Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC Company registration number.. 05347277 Charity registration number: 1111306 The Lotus Children's Foundation (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 January 2024
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Contents Trustees, Report 1103 Reference and Administrative Details Statement of Trustees. Responsibilities Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes lo the Financial Statements 8t012
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Trustees, Report The Trustees, who also seNe as Directors for the purposes of company law. are pleased to present their Annual Report, together with the financial statements of the charity, for Ihe year ending 31 January 2024. Structure, governance and management The charity is a company limited by guarantee. incorporated on 31 January 2005. Objectives and activities Charitable Objectives= The objectives of The Lotus Children's Foundation are lo benefit the public by.. {1) Promoting and protecting the physical and mental well-being of orphaned children in Sri Lanka., 12) Advancing their education by providing and supporting educational facilities and equipment.. and {3) Undertaking any other charitable actiwties that the Irustees, at their discretion, deem appropriate. The Charity was founded in response to the devastating Tsunami of 26 December 2004, which lefi many children orphaned and homeless. particularly in Sri Lanka. Achievements and performance The Lotus Children's Foundation partners with three wellstablished Charities in Sri Lanka and one in Colombia lo support its mission of improving the lives of children. 1. The Velummayilum Foundation - Based in the Northem Province of Sri Lanka. this charity focuses on assisting families and children in the Point Pedro and Vadamarachchi areas. It aims lo transfomi lives by providing essential support in health, social welfare, and education, offering children the chance for a brighter future. 2. The Ladani Institute A govemmentstablished charity, set up in March 2004. Ladani operates orphanages across Sri Lanka, providing safe havens and care for vulnerable Children. 3. Patikiri Kubalathara Foundation Located in the Southem Province of Sri Lanka. this foundation works with families and children in the Omatta region. Its programs mirror those of the Velummayilum Foundation. offering high standards of health, social welfare. and education. striving to improve the opportunities available to these children. 4. Fundacion Frailejones Operating in Pijao: Colombia, this foundation supports rural schools through orchard programs and infrastructure improvements Additionally. it helps universty students with accommodation, living èxpenses, and other support to pursue their education. The Lotus Children's Foundation is currently responsible for the care of hundreds of children Many are supported within Iheir communities. wtth all expenses fully funded by the charity. Social workers, foster families, and schools work closely with the children lo address Iheir everyday needs, ensuring that each child receives the care and support they require. However, many more children are awaiting assistance, and it is our long-tem goal to gradually expand the reach of our services and care to meet this growing need. The trustees regularly vis-rt Sri Lanka to monitor the WOTk and progress of the Velummayilum Foundation, Ladani Institute. and Patikiri Kubalathara Foundation. These visits are personally funded by the trustees to ensure that charitable resources remain focused on the children. Page 1
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Trustees, Report Financial review During the financial year, the charity made payments as follows.. £61,608 to the Velummayilum Foundation. £11,523 to the Ladani Inslitute, £34,188 to the Patikiri Kubalathara Foundation, £12,563 to Fundacion Frailejones. In addition. £9,673 was spent on other charitable activities detemiined by the trustees. As of 31 January 2024, the charity held cash reserves of £17.637. Plans for future periods The trustees remain committed to increasing the chartty's income to ensure we can continue to support our current beneficiaries. Given the long-temi nature of their needs, the charity will rely heavily on voluntary donations and funding for many years to come. Our aim is to expand our capacity to care for more children. while maintsining the high standards of care and support we currently provide. Public benefit The charity actively promotes awareness of the hardship faced by the children in Sri Lanka, and generates funds to try and improve their situation. The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Trustees and officers The trustees and officers serving during the year and since the year end were as follows.. Trustees: Mr V Thayanandarajah Mrs S Thayanandarajah Mr l Jarvis Mr E Thayan Mr C Thayan Secretary: Mr V Thayanandarajah Reference and administrative details Principal Office Kingsley House Clapham Road South Lowestoft Suffolk NR32 1QS The ¢harty is incorporated in England & Wales. Page 2
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Trustees, Report Reference and Administrative Details Company Registration Number 05347277 Independent Examiner Francis Clark LLP Melville Building East Unit 18, 23 Royal William Yard Plymouth Devon PL1 3GW Charity Registration Number 1111306 Going concern At the beginning of the year, there were reserves of £12,052. The foundation ended the year with reserves of £17,637, and have raised funding post year end. The foundation received £14,575 in funding on the 261h February 2024,. and therefore we are satisfied that resetves are to be increased in the next twelve monlhs. Additionally, due to Ihe simplistic nature of the charity's operations and as the year end reserves balance is posrtive. we consider this to be sufficient evidence that adequale reserves are held and the charity is a going Concern. The trustees consider that there are no material uncertainties about the chariws abilty to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assels held by the charity. The annual report was approved by the twstees of the charity on .141 behalf by.. . and signed on its Mr l Jarvis Trustee Page 3
