Annual Report and Financial Statements 2021 Charity Reg No: 1113133 Company Reg No: 5570327 ## **Annual Report and Financial Statements 2021** |Contents:|Page no.| |---|---| |Reference and Administrative Details|2| |Structure, Governance and Management|3| |Objectives and Activities|3| |Achievements and Performance|4| |Future Plans|5| |Financial Review|5| 1 ## **Reference and Administrative Details** Charity Name: The U Foundation Registered Office: BVM House Trinity Lane Hinckley Leicestershire LE10 0BL Company Reg Number: 5570327 Directors: Sarah Elton Barbara Fletcher Harsad Chikhlia Charity Reg Number: 1113133 Trustees: Sarah Elton (Chair and Charity Administrator) Barbara Fletcher Shelagh Thomson Robert John Beare Harsad Chikhlia Charles Gwillim Independent Examiner: Jonathan Read 2 ## **Structure, Governance and Management** The U Foundation is a UK registered charity and a company limited by guarantee, as defined by the Companies Act 2006. The U Foundation is governed by its Memorandum and Articles of Association, drawn up on 21 September 2005. The U Foundation gained charity status on 01 March 2006 and complies with the Charities Act 2011. ## Objects of the Charity: To provide relief from poverty, sickness, and distress in any part of the world and in particular the continent of Africa, and in furtherance of this object to provide relief by the provision of facilities of all kinds, support services and equipment generally calculated to reduce the need, hardship, or distress of such persons, and to promote awareness of poverty in Africa and elsewhere generally. ## Trustees New trustees are advised of their obligations under charity law. Trustees are reappointed at the Annual General Meeting and meet quarterly for business. They must be committed to the aims and objectives of the charity. Trustees delegate the day to day running of the organisation to the Charity Administrator but should be prepared to give their time willingly to support the running of the Charity. ## **Objectives and Activities** ## Public Benefit The trustees confirm that they have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities. The purpose of The U Foundation is the provision of relief from poverty, sickness, and distress, in particular on the continent of Africa. The principal aim is to provide the tools to educate and empower communities so that they can develop sustainably. The main activities include the ongoing support and development of specific rural schools, pupil sponsorship and the provision of freshwater through boreholes. 3 ## **Achievements and Performance** With the Covid-19 pandemic still affecting the lives of everyone worldwide, 2021 was another challenging year. All in-person fundraising events were put on hold and further restrictions on travel meant that no visits could be made to oversee projects supported by The U Foundation. During this time strong communication links remained in place and regular supporters kept updated. ## Siankaba Community Trust, Southern Province, Zambia The pandemic continued to disrupt much of the school year, with schools closed for lengthy periods under government guidance. Once fully operational the school saw numbers grow to 121 pupils, an increase of 17 from the previous year. These included reception and nursery classes as well as grades 1 – 5. There were a total of 8 teachers and support staff. The new school buildings were occupied, with a classroom to house each year group. The feeding programme continued to be one of the most important aspects of the school day, particularly during this period where household incomes had been significantly affected. Support for the community continued through this difficult time with the provision of soap, masks and seeds. As the Siankaba Community Trust School receives no financial support from the Zambian government, The U Foundation is looking at ways to increase income with the Sponsor a Child programme aiming to increase its sponsors to provide a more regular, reliable income. ## Charity Begins at Home Support in Mfuwe in the Eastern Province of Zambia continued on a limited scale. This included supporting the student sponsorship programme and distribution of a charity calendar, raising awareness and funds for local schools and community development. ## Fundraising activities Once again, fundraising cycle challenges were put on hold, mainly due to potential travel disruption and the impact of the pandemic. Instead, a virtual London to Lusaka event was held during August. With some fine tuning this could become a regular feature in the fundraising calendar. 