,716
Fund balances at 1 January 2021
5,842,857
Fund balances at 31 December
2021
6,543,573		 Restricted
funds
2021
£
52,600
-
-
52,600
-
4,239
4,239
-
48,361
44,409
92,770		 Total
Unrestricted
funds
2021
2020
£
£
169,678
210,651
50,750
24,457
115,551
51,351
335,979
286,459
89,714
69,025
384,921
115,815
474,635
184,840
887,733
493,185
749,077
594,804
5,887,266
5,248,053
6,636,343
5,842,857		 Restricted
funds
2020
£
64,324
-
-
64,324
-
54,315
54,315
-
10,009
34,400
44,409		 Total
2020
£
274,975
24,457
51,351
350,783
69,025
170,130
239,155
493,185
604,813
5,282,453
5,887,266

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Investments
12
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
16
Unrestricted funds		 2021
£
5,305
408,321
413,626
(7,453)		 £
6,230,170
406,173
6,636,343
92,770
6,543,573
6,636,343		 2020
£
18,386
525,595
543,981
-		 £
5,343,285
543,981
5,887,266
44,409
5,842,857
5,887,266

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 30 September 2022

M G Elms

Trustee

Company registration number 05147284

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Nyumbani UK And The Hotcourses Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 5 Technology Park, Colindeep Lane, Colindale, London, NW9 6BX.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional and presentational currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

There are no material uncertainties regarding the going concern of the Charity.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donated services and facilities are included in the SOFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably.

Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA.

Donated services and facilities are included in the SOFA when received at the value of the gift to the Charity provided the value of the gift can be measured reliably.

Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.9 Taxation

The charity is exempt from corporation tax on its charitable activities.

2 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Donations and gifts 117,078 52,600 169,678 210,651 64,324 274,975

Donated goods and

services

Recognition and valuation of donated goods, facilities and services are accounted as donation in kind income valued at the cost incurred. Goods donated for the charity's annual event auction are recognised in income received from the auction.

Other forms of other donated goods and services not recognised in the accounts are sports kits, shoes, and books taken directly to Nyumbani village.

Overall, donated goods and services totalled £77,100 (2020 - £74,589), Of this amount, £56,274 (2020 - £54,938) related to seconded staff and £20,826 (2020 - £19,651) related to other forms of donated goods and services.

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

3
4
5		 Other trading activities
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Fundraising events
50,750
24,457
Investments
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Income from listed investments
115,551
42,006
Interest receivable
-
9,345
115,551
51,351
Raising funds
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Fundraising and publicity
Seeking donations, grants and legacies
9,170
-
Other fundraising costs
77,100
68,339
Fundraising and publicity
86,270
68,339
Investment management
3,444
686
89,714
69,025		 Other trading activities
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Fundraising events
50,750
24,457
Investments
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Income from listed investments
115,551
42,006
Interest receivable
-
9,345
115,551
51,351
Raising funds
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Fundraising and publicity
Seeking donations, grants and legacies
9,170
-
Other fundraising costs
77,100
68,339
Fundraising and publicity
86,270
68,339
Investment management
3,444
686
89,714
69,025
68,339
686
69,025

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

6 Charitable activities

Grant funding of activities (see note 7)
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
372,268
7,903
4,750
384,921
380,682
4,239
384,921		 2020
£
166,263
117
3,750
170,130
115,815
54,315
170,130

7 Grants payable

Grants to institutions:
Other
-
Support costs
Support costs
Governance
costs
£
£
Computer consumables
4,037
-
Travel
1,642
-
Management
2,224
-
Auditor's remuneration
-
4,750
7,903
4,750
Analysed between
Charitable activities
7,903
4,750		 2021
£
372,268
2021 Support costs
Governance
costs
£
£
£
4,037
-
-
1,642
-
-
2,224
117
-
4,750
-
3,750
12,653
117
3,750
12,653
117
3,750		 2020
£
166,263
2020
£
-
-
117
3,750
3,867
3,867

8 Support costs

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

10 Employees

The average monthly number of employees during the year was:

Total
There were no employees whose annual remuneration was more than £60,000.		 2021
Number
-		 2020
Number
-

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 887,733 493,185

12 Fixed asset investments

Listed investments
£
Cost or valuation
At 1 January 2021 5,343,285
Valuation changes 887,733
Disposals (848)
At 31 December 2021 6,230,170
Carrying amount
At 31 December 2021 6,230,170
At 31 December 2020 5,343,285

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

13
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
14
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Other creditors
Accruals and deferred income		 2021
£
6,230,170
2021
£
-
5,305
5,305
2021
£
2,703
4,750
7,453		 2020
£
5,343,285
2020
£
1,062
17,324
18,386
2020
£
-
-
-

16 Restricted funds

Restricted funds are applied for the following specific purposes:

- The Lawson High school

Movement in Movement in funds Movement in funds
funds
Incoming Balance at Incoming Resources Balance at
resources
1		 January 2021 resources expended
31 December
2021
£ £ £ £ £
Restricted funds - 44,409 52,600 (4,239) 92,770

NYUMBANI UK AND THE HOTCOURSES FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

17
Analysis of net assets between funds
Unrestricted
funds
2021
£
Fund balances at 31
December 2021 are
represented by:
Investments
6,230,170
Current assets/(liabilities)
313,403
6,543,573		 Restricted
funds
2021
£
-
92,770
92,770		 Total
Unrestricted
funds
2021
2020
£
£
6,230,170
5,343,285
406,173
543,981
6,636,343
5,887,266		 Restricted
funds
2020
£
-
-
-		 Total
2020
£
5,343,285
543,981
5,887,266

18 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).