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Statement of Trustees, Responsibilities The trustees (who are also the directors of The Lotus Children's Foundation for the purposes of company law} are responsible for preparing the trustees. report and the financial statements in accordance with applicable law and Untted Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial slatements unless they are satisfied Ihal they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources. including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and apply Ihem ¢onsislently- observe the methods and principles in the Charities SORP- make judgements and estimates thal are reasonable and pnjdent., slate whether applicable accounting standards, comprising FRS 102 have been followed. subject lo any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charttable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrty of the corporate and financial information included on the charitable companls websile. Legislation governing the preparation and dissemination of financial stalements may differ from legislation in other jurisdictions. Approved by the trustees of the charity on . 4... and signed on its behalf by: Mr l Jarvis Trustee Page 4
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Independent Examiner's Report to the trustees of The Lotus Children's Foundation ('the Company,) I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 January 2024. Responsibilities and basis of report As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act,). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 {'the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{5)(b) of the 2011 Act. Independent examiner's statement I have completed my examinalion. I confirm that no matters have come to my attention in connection with the examination gtving me cause lo believe". 1. accounting records were not kept in respect of The Lotus Children's Foundation as required by section 386 of the 2006 Act" or 2. the accounts do not accord with those records: or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'twe and fair view, which is not a matter considered as part of an independent examination.. or 4. the accounts have not been prepared in accordance with the melhods and principles of Ihe Slatement of Recommended Practice for accounting and reporting by charities. I have no concerns and have come across no olher 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. 7Q52e3Fffjt¥AWF............ James Barrett FCA PKF Francis Clark Melville Building East Unit 18, 23 Royal William Yard Plymouth Devon PL1 3GW 30 october 2024 Date.............................. Page 5
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Statement of Financial Activities for the Year Ended 31 January 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Total 2024 Note Income and Endowments from- Donations and legacies 135.140 135,140 Total income 135,140 135,140 Expenditure on: Charitable activities (129,555} (129,555) Total expenditure (129,555) {129,555} Net income 5,585 5.585 Net movement in funds 5,585 5,585 Reconciliation of funds Total funds brought fOard 12,052 12,052 Total funds carriéd fotward 17,637 17,637 Unrestricted funds Total 2023 Note Income and Endowments from: Donations and legacies 109,630 109,630 Total income 109,630 109,630 Expenditure on: Charitable activities 1116,078) 1116,0781 Total expenditure 1116,078) 1116.078) Net expenditure 16,4481 (6,448) Net movement in funds (6.4481 {6,448) Reconciliation of funds Total funds brought fotvlard 18,500 18,500 Total funds carried forward 12,052 12,052 All of the Charity's activities derive from continuing operations during the above two periods. The fund breakdowns for both 2024 and 2023 are shown in note 9. The notes on pages 8 to 12 fonn an integral part of these financi21 statements. Page 6
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation (Registration number: 05347277) Balance Sheet as at 31 January 2024 2024 2023 Note Current assets Cash at bank and in hand 17.637 12,052 Funds of the charity: Unrestricted income funds Unrestricted funds 17.637 12,052 Total funds 17.637 12,052 For the financial year ending 31 January 2024 the charity was entitled to exemption from audit under section 477 of the Companies Acl 2006 relating to small companies. Directors. responsibilities- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476- and The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These financial statements have been prepared in accordance wtth the special provisions relating to companies subject to the small companies regime within Parl 15 ofthe Companies Acl 2006. The financial statements on pages 6 to 12 were approved by the trustees, and authorised for issue on 4y./-.. .1.14.. and signed on their behalf by= Mr l JaNis Trustee The notes on pages 8 to 12 form an integral part of Ihese financial statements. Page 7