4 ## **Future Plans** Focus continues to be the expansion programme at Siankaba Community Trust to complete the primary school and teachers’ accommodation. Once all structures are complete, it is expected that the financial burden will be reduced to running costs and maintenance. Funds will be set aside as a contingency or for additional development that has not yet been accounted for. Links to Charity Begins at Home also remain strong, and we will endeavour to support the community in the South Luangwa where possible. As a small charity we are able to retain personal relationships with both donors and beneficiaries. With no salaries to pay or large overheads, donors can be confident that the money they pledge, gets to where it needs to. The U Foundation will continue to work with both Siankaba Community Trust and Charity Begins at Home to offer support in the form of educational sponsorship wherever funds allow. Fundraising activities such as cycle events remain on the agenda, although the current climate has proven fundraising events more challenging than ever to plan. ## **Financial Review** ## Income For the reporting period, The U Foundation’s income totalled £27,997 whilst expenditure totalled (£21,583), resulting in a surplus of £6,414 for the year. The charity’s cash reserves were £221,992 at year-end. These funds will largely be used for future plans at school projects in Zambia. Donations in general were significantly down during the accounting period. Mention should be made to acknowledge £6500 income from the ‘Sponsor a Child’ programme and £10,113 received specifically for the Siankaba Community Trust. £750 was received in gift aid. Fundraising events brought in a total of £2958 of which £2688 was from an online virtual event. No cycle challenge events took part during this accounting year. ## Funds held as custodian trustees on behalf of others A total of £4170 of the income was held by TUF as custodian trustees on behalf of others during the accounting period. £2810 was received on behalf of Conservation South Luangwa (CSL). It is CSL’s mission ‘to work with community and conservation partners in the protection of the wildlife and habitats of the South Luangwa 5 ecosystem’. As restricted funds, these donations were communicated to CSL and documented. These monies were transferred during this accounting period. £1360 was received on behalf of Time and Tide Foundation to be ringfenced and held as restricted funds towards their Kapani School Project in Mfuwe. Time and Tide Foundation ‘aim to give education to children who would otherwise not be able to go to school’. These funds were transferred during this accounting period. ## Expenditure The total expenditure amounted to £21,583, the majority of which relates to grants payable. Of this, £14,752 was paid to the Siankaba Community Trust, to cover school running costs, building work/renovations, pupil sponsorship and community support. £1075 was sent to the Charity Begins at Home sponsorship programme. The remaining grants payable were to those charities for which we acted as custodian trustees. (CSL £2810, Time and Tide £1360) The charity holds a reserves policy ensuring sufficient funds are maintained to enable the charity to carry out its activities. In the coming years, there will continue to be costly developments at Siankaba which will require a large injection of funds, as well as increased running costs. Although the charity’s income does not require a risk management statement, The U Foundation has in place a risk management policy to mitigate potential risks. In addition, robust financial controls are in place, ensuring finances and resources are properly managed and used effectively. The charity has limited overheads, with the charity administrator’s salary and expenses being paid by a local business. Day to day running costs amounted to £1586 for the period. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 6 Registered number 5570327 Charity number 1113133 The U Foundation Limited IA company Limited by Guarantee) Report and Unaudiied Accounts 31 December 2021 The U Foundation Limitèd Company Informatlon Dlrectors H Chikhlia Mrs S L Elton Mrs B A Fletcher Secretary H Chikhlia Accountant JCR 8ookkeepin8 Services 21 Kin8sway Leicester LE3 2JL Bankers Barclays Bank PIC Town Hall Square Leicester LEI 9AA Reglstered offke BVM House Trinity Lane Hinckley Leicestershire LEIO OBL Rtiistered number 5570327 Charlty number 1113133 The U Foundatlon Llmlted Reglstèred number.. 5570327 Dirertors. Report The directors present their report and accounts for the year ended 31 Decernber 2021. Oble¢tfves and actfvltles The U Foundation Limited, is limited by guarantee (number 55703271 and a re8lStered charity (number 11131331. Its principal address and it5 registered office address is BVM House. Trinity Lane, Hinckley. Leicestershire LEIO OBL. The company's object5 and principal activity during the year continued to be the provision of relief from poverty, sickness and distress in any part of the world and in particular, the continent of Africa and to promote 3wareness of poverty in Africa and elsewhere generallv. Dlrectors The director5 of the charitable company are its trustees for the purpose of charity law and throughout this report are collectively referred to as directors. The following directors served durin8 the year.. Mr H Chikhlia Mrs S L Elton Mrs B A Fletcher The charitable company is limited by guarantee and has no share capit31. In the event of the company bein8 wound up, members are required to contribute an amount not exceed￿￿8 £10. Rlsk managemènt The directors have a risk management strategy which includes an annual review of the risks the charity faces and the establishment of Systems and procedure5 to mitigate those risks and implementation of procedures designed to minimise any potential tmpact on the charity should those risks materialise. Review of activitles for the year The charity reported a surplus of £6.414 for the year12020..1£7.4691. The detailed results are set out in the attached financial statements. Reserves pollcy The directors aim to ensure that sufficient funds are maintained to enable the company to carry out its activities. Small company provoslons This report has been prepared in accordance with the provisions in Part 15 of the Cornpanies Act 2006 applicable to cornpanies sijbject to the small cornpanies regime. Thi5 report was approved by the board on 20 September 2022 and signed on its behalf H Chikhlla Dire The U Found#tlon Umfted Independent ExomineWs Report to the Trurtees ol The U Foundatlon ilmfted I report on the accounts of The U Foundatlon Llmlted for the year èndèd 31 DÈtèmbÈr 2021, whlch are set out on pages 4 to 7. Respectlve responsibllltie5 of trustees and examiner The Charity'5 trustees are responsible for the preparation of the account5. The Charity's trustees consider that an audit is not required for this year lunder section 43121 of the Charitie5 Act 19931 and an independent examination is needed. It is my responsibility to.. examine the accounts (under section 4313llal of the 1993 Artl,. to follow the proceduTe5 laid down in the General Directions given by the Charity Commissioners (under Section 4317llbl of the 1993 Actl.. and to state whether particular matters have corne to my attention. Basls of Independent examlners report My examination was carried out in accordance with General Direction5 given by the Charity Commi55ioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or distlosures in the accounts. and seeking explanation from you as trustees concerning any Such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. Independent examiner's Statement In connection with My examination. no matter ha5 come to my attention.. il which gives me reasonable cause to believe that in any material respect the requirements to keep accountin8 records in accordance with section 41 of the 1993 Act,. ènd to prepère accounts which accord with the accounting records and cornply with the accountin8 requirements of the 1993 Act, have not been met., or ill to which, in my opinion, attention should be drawn in order to enable proper understanding of the accounts to be reached. JC Read BA (Honsl ASIP Dip PFS JCR Bookkeeping Setvices 21 Kingsway Leicester LE3 2JL 20 September 2022 The U Foundatlon Umlted Staternent of Financial Actlvltles for the year ended 31 December 2021 Notes 2021 2020 Incoming rtsourtes Income from charitable activities and generated funds 27.997 70.354 Resources expended Fundraising and direct charitable activities Costs 121,5831 177,8231 Net In¢omln8 resource$ 6.414 17.4691 Other reeo8nised 8ains/llosse51 Net incoming resources for the financial year 6.414 17,4691 The U Foundatlon Llmlted Balance Sheet as at 31 Decèmbèr 2021 Notes 2021 2020 Current assets Debtor5 Prepayment Cash at bank and