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2024 1 Accounting policies Summary of stgnificant accounting policies and key accounting estimates The principal accounling policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Statement of compliance The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019) {Charities SORP {FRS 1021), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply wrth the Companies Act 2006 and Charities Act 2011. Basis of preparation The Lotus Children's Foundation meets the definition of a public benefrt enlity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise ststed in Ihe relevant accounting policy notes. Going concern The nature of the charity means that expenditure is aligned with the income received with there being no fixed costs. The Irustees consider thal there are no material uncertainties about the charity's ability to continue as a going concern nor any signtficant areas of uncertainty that affect the carrying value of assets held by the charity. Exemption from preparing a cash flow statement The charity opted to adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. Income and endowments All income is recognised once the chanty has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. Donations and legacies Donations are recognised when the chartty has been notified in writing of both the amount and settlement date. In the event that a donation is subject lo conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. Page 8
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2024 Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated lo the applicable expenditure heading thal aggregate similai costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation Charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Charitable activitie5 Charitable expenditure comprises those costs incurred by the charity in the delivery of tts activities and services for ils beneficiaries. It includes both costs that can be allocated directly lo such activities and those costs of an indirect nalure necessary to support them. Taxation The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempl from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gains are applied exclusively to charrtable purposes. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments thal are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Fund structure Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity. Financial instruments Classification The company holds the following financial instruments: Cash and bank balances. All financial instruments are classified as basic. The company has chosen to apply the recognition and measurement principles in FRS102. Page 9
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2024 Recognition and measurement Financial instruments are recognised when the company becomes party to the contractual provisions of the inslrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party. or in the case of liabilities. when the company's obligations are discharged, expire or are cancelled. Such instruments are initially measured at transaction price. including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. 2 Income from donations and legacies Unrestricted funds Total 2024 Total 2023 General Donations and legacies., Donations 135,140 135,140 109,630 135,140 135,140 109,630 3 Expenditure on charitable activities Grant funding of activity Activity support costs 2024 2023 Charilable activilies 126,630 2.925 129,555 116,078 £129,55512023 £116,078) of the above expenditure was attributable to unrestricted funds and £Nil 12023 - £Nill to restricted funds. Page 10
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2024 4 Analysis of support costs Support costs allocated to charitable activities Other support osts Finance costs Total 2024 Total 2023 Basis of allocation Usage of activity Charitable activtties 51 2.874 2,925 4,678 S Trustees remuneration and expenses No trustees, nor any persons connected with Ihem. have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during Ihe period {2023. £1,897). 6 Staff costs The average number of persons employed by the charrty (including trustees) during the year was nil {2023 - nil). 7 Taxation The charity is a registered charity and is therefore potentially exempt from taxation. 8 Charity Status The Charity is a company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 O towards the assets of the Charity in the event of liquidation. Page 11
Docusign Envelope ID.. 97D91AFE-OOE644E6-8687-OC6EOOE674FC The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2024 9 Funds Balance at 1 February 2023 Incoming resources Resources Balance at 31 expended January 2024 Unrestricted funds Unrestricted general funds 12.052 135,140 (129,555) 17.637 Balance at 1 February 2022 Incoming resources Resources Balance at 31 expended January 2023 Unrestricted funds Unrestrrcted general funds 18.500 109,630 {116,078) 12,052 10 Analysis of net assets between funds Unrestricted general funds Total funds Current assets 17,637 17,637 11 Related party transa¢tions During the year the charity made the following related party transactions: Kingsley Care Home organsation During the year the charity received unconditional donations from various care homes within the Kingsley Care Home organisalion. These care homes are under Ihe control of Mr V Thayanandarajah, a Trustee of the charity. The total amounts of these donations were £134,57012023 £96,630). The charity also utilises the care homes to facilitate international payments for charitable purposes at a cheaper rate than the charity is able to secure on a standalone basis. At the balance sheet date the amount due tolfrom Kingsley Care Home organsation was £Nil (2023 - £Nil). The charity also made donations of £61,608 (2023 - £28.832} to a Sri Lankan foundation, also under control of Mr V Thayanandaraiah, for charitable purposes. Page 12