in hand 21.789 221992 221,992 224.435 246,224 Creditors- amounts falling due wlthln one year Net current assets 246,224 Net assets Reserves General Accumulated Funds 221.992 246,224 Net fund5 The directors are satisfied that the company 15 entitled to exemption from the requirement to obtsin an audit under Section 477 of the Companies Act 2006 and that members have not required the company to obtain an audit in accordance with seetion 476 of the Act. The directors acknowledge their responsibilities for complyin8 Wlth the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Att 2006 applicable to compènies subject to the small companies regime. H Chikhli Director Approved by the board on 20 September 2022 The U Foundatlon Llmlted Notes to the Accounts for the year endèd 31 Dectfflbtr 2021 l Accountlng pollclès 83515 of preparation The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard lor Smaller Entities leffertive April 20081. The account5 have a150 been drawn up in accordance with the Statement of Recommended Prartice ISORPI- "Accounting and Reportin8 by Charities" issued by the Charity Commissioners in En8land and Wales. Income All incoming resources. including donations, 8ifts and 8rants are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income receivable under gilt aid includes the related income tax recoverable. Investment income comprisin8 interest reteivable is included when receivable. Expendlture Expenditure is accounted for on an accruals basis inclusive of the irreeoverable VAT, which is aggregated to the cost to which it relates. Fund accountln8 Funds comprise unrestricted funds which are available for use at the discretion of the directors in furtherance of the general objectlVe5 01 the charity. Taxation The charity is exempt from corporation tax on its charitable activitie5. Forelgn cyrrencies Assets and liabilities in foreign currencies are translated into sterlin8 at the rates of exchange rulin8 at the balance sheet date. Transaction5 in foreign currencie5 are translated into Sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operatin8 results. 2. Debtor5 2021 2020 Other debtor5 Ilrrecoverable debtorl 21,789 3. Credltors.. amounts falllng due wlthln one year Other creditors 4. General tunds At l Januèry 2021 Surplusldeficitl for the year Irrecoverèble debt lotherl Exchan8e Rate conversion loss 246.224 6,414 121.7891 18,8571 At 31 December 2021 221,992 The U Foundation Limitèd Notes to the Accounts for the year ended 31 December 2021 5. Trusteè remuneration No trustees received any remuneration or reimbursed expenses durin8 the year. 6. Controlling party In the opinion of the directors, 8iven the strurture of the company, there is no ultimate controllin8 party. Income and Expendlture Account for the year ended 31 Decernber 2021 for the Informatlon of the dlrectors only 2021 2020 Incoming Resources 27.997 70.354 Resources Expended 121,5831 177,3231 6.414 17,4691 Net Incoming Resource5 6,414 17,4691 The U Foundatlon Llmlted Schèdule lo the Income and Expendlture Account for the year ended 31 Dècembtr 2021 fvrtbe Infvrn1¢7tlon olthe dlrertors onfy 2021 2020 Incomlng Resources General Donations (note 11 Fund raisin8 events (note 21 Bank interest 20,850 2.958 19 33.440 360 262 Othtr intome as Custodian Trustees Time & Tide CSL 1.360 2,810 4,580 31.911 Resources Expended Fundraising activities (note 31 Grants payable Inote 41 Accountèncy and administration fee5 Bank char8e5 Insurance Online Platform Misc IWebsite/lTI 20 15.827 88 58 859 251 310 360 73,012 342 48 718 3,343 Other Expendlture as Custodlan Tr￿￿teS Time & Tide CSL 1,360 2.810 4.580 31,911 The U Foundation Limited Schedule to the Income and Expendliure Account tor the year ended 31 December 2021 forthe Inftirniotion of the dirertors onfy 2021 2020 Note l .. General Donations Donations received Gift Aid income tax Sponsor a Child Online Platforrn sales Siankaba Siankaba Xma5 Calendars 2,791 750 6,500 16.825 3.639 6,024 367 8,612 1.501 412 1,727 378 Other Income re¢elved as Custodlan Trustees Time & Tide CSL 1,360 2.810 4,580 31,911 Note 2: Fundraising Events Virtual Events Charity Gig S to Vienna 20 Four Countries London Marathon 2,688 2.236 1,600 705 270 Note 3 .. Fundraising Attivities Virtual Marathon Charity Gig 20 360 360 20 Note 4.. Grants payable Siankaba Community Trust- General running costs Siankaba Capital Expenditure Siankaba- Pupil Sponsorship Charity Begins At Home Sponsorship programme 14.752 22.842 10,975 1.432 1,283 